Examining online marketing influence on Vietnamese young travelers’ purchase decision
Van Pham, Nga Nguyen/ MICA 2018 Proceedings
International Conference on Marketing in the Connected Age (MICA-2018), October 6th, 2018 Danang
City, Vietnam
Examining Online Marketing Influence on Vietnamese Young
Travelers’ Purchase Decision
Van Phama*, Nga Nguyena
aVietnam Maritime University, 484 Lachtray Street, Hai Phong City, Vietnam
A B S T R A C T
The research aims to examine online marketing effects on young traveller purchase decision. Based on
traditional buying decision process, new factors from internet environment were added to find out the
relationship between purchase decision and online marketing through three main channels including social
network, electronic word of mouth (EWOM) and online advertising. The results reveal positive influence of
independent variables on dependent variable, the raising demand on travelling and mobile first trend of young
consumer. To be more detailed, EWOM is the strongest factor while social network, here is Facebook, has
weakest effect. Online advertising gives a moderate influence on young traveller consumption. As a result,
company should spend more efforts on raising customer’s feedback, keeping good relationship and doing
higher level of after sale services rather than simply promote their social network accounts.
Keywords: online marketing; purchase decision; young consumer; social network; EWOM; online
advertising; tourism
1. Introduction
Following the economy rapid growth, Vietnamese is willing spend more on travelling and leisure services,
especially young customers [1]. They are one of the main target group for tourism business due to higher travel
frequencies and their influence on others’ decision. It explains why travel and leisure companies invest largely
their resource to reach and persuade this consumer group. Born in the booming era of internet, traditional
marketing means show very limited impact on them. For millenium citizen the time of traditional marketing,
where marketers were pushing out messages toward consumers using only a one-way communication, is over
[2]. With the internet penetration rate at 44%, equivalent to 40 million users, steady increase speed [3], Vietnam
market is raising quickly in usage of internet. It introduces online marketing as a future choice for marketers. In
fact, online marketing has been widely adopted in the company marketing strategy to formulate desirable
consumer behaviour.
According to Vietnam digital landscape report [4], most frequent online activities of young consumers include
social networking, read newspaper and update general news, search, and email. It indicates the most effective
channels to reach this type of audience are social networks, online forums, popular online newspapers, and
advertising which are categorized as online marketing means. Presently, tourism business have already invest
tons of effort in these channels. Most tourism business are developing their fame in online environment via
social networks like: Facebook fanpage,; online forum such as Tripadvisor, webtretho, lamchame, facebook
* Corresponding author. E-mail address: [email protected]
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Van Pham, Nga Nguyen/ MICA 2018 Proceedings
group. Furthermore, companies frequently remain their presence on travel category in popular online newspaper
including dulich.vnexpress.net, kenh14, toidi.net. Mean while, online advertising in the form of Google Ads,
Facebook Ads, banners or videos are inevitable for many hospitality business. These channels are also
recommend by professionals as most appropriate and effecient tools [5]. However, do they really work? This
paper will examine company online marketing activities impact on Vietnam young traveller purchase decision
making stage through three recommended channels: social networks, electronic word of mouth and online
advertising.
2. Literature review
2.1. Social Networks
Social media is proved to impact to traveller buying decision by transforming the information source thus
completely changes the final consumption [6], [7]. In Vietnam, as social network is most frequent online
activities and widly use, the study will focus on this social media mean. Social networking sites is defined as
“...applications that enable users to connect by creating personal information profiles, inviting friends and
colleagues to have access to those profiles, and sending e-mails and instant messages between each other [8].
With over 35 millions frequent user [3], Facebook has highest influence as well as an important source for
Vietnam consumers. More and more people share their experience on Facebook because it is very convenient. It
is the reason why biggest travel agencies in Vietnam greatly invest on their facebook fanpage with over hundred
thousand of likes and followers, such as IVIVU (320k likes), Viettravels (137k likes), My tour (216k likes),
Viettour (112k likes) etc. Presently, they are one of the key to reach and persuade target customers.
2.2. Electronic Word of Mouth
According to [9], online Word of Mouth is any positive or negative statement made by potential, actual, or
former customers about the product or company which is made available to a multitude of people and institutions
via the internet. Nielsen reports 89% Vietnam consumer trust WOM recommendation from people they know,
the highest record in South East Asia, and mastering online word-of-mouth marketing techniques can result in a
widen circle of trust [10]. E-WOM definitely stand in a strong position in consumer buying process. Research
found out E-WOM positively affect young Malaysian traveler purchase intention [11]. Probably, E-WOM also
have great effect on Vietnam millenium consumers. Since it allows them to share and express their experience
which is a fashion among young generation. Taking a closer look in tourism market, Tripadvisor, Expedia or
Agoda are full of foreigner comments in different languages making them become the playground for inbound
tourists. Meanwhile, Vietnamese relies on other domestic source such as Facebook groups, chudu24, webtretho
or otofun forum. Previously, it is confirmed that despite the small use of online travel communities and social
network sites for travel information gathered, travel-related consumer generated media is predicted to become an
influential source for travel decision making in the near future [12].
2.3. Online Advertising
Online advertising is defined any paid form of non-personal presentation and promotion of ideas, goods and
services by an identified sponsor, which appear while consumers are browsing internet including displayed ads,
search related ads, online classifieds and other forms [13]. There was claims that online ads have positive impact
on Vietnam traveler purchase intention [14]. In this market, online advertising budget is forecasted to be four
times higher within the next five years [15], making it becomes important tool to get customers, especially the Y
generation.
2.4. Purchase Decision Making Stage
At the purchase decision stage, consumer will measure the different options that offer to him, consider the
most suitable one to his needs then choose the best as he perceives. The traditional consumer buying behaviour
model proposed a set of belief, attitudes and intention as direct antecedents of consumer purchased behaviour
[16]. Belief is a consumers' subjective perception of how well a product or brand performs on different attributes
[17]. It is made from knowledge, understanding about the brand or company which is generated from social
media, advertising and other content platforms. Attitude is an “overall evaluation that expresses how much we
like or dislike an object, issue, person or action” [18], which greatly contributes to personal choice of brand and
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Van Pham, Nga Nguyen/ MICA 2018 Proceedings
services. Consumers use belief and attitudes to evaluate the alternatives and form the purchase intention, which
represents what consumers think they will buy [19]. This kind of opinion will dominate final consumption
choice.
3. Research framework
Figure 1 illustrates the causal research framework of this study. It indicates the influence relationship
between online marketing activities and the purchase decision in the young generation tourism context.
H1
Facebook
activities
H2
Purchase
EWOM
Decision
H3
Online
Advertising
Fig. 1: The impact of Social networks, EWOM and Online Advertising on young traveller purchased decision
Hypothesis
H1: Facebook fanpage activities can positively impact to Vietnam young traveler purchase decision
H2: E-WOM positively influence purchase decision of Vietnam young traveler
H3: Online advertising positively impacts Vietnam young traveler purchase decision
4. Methodology
4.1. Data Collection
The research is carried out through two phases: qualitative study then quantitative research. Qualitative
research helped to adjust variables scale in proposed research model. After pilot test, questionnaires was
distributed in a convenient manner to implement quantitative research. Data is collected from over 300 Vietnam
Marinetime University students by online channels and print surveys. Research sample is focused on very young
people who are under 25, have low budget but can decide independently when buying travel services.
4.2. Data Analysis
In order to find out the interrelationships between the variables and prove the reliability, reliability analysis
(Cronbach Alpha) and exploratory factor analysis (EFA) are chosen. Reliability analysis helps identify the
internal consistency of variables, points out trustable variables set. EFA is widely adopted when examining the
potential interrelationships among variables, here are the dimensions of online marketing activities.
Using SPSS 16.0 to analyze data, Cronbach’s Alpha analysis is conducted to test model reliability. The
lowest value is Online Advertising (.718), and the highest one is EWOM (.886). It shows that the items are
closely related in the same factor. The Corrected item – Total correlation values are higher than .3, which is
ranged from .517 to .824. The independent variables’ scale have Cronbach’s Alpha coefficient value excess .6
which means all variables are valid and reliability for further analyze.
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Van Pham, Nga Nguyen/ MICA 2018 Proceedings
Table 1. Chronbach’s Alpha reliability analysis result
Variable
No of items
Α
Facebook
EWOM
Online Advertising
3
3
3
.810
.886
.718
The exploratory factor analysis (EFA) were tested with Kaiser-Meyer-Olkin and Bartlett’s test of sphericity
to exclude irrelevant items. There was 9 items of independent variables is analyzed using Varimax Rotation
method. The final decision variable is explained by only 1 factor will not be included in EFA analysis.
Table 2. EFA Result
Rotated Component Matrixa
Component
1
2
3
EWOM impacts on attitude
.905
.884
.878
EWOM impacts on purchase intention
EWOM impacts on belief
Facebook impacts on attitude
.883
.836
.791
Facebook impacts on purchase intention
Facebook impacts on belief
Online advertising impacts on attitude
Online advertising impacts on purchase intention
Online advertising impacts on belief
.871
.771
.769
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 4 iterations.
Table 2 shows EFA rotated component matrix with The Barlett's Test of Sphericity sig is .000 <5%; KMO
Values is .638. EFA result shows that there are 3 factors are extracted. These factors corresponded to three
independent factors: (1) Facebook fanpage activities; (2) EWOM about the company; (3) Online advertising
activities. The dependent factor, which is traveler purchase decision, has one explained variable and did not
included in the EFA. EFA result also points out 9 variables of the 3 factors have acceptable factor loading (more
than .769) and Chronbach’s Alpha values are higher than .7. Therefore, the research model will remain 3 factors
with 1 dependent factor as proposed before.
Table 3. Pearson Analysis Result
Correlations
F_PD
F_FB
1 .413**
F_EWOM
.674**
F_OA
.401**
F_PD
Pearson Correlation
Sig. (2-tailed)
.000
.000
1 .319**
.000
.000
.187**
F_FB
Pearson Correlation
Sig. (2-tailed)
.413**
.000
.002
F_EWOM
F_OA
Pearson Correlation
Sig. (2-tailed)
.674**
.319**
.000
.187**
1 .091
.127
.000
Pearson Correlation
Sig. (2-tailed)
.401**
.000
.091
.127
1
.002
To explore the correlation among independent variables, Pearson correlation analysis is applied to the data.
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Van Pham, Nga Nguyen/ MICA 2018 Proceedings
Pearson correlation analysis result reveals a strong linear correlations between independent variables and
dependent variables. The Pearson’s correlation coefficients are highly significant (all P values <.01).
Specifically, the correlation between Purchase Decision (F_PD) and Facebook fanpage activities (F_FB) is r =
.413, with EWOM (F_EWOM) is highest at r = .674, and with Online Advertising is r = .401. This result showed
that EWOM have strongest relationship with purchase decision.
5. Results and findings
5.1. Young’s traveller buying behaviour
According to table 4, research sample contains very young participants with relatively low budget, high
internet use via mobile devices, significant travel demand and frequency. Over 50% participant said they have
holiday travel within 6 months and 67% travel at least once annually. Having limited income, they might
traveled with family, and play important role in decision making process. Talking about most frequent use
device, 63% respondence accessed internet on their mobile phone, meaning company should pay more atention
to mobile first trend. It is unavoidable to effectively adapt with this trending environment beside the computer
screen. Further more, unlike the mature customers, young consumer strongly relies on internet typically search
engine and social network to search for destination, seeking suggested activities and find information about
accommodation or restaurant. In addition, this age group also has strong impact to their family decision because
many of them will be in charge for planning family trips.
Table 4. Sample characteristics
Percentage
Gender
Male
Female
42.5%
57.5%
Age group
Under 22
From 22-25
From 26-30
58.9
25.6
15.4
Internet access device
Mobile
Personal computer
Work place
Internet shop
63.51%
27.02%
8.07%
1.40%
Income
Less than 3 millions VND
From 3-5 millions VND
From 5-10 millions VND
Over 10 millions VND
57.19%
12.98%
15.79%
7.02%
Annual travel frequency
1-2 per year
3-5 per year
Every 2-3 years
67.72%
12.63%
5.61%
Rarely
14.04%
Reasons to use internet when plan to travel
Find information about tour. hotel. restaurant. Ticket
Search destinations. Places
59.30%
80.00%
61.75%
41.05%
See photo or video about places. experience. activities
See advertisements. promotions. compare the price and offers
Read comments. reviews in professional websites such as
TripAdvisor. Agoda. otofun…
Post and ask for advices about travel plan
Reference channel when making purchase decision
Search engine (Google. CocCoc. Firefox…)
Social network (Facebook. Zing.vn. Instagram…)
41.05%
9.82%
85.26%
74.74%
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Van Pham, Nga Nguyen/ MICA 2018 Proceedings
Forums online communitie (webtretho. otofun. Tripadvisor. Agoda...)
Blogs (toidi.net. ivivu…)
Online newspaper. online magazine (dantri.com. vnexpress.net…)
Photo. video sharing (Youtube. Flickr…)
55.09%
28.42%
29.82%
26.67%
5.2. Online marketing activities influence on young traveller purchase decision
Linenear regression analysis is accomplished for 3 independent variables including: Facebook activities
(F_FB), EWOM (F_EWOM), Online advertising (F_OA) and 1 dependent variable: Purchase decision. The
analysis will examining relationship between variables.
Table 5. Linear regression analysis result
Variables
Constant
Facebook
EWOM
Online Advertising
R
Β
T
Sig
Hypothesis
-.595
.201
.671
.430
-2.779
4.695
14.898
8.667
.000
.000
.000
Accepted
Accepted
Accepted
.782
R2
.612
.000
Sig F Change
Table 5 shows the relationship of Facebook activities, EWOM, online advertising and Purchase decision.
The R2 value is .612 which means 61.2% of the dependent variable (purchase decision) can be influenced by
three independent variables (facebook activities, EWOM and online advertising). There is no autocorrelation in
the residuals of this regression analysis as Durbin-Watson value is 1.952. The sig(β1), sig(β2), sig(β3) values are
less than .05 showing independent variables contribute statistically significantly to the model. It can be said that
young Vietnamese purchased decision is highly affected by online marketing activities in the tourism context.
Result points out the Facebook activities positively affect Vietnam young traveller purchase decision, partly
explains by the widely use of Vietnamese in this platform. Presently, the vast majority business in tourism
industry are spending much effort in Facebook marketing along with high competence. It is efficient in terms of
reaching audience with positive impacts on purchase decision. However, it is not as strong as many people might
think since β1 = .201, the lowest one among independence variables. Facebook fanpage may not be the highly
recommended channel for making instant sale. This finding points out that managing Facebook fanpage should
be in the long time, in order to gradually build up company image in customer’s mind. Several campaigns can
boost the fame but cannot directly rock the turnover. It could be a daily place to talk to broad audience, reaching
potential customers and keep interaction.
It seems EWOM has higher influence on Vietnam young traveller purchase decision (β2 = .671). It is the
strongest factor to people’s choice of service among researched channels. EWOM, being the user-generated
content, proves its power to affect people buying behaviour. The hypothesis is also backed up by the fact that
89% Vietnam consumer believe WOM recommendation from people they know (Nielsen, 2015). What happens
in the real life, performs similarly in the internet environment. EWOM should have greater investment. By
concerning more about what the customer’s feedback, keeping good relationship and doing higher level of after
sale services, company can increase their sale more effeciency. The better review they get, the higher sales will
come. However, Vietnam culture is an obstacle as people unwilling or easily forget to leave their feedbacks. In
addition, people tend to post about unsatisfactory, complains rather than compliments. It is company’s turn to
actively contact, invite and motivate them give better feedbacks, solve problems, keeping in touch regularly and
instantly.
Table 5 also exposed the significant impact of online advertising on Vietnam young traveler purchase
decision (β3= .430). The young generally considers online advertising as an important reference source.
Apparently, young consumer is attracted by sparkling advertisement, even make purchase decision upon their
emotion. Therefore, online advertising is an effective, and quick method to persuade customer as well as their
decision, giving the fact that search engine (contains many search ads) such as Google, Firefox, Coc Coc… is the
most widely use when planning to travel. In the short term, business can sharply increase sales using good offer
and a wise advertising campaign. Advertisements should be designed attractively, clearly as well as distribute
widely.
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Van Pham, Nga Nguyen/ MICA 2018 Proceedings
6. Conclusion, limitation and future development
Base on EBM model of consumer buying decision process, this study test, and explain the influence of online
marketing means on Vietnam young traveller purchase decision. It provides more details about impact of online
channels which are different from the traditional promotion channels such as TV, newspapers, magazine, event
or banner, leaflet. The previous studies clarified social media effects to purchase intention. This research and
possibly, future improvement, tried to go further to cover decision making stage. Moreover, previous studies
were carried out mainly in developed countries, this study adjusted and tested those models in Vietnam, a
transitional economy with very young consumer compared to the mature counterpart in the developed countries.
Beside the findings, there are limitations exist to overcome for further study. Firstly, the number of
observational items is limited. A more detail list of variables and items could deliver more precise results, giving
the fact that online marketing does not only include social network, EWOM and online advertising. Research
methodology is rather simple, which cannot discover all aspects of the issues. Finally, due to the shortage of
resource and time, participant’s profile focused on university students, thus lack of diversity.
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