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1. VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY
INTERNATIONAL UNIVERSITY
SCHOOL OF BUSINESS
THESIS
Topic: EXPLORING THE FACTORS THAT
AFFECT CUSTOMER’S INTENTION TO
PURCHASE A DOG
Student’s name:Phan Gia Khoa
Student ID:BABAUI 12256
Advisor:MR. Nguyen Van Ngai
April, 2016, Ho Chi Minh City

2. ACKNOWLEDGEMENTS
First of all, I would like to sincerely thank all the teachers, especially the
teachers in International University - Ho Chi Minh City facility for delicately teaching
and conveying knowledge as well as valuable experience for me over the last four
years.
In particular, I would like to express my deep gratitude to Mr. Nguyen Van
Ngai who gave me such useful guidance and feedback for this project. It is his
valuable support in terms of knowledge, experience and spirit that has helped me with
ideas and strength to implement this report better.
Finally, I am grateful to my family, friends and all those who have
encouraged me in the process of studying and internship.
April, 2016, Ho Chi Minh City.

3. TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION ..........................................................................................1
1.1.Background: .......................................................................................................................1
1.2 Project Statement ...............................................................................................................2
1.3 Research questions: ...........................................................................................................3
1.4.Research objectives ...........................................................................................................4
1.5.Research scope ...................................................................................................................4
1.6 Significance ........................................................................................................................4
1.7 Thesis structure ..................................................................................................................5
CHAPTER 2: THEORY AND RESEARCH MODEL.Error! Bookmark not defined.
2.1.Theory ..........................................................................Error! Bookmark not defined.
2.1.1. Shopping behavior theory.......................................Error! Bookmark not defined.
2.1.2.Factors influencing customers’ behavior toward dog purchase Error! Bookmark
not defined.
2.1.2.1. Cultural factors .....................................................Error! Bookmark not defined.
2.1.2.2. Social Factors........................................................Error! Bookmark not defined.
2.1.2.3. Personal factors.....................................................Error! Bookmark not defined.
2.1.2.4. Psychological factors ...........................................Error! Bookmark not defined.
2.1.3. Vietnamese pet owners survey ..............................Error! Bookmark not defined.
2.1.4. Most popular dog breeds ........................................Error! Bookmark not defined.
2.1.4.1. Siberian Husky .....................................................Error! Bookmark not defined.
2.1.4.2. Alaska ....................................................................Error! Bookmark not defined.
2.1.4.3. German Shepherd:................................................Error! Bookmark not defined.
2.1.5. Customers’ reasons to purchase a dog in Ho Chi Minh City....Error! Bookmark
not defined.
2.1.5.1. Benefits:.................................................................Error! Bookmark not defined.
2.1.5.2. Drawbacks.............................................................Error! Bookmark not defined.
2.1.6. The necessaries and meanings of developing pet purchase service ..............Error!
Bookmark not defined.
2.2. Research Models.........................................................Error! Bookmark not defined.

4. 2.2.1. Theory Of Reasoned Action – TRA Model .........Error! Bookmark not defined.
2.2.2. Theory Of Planned Behavior – TPB .....................Error! Bookmark not defined.
2.2.3. Conceptual model of the effect of price, brand name, and store name, on product
evaluation ...........................................................................Error! Bookmark not defined.
2.2.4. Signaling theory model...........................................Error! Bookmark not defined.
2.2.5. Other studies.............................................................Error! Bookmark not defined.
CHAPTER 3: RESEARCH DESIGN .............................Error! Bookmark not defined.
3.1. Research process:........................................................Error! Bookmark not defined.
3.2. Information collecting methods ................................Error! Bookmark not defined.
3.2.1. Secondary information collecting methods..........Error! Bookmark not defined.
3.2.2. Primary information collecting methods ..............Error! Bookmark not defined.
3.2.3. Proceed method .......................................................Error! Bookmark not defined.
3.2.4. Questionnaire content (Addendum 1)...................Error! Bookmark not defined.
3.2.5. Interview subjects....................................................Error! Bookmark not defined.
3.3. Proposed research model ...........................................Error! Bookmark not defined.
CHAPTER 4 : DATA ANALYSIS AND RESULTS ...Error! Bookmark not defined.
4.1. Sample..........................................................................Error! Bookmark not defined.
4.1.1. Sampling method.....................................................Error! Bookmark not defined.
4.1.2. Sample characteristics.............................................Error! Bookmark not defined.
4.2. Descriptive Statistics..................................................Error! Bookmark not defined.
4.2.1. The factor of interest awareness ............................Error! Bookmark not defined.
4.2.2. The factor of perceived risks..................................Error! Bookmark not defined.
4.2.3. The factor of health awareness ..............................Error! Bookmark not defined.
4.2.4. The factor of convenience ......................................Error! Bookmark not defined.
4.2.5. The factor of purchasing intention ........................Error! Bookmark not defined.
4.3. Consistency check ......................................................Error! Bookmark not defined.
4.4. Exploratory factor analysis (EFA)............................Error! Bookmark not defined.
4.4.1. Exploratory factor analysis EFA of independent variablesError! Bookmark not
defined.
4.4.2. Exploratory Factor Analysis of dependent variables ..........Error! Bookmark not
defined.

5. 4.5. Regression analysis ....................................................Error! Bookmark not defined.
CHAPTER 5: CONCLUSION AND RECOMMENDATION ....Error! Bookmark not
defined.
5.1. Conclusion ...................................................................Error! Bookmark not defined.
5.2. The convenient system...............................................Error! Bookmark not defined.
5.3. Business implication: .................................................Error! Bookmark not defined.
5.4. Limitations...................................................................Error! Bookmark not defined.
5.5. Recommendation for future studies..........................Error! Bookmark not defined.
REFERENCES
APPENDIX

6. LIST OF FIGURE
Figure 2.1: Decision making process of consumer buying diagram...Error! Bookmark
not defined.
Figure 2.2 Maslow’s hierarchy of needs .........................Error! Bookmark not defined.
Figure 2.3: Theory of Planned Behavior (TPB) .............Error! Bookmark not defined.
Figure 2.4: Factors affecting consumer trend on baby food powder ..Error! Bookmark
not defined.
Picture 3.1: Research process ...........................................Error! Bookmark not defined.

7. LIST OF TABLE
Table 4.1 Research sample characteristics......................Error! Bookmark not defined.
Table 4.2: Descriptive statistics of interest awareness factor......Error! Bookmark not
defined.
Table 4.3: Descriptive statistics of perceived risk factor ..............Error! Bookmark not
defined.
Table 4.4:Descriptive statistics of health awareness factor ..........Error! Bookmark not
defined.
Table 4.5: Descriptive statistics of convenience factor .Error! Bookmark not defined.
Table 4.6: Descriptive Statistics of pet purchasing intention factor ...Error! Bookmark
not defined.
Table 4.7: Exploratory factor analysis.............................Error! Bookmark not defined.
Table 4.8. EFA result of dependent variables.................Error! Bookmark not defined.
Table 4.9 : Regression analysis of factors that influence customers’ intention to
purchase dogs in HCMC market ......................................Error! Bookmark not defined.
Table 4.10: F-Test result....................................................Error! Bookmark not defined.
Table 4.11 : Pearson’s correlations between dependent and independent variables
..............................................................................................Error! Bookmark not defined.
Table 4.12: multicollinearity test......................................Error! Bookmark not defined.
Table 4.13 : Multiple regression analysis........................Error! Bookmark not defined.

8. LIST OF CHART
Chart 4.1: Subjects’ Gender ..............................................Error! Bookmark not defined.
Chart 4.2: Subjects’ Age....................................................Error! Bookmark not defined.
Chart 4.3: Amount of money spent for pets....................Error! Bookmark not defined.
Chart 4.4: Dog owning time..............................................Error! Bookmark not defined.
Chart 4.5: How often playing with the dogs ...................Error! Bookmark not defined.

9. LIST OF ABBREVIATION
ABBREVIATION EQUIVALENCE
HCMC Ho Chi Minh City
CEO Chief Executive Officer
VND VietNam Dong
TPB Theory Of Planned Behavior –
TRA Theory Of Reasoned Action –
EFA Exploratory Factor Analysis
ANOVA Analysis of variance

10. CHAPTER 1: INTRODUCTION
1.1 Background:
The market now provides food to a majority of pets that are imported from
overseas. Considered to have a great potential in Vietnam, pet industry is gradually
developing and attracts many foreign companies’ investment. According to Mr.
Wayne Capriotti – the market research specialist in pet industry from the Digi-escape
Co., visitors at the Dog Show, pet industry market in Vietnam has a great potential as
in the past 5 years, the number of pet owners is increasing and they start to consider
their pets as family members. Many of them, especially the young ones, are willing to
buy commercial food for their pets to ensure the best development for their dogs and
cats. The growth of pet food purchase is mainly limited within big cities such as Ho
Chi Minh, Ha Noi, Da Nang, Hai Phong and Can Tho. Many foreign manufactures of
pet food like Invivo NSA, Smart Deart, Royal Canin… are focusing on building
products distribution systems in Vietnam to improve sale performance through retailer
stores and veterinary clinics to meet the increasing demand of customers. There are
more and more foreign pet food manufacturers invest in producing dog and cat food in
Vietnam day by day, Invivo NSA (France) as example. “With over 70% of population
still live in rural areas, develop handicrafts industry who are an abundant low-cost
labor resource, Vietnam is very potential for high-end brands of food and non-food
production to export to large markets in pet industry like other parts of Asia, North
America and Europe. Vietnam is also seen as a low-cost pet food production source as
there is a rich source of meat, seafood, rice, fruit and vegetable (basic components of
pet food) here.”, Mr. Wayne Capriotti said.

11. Nowadays, pet trend which many people of all ages are fond of is growing
worldwide. According to the researchers, those who have experience with pet all get
both physical and mental benefits. The pet owners would have lower stress level than
those who do not have a pet. Usually, people start to suffer health problem after the
age of 65, but a study found out that if you have a pet, you would reduce it 30% than
those who don’t. (HT, according to HMU)
In Ho Chi Minh City, on the main streets such as Tran Hung Dao, Phan Dang
Luu, Cong Hoa…, pet stores start to appear. Each brand has its own strength to satisfy
the customers. Most of the stores locate in spacious intersection in order to be easily
seen and catch customers’ attention more affectively. Vietnam, with over 90 million
inhabitants of which 65% are young people under the age of 35 and the rate of
economic growth expected to up to 8.5 in 2016, is an attractive market to companies
that supply products, caring services for pets of which dogs are the most popular for
their loyalty, intelligence and suitable shape for individual as well as family.
Therefore, the theme “Exploring factors that affect customer intention to purchase
a dog” at Ho Chi Minh City market is important and necessary.
1.2 Project Statement
In Vietnam, the quantity of buyers increases mostly in urban areas, especially
in HCMC where people have higher living condition. This reflects the overall growth
and the fact that lives improve thanks to economy development.
According to a pet dog market survey in large cities of the Market Research
Online W&S Co. announced at the end of 2014, Alaska, Japeke (a cross between
Japanese chin and Pekingese), Tiny Poodle, Miniature Pinscher, Chihuahua… are the

12. most popular breeds of dog in Vietnam. The survey result of 272 people at the age of
more than 20 shows that they come to pet store and veterinary clinic at least once per
month. Among them, the group at the age from 24-29 has the highest pet buying rate.
Following the general development, pet trend will continue to grow in the coming up
period of time, especially in the young. These figures have showed the strong growth
of the pet market, the number of sellers as well as buyers is increasing rapidly.
Currently, pet market in Vietnam in general and in HCMC in particular, there
are a lot of individual purchases, stores and farms which are not actually on a large
scale. In order to find a new solution for Vietnam enterprise in pet dog market, this
report would perform the “Factors affecting purchasing pet dog in HCMC market”
research based on the study of services and products shopping behavior that have been
implemented by many authors in the world and also announce some models related to
pet dog shopping behaviors as well as some studies that have been done in Vietnam.
1.3 Research questions:
In order to achieve fore-mentioned objectives of the study, research questions
have been posed as the following:
(1) What are the factors that affect to pet dog shopping behaviors of customers in
HCMC?
(2) How are the impacts of these factors on pet dog shopping behaviors of
customers in HCMC?
(3) Which model can demonstrate these factors on pet dog shopping behaviors of
customers in HCMC?

13. 1.4 Research objectives
To clarify the main objective of the study, the research has carried on two detail
objectives
(1) Identify factors that affect pet dog shopping behaviors of customers in
HCMC?
(2) Exampling factors that affect pet dog shopping behaviors of customers in
HCMC.
(3) Business implication for animal markets
1.5 Research scope
Research subjects: Factors affecting pet dog shopping behavior of customers in
HCMC.
Survey object: students, young people that have purchased pet dog in the period
of 12 months from 1/2015 to 1/2016 in HCMC.
Area: HCMC market
Time: 04/2016.
1.6 Significance
Through the study of pet dog purchasing behavior, the result provides some
practical meanings:
- This research based on study models of shopping behavior, through which we
could find out factors that affect to the idea of buying a dog in Vietnam market.
- Therefore, this research could become a reference for the future on customer
shopping behavior related to pet dog purchasing.

14. - Through the identification of factors affecting buying pet dog trend, the
research would help service providers in Vietnam understand customer needs
better in order to develop sales strategy more effectively, and find a solution to
improve the quantity of the pet dog buyers.
1.7 Thesis structure
The report is organized into 5 chapters. The first one provides general
information about the topic, author’s reasons for choosing this topic, issues and the
research objectives, the meaning and limits of the research. Chapter 2 introduces the
theoretical basis as well as study model of customers’ decision making and factors
affecting pet dog shopping behaviors in HCMC. The previous studies on factors
affecting pet dog shopping behaviors by customers on domestic and foreign markets
combining with the business situation in HCMC pet market, I would like to propose
my research model and hypothesis.
The third one presents the methodology and the way this report verifies models
as well as the research hypotheses. Chapter four discusses and provides an explanation
for the research methodology and data analysis used in the report. This chapter also
explains how research data handled and results analyzed. The last chapter analyzes the
results of the research, the contribution as well as the practical significance of the
subject and proposes some solutions to apply the research result into practice and puts
forward further research topics.
.

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