MINISTRY OF EDUCATION AND TRAINING
FOREIGN TRADE UNIVERSITY
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SUMMARY OF PH.D THESIS
DIRECT MARKETING DEVELOPMENT AT RETAILERS IN HANOI CITY IN 2015 - 2030 PERIOD
Major: Business administration
Code: 9340101
HOANG THI THANH
Hanoi, 2021
THE THESIS IS COMPLETED AT FOREIGN TRADE UNIVERSITY
Scientific instructor: Assoc. Prof. Dr. Do Thi Loan Opponent 1: .................................................................. Opponent 2: .................................................................. Opponent 3: .................................................................. The thesis will be defended in front to the School-Level Thesis Evaluation Council at .............................. At hour day month year The thesis can be referred at: National Library of Vietnam and Library of Foreign Trade University
LIST OF AUTHOR’S PUBLICATIONS RELATED TO THE THESIS
1. "Phone-based direct marketing marketing at Vietnamese
retailers", Journal of Industry and Trade (ISSN: 0866 - 7756), Publication of
Results of scientific research and technology application, issue in March 2017,
pages 187 - 191.
2. Potential direct marketing development at Vietnamese retailers,
Journal of Industry and Trade (ISSN: 0866 - 7756), Publication of Results of
scientific research and technology application, issue in December 2018, pages
219 - 224.
3. Research on consumer attitudes towards direct marketing
activities of retailers in Hanoi, Journal of Industry and Trade, ISSN: 0866 -
7756), Publication of results of scientific research and technology application,
Issue January 2020, pages 224 - 229.
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INTRODUCTION
1. The urgency of the topic
The retail market operates in a volatile competitive environment where consumer behaviors are constantly changing and difficult to predict. In particular, the global pandemic - COVID-19 has been posing many challenges for retailers due to consumer behaviors’ significant change after each new development phase of the pandemic (Nguyen Vu Duc, 2020). The social isolation policy aimed at combating the pandemic in Vietnam causes people to work, study and play at home. To adapt, consumers have to learn how to improvise in creative and innovative ways (Van Nguyen et al, 2020). New technologies are created and applied to make the work, study, and consumption more convenient. Many empirical studies show the change in Vietnamese consumer behaviors during COVID-19 pandemic, and confirm that this trend will continue after the pandemic ends (Van Nguyen et al, 2020). Therefore, enterprises also need to change to survive in the new crisis caused by the pandemic (Sheth, 2020).
In that context, direct marketing has become an indispensable trend to strengthen promotion campaigns and develop strong customer relationships. Unlike mass marketing communication tools, direct marketing is a communication method that orientates individual customers through means of direct responses (Kotler và Keller, 2002). It bases on the basis of customer details in the database system to understand their needs, assess their market value and anticipate responses to media programs. With the means of direct responses such as mail, phone, email, website, social network, ... direct marketing helps enterprises personalize communication activities, call for feedback and actions from customer directly (Peelen et al, 1989; Trương Đình Chiến, 2013). With the rapid development of communications technology and e-commerce, direct marketing is playing an increasingly important role for retail enterprises (Gill et al., 2017).
Direct marketing is not a new business communication tool. Since 1961, the phrase “direct marketing” has been promoted, propagated, and made more popular by Lester Wunderman. The results of the Literature review show that there have been many researches, from theoretical to practical, on the direct marketing in B2C market. On the basis of behavioral studies, it is confirmed that attitude is an important factor in purchase and consumption (Davis và cộng sự, 1989; Ajzen, 1991; Brackett và Carr, 2001; Fortes & Rita, 20 Davis et al, 1989; Ajzen, 1991; Brackett & Carr, 2001; Fortes & Rita, 2016), a research on the direct marketing of retail enterprises by research on consumer behavior receiving direct marketing activities studied by a number of authors. The primary contribution of these researches is to assess consumer attitudes toward the direct marketing through individual means such as direct mail Akhter & Durvasula, 1991; Akaah et al, 1995), catalog (Milne & Gordon, 1994; Brezen et al, 1987), or online tools ((Chang & Zhang, 2016). There hasn’t been any research on
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assessing consumer attitudes towards the direct marketing in general, and there is no sample-based research in Vietnam.
In Vietnam, the direct marketing has been used by many companies, but mainly in big cities. However, the application of direct marketing means has many limitations. When realizing the need to apply direct marketing, most Vietnamese enterprises will analyze direct marketing programs applied by competitors, other enterprises, but not much interested in customer needs (Pham Thi Huyen, 2009). In Hanoi City - the largest cultural, political, scientific and economic center of the country, retail enterprises have many favorable conditions for direct marketing. However, in fact, the direct marketing application in Hanoi City makes consumers annoyed by spam messages, spam emails, and spam calls. The negative attitude of some consumers in the city towards the direct marketing is a big challenge in effective development of the direct marketing for retail enterprises in the upcoming time.
Realizing the role of direct marketing for retail enterprises, the challenges and potentials to develop the direct marketing in retail enterprises in Hanoi with a vision to 2030, the author chooses the topic “Direct marketing development at retailers in hanoi city in 2015 - 2030 period” as a research topic for his doctoral dissertation.
2. Research objectives
The dissertation's research objectives are to propose a number of solutions to develop the direct marketing in retail enterprises in Hanoi City with a vision to 2030 in order to create favorable conditions for domestic retail enterprises in City to continue to exist and develop in the new context.
3. Research missions
To perform the above research objectives, the topic has the following
missions:
- Based on researching the direct marketing of retail enterprises, the dissertation is to develop the theoretical framework of direct marketing activities in retailers, and researching consumer attitudes towards direct marketing in retailers in Hanoi City.
- Research the current situation of direct marketing application in retailers in Hanoi city from 2015 to present.
- Research consumer attitudes; identify factors influencing consumer attitudes towards the direct marketing, and build a model to assess the influence of factors on consumer attitudes towards the direct marketing in retailers in the city.
- Based on the assessment of the current situation of direct marketing activities in retailers in Hanoi city from 2015 to present, the dissertation proposes solutions to develop direct marketing in retailers in Hanoi with a vision to 2030.
4. Research objects
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The research objects of this dissertation are theoretical and practical issues related to the direct marketing in retailers and individual consumers of enterprises in Hanoi City.
5. Scope of research
5.1. Scope of research in terms of content
The dissertation is to research the direct marketing in retailers based on the direct marketing approach as a marketing communication tool in the mixed marketing communication, but doesn’t research the direct marketing from the point of view that the direct marketing is a new marketing tool. The reason is that the reality of direct marketing activities in retailers in Hanoi now is just the application of direct marketing means for marketing communication purposes, provision of product and business information to target customers, create awareness, build trust, and drive their purchase.
Due to the limited time and resources, the dissertation researches the current status of direct marketing activities in retailers in Hanoi city based on the direct marketing means used. At the same time, from the point of view that all marketing activities of an enterprise must aim to satisfy customers' needs (Kotler et al, 2016, tr.5), the dissertation chooses the customer approach of retailers - consumers. In the corporate marketing environment, customers are an extremely important factor to determine the success or failure of an enterprise. Direct marketing of retailers can only continue with acceptance and support from consumers. Theoretical and practical researches both show that consumer attitudes are the foundation for their behavior (Wientzen, 2000; Li et al, 2017). Therefore, the results of research on attitudes and factors affecting consumer attitudes towards direct marketing of retailers will help enterprises enhance and improve direct marketing activities to better meet customers’ demands.
5.2. Scope of research in terms of space
The dissertation only focuses on researching direct marketing activities in Vietnamese retailers in Hanoi city - the capital of the country, a cultural, economic and political center with more favorable conditions and potentials for developing the direct marketing in retailers than other localities in the country.
The survey of consumer attitudes towards the direct marketing in retailers in
Hanoi City is conducted with consumers currently living and studying in the city.
5.3. Scope of research in terms of time
All theoretical and practical research activities to perform research missions and objectives of the topic are conducted from May 2015 to December 2020. The data used to analyze the actual status of the direct marketing activities of retailers is summarized from 2015 to 2019. A sociological survey to collect data on consumer attitudes and factors influencing consumer attitudes towards the direct marketing in
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retailers in Hanoi City was conducted from 1/2 - 15/3/2020 to ensure topicality for research results. Retail market development planning in Hanoi city, and technical infrastructure development plans to promote direct marketing development are built by the City People's Committee until 2030, so the proposed solutions orientate the marketing development to 2030.
6. Research method
6.1. Quantitative research and qualitative research methods
To perform the research missions, the dissertation uses a combination of
qualitative research and quantitative research methods.
Qualitative research method is used to detect scientific arguments about direct marketing in retailers, develop a theoretical framework for researching consumer attitudes towards direct marketing at retailers in Hanoi city, and support the conclusions of the dissertation. The dissertation uses the methods of observation, content summarization and analysis based on secondary data (Berg, 2001; Salkind, 2009) on issues related to the topic's research object.
Quantitative research method is implemented to propose influencing factors, quantify observed variables, determine factors, measure, analyze and explain the relationship of the factors affecting consumer attitudes towards the direct marketing in retailers in Hanoi city using a multivariate regression model.
6.2. Data sources and data collection methods
The dissertation uses both secondary data and primary data to support research conclusions, ensure the reliability of research results, and as the basis for proposing solutions to realize research objectives.
Secondary data in the research is summarized from available studies such as monographs, articles, journals, research articles with high scientific content, data from statistical agencies such as the General Statistics Office, Hanoi Statistical Office, ... on issues related to the research object of the topic. The desk study method is used to collect secondary data on the current status of direct marketing activities in retailers in Hanoi City.
Primary data has been collected through a sociological method with pre- structured questionnaires, combined with consultation with consumers, experts, and scientists. Primary data collection has been done through face-to-face interviews, hand out survey forms, and internet questionnaire surveys.
6.3. Data analysis method
When conducting research activities, the dissertation uses a combination of popular analytical methods in economic research such as summarization, analysis with techniques such as statistics, description, comparison, evaluation, and quantitative analysis, ... To achieve the research results, the dissertation uses a systematic document review method to group existing works on the research topic,
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and uncover gaps for research of the topic (Levy & Ellis, 2006). Survey primary data is updated, processed, and calculated through Excel software and IBM SPSS 25.0, then retrieved and reported.
7. New contributions of the dissertation
7.1. The theoretical contributions
Firstly, this is the first project to systematically evaluate theoretical issues
about the direct marketing in retailers.
Secondly, the dissertationhas developed a theoretical framework for research on consumer attitudes towards the direct marketing in retailers. The dissertation has proposed a model to evaluate the factors affecting consumer attitudes towards the direct marketing activities in retailers in Hanoi city.
Thirdly, the dissertationhas used quantitative methods to study and evaluate consumer attitudes towards the direct marketing in retailers and quantify the influence of factors affecting consumer behaviors for the direct marketing in retailers.
7.2. Practical contributions
Firstly, the dissertation identifies 5 factors affecting consumer attitudes towards the direct marketing in retailers in Hanoi City (informativeness, reliability, distractions, convenience, permission), and build a regression equation to evaluate the impact of the above factors on consumer attitudes towards the direct marketing. In particular, the benefits of direct marketing bring the greatest impact on consumer attitudes in the city towards the direct marketing.
Secondly, the dissertation has analyzed the current situation of the application of direct marketing means by retailers in Hanoi City used in direct marketing activities as the basis for solutions to develop direct marketing and promote direct marketing activities in retailers in the city with a vision to 2030.
Thirdly, the dissertation has proposed a number of specific solutions for retailers in the city and propose to the State to develop direct marketing in retailers in the city with a vision to 2030.
8. Thesis structure
In addition to the Introduction, Conclusion, Appendix and Reference, the
thesis is structured into five chapters as follows:
Chapter 1: Overview of direct marketing research situation at retailers
Chapter 2: Theoretical basis for direct marketing at retailers
Chapter 3: Research Methodology
Chapter 4: Current status of direct marketing at retailers in Hanoi City
Chapter 5: Solutions for developing direct marketing at retailers in Hanoi City with a vision to 2030.
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CHAPTER 1. OVERVIEW OF THE STUDY ON DIRECT MARKETING AT RETAILERS
1.1. Overview of research situation
1.1.1. Overview of foreign research situation
Regarding the direct marketing concept of the American Direct Marketing Association, Bauer & Miglautsch (1992) evaluated the limitations in the concept given by the American Direct Marketing Association. With the new point of view of direct marketing based on identifying all the specific techniques and methods that marketers could use to conduct direct marketing, the authors come up with a more specific concept of direct marketing. The objectives and missions of direct marketing were studied in the scientific works of Stone (1995), Stone & Jacobs (1997), Mc Donald (1998), Thomas & Housden (2002), Wunderman (1996), Thomas et al (2007).
The studies on issues related to direct marketing in the retail market were mentioned in the research works of Mehta & Sivadas (1995), Bly (1998), Bird (2000), Chipperfield (2007), Rhee (2010), Chang & Zhang (2016).
Any adjustment in corporate marketing should arise from an understanding of consumer attitudes towards marketing and the underlying elements of consumer attitudes (Ajzen & Fishbein, 1980; Sheppard et al, 1988). For direct marketing activities of retailers, understanding the real attitudes of consumers and the factors influencing their attitudes will be an important condition to increase consumer acceptance and serve as a basis for effective direct marketing development. There have been a number of studies evaluating consumer attitudes towards direct marketin such as those of Berkowitz et al (1979), Korgaonkar & Bellenger (1980), Lumpkin & Hunt (1989), Akaah (1995), Mehta & Sivadas (1995), Maynard & Taylor (1996), Chipperfield (2007), Chang & Zhang (2016).
1.1.2. Overview of domestic research situation
The domestic research works on direct marketing have been currently limited. In her research, Nguyen Thi Huyen (2009) outlined the theoretical system of direct marketing, the current situation of direct marketing application in Vietnam. In the framework of the thesis topic, the author has 2 related scientific research works. That is Direct Marketing - A marketing tool in the age of information technology and direct marketing: International experience and application in Vietnam. In addition, there were some marketing textbooks also mentioned some theoretical issues about direct marketing, including: Basic Marketing Textbook (Truong Dinh Chien, 2008), Marketing Management (Truong Dinh Chien, 2012), Integrated Marketing communications (Truong Dinh Chien, 2016). There were some individual articles on direct marketing means and mail-based direct marketing, radio and television-based
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direct marketing, internet marketing, and social network-based direct marketing in economic - scientific journals.
1.2. Evaluation of international and domestic research
Some companies research the direct marketing from the perspective of advertising direct sales to each target customer (Miglautsch, 1989), some studies focus on the task of creating and developing direct relationships with potential customers of the enterprise in private (Bauer & Miglautsch, 1992; Stone, 1997; Mc Donald, 1998; Wunderman, 2004). Technical researches of direct marketing have focused on customer databases as the basis for the direct marketing Stone, 1995; Mc Donald, 1998; Shepard, 1999). Direct marketing is changing and will continue to change, so the definition of direct marketing will continue to change (Hogson, 1989). This requires new researches on the practice of direct marketing activities in the new context that need to be reviewed and reassessed to be appropriate.
Direct marketing is considered suitable for all enterprises (Stone, 1995; Mc Donald, 1998). The direct marketing strategy of a retailer has many differences with the mareketing strategy of a B2B wholesaler (Bly, 1998). Therefore, it is necessary to have clearer explanatory studies on the characteristics and role of direct marketing for retailers as a basis for orientation for applied research to develop direct consumer- oriented marketing.
Experimental researches show consumer adoption of different means of direct marketing. Elderly people tend to be more receptive to mail (Goldsmith & Flynn, 2005), while young people tend to use multi-channel /multimedia (Thomas & Sullivan, 2005; Thomas & Housden, 2017). Based on ever-evolving information and communication technology platforms, direct marketing is not limited to a single medium (Stone et al, 1997). With the consumer market, the complexity and continual change of consumer behavior requires retailers to find the right means of marketing for their target audience to benefit from both businesses and consumers.
Advances in technology enable retailers to detect the true buying needs and motivations of diverse customer groups and respond to them cost-effectively (Thomas & Housden, 2002). For the consumer, direct marketing meets the need for convenience (Shields & Reynolds, 1996). Therefore, direct marketing activities have quickly received consumers' welcome since its inception. However, the rapid growth in operation size has resulted in consumers having a negative attitude towards direct marketing. Too much direct mail causes distractions and concerns for the environment (Akaah et al, 1995; Maynard & Taylor, 1996), concerns about confidentiality of information when providing for direct marketers (Maynard & Taylor, 1996; Chipperfield, 2007). These studies are limited to consumer attitudes towards a direct marketing medium such as direct mail (Akhter & Durvasula, 1991; Akaah et al, 1995), catalog (Milne & Gordon, 1994; Brezen et al, 1987), or online tool (Chang & Zhang, 2016). Up to now, there has not been a general assessment of
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consumers' attitudes towards direct marketing activities of retailers in the current multi-channel environment, and quantifying the influence of factors affecting consumer attitudes on direct marketing.
In Vietnam, direct marketing has been researched and applied in the practice of businesses. The research works on direct marketing have outlined the development of direct marketing in the world and lessons from international experiences to apply in Vietnam (Pham Thi Huyen, 2009), systematized the theory of marketing. direct (Pham Thi Huyen, 2009; Truong Dinh Chien, 2016). Recognizing the need to apply direct marketing, most Vietnamese businesses seek to analyze direct marketing programs that have been offered by their competitors, Other businesses do not pay much attention to customer needs (Pham Thi Huyen, 2009). This leads to increasingly negative attitudes towards advertising and direct selling activities. The phrases “spam mails”, “spam calls” are no longer unfamiliar to consumers. This is a big barrier for retailers in Vietnam to apply direct marketing effectively.
Direct marketing has many conditions for development in Vietnam, but it is only mainly done in big cities such as Hanoi, and Ho Chi Minh City (Pham Thi Huyen, 2009). With the advantage of being the largest cultural, political, scientific and economic center in the country, Hanoi city converges many large domestic and foreign retail enterprises. Challenges facing domestic retailers in Hanoi city are enormous. The challenge for domestic retailers is not only the competitive correlation with large foreign firms, but also comes from the changes in consumption markets. Under the impact of the 4.0 technology revolution, consumers tend to change the most convenient way to approach goods, buy and sell online - online, and incorporate technology in the shopping experience. This trend has been promoted even faster and gradually becomes a habit of consumers to “live safely with the pandemic” before the Covid-19 pandemic has risen again and has been complicated. The change in consumer shopping habits in Hanoi City requires retailers to have a change in their direct marketing strategy to better reach and interact with consumers.
Based on the evaluation of domestic and foreign researches on direct marketing in retailers, the dissertation identifies the topic "Developing direct marketing at retailers in Hanoi with a vision to 2030" does not overlap with existing studies and has scientific and practical value because:
- Theoretically, the analysis and evaluation of the concept and characteristics of direct marketing in the world and in Vietnam have been studied by many authors. However, up to now, the concept of direct marketing at retailers has not been clearly analyzed. Researches on factors that promote direct marketing have been studied but have not focused in-depth summarization and analysis of factors that promote direct marketing in retailers, it is the competitive pressure in the retail market, the rapid development of technology in all sectors, and the changing consumer behavior. In order to develop direct marketing to bring high efficiency to retailers, these factors
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need to be studied with the right orientation in the development of direct marketing in the coming time.
- In practice, direct marketing activities in retailers have been applied in Hanoi city. In the new context, under the impact of the 4.0 technology revolution in all aspects of economic and social life, direct marketing plays an increasingly large role in retailers operations. However, there are no studies that analyze and evaluate the reality of direct marketing activities in retailers in the city.
Consumer behavior is largely determined by consumer attitudes. Therefore, for direct marketing at retailers, there have been studies recommending models of influencing factors, verifying the reality of consumer attitudes and the degree of influence of these factors on consumer attitudes towards direct marketing in the world and in Vietnam. However, up to now, there have been no studies on consumer attitudes towards direct marketing at retailers. With the cultural, economic and political differences of Hanoi capital, consumer behavior in Hanoi City has many differences compared to consumers in other cities.
1.3. The content to be researched by the dissertation
Theoretically, the dissertation should clarify the concept of direct marketing in retailers, factors that promote direct marketing in retailers, the role of direct marketing for retailers, and other means of conducting direct marketing activities of retail enterprises; characteristics of consumer attitudes towards direct marketing and research models of factors affecting consumer attitudes towards retail retailers' direct marketing activities
Practically, the dissertation needs to assess the current situation of direct marketing of retailers in the current Hanoi city. First of all, the factors that promote direct marketing at retailers in the city, the practice of applying direct marketing in retailers in Hanoi nowadays. To have a basis for proposing solutions to develop direct marketing in retailers in Hanoi City with a vision to 2030, The dissertation focuses on consumer attitudes towards direct marketing at retailers, factors affecting consumer attitudes, and to quantify the impact of these factors on consumer attitudes towards direct marketing at retailers in Hanoi City. Because, any adjustment in business marketing must come from understanding consumer attitudes towards marketing and the basic elements of consumer attitudes (Ajzen & Fisbein, 1987; Sheppard et al., 1988). Within the study of direct marketing of retailers, research on consumer attitudes and factors affecting consumer attitudes towards direct marketing activities will be an important foundation for retailers to develop effective direct marketing.
On the basis of analyzing the current situation of enterprises' direct marketing activities in Hanoi city, the dissertation should propose solutions to develop direct marketing in the coming time.
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CHAPTER 2. THEORETICAL BASIS OF DIRECT MARKETING AT RETAILERS
2.1. Overview of direct marketing at retailers
2.1.1. Concept of direct marketing
Direct marketing can be understood as communications performed by an enterprise, in which one or more direct responsive communication media are used to create a measurable responsive reaction or a conversation in any location based on the established customer database system. Through means of direct response, enterprises and target customers often interact without any limitation in space terms. The personalized communications messages based on responsive customer data create high responsive ability and help enterprises achieve a valuable exchange.
The essence of direct marketing is demonstrated through the following characteristics: Firstly, direct marketing is a regular operating system in which marketers and potential customers join together, forming a positive interaction, information is circulated in both directions. Secondly, direct marketing can set up a customer database. Each customer feedback (response or non-response) will be continuously entered into the customer database system, as the basis for effective new marketing programs. Thirdly, direct marketing can measure feedback results. Each feedback is usually associated with a letter of inquiry, order or a kind of response. Fourthly, activities related to direct marketing can be carried out anywhere.
2.1.2. Concept of direct marketing at retailers
Direct marketing of a retailer can be understood as the process of communications towards end consumer without any intermediary, using direct response to create response measured from the consumers.
Demographic diversity in the B2C market requires the retailers to have a significant interest and investment in customer database. Customer database allows retailers to choose communication media, design messages suitable with each individual consumer. By maintaining regular relationships with consumers, retailers will understand the responsive nature of each customer to create the most effective customization in marketing strategies (product, price, distribution).
2.1.3. The role of direct marketing for retailers
Direct marketing is playing an increasingly important role for retailers. Direct marketing helps retailers update consumer database and select prospective customers more carefully. Regularly updated information in the customer database system creates conditions for retailers to understand the needs of consumers in a better manner. Direct communication between retailers and individual consumers allows the enterprises to test options, communication media and messages (title, greeting, price...) to find the effective way with the lowest cost and guaranteed confidentiality.
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Therefore, direct marketing helps retailers increase communication efficiency and reach consumers at a lower cost (Grewal et al., 2017).
2.2. Factors promoting direct marketing at retailers
The global economic development creates increasing competitive pressure for retail businesses, especially small and medium enterprises in developing countries. To create a competitive advantage, retailers must frequently change their business behavior and marketing tools to effectively reach their target customers. The technology revolution not only helps change business behavior of businesses, but also rapidly changes the way to approach and maintain relationships with target customers. Retail businesses have many opportunities to directly interact with consumers through modern communication means. Through means such as mail, phone, email, internet applications, direct marketing helps retail businesses increase communication with consumers regularly and continuously. Therefore, direct marketing better meets the needs of consumers. In addition to factors in the marketing environment that change the marketing activities of businesses, the three main reasons leading to the emergence and development of direct marketing are competition pressure, technology development, and practice. consumer behavior changes.
2.2.1. Fierce competition in the retail market
2.2.2. Sharp technological development
2.2.3. Change in consumer behavior
2.3. Direct marketing at retailers
2.3.1. Mail-based direct marketing
2.3.2. Catalogue-based direct marketing
2.3.3. Newspaper and magazine-based direct marketing
2.3.4. Television-based direct marketing
2.3.5. Radio/ broadcasting-based direct marketing
2.3.6. Phone-based direct marketing
2.3.7. Internet-based direct marketing communications
2.4. Consumer attitudes towards the direct marketing in retailers
In an increasingly fierce competition environment, retailers must understand consumers 'thoughts and actions, and develop effective communication strategies to maintain their customers' loyalty. Understanding customer behavior is the direct and most important basis for developing effective marketing measures to them (Truong Dinh Chien, 2013). Theoretical and practical studies both show that consumer attitudes are the foundation for their behavior, affecting most aspects of consumer behavior (Ajzen & Fishbein, 1980; Sheppard et al, 1988; Li et al, 2017). In the new business environment on the Internet today, customer confidence will be an
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especially important factor in the success of retailers (Wientzen, 2000). Therefore, research on consumer attitudes is part of the author's research to develop direct marketing of retailers in Hanoi city. The acceptance and positive attitude of consumers in the city is the decisive factor for retailers to build appropriate direct marketing programs and perform effective direct marketing activities.
2.4.1. The concept of consumer attitudes towards direct marketing of retailers
2.4.2. Fundamental theoretical models
2.4.3. The model and hypothesis studying the factors affecting consumer attitudes towards the direct marketing
Based on the analysis of the relationship of factors affecting consumer attitudes from fundamental theoretical models, the author proposes a research model summarized from these theories. Factors for informativeness, reliability, distraction, and authorization were determined from the Tsang et al. (2004) model. Maynard & Taylor (1996) argue that the utility brought about by direct marketing activities makes consumers more satisfied than shopping at the store. Therefore, the author adds an element of utility of direct marketing for consumers.
The proposed research model is as follows:
Informativity
Reliability
Importunateness
Consumer attitudes towards direct marketing
Utility
Allowance
(Source: Recommendation of the author)
Figure 3.2. Model of consumer attitudes towards direct marketing of retailers
The research hypotheses are stated as follows:
Hypothesis H1: The informative value of the message has a positive impact
on consumer attitudes towards direct marketing of retailers in Hanoi city.
Hypothesis H2: The reliability of direct marketing at retailers has a positive
impact on consumer attitudes towards direct marketing of retailers in Hanoi city.
Hypothesis H3: The importunateness generated by direct marketing has a negative impact on consumer attitudes towards direct marketing of retailers in Hanoi city.
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Hypothesis H4: The utility brought by direct marketing to consumers has a positive impact on consumer attitudes towards direct marketing of retailers in Hanoi city.
Hypothesis H5: The permissibility of consumers for direct marketing has a positive impact on consumer attitudes towards direct marketing of retailers in Hanoi city.
CHAPTER 3. RESEARCH METHODS
3.1. Research progress
3.1.1. Research progress chart
- Proposing solutions to develop direct marketing in retailers in Hanoi City with a vision to 2030
Determining the research objectives
Document collection and summarization
- Research gap for dissertation, mission and research scope - Theory of direct marketing activities in retailers - Proposing models and hypotheses to research the factors affecting consumer attitudes towards direct marketing
Research data collection
- Data on assessing the current status of direct marketing activities of retailers in Hanoi city - Determining the survey sample, data to evaluate the content of the research problem
Experimental research
- Confirming the factors and scales for the factors to include in the official research.
Formal research
- Developing a regression equation to test the research model of factors affecting consumer attitudes towards direct marketing - Evaluation of research results
Report of research results
(Source: prepared by the author)
Figure 3.1. Research implementation process diagram
3.1.2. Steps of the research process
3.2. Design questionnaires and scales
3.2.1. Questionnaire structure
The questionnaire is divided into three parts:
- Part 1: includes 4 questions about the status of consumer acceptance for the direct marketing activities of retailers in Hanoi city.
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- Part 2: includes a group of questions to find out consumers' attitudes towards direct marketing of retailers in Hanoi city and the factors affecting their attitudes. The questions are given using a 5-level Likert scale - a scale commonly used to measure opinion levels.
- Part 3: includes questions about the respondent's personal information such as full name, gender, occupation, age, phone number.
3.2.2. Scale evaluates the factors in the model
The scale of factors affecting consumer attitudes towards direct marketing and the scale of consumers' attitudes towards direct marketing is developed based on selective inheritance questions used in questionnaires by Akaah (1995), Mehta & Sivadas (1995), Maynard & Taylor (1996), Chang & Zhang (2016) in research on consumer attitudes toward direct marketing. In addition, based on questionnaires in the survey of consumer attitudes towards advertising and direct sales through direct communication means such as research by Ducoffe (1996), Brackett & Carr (2001), Tsang et al (2004), and the research models extend from these models.
3.3. Analysis of survey data
3.3.1. Sample descriptive statistics
3.3.2. Preliminary assessment of the scale
3.3.3. Discovery factor analysis
3.3.4. Correlation analysis and regression
CHAPTER 4. CURRENT SITUATION OF DIRECT MARKETING AT RETAILERS IN HANOI CITY
4.1. Overview of the retail market and retailers in Hanoi city
4.1.1. Hanoi retail market scale
Hanoi is considered as an emerging retail market, one of the three cities with the most vibrant retail market in the Asia-Pacific region. Total retail sales of goods and service revenue have steadily increased for the past years. In the commodity structure, the retail of goods always accounts for a large proportion in total retail sales of goods and service revenue (over 60%).
4.1.2. Retailers in Hanoi city
With Hanoi's comparative advantages in size and potential for development, socio-economic infrastructure, socio-politics, the city's retail industry is always attractive to new enterprises. The number of enterprises with small and micro scale accounts for the majority of the retailer structure in Hanoi city (97%).
4.1.3. Law on governing direct marketing at retailers
Currently, Vietnam has had some legal documents governing advertising activities such as Law on Advertising 2012 - Law No. 16/2012/ QH13, Decree No.
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181/2013/ ND-CP of the Government on detailing the implementation of some articles of the Law on Advertising, Circular No. 10/2013/ TT-BVHTTDL of the Ministry of Culture, Sports and Tourism on detailing and guiding the implementation of a number of articles of the Law on Advertising and Decree No. 181/ 2013/ ND-CP of the Government on detailing the implementation of a number of articles of the Law on Advertising. In Hanoi City, the City People's Committee regularly strengthens the state management, promptly rectifies shortcomings arising from reality, strictly handles violations and reviolations in advertising activities. However, the legal system governing marketing activities in general and direct marketing in particular for retailers has been still inconsistent and showed its shortcomings.
4.2. Factors driving direct marketing in Hanoi City
4.2.1. Fierce competition in Hanoi retail market
Hanoi - the economic, cultural and political center of the country - is always a place to attract investment from domestic and foreign retailers. Domestic retailers have a small scale, are low on funds, people and technology to compete with foreign firms. Domestic retailers also face the competition pressure between traditional retail channels and modern retail channels, and between direct sales and online sales. In order to survive in the market, many retailers in Hanoi city have been looking for their own way in reaching and maintaining relationship with consumers.
4.2.2. Scientific and technological development in the city
Scientific and technological activities in Hanoi city are always promoted to positively contribute to the socio-economic development of the city in particular and the country in general. At the same time, Hanoi City always makes good use of the resources of universities and research institutes to promote research and technology application in socio-economic development reality. The significant and leading achievements in the development of science and technology that Hanoi City has gained will be an important premise for the direct marketing development.
4.2.3. Change in consumer behavior in Hanoi city
The population growth size and rate have been one of the factors creating the attractiveness of the consumer market in the city for recent years. Shopping market, especially spontaneous market, is still a form associated with the majority of Hanoi consumers due to the convenience in shopping method. However, changes in daily life due to the impact of technology use habit, pollution and epidemics, the trend of searching for information and shopping online have been increasing in the city.
4.3. The results of surveying consumer attitudes and factors influencing consumer attitudes towards the direct marketing
4.3.1. Survey sample characteristics
Regarding gender, the proportion of women participating in the survey is higher (accounting for 67.42%). This rate has not yet reflected the sex structure in the
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population structure in Hanoi City. However, this result is acceptable because in reality, women tend to shop more.
In terms of age, the study focuses on the group of young people with the highest rate of spending on shopping, and this is also the group of consumers with the most exposure to direct advertising and direct shopping.
Regarding career, research conducted with 3 main groups of subjects are students/students, accounting for 69.35%, office workers accounting for 21.62%, and freelance businesses accounting for 8.06%.
4.3.2. Characteristics of consumer attitudes toward direct marketing
Survey result of consumer attitudes towards direct marketing at retailers in Hanoi city showed that the majority of surveyed consumers showed a positive attitude towards direct marketing at retailers. However, the proportion of consumers still wondering about whether or not they liked direct marketing activities of retailers was quite high.
4.3.3. Research result of factors affecting consumer attitudes towards direct marketing at retailers in Hanoi City
• Cronbach's Alpha scale test results
The result of evaluating the reliability of the scale with Cronbach's Alpha showed that the scales had the reliability more than 0.6 and total variable correlation coefficient was greater than 0.3. All scales satisfied the conditions to analyze exploratory Factor EFA.
1 Table 4.17. Testing result of scale of consumer attitudes towards marketing activities of retailers in Hanoi city
No. Variable name Designation Number
Cronbach's Alpha coefficient of observed variables
(Source: Result of processing survey data using SPSS software)
4 4 4 6 3 4 0.787 0.888 0.910 0.844 0.663 0.884 Smallest total variable correlation coefficient 0.541 0.667 0.708 0.552 0.339 0.514 1 2 3 4 5 6 TT TC PN TI CP TD Informativity Reliability Importunateness Utility Permissibility Attitude towards direct marketing
• Result of analyzing exploratory factor EFA
Analysis result showed that coefficient KMO = 0.868 (meeting the condition > 0.5); Significance level and Barlett test = 0.000 (meeting the condition < 0.05)
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showed that EFA analysis was appropriate. Total variance explained was 56.5709%; and factor loading was greater than 0.5, so the requirement was satisfied. The official scale after handling EFA included 21 observed variables as proposed. Analytical result in the Pearson correlation matrix showed that the correlation coefficients were statistically significant (Sig. <0.01). Therefore, all variables would be used in regression analysis.
Table 4.18. Result of analyzing exploratory factor EFA for independent variable
Factors 3 4 2 5
(Source: Result of processing survey data using SPSS software)
TI2 TI1 TI4 TI3 TI5 TI6 PN3 PN4 PN2 PN1 TC4 TC3 TC2 TC1 TT4 TT1 TT2 TT3 CP3 CP1 CP2 1 0.812 0.780 0.707 0.699 0.622 0.589 0.909 0.902 0.893 0.828 0.900 0.866 0.851 0.764 0.779 0.748 0.741 0.607 0.774 0.670 0.647
• Result of regression analysis
The adjusted R-squared reflected the influence of predictors on the variation of the dependent variable, in this case, 5 factors (permissibility, importunateness, reliability, informativity, utility) influenced 57.0% on the change of consumer attitudes towards direct marketing at retailers in Hanoi city. Factors other than the model and randomized error affected 43% of the attitude factor. The Durbin-Watson
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coefficient was 2.092, in the range from 1.5 to 2.5, so there was no first order sequence autocorrelation phenomenon.
Table 4.19. Statistical value result of factors affecting consumer attitudes towards direct marketing activities of retailers in Hanoi city
Summary of model
Model R R squared Estimated error of standard deviation Durbin - Watson coefficient
.55813 .577
Adjusted Rsquared .570 PERMISSIBILITY, 2.092 IMPORTUNATENESS, .759 Predictors:
1 (Constant), a. RELIABILITY, INFORMATIVITY, UTILITY b. Dependent Variable: ATTITUDE
(Source: Result of processing survey data using SPSS software)
Testing Sig F = 0,000 < 0.05, so the regression model assessing the influence of 5 factors (permissibility, importunateness, reliability, informativity, utility) on consumer attitudes towards direct marketing at retailers in Hanoi City was significant.
2 Table 4.20. Model suitability test (ANOVA model)
Model Df F Sig. Sum of Squares Mean Square
1 Regression Residual Total 128.970 94.699 223.699 5 304 309 25.794 .312 82.803 .000b
(Source: Result of processing survey data using SPSS software)
(Constant), Predictors: PERMISSIBILITY, IMPORTUNATENESS, a. Dependent Variable: ATTITUDE b. RELIABILITY, INFORMATIVITY, UTILITY
The model's F statistical number with value Sig. = 0.000 < 0.05 showed that the model was suitable with the data set and could be generalized overally. VIF coefficients were all less than 2, so there was no multicollinearity phenomenon between components that did not appear in the research model.
3 Table 4.21. Multiple regression results with partial regression coefficients in the
model Coefficientsa
T Sig. Multicollinear statistics
Normalize d coefficient Beta VIF Toleranc e
Model
Non- normalized coefficient Std. B Erro r .214 .015 .071 .944 1 (Constant)
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INFORMATIVITY
RELIABILITY .265 .137 -.076 .050 .035 .027 .243 5.250 .000 .157 3.857 .000 -.105 -2.792 .006 .653 1.532 .840 1.190 .985 1.015 IMPORTUNATENES S
.412 .239 .052 .049 .378 7.927 .000 .218 4.890 .000 .613 1.631 .700 1.429
(Source: Result of processing survey data using SPSS software)
UTILITY PERMISSIBILITY a. Dependent Variable: ATTITUDE
The regression model was written as follows:
Y = 0.015 + 0.243X1 + 0.157X2 - 0.105X3 + 0.378X4 + 0.218X5 + E
In which: Y was the consumer attitude towards direct marketing activities of
retailers in Hanoi city.
X1: Informativity; X2: Reliability; X3: Importunateness; X4: Utility; X5:
Permissibility; E: remainder
Histogram normalized residual frequency chart with very small mean value close to 0 (Mean = -1.89E - 15) and standard deviation close to 1 (0.992) (Appendix 02. SPSS analysis result). Thus, the normal distribution assumption of the remainder was not violated.
4.4. Actual situation of direct marketing activities at retailers in Hanoi city
4.4.1. Direct mail marketing
With the advantage of home address and the developed postal market, mail- based direct marketing is used by many retailers in Hanoi city to send leaflets, postcards, catalogs and promotional products to consumers. Mail-based direct marketing activities of retailers in the city have been just performed at one way of sending documents or messages to consumers, not including receiving feedbacks from them, especially mail-based purchase order mechanism hasn’t been available. To ask for more information or to place a purchase order, the recipient needs to use other means such as calling, or accessing the website of the enterprises.
4.4.2. Catalog-based direct marketing
Catalog is a means used by many retailers in Hanoi city, especially supermarkets. In addition to paper prints, electronic catalogs are sent by retailers in the city to e-mail boxes of potential consumers and posted on the website of retailers.
4.4.3. Newspaper and magazine-based direct marketing
Direct marketing on printing medium has appeared and familiar with consumers in Hanoi city. Traditional advertising only sends one-way message from the enterprises to the consumers to convince them to buy. Meanwhile, direct response ads are designed to create the opportunity to respond directly to customers such as:
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asking for more information, calling for going to a retail store, or ordering directly through provided forms.
4.4.4. Television-based direct marketing
A retailer’s direct marketing on television is known for its direct advertisements or sales television channels. In Hanoi city, the television-based direct marketing activities of retailers are carried out on television channels in the city of Vietnam Television and other local TV stations. Many sales TV channels such as Home Shopping Network on SCTV, Viet Home Shopping on HTVC +, TVS - VHS on SCTV5, TV Shopping on VCTV11, SCJ Life On, HTV co.op, Lotte Home Shopping, ... broadcast 24/ 24h.
4.4.5. Radio/Broadcasting-based direct marketing
For radio-based direct marketing of retailers in the city, the most popular form is direct advertising. The live response advertisements are broadcast on the radio channels of Voice of Vietnam and Hanoi radio.
4.4.6 Phone-based direct marketing
Retailers use phone calls to introduce new products, promotional programs, fulfill orders, collect consumer feedbacks after purchase and advise on usage and maintenance, warranty. Telecommunications service fee is still relatively high, but due to the advantages of direct exchange method, phone call is still the preferred method by many retailers and consumers.
For mobile marketing, a messaging tool is used by many retailers to reach young target customers with average income in the city. Smartphone and application platforms are contributing to promoting the activities of retailers in the city, creating a fundamental change in the interactive relationship between consumers and enterprises. Enterprises not only actively introduce products and promotional programs in the mobile environment but also invest in designing mobile apps specifically for enterprises such as Adayroi, Tiki, Shopee, Co.op mart, etc.
4.4.7. Internet-based direct marketing
Currently, the percentage of enterprises advertising via email for the past years has been relatively high compared to other traditional advertising methods such as newspapers, printed magazine and television. Electronic mail is mainly used for advertising, product introduction and customer care. Up to now, email's role in communications has been still important to enterprises due to the development of mobile-based email application.
The percentage of retailers having a business support website has not changed much for the past years. Enterprises focus on quality more than developing in number of websites as before. 52% of retailers in Hanoi city update information on their websites every day, 31% of enterprises update information every week. The mobile version of the website is used by retailers to receive the orders and shop on the mobile.
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Social network-based direct marketing is a trend used by Vietnamese retailers in general, especially retailers in the city for direct marketing activities. Social media is an online tool that is considered to be more effective than other tools such as search engine, messaging and mobile applications and e-newspapers. Social networks are used to promote brands, create viral effects, find out potential customers, etc., and to gather customer feedbacks, create coherence with the existing staff and attract potential employees.
4.5. General assessment
4.5.1. Regarding direct marketing activities of retail businesses
4.5.2. On the impact of marketing directly on consumers
4.5.3. Factors affecting consumer attitudes toward direct marketing
CHAPTER 5. SOLUTION OF DIRECT MARKETING DEVELOPMENT AT RETAILERS IN HANOI CITY WITH A VISION TO 2030
5.1. Prospects of direct marketing development at retailers in Hanoi city by 2030
5.1.1. Factors driving the development of direct marketing at retailers in Hanoi city by 2030
- Development planning of the retail market in Hanoi by 2030
In the capital's socio-economic development strategy, trade development continues to be a top mission in the coming time. According to the Capital Trade Development Plan by 2020, with a vision to 2030, Hanoi will have become a major commercial center, a commercial and economic center of the country and Southeast Asia. On the basis of expanding the scale and diversifying the types and improving the quality of commercial activities in the city; establishing, consolidating and developing goods distribution channels towards civilization, modernity, sustainable development, commerce in Hanoi meets the social needs and people's lives.
- Technology development planning in Hanoi city by 2030
By 2030, Hanoi city continues to lead the country in the development of the knowledge economy and information society on the "smart" urban infrastructure. Hanoi becomes one of the developed cities in terms of e-government, a strong center for the information technology industry in the region. This is an important driving force for the socio-economic development of the capital in general and for modern retail market development in the coming time.
- Consumer behavior trend in Hanoi city
The trend to prioritize convenience in shopping. The high pace of study and working makes people become increasingly busier, especially women. People's time spent on shopping that become less and less along with growing concerns about
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... make consumers prioritize
traffic congestion, air pollution, clean food, convenience in all their daily activities.
Direct shopping trend. Direct shopping, especially online shopping is a trend that many people choose because of the benefits of this shopping method and the super attractive promotional programs that retailers offer today. In the coming time, with complicated developments of the epidemic and an increasingly busy pace of life, consumers in Hanoi city will continue to choose to buy directly from retailers.
5.1.2. Direct marketing development trend in Hanoi city by 2030
- Big Data
- Multimedia direct marketing
- Direct marketing in integrated marketing communication
5.2. Solutions for retailers to develop direct marketing at retailers in Hanoi city by 2030
5.2.1. Basis of proposing solutions for the development of the direct marketing in retailers in Hanoi city to 2030
On the basis of analyzing and assessing the current situation of direct marketing in retailers in Hanoi city, the author proposes a number of solutions for retailers to develop direct marketing in the area. Orientation City table to 2030. The solutions are built on the basis of a combination of information about direct marketing activities that are synthesized and evaluated according to the qualitative research method, and the actual survey results of consumers' attitudes towards direct marketing of retailers in the city. The research results provide implications for the development of direct marketing in retailers, suggesting consumer approaches for retailers. In order to develop direct marketing, retailers not only increase resources to promote direct marketing activities through more efficient means, businesses need to pay attention to improving the impact factors. to consumer attitudes: Informability, Reliability, Utilities, Permissions, and annoyance.
5.2.2. Solutions to improve consumer attitudes to develop direct marketing at retail businesses in Ha Noi
- Enhance the information value of direct marketing to consumers
Direct marketing uses direct interaction media that are easy for consumers, so this is an advantage for retailers to proactively provide consumers with the information they need. That can be information about new products, on-sale products they need, or information to support their buying process. Information provided on a regular basis will help consumers remember brands and products. In addition, direct marketing not only provides information that is beneficial to consumers, retailers need to add more value to outgoing messages to drive their feedbacks.
- Strengthen consumer trust in direct marketing
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The degree of trust determines the attitude towards direct marketing of retailers. However, enterprises can’t force consumers to believe in their messages and products. Trust in the direct marketing activities of retailers needs to be built naturally, continuously and consistently.
- Enhance the utilities of direct marketing for consumers
The benefits brought by direct marketing to consumers are the most influencing factor for their attitudes (Survey result on consumer attitudes towards direct marketing). Enhancing these utilities will help retailers have a new, more efficient and low-cost communication medium. In order to increase convenience in terms of time and place, enterprises need to be existing when consumers need them. This helps consumers to have a more positive attitude towards the enterprises because they see that they can contact the enterprises whenever they want.
- Not annoy consumers
In order for consumers to remember and love any brand, retailers need to build positive feelings towards consumers, avoid causing unpleasant feelings and importunateness. Because 20% of importunateness give customers 80% of frustration. When retailers approach consumers without obtaining their consent, most consumers feel that the enterprise is not good and the consumers are not interested in the information provided by the enterprises.
- Consumers have right to refuse direct marketing of any retailer
When direct marketing fails to bring benefits to consumers compared to other communication media, even cause annoyance, consumers should have right to refuse. This right to refuse is available at any time. Therefore, to avoid refusal, retailers need to choose the right time and do not disturb consumers in their rest and work time.
5.2.3. Promotion of direct marketing activities at retailers in the city
- Mail-based direct marketing
- Newspaper and magazine-based direct marketing
- Radio and television-based direct marketing
- Phone-based direct marketing
- Internet-based direct marketing
5.3. Macro recommendations to develop direct marketing at retailers
5.3.1. Establishment of a legal system governing direct marketing of retailers
5.3.2. Perfection of information technology and telecommunications infrastructure in the city
5.3.3. Propaganda and education of direct marketing
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CONCLUSION
In the widespread integrated economic environment at present, retailers in Hanoi city have many opportunities and potential for development but also face fierce competition. Direct marketing is essential for retailers to survive in the marketplace. In fact, direct marketing has been applied by many retailers towards individual consumers. However, the level and form of activity is still at a low level. In order for direct marketing to really become an effective competitive tool, in addition to the favorable factors from the business environment, retailers in Hanoi city need to have knowledge, resources and skills of effectively implementing direct marketing media. In addition, consumer reception, support and trust towards direct marketing are also an important factor for direct marketing at retailers to thrive.
The content of the thesis has clarified the nature of direct marketing and direct marketing development at retailers. The characteristics of direct marketing and differences from other marketing communication tools are explained by analyzing the researchers' definitions of direct marketing. In the retail field, direct marketing is towards individual consumers through means of direct response. The change in consumer behavior along with the strong development of the digital age and the competitive pressure in the market has prompted more and more retailers to apply direct marketing. On the basis of the studied theory, the thesis has assessed the current status of direct marketing activities of retailers in the city for the past time. The direct marketing media have been interested and applied by many retailers, but only within means of supporting other communication tools of enterprises. Direct marketing has not become a major communication tool of retailers, thereby not bringing the desired effects.
Direct marketing of retailers only becomes successful and continues to grow when it is actively received by consumers. Therefore, the thesis has built a theoretical framework on consumer attitudes towards direct marketing of retailers in Hanoi City. Through the consumer sociological survey in Hanoi city, the thesis has assessed the impacting factors and the degree of affecting consumer attitudes towards direct marketing of retailers.
Based on the assessed successes and limitations in direct marketing activities at retailers, and from the research results on consumer attitudes towards direct marketing of retailers in Hanoi city, the author has proposed some solutions for promoting direct marketing development by 2030. The solutions focus on as follows: improving consumer attitudes towards direct marketing of retailers, solutions for developing direct marketing at retailers and solutions for promoting direct marketing activities at retailers in Hanoi city by 2030.
