Research Article: 2020 Vol: 19 Issue: 5
Ha Van Son, University of Economics Ho Chi Minh City (UEH)
Nguyen Van Trai, University of Economics Ho Chi Minh City (UEH)
Pham Thanh Binh, College of Statistics 2 - Dong Nai province (COS2)
Consumer behavior is an essential factor in deciding whether to buy or reject the products. This behavior directly affects the future marketing strategy of enterprises. Besides, consumers' behavior is thinking, feeling, and operating activities that customers perform in the process of consumption. Therefore, the objective of the study is to test the model and to measure Economic Nationalism. Besides, this paper continued assessing the relationship between Economic Nationalism, Internationalism, and consumer behavior. The research results showed that all factors influence people's consumption behavior in a direction not only Economic Nationalism but also Internationalism. This result proved that the current economy of Vietnam has the development and integration of the world although people only choose and use the product when it is better, there is still a part of favoring racial identity.
Economics, Nationalism, Internationalism, Consumer and Behavior.
Vietnam has joined the international economic integration, so the exchange or trading of goods is very convenient, but it cannot avoid the fierce competition and create pressure for enterprises. If the domestic product does not meet the consumers' criteria, it excluded from the domestic market. Besides, the protection of domestic goods of the competent authorities has not been drastically radical. This problem is happening while Vietnam's goods exported to other countries often face technical barriers. In contrast, goods from other countries flow into Vietnam very smoothly. This situation has made domestic manufacturing enterprises challenging to compete on price, but also the risk of Vietnamese goods lost at home is inevitable (Aissam Bousbia, 2017). According to the American Marketing Association, consumer behavior is the thoughts, feelings, and actions customers perform during the consumption process. Factors such as opinions from other consumers, advertising, information on prices, packaging, product appearance. They can all influence customers' perceptions of thoughts and shopping behaviors. Among the many factors that can influence customer behavior, there have been essential studies on the relationship between consumers' ethnicity and their attitude towards and support domestic products. However, in Vietnam, these studies are rare. So the authors wanted to study this relationship through domestic packaged milk products so they could provide necessary insights to both researchers and economic regulators. Therefore, the authors study the factors affecting the consumer behavior of domestic packaged milk products in Dong Nai province that are necessary contributions to improve consumer behavior and the enterprises' management capacity for marketing strategy.
The Concept and Studies Related to Internationalism
Internationalism is the growth of immigration, the development of foreign adoption, and the constant transformation by technology that creating more and more hybrid cultures. These hybrid cultures increasingly appreciate sharing the world, collective welfare, and empathy. Internationalist consumers have a higher appreciation of imported products; they are people who value the world's view of the issue of people. Individuals with Internationalism not only show an interest or understanding of international problems but also care about the spirit of world values and consensus development. Ajzen (1991) confirmed that the sociological concept of Internationalism that distinguished between two different types of people influenced by Nationalism and international. The researchers argued that foreign people tend to orient themselves across the boundaries of their nation to participate in an expanded society. Internationalism is like being open to different cultures and having some active desire to seek experiences from other cultures rather than from one's own culture. The researchers then tried to expand the concept of Internationalism into the marketing context. Anderson & Gerbing (1988) describe internationalists as individuals who support broader, better, and more diverse cultural stories. This factor keeps global aspirations, and they are less loyal. International consumers also are seen as world citizens who view the world as their market and consumer-driven across any particular cultural context and Auruskeviciene et al. (2012) suggest that international consumers should have three characteristics: openness, evaluation and socio-economic development. High diversity and consumer behavior across borders. They describe global consumers as open-minded individuals who value diversity and are willing to try products from different countries.
The Concept and Studies Related to Economic Nationalism
According to Baughn & Yaprak (1996) showed that the concepts of Nationalism and patriotism are often used interchangeably and viewed as antithetical to “Internationalism”. Bentle & Bonett (1980) distinguishes these two concepts by arguing that: (1) Nationalism is the supreme loyalty of consumers towards a country, which has a significant influence on attitudes and expectations. Intend to purchase. Consumers with Nationalism are willing to make sacrifices to buy a domestic brand because they believe imported goods can damage their country's economy. (2) With domestic consumption, patriots see domestic consumption as part of their duty to their country to protect the economy and support production. Domestic. Consumers consider choosing to buy domestic goods as a powerful impact on their home country, and they show a bias toward local products. Cannon & Yaprak (2002) clearly distinguish the two concepts of Nationalism and patriotism in their works, unlike Nationalism, patriotism related to positive emotions towards the land. His country, without national power and domination, are two important characteristics of Nationalism. Dmitrovic et al. (2009) also distinguishes Nationalism and patriotism by noting that patriotism is “committed and ready to sacrifice for the country, while nationalism is a commitment to support the goods” domestic by hostility towards other countries. Nationalist consumers are aware that buying imported products is wrong because it damages the domestic economy, damages jobs, and is not patriotic. "Highly ethical consumers are more inclined to emphasize the positive aspects of domestic products to reduce the attributes of different products.
The Concept and Studies Related to Government
The Government is a powerful entity to enforce the law within a national organization or a group of people at a national level. Besides, the Government also manages or directs in an area in a group of people. The Government is also the body that is given executive power along with the head of State. However, there are many different terms, such as the Council of Ministers, the State Council, the Cabinet, the Administrative Council. But the term “Government” has the most comprehensive meaning, which implies the real agency. Current executive power in a state structure or similar State (Druckman, 1994). The Government is a powerful entity to enforce the law within a national organization or a group of people at a national level. Besides, the Government also manages or directs in an area in a group of people. The Government is also the body that is given executive power along with the head of State. The Government is the National Assembly's administrative organ, the highest organ of state administration of the Socialist Republic of Vietnam. The Government is the body that exercises the supreme executive power of the State.
Government intervention must be a long-term, long-term goal of supporting market facilitation (Parts & Vida, 2011). This principle requires the Government to have a definitive view of the role of the public sector, which should be a catalyst that facilitates the development of the private sector for the benefit of society. The Government must respect and protect the interests of the private sector to promote fair competition. Studies showed that the Economic Nationalism factor has a positive impact on the Government. Based on the concept mentioned above and studies, authors give hypothesis H1 following:
H1 The Economic Nationalism positively affects the Government in Dong Nai province.
The Concept and Studies Related to Enterprise
Enterprise is one of the central business entities of society. An enterprise is a business unit established to carry out business activities for the sake of profitability. Enterprise is an economic organization with its name, a stable transaction office, and is allowed to register its business according to the law's provisions to conduct stable business operations (Parts & Vida, 2011). Enterprise is the place (1) Production: combined with input to produce wealth or services for sale; (2) Division of earnings for workers of owners, input suppliers; (3) Cooperation: or handling conflicts between members of the enterprise; (4) Exercise power: the business owner decides, the staff communicates to the implementation staff. The higher benefits that business growth brings are to create a larger, more luxurious, better quality quantity of goods and services, replacing many imported goods, making an essential contribution to improving and improve domestic consumption and increase exports, which is also the factor that keeps the economy stable (Veerakumar, 2017). Studies showed that the Economic Nationalism factor has a positive impact on the enterprise. Based on the concept as mentioned earlier and studies, authors give hypothesis H2 following:
H2 The Economic Nationalism positively affects the enterprise in Dong Nai province.
The Concept and Studies Related to the Public
The Public is every group of people who have an interest in or actual or potential influence on a company's ability to achieve its goals. The Public may facilitate or make it difficult for a business to operate. People are also called people, people, and people, referring to all people living in a country, and equivalent to the concept of a nation (Vida & Reardon, 2008). People also have broader ideas and are used in politics, law, and political thought. In legal politics, people are similar to the term citizens who are nationals and protected people of a state where they live and usually do not include people in the apparatus. The people are not an immutable community but, on the contrary, always changing with the change of historical duties in each era and each stage of development (Yoon et al., 1996). However, the most fundamental force of each person's community is the laborers who produce material and spiritual wealth for the survival and development of society. Besides, depending on the specific historical conditions, the mass community may include other forces of class and social class (Riefler & Diamantopoulos, 2009). Studies showed that the Economic Nationalism factor has a positive impact on the Public. Based on the concept as mentioned above and studies, authors give hypothesis H3 following:
H3 The Economic Nationalism positively affects the Public in Dong Nai province.
The Concept and Studies Related to Consumer Behavior (CA)
Kotler et al. (2010) points out that if a person has the right attitude towards domestically produced goods, they plan to buy domestically, and the more this intention is when there is genuine demand, they buy. However, there is a gap between intention and behavior, meaning that consumers are planning to buy a product, but their actual buying behavior is not guaranteed. Therefore, the advantage of the concept of purchasing behavior is to identify specific actions of selecting, buying, and accepting a particular type of goods. Kotler et al. (2010) in the evaluation phase of the buying plan, consumers give points to different brands and form the buying intent.
The user decides to buy the product of the most popular brand. Hsu (1987) points out that the intention to purchase refers to certain exchange behaviors created after a general consumer review of the product. It is a cognitive reaction towards a person's attitude towards a product object. Consumers' buying intent is formed by evaluating their products or their attitude towards a brand combined with external factors. Dmitrovic et al. (2009) suggest that intention to purchase involves a subjective assessment of future behavior. The purpose of purchase stands for what we want to buy in the future.
In summary, based on the above definitions of purchase intent refers to the following: the ability of consumers to be “ready” to consider buying, representing what a person wants to buy in the future-showing consumers' decision to “buy back” the company's products again. Studies showed that the Economic Nationalism factor has a positive impact on consumer behavior. Internationalism negatively affecting consumer behavior. Based on the concept mentioned above and studies, authors give hypothesis H4 and H5 following:
H4 Economic Nationalism positively affects consumer behavior in Dong Nai province.
H5 Internationalism negatively affects consumer behavior in Dong Nai province.
Based on previous studies, the authors propose a model to study factors affecting the consumer behavior in Dong Nai province including six components: (1) Government; (2) Enterprise; (3) The Public; (4) Economic Nationalism; (5) Internationalism, and (6) Consumer behavior (Figure 1).
The authors applied qualitative and quantitative research methods in this study, based on the opinions of experts to adjust observed variables. And determine the relationship between variables in the model. There are 30 experts surveyed in 30 enterprises Dong Nai province. Thirty experts are managers who are working for sales and marketing. Quantitative research conducted through questionnaires. The authors surveyed 316 consumers who used domestic packaged milk products. The data collection time is from February 11, 2018, to March 15, 2018. Samples selected according to the conventional method. The collected data coded and verified with Cronbach's Alpha scale, EFA exploratory analysis, using CFA analysis and SEM model using SPSS 20, Amos 20, and Excel software 2016. This method aims to identify causal relationships and the degree of influence of each factor on the consumption behavior of domestic packaged milk products. The quantitative method used to answer the second question - how the impact of Economic Nationalism and Internationalism on consumer behavior (Hair et al., 1998). The study conducted through the following specific steps: (1): Preliminary research: Preliminary study conducted with the survey sample n=50. This step aims to evaluate the reliability of the scale through the Cronbach Alpha coefficient. The assessment results used to remove non-conforming scales before EFA analysis and adjust the draft scale 2 to the official scale. (2): Official research: Official survey conducted to measure factors affecting the Economic Nationalism and Internationalism on consumer behavior in Dong Nai province. Three hundred sixteen consumers used domestic packaged milk products in Dong Nai province. Consumers answered 12 items, and all of the samples processed in Dong Nai province. The questionnaire uses a 5-point Likert scale, with one strongly disagrees and five strongly agree (Hair et al., 1998). (3): The authors tested the reliability and validity of the scale the Cronbach's Alpha, the KMO coefficient is within 0.5 to 1, Sig coefficient ≤ 5%. (4): The authors tested a structure model (SEM). Based on the Chi-square testing is P-value > 5%; CMIN/df ≤ 2, CMIN/df ≤ 3 or ≤ 5 (Hair et al., 1998) (5): The authors had a summary of research results based on model test results. (6): The authors had conclusions and managerial implications.
The authors based on 316 samples processed by SPSS 20.0, the results showed that there were 127 males with 40.2% and females with 59.8%. The women accounted for a higher proportion than men were because women often spent and bought the products. It is the fresh milk to use for the family. It is the main. In terms of age: samples are from 25 to under 40 years old with 50.9%. And the next examples are from 40 to under 55 years old with 24.1%. This information is also the majority of self-determination in family spending. The use of fresh milk occurs in households with the number of people living from 2 to less than five people with 84.8%, and the average income of the family is relatively high, from 12 VND million and above with 61.4%. Besides, the average expenditure of households is also relatively from 7 million to 9 million VND or more with 37.3%.
The authors tested the scale reliability of a model for factors, including six components: (1) Government; (2) Enterprise; (3) The Public; (4) Internationalism, and (5) Consumer behavior. Cronbach's Alpha has the following:
Table 1 showed that all Cronbach's Alpha values of the research components meet the requirements of this technique, specifically, Cronbach's Alpha values of the main components. Vietnam Government, Vietnamese Enterprises, Vietnamese People, Economic Nationalism, Internationalism, Consumer Behavior. The Cronbach's coefficient was 0.839 for the first time; one by one following: 0.760; 0.793; 0.703; 0.724. The correlation coefficients of variables are more than 0.5.
|Table 1 The Scale Reliability Tests for six Components|
|Code||Contents||Cronbach's Alpha if Item Deleted|
Table 2 showed that the assessment of the scale of Economic Nationalism includes the following elements: Government; Enterprise and the Public through EFA discovery factor analysis go through three runs after eliminating the variables that do not upload any factor because the factor load factor is less than 0.5. The result of the 3rd EFA run, three factors are appearing with Eigenvalues value of 1.202> 1, and the total extracted variance is 56.11%> 50%, and the factor load factors are more significant than 0.5. Besides, Bartlett test results and KMO values show that the data are suitable for EFA factor analysis method (KMO = 0.676 ≥ 0.5 and p-value in Bartlett test <0.01).
|Table 2 KMO and Bartlett's Test for six Components|
|Code||Contents||KMO coefficient||Bartlett's Test of Sphericity||Eigenvalues|
Besides, the assessment of the Internationalism scale of 6 observation variables is a unidirectional concept (observation variables withdrawn into a factor) so we can use the Principal Component Analysis method because it makes the square error deduction is better when performing EFA discovery factor analysis. The factor analysis goes through twice. The second EFA run, 1 factor was extracted with KMO result=0.562> 0.5; Sig. <0.05 and the Eigenvalues value is 1.680> 1, with a total variance extracted of 55.99%> 50%, and no variables excluded with factor load factors greater than 0.5.
Finally, the evaluation of the Consumer Behavior scale through EFA discovery factor analysis also carried out through two runs. The second EFA run, 1 factor was extracted with the result KMO = 0.500 > = 0.5; Sig. <0.05 and the Eigenvalues value is 1.741> 1, with the total variance extracted is 87.05%> 50% and no variables excluded with factor load factors greater than 0.5.
Table 3 showed that Considering the reliability of the scale, extracted variance (AVE) and Cronbach's alpha coefficient of the high-value model is always greater than 0.5 and thus, the model has satisfied all conditions used to evaluate the CFA model, and already qualified for use in linear structural analysis of SEM. And the factor analysis model asserts that the standardized CFA is finally.
|Table 3 The Results of Testing for Cronbach's Alpha (2nd)|
|Contents||CR||AVE||Cronbach's Alpha (2nd)|
|The Public (C.CHUNG)||0.805||0.583||0.797|
|Consumer behavior (HV.TIEUDUNG)||0.856||0.750||0.851|
Figure 2 showed that the SEM model used to determine how economic nationalism and Internationalism influenced consumer behavior. In which, Economic Nationalism includes components of Government, Business, and Public. In the hypothesis test and the research model, the SEM linear structure model has many advantages over traditional multivariate analysis methods such as multiple regressions, multivariate regression because it can calculate measurement errors.
Table 4 showed that column “P” < 0.01 with significance level 0.01 and column “Conclusion” H1: supported; H2: supported; H3: supported H4: supported, and H5: supported. These results showed that two factors affect consumer behavior and the Economic Nationalism affecting the Public; Government, Enterprise with a significance level of 0.01. These results are science evident for managerial implications to enhance consumer behavior (Figure 3).
|Table 4 Coefficients from Structural Equation Modeling (SEM)|
|Consumer behavior||<---||Economic Nationalism||0.286||***||H4: Supported|
|Consumer behavior||<---||Internationalism||-0.092||***||H5: Supported|
|The Public||<---||Economic Nationalism||0.194||***||H3: Supported|
|Government||<---||Economic Nationalism||0.598||***||H1: Supported|
|Enterprise||<---||Economic Nationalism||0.738||***||H2: Supported|
Consumption behavior has an important role in deciding to buy or reject product. This directly affects future marketing strategies of the business. The author's research based on previous studies conducted in other countries, then the authors used SEM model to analyze and to assess the relationship between Economic Nationalism, Internationalism, and consumer behavior. The authors conducted qualitative research to select more variables to create models with hypotheses appropriate for Vietnam's economy. The research results showed that all factors influence the domestic consumption behavior of the Vietnamese people directly proportional to Economic Nationalism and inversely proportional to Internationalism. This factor proves that Vietnam, along with the integration with the world economy, Vietnamese people have many channels to choose the right quality products but still support the domestically produced goods. The researchers had managerial implications for domestic organizations to continue improving marketing management policies to improve consumer behavior.
The domestic enterprises continue improving marketing management policies to improve consumer behavior for the next time, focusing on the following groups of managerial implications:
The Managerial Implications for Government
(1) State agencies should take specific actions to increase domestic consumer demand. To stimulate demand, what needs to do is to make consumers trust and consume Vietnamese goods. In particular, quality control and price control are significant issues in the protection of domestic products, because as long as shoddy quality goods spread on the market, it loses consumer confidence. (2) The State needs to create favorable conditions and have open policies and mechanisms to encourage domestic manufacturing enterprises and improve the quality of local goods. Besides, it is necessary to promote the propaganda of high-quality Vietnamese goods, Vietnamese people use Vietnamese goods so that businesses can bring their products to consumers with the best quality and build trust in Vietnamese people who don't like Vietnamese goods. (3) More critical and long-term education is to educate consumers on the importance of patriotism through the consumption of domestic products for those who are still in the sprout stage (primary school students). Or higher stage (middle and high school students) because all are future consumers. Besides, propagating the contents of patriotism at colleges and universities to help students become aware of concretizing their patriotism in the country's economic development issues. (4) The State needs to promote domestic trade, making secure distribution networks, promulgating regulations, and standards of goods by commitments. international step by step control the import and market order. (5) The Government continues supporting enterprises to overcome difficulties: Link the activities of the CVD with the city's business support activities, the city and departments, and agencies, focusing on removing barriers for businesses and concentrate on supply-demand connection, promoting the linkage between three objects: Manufacturers - distributors and consumers through organizing fairs. Continue reviewing and supporting the building of trademarks and brands of products with local strengths, increasing introduction and connection so that the products go into the people's lives, creating consumption habits. We continue organizing conferences to connect supply and demand, production, circulation, and consumption.
The Managerial Implications for Domestic Enterprises
In the current situation, multinational enterprises are entering the Vietnamese market more and more, local enterprises are hard to avoid the main competition issues, so Vietnamese enterprises want to exist. Policies as well as the wits of all its strategies but completed for fairness and all for dear customers, namely: (1) Enterprises should have direct contact with consumers through the activities Fair of high-quality Vietnamese goods, Vietnamese consumers of Vietnamese goods to rub the market and understand market needs. how the school is now, and that is also the business that brought their names, brands, products to consumers most easily. (2) Enterprises that respect business ethics need to produce high-quality products to meet the increasingly demanding Vietnamese consumers' demands. Besides, there should be social responsibility, such as extracting a portion of profits to implement social policies such as supporting flood plains, gratitude trips. Vietnamese enterprises need to devote severe and proper investment to improve product quality. At the same time, taking advantage of the Vietnamese products to produce products that meet the increasing requirements of consumers as desired by many businesses, the Vietnamese enterprises continue to be profoundly and widely deployed with the slogan is at a higher level: Vietnamese goods conquer consumers both domestically and internationally. (3) Domestic enterprises should make new changes in technology to increase quality but lower production costs, improve designs, and improve the use-value of products. The distribution of products should be replicated throughout the provinces on markets, centers, supermarkets, and even small shops to access the products quickly and need supportive policies-price subsidies for consumers in disadvantaged and complicated areas. Today, social networks are extensive, and online shopping is trendy, so businesses need to use this tool to bring products to consumers, focusing on information security, and product delivery must be valid to the information advertised. (4) Vietnamese enterprises need to promote the introduction and promotion of high-quality Vietnamese goods to consumers: Organizing Vietnamese Goods Fair; mobilize union members, members, people of all strata to participate in the program of "Vietnamese goods that are popular with consumers" in 2020. Organize bringing Vietnamese goods to consumers through implementing the Sale Program Vietnamese products in districts, towns, industrial zones, export processing zones in the city, and distribution systems in foreign countries.
The Authors Proposed the Managerial Implications for Consumers
(The Public) Following. (1) The millions of Vietnamese expatriates in introducing, consuming products, developing the distribution channel to overseas Vietnamese. At the same time, it is necessary to effectively use cross-border e-commerce, change the form of advertising marketing and propaganda materials suitable to the actual conditions in each locality, improve consumer awareness in using Vietnamese goods, thereby confirming the position of Vietnamese products in the market. Convincing people with quality, reasonable prices, and diversified models, in which goods quality is a prerequisite. (2) Production and business enterprises must also promote consumer responsibility. At the same time, it is necessary to make effective use of cross-border e-commerce and to change advertising marketing and propaganda materials to suit the working conditions in each locality, thereby raising the awareness of Consumers to come to use Vietnamese goods and confirm the position of Vietnamese products in the market. (3) The responsibility of three organizations. The Government creates a legal environment, infrastructure, and human resources to ensure that businesses and Vietnamese people have favorable conditions for production and procurement. Finally, enterprises create products of quality, reasonable prices, with a distribution system suitable to the economy, convenient for consumers; consumers participate in the production and consumption of domestically produced products. The next research-tested another sample in other provinces and cities. Therefore, if it is possible to collect a larger sample, concurrently combining with a random sample according to the probability of the sample is more representative, and the analytical results are more accurate and convincing.