Summary of PhD thesis in Business Administration: Influences of Electronic word of mouth (EWOM) on real estate purchase intention in Vietnam

1 2

CHAPTER 1 RESEARCH INTRODUCTION gap, the author decided to work on the study entited “Influences of Electronic word of mouth (EWOM) on real estate purchase intention in Vietnam" as the PhD thesis. 1.1. Rationales

1.2. Research objectives - Analyzing influences of EWOM on real estate purchase intention of Vietnamese consumers.

- Identifying whether there are any differences between two groups with real estate purchase intention to live in, who prefer townhouse, villas and those interested in apartment building under the relationship between EWOM perception and real estate purchase intention in Vietnam.

Internet has provided customers with a useful means of collecting information about any product and service; which is so-called social network word of mouth or electronic word of mouth (EWOM). Thanks to this approach, customers can easily access to and follow up others’ thoughts and feelings based on their comments and rates about any messages on the Website, Blog, Forum and social network sites (Facebook, Twitter,…). Consequently, they can compare the products and choose the optimal ones. This has created a diversied online community, which puts huge impact on enterprises and businessmen. - Proposing recommendations to use EWOM in developing information channels through the Internet in order to promote real estate market in Vietnam.

1.3. Research questions - How does EWOM influence real estate purchase intention of Vietnamese consumers?

- How do factors namely expertise, involvement, engagement, reliability of information source, information quality by EWOM, amount of EWOM influence EWOM adoption of local consumers? In Vietnam, together with the current trend of transforming traditional advertisement to digital marketing, the strong boom of various means of social communication in regard of both quality and quantity has made a large number of Vietnam’s enterprises notice this multi-dimentional information channel. Through social network sites, customers not only communicate with their friends and relatives, but also receive helpful advice to purchase different items. There have been numerous customers choosing this shopping approach because it makes them feel interesting and saves their time. - Does the factor so-called EWOM adoption influence real estate purchase intention of Vietnamese consumers?

- Are there any differences of EWOM influence on real estate purchase intention between customers interested in townhouse, villas and those keen on apartment building to live in?

1.4. Research subject and scope

1.4.1. Research subject

The subject of this thesis is influences of electronic word of mouth (EWOM) on real estate purchase intention of Vietnamese consumers. In previous years, real eastate firms have changed their sale method. Particularly, instead of focusing on advertisement or transactions through realestate exchange, firms/investors pay attention to updating real estate information on social network sites. Then, thanks to the ultimate benefits of electronic word of mouth (EWOM), everyone can get access to any information about real estate market wherever and whenever. Therefore, the exploration into influences of electronic word of mouth (EWOM) on real estate purchase intention can help enterprises and investors in introducing their housing products to Vietnamese consumers in the most effective basis.

1.4.2. Research scope - In terms of content: this study concentrated on factors related to EWOM’s influences on real estate purchase intention (townhouse, villas and apartment building) of Vietnamese consumers.

Most related studies in Vietnam and worldwide on influences of EWOM concentrated on consequences of increasing customers’ intention and decision in purchasing daily life consume products with small and medium value such as cell phone, clothes, cosmetics, houseware and electronics, etc. In fact, the impact of EWOM on assets with large value has been ignored. Based on this

3 4

- In terms of participants: this study covered consumers having intention of purchasing real estate including townhouse, villas and apartment to live in. They read and used information through EWOM to make decisions.

between the factors: “Involvement, Engagement, Reliability of Information, EWOM Information quality, EWOM quantity” and the factor “Expertise”. At the same time, the research results also indicate a positive relationship between the acceptance of EWOM and the intention to buy real estate of the Vietnamese consumers. - In terms of places: the survey was carried out in 6 big cities with numerous block of flats, villas and townhouse in Vientam (Hà Nội, Hải Phòng, Hồ Chí Minh, Đà Nẵng, Cần Thơ, Vũng Tàu).

- In terms of time: the primary data was collected from 01/05 to 30/10/2018 (06 months).

1.6.2. In terms of practical aspect - Firstly, based on the survey with sample size of 588 consumers having real estate purchase intention (apartment building, townhouse, villa) through reading, watching and searching for EWOM, the study clarified how contributors to EWOM influenced real estate purchase intention of Vietnamese consumers.

- Secondly, thanks to the measurement of influencing level of EWOM’s contributors on Vietnamese’ purchase intention, the study can help enterprises and investors to be aware of influence of EWOM’s key factors on real estate purchase intention. Then, EWOM should be developed as an effective Marketing tool. At the same time, the study indicates that there should be methods and strategies so that EWOM Marketing can achieve its goals, especially for new plans of apartment building and urban areas. 1.5. Research methods - Data collection methods: The research data was mainly primary source collected through the survey during 6 months from 01/05/2018 to 30/10/2018 with the questionnaire for local consumers having real estate purchase intention (apartment building, townhouse and villa). They read and searched for EWOM. The development of the questionnaire was based on the research related definitions in companion with quanlitative methods of expert consultancy and individual interview. The survey was conducted through direct channel at home and companies of the participants and indirect one through Email with the survey link thank to Survey Monkey software.

- Thirdly, lessons learnt through research process can be the basis for completing further study activities related to influences of EWOM on customers’ real estate purchase intention in particular and that of other products in general.

1.6.3. Thesis organization

In addition to the declaration of authorship, acknowledgement, and - Data analysis methods: The primary data was collected thanks to the questionnaire and analyzed with the structural equation modeling (SEM) supported by AMOS 22.0 software to quantify the amount of influence of EWOM’s factors on EWOM adoption, as well as the influencing relationship between EWOM adoption and real estate purchase intention of Vietnamese consumers. appendix, the thesis is structured into 5 chapters as follows: 1.6. Thesis’s new contributions Chapter 1: Introduction of resesearch; 1.6.1. In terms of theoretical aspect Chapter 2: Research overview and Theoretical foundations;

Chapter 3: Research methods; - Firstly, the thesis has built one of the theoretical frameworks on the influence of Electronic Word of Mouth factors (EWOM) on the intention of Chapter 4: Research results; buying real estate in Vietnam. Chapter 5: Discussion research result and recommendations.

- Secondly, the thesis also has built a model of the impact of Electronic Word of Mouth factors (EWOM) on the intention of buying real estate of Vietnamese consumers and quantifies the influence relationship

5 6

CHAPTER 2 about the same issue (Cheung & Lee, 2012)

RESEARCH OVERVIEW AND THEORETICAL FOUNDATION

2.1. Research overview of EWOM

Limitation of information Local area, within popular (Gupta & acquaintances Harris, 2010).

time, Unlimited place and shared by anyone and anywhere with Internet availability (Litvin & Goldsmith, 2008; Chatterjee, 2001; Cheung & Lee, 2012; Gupta & Harris, 2010).

Researches on the effects of Electronic word of mouth (EWOM) are presented in two directions: (1) Research direction on the impact of EWOM on purchasing intention and (2) Research direction on the impact of EWOM on buying decision (listed in appendix 01 of the thesis)

2.2. EWOM - Electronic Word-of-Mouth

This chapter covers the following contents: Easy to confirm information reliability. Reliability of information source 2.2.1. Definition of word of mouth (WOM) Difficult to confirm information reliability, which is often based on reliability of sources like websites, facebook, etc (Cheung & Lee, 2012). 2.2.2. Characteristics of WOM over 2.2.3. Definition of electronic word of mouth (EWOM) Control Control information expansion (Park & Kim, 2008; Cheung & Lee, 2012). No control over expansion (Park & Kim, 2008; Cheung & Lee, 2012).

Plagialism Electronic word of mouth (EWOM) means information about the products and their related discussions are transmitted to customers through social network sites. Collected information about the service and products would have influences on their comsumption. Hard to plagiarize and store (Cheung & Thadani 2012; Park & Lee, 2009). Easy to plagiarize and store for a long time (Cheung & Thadani 2012; Park & Lee, 2009) 2.2.4. Development of EWOM

2.2.5. Characteristics of electronic word of mouth (EWOM)

Electronic word of mouth (EWOM) and word of mouth (WOM) are Measurement Difficult to measure different in the following aspects:

Easy to measure and observe thanks to format, quantity and stability (Lee et al., 2008; Park & Kim, 2008; Cheung & Lee, 2012). Criteria WOM EWOM

Source: Author’s compilation oral

2.2.6. Components of electronic word of mouth (EWOM) Form communication and person one (Litvin&Goldsmith, Internet-based communication through social network sites (Litvin & Goldsmith, 2008). Direct between another 2008)

information (Cheung&Lee, According to Lasell (1948); Hovland et. al, (1949); McGuire (1985) who worked on persuasive communication, the components of persuasive communication or electronic word of mouth cover information sender; message; receiver; and environment (channel); Low speed of information expansion (Cheung & Lee, 2012). Quick speed of expansion 2012). Information

One way information from a person to another one. Multi-dimentional different within information consumers 2.2.7. Benefits of EWOM - For consumers: information is easy to be searched for; time and money saving; less risky for purchase; possible to be plagiarized and stored for future use.

7 8

and development of infrastructure have resulted in unprecented kicks for the real estate market.

Table 01: Supply for apartment, townhouse and villa in Hanoi and Ho Chi Minh cities - For suppliers: tEWOM encourages customers to use the products; EWOM is an effective marketing source; EWOM helps in increasing business performance to reduce marketing cost and extend revenue; EWOM works in developing the relationship between customers and enterprises as well as increasing the number of services. Unit: item

2017/2016 2018/2017 Products 2016 2017 2018 Market (+/-) % (+/-) %

2.2.8. Drawbacks of EWOM - For consumers: information might mislead purchase decisions with unworthy price and quality; there are enterprises releasing false information, resulting in risks for consumers. 0,1 Apartment building 29.445 28.562 28.602 (883) (3) 40 HCM Townhouse 2.712 4.417 2.315 1.705 62,9 (2.102) (47,6)

Apartment building 20.665 27.200 28.666 6.535 31,6 1.466 5,4 Hanoi Townhouse 3.095 4.178 3.106 1.083 35 (1.072) (25,7) - For suppliers: EWOM might cause disadvantages for enterprises such as reducing revenue and interest; negative information about the products and enterprises’ image can be quickly expanded, which is hard to control and puts big impact on business performance.

2.3. EWOM’s factors with influence on customers’ purchase intention Source: Author’s self compilation from real estate newspaper 2016-2018, market report by Vietnam Association of Realtors, Report by Hanoi department of construction 2.3.1. Factors related to information sender or source

These include: Engagement; Reliability; Experience.

2.3.2. Factors related to information receiver This table reveals that in both markets of Hanoi and Ho Chi Minh, the supply of apartment building was 10 times greater than that of townhouse and villa. Both market experienced fluctuations in terms of apartment building and These include: Expertise; Involvement; Risk awareness; Characters of receiver. villa. 2.3.3. Factors related to EWOM message 2.4.2. Context of real estate purchase through EWOM in Vietnam in recent These include: EWOM information quality; EWOM quantity; EWOM years characters.

2.3.4. Factors related to transmitting channels.

2.4. An overview on real estate purchase through EWOM in Vietnam in recent years

2.4.1. The context of real estate in Vietnam in recent years

EWOM has become the fatest and most effective information channel for purchasing goods, services; including real estate products. In the world, most consumers use online purchase rather than going to the store or supermarkets to choose the services and products they want. Without any exception, Vietnam has shared the same experience. According to report by CBRE, in Vietnam, 25% of consumers had intention of buying less at the store, whereas 45% - 50% of them stated the interest in online purchase with computer/laptop/ipad or smart phone in the next 2 years.

In Vietnam, recently, despite limited electronic transactions in real estate area due to their great value, according to incomplete statistics on real estate purchase in Vietnam, there have been nearly 76% of consumers having demand Under the situation of great urbanization in Vietnam with large scale, there have been more opportunities for the development of real estate area. According to CBRE, Vietnam is the country in Southeast Asia with the greatest expenditure for infrastructure. The speed of increasing residents in urban areas is higher and higher. As satted by statistics, the growth in city dwellers was from 27% in 2005 to 38% in 2018, which brought about huge impacts on real estate market. In fact, the increase in population, strong urbanization, expansion

9 10

(2) Study on consume product level 2 of real estate including apartment

building, townhouse, villa rathet than consume product level 1 and level 3.

(3) Study on influences of factors of electronic word of mouth (EWOM)

on real estate purchasing behavior with at real estate purchase intention. for regular study on products in the Internet prior to making decision. Especially, 74% of that number has accessed to internet to search for projects, 36% has used social network sites and 33% used website of real estate purchase and agent. At the same time, the percentage of using Internet to compare choices has been equal to that of customers sharing experiences on social

network with 40%. 52% of customers has searched for rates from others, 57% of real transactions has been rooted from the Internet.

(4) Identification of any differences between two groups of participants purchasing real estate, of whom, the former prefered townhown and villa, the latter wanted apartment. This analysis was looked into under the intervention of EWOM adoption for real estate purchase intention of Vietnamese consumers.

2.6.2. Selection of research theories Based on experts’ opinions about real estate, electronic word of mouth has helped consumers having demand for real estate transactions to save time, enery and cost; as well as has built up to a stronger real estate market in Vietnam.

2.5. Theories on communication and purchasing behavior

Based on the literature review and the above discussion about theories on communication and behavior, the author chose the combination of the following initial theories for this study.

(1) tPersuasive communication theory by McGuire (1985) was selected as the key theory for the research. Theory by (1985) improved the previous theory by Hovland et, al. (1949), provided better explanation to factors of

EWOM on the effectiveness of persuasive communication; t 2.5.1. Theories on communciation - Communication model by Lassell (1948) - Persuasive communication theory by Hovland et, al. (1949) - Persuasive communication theory by McGuire (1985) - Eleboration likelihood model (ELM) by Petty and Cacioppo (1986) - Information adoption model (IAM) by Sussman t& Siegal (2003)

2.5.2. Theories on purchasing behavior - Theory on reasoned action (TRA) of Fishbein và Ajzen (1975) - Theory of planning behavior (TPB) of Icek Ajzen (1991)

(2) Theory of planning behavior (TPB) by Ajzen (1991) was used as the basis for the explanation to consuming behavior. This theory was stated to give good details about this kind of behavior, which improved the theory on reasoned action (TRA). This theory mentioned the nature of persuasive communication. 2.6. Research model 2.6.3. Research model 2.6.1. Research gap

the theory for

The author directed the study into “Influences of electronic word of mouth on real estate purchase intention in Vientam” in order to work on a part of research gap in previous studies. Then, the new research directions compared with other studies are stated as the followings:

(1) Study on purchasing behavior intention of consumers (buying houses to live, in particular) rather than real estate investing behavior intention by investors to gain interest.

Electronic word of mouth (EWOM) means information about the products and related discussions are transmitted to the consumers through social network. Therefore, this study should be persuasive communication. The author selected the persuasive communication theory by McGuire (1985) and theory of planning behavior TPB by Ajzen (1991) as the foundation for the research model. Also, based on the experimental model by Yi- Wen Fan and Yi-Feng Miao (2012), this study combined those theories with complete theory model by Associate Professor, Dr. Christy M.K. Cheung et, al. (2012). Thanks to the thesis objectives and answers to the research questions, the

11 12

- Group 2: factors related to information receiver included “expertise” and “Involvement”

- Group 3: factors related to EWOM message included “EWOM information quality” and “quantity of EWOM”. research model should be proposed to solve 2 basic relationships: (i) factors of EWOM had influence on EWOM adoption; (ii) the relation between EWOM acception and real estate purchase intention of Vienamese consumers. Following is the research model:

Dependence varibles t t2 tvariables: t“tEWOM adoption” tvà t“Real estate purchase intention”.

2.6.4. Research theories

INFORMATION SENDER

Followings are the hypothesis in the research:

Engagement

Hypothesis Explanation

Reliability

H1 The greater the knowledge about real estate is, the less possibility of tEWOM adoption ist.

H2 The more the interest in real estate, the more possibility of EWOM adoption is. EWOM MESSAGE

Quality of EWOM information

EWOM adoption

H3

Real estate purchase intention

The closer the relationship between tEWOM information sender and receiver is, the higher the possibility of tEWOM adoption is.

Quantity of EWOM

H4 The higher the information reliability is, the higher the possibility of tEWOM adoption is.

RECEIVER

Experise

H5 The better the quality of tEWOM information is, the higher the possibility of tEWOM adoption is.

Involvement

H6 The greater the quanity of EWOM is, the higher the possibility of tEWOM adoption is. Diagram 01: Research model

Source: Author’s proposal H7 The higher the possibility of tEWOM adoption is, the more the intention of real estate purchase is. In which:

Independence variables: 6 variables were divided into 3 groups:

- Group 1: factors related to information sender included “reliability” and “engagement”

13 14

Step 1

Stepp 2

CHAPTER 3 RESEARCH METHODS H8 3.1. Research procedure There are differences in influences of tEWOM real estate purchase intention on two groups:tthat of consumers with townhouse or villa wish and that of apartment building one.

Theoretical framework

Mesurement scale

Bước 3

Step 4

Step 3

Research objectives

Revised measurement scale

1st revised measurement scale

Step 4

Draft quantitative research

• Exclude variables with correlation with the target

variable < 0.3

Cronbach Alpha test

• Cronbach Alpha ≥ 0.6

Step 4

Exploratory factor analysis (EFA)

• Exclude variables with Factor Loading < 0.5 • Test extractable factor • Test average variance extracted ≥ 50% • Test KMO (0.5 ≤ KMO ≤ 1) • Eigenvalue ≥1

Step 5

Confirmatory factor analysis (CFA)

• Exclude varibles with CFA< 0.5 • Test undirectionality • Calculate general confidence coefficient

Step 6

• Test model aprropriateness • Test model hypothesis • Re-estimate model

Structural equation model (SEM)

Step 7

RESEARCH REPORT

Diagram 02: Research procedure

15 16

3.2.2.1. Draft qualitative research 3.2. Research methods

This was carried out by: designing the questionnaire; choosing research 3.2.1. Qualitative methods

The author used qualitative methods with expert consultancy and individual sample; evaluating measurement scale; testing the appropriateness of the model.

3.2.2.2. Official quantitative research interview.

3.2.1.1. Expert consultancy Step 1: Testing the reliability of the eamsurement scales by Cronbach’s

This method was utilized to establish and edit measurement scales to

design the questionnaire. The process of carrying out this method was: Step 1: Alpha; estimating regression value and Tvalue; analyzing CFA for each sub- model to test the general model.

Desk qualitative research; Step 2: Interview; Step 3: Interview results Step 2: Testing the appropriateness of the general model by each criteria

like the analysis into CFA. achievement.

3.2.1.2. Individual interview Step 3: Testing the estimate model by Bootstrap: this method is used to

evaluate reliability of estimate indicators and the stability of the model. The process for this method was:

Step 1: Planning interviewees: the author intended to interview 10

consumers who having read and search for information by EWOM to buy real

estate, including 2 purchasing townhouse, 2 purchasing villa and 6 purchasing

apratments to live purpose;

Step 2: individual Interview: Based on the draft measurement scale after

expert consultancy, the researcher designed the draft questionnaire and

interviewed 10 consumers having bought real estate (villa, townhouse,

apartment) throught the information from EWOM in order to adjust style,

language expression and content of the draft questionnaire so that the final one

could be completed for quantitative research.

Step 3: Achieving results of individual interview: The results showed that

all interviewees agreed with the number of measurement scales and questions in

the draft measurement scales, including 21 scales for 6 independent variables

respectively to 6 factors of EWOM and 7 scales for 2 dependent ones namely

EWOM adoption and real estate purchase intention of Vietnamese consumers.

3.2.2. Quantitative methods

The quantitative process was divided into 2 phases: draft and official

researches.

17 18

CHAPTER 4 RESEARCH FINDINGS

4.1. Results of screening questionnaire responses

Table 02: Results of screening questionnaire responses

provided by a person with knowledge and experience about real estate” with the correlation value of 0.588. Moreover, regarding Cronbach's Alpha, if variables of each scale had been excluded, it would have been smaller than the Cronbach's Alpha presented by those variables. Therefore, it was unnecessary to exclude any observatory variables to increase the reliability of that respective scale. So, all scales in the research guaranteed reliability and all factors were kept for further research.

Percentage

4.3.2. Results of exploratory factor analysis (EFA)

Subject

Number of released questionnaires

Number of collected questionnaires

Number of valid questionnaires

Number of invalid questionnaires

(%)

(questionnair)

(questionnair)

(questionnair)

(questionnair)

(1) (2) (3) (4) (6)=(4)/(3) (5) - Result of Bartlett’s test showed that there was possible correlation among variables (Sig = 0.000 < 0.05) and KMO = 0.773 > 0.5 stated that analysis into factors to group vairables was reliable. 1. Villa 150 139 131 94,2 8

200 186 173 93 13 2. Townhouse - All observatory factors had Factor Loading > 0.5 as standard, and the variation of factor loading for observatory factors was more than 0.3. So, it was unessential to exclude any variable in the analysis

400 387 368 95,1 19 3. Apartment

Total 750 712 672 94,4 40

- The Eigenvalues of the sixth factor was 1.653 > 1, representing high eigenvalue of factors in the analysis. The average variance extracted of 06 factors was 58.927 > 50% representing that the variation of factors could explain 58,927% of variation of the initial data. The average variance extracted was higher than 50%, which met the requirement of the analysis.

4.2. Results of analysis into survey sample

Table 03: Results of exploratory factor analysis for dependent variables

Scales KMO Sig Eigenvalues Data collected from 672 valid questionnaires would be used for the analysis in order to answer the research questions. After cleaning the data and processing the primary data by Excel, the final one was inserted into SPSS 25.0 to analyze and evaluate. The details of analysis would be presented in the upcoming sections. Average variance extracted 4.3. Results of testing measurement scales 63.449 EWOM adoption 0.784 0.000 2.538 4.3.1. Results of assessing the reliability 77.566 Real estate purchase intention 0.731 0.000 2.327

The test of measurement scales revealed that Cronbach's Alpha value of all scales was greater than 0.7, in which the lowest scale was the one for independent variable “Reliability of information source” with Cronbach's Alpha= 0.798 and the highest one was for the independent vairable “Engagement” with Cronbach's Alpha= 0.877. This showed that the survey data was completely reliable. Also, the correlation with the target variable of all observatory variables for each scale was greater than 0.3, the lowest one was the scale TCTT_3 “You trust in EWOM information about real estate, which is Results of exploratory factor analysis for the two dependent variables in the model including “EWOM adoption, real estate purchase intention” were good. In particular, KMO were 0.784; 0.731 respectively > 0.5; Sig = 0.000 < 0.5; average variance extracted for each factor was: EWOM adoption= 63.449 > 50%, intention = 77.566 > 50%; Eigenvalues of the two factors were EWOM adoption = 2.538 > 1, Intention = 2.327 >1. So, initial observatory variables representing for dependent variables shared the same eigen point. Then, all

19 20

scales for 2 dependent variables got high eigenvalues. Diagram 03: Results of structural equation model (SEM)

4.3.3. Results of confirmatory factor (CFA)

Results of structural equation model in diagram above showed that: measurement indicators for the appropriateness with the model included Chi- square/df = 2.500< 3, TLI = 0.932 > 0.9, CFI = 0.941 > 0.9, NFI = 0.907 > 0.9, GFI = 0.921 > 0.9, RMSEA = 0.047 < 0.08. Therefore, the model was appropriate with the market. In addition, results of P-value of independent variables were 0.000, so, theses variables represented for their influence on the dependent ones namely “EWOM adoption”, vice versa “EWOM adoption” had influence on “Real estate purchase intention” in a statistical basis. In particular: Results of CFA of indicators for the appropriateness of the model showed that Chi-square/df = 2.492 < 3, TLI = 0.933 > 0.9, CFI = 0.943 > 0.9, NFI = 0.909> 0.9, GFI = 0.923> 0.9, RMSEA= 0.047< 0.08. So, the model was suitable with the market. Moreover, results of P-value of observatory variables representing for factors were 0.000, all standard values for scales wer high (>0.5) so, all vairables could well represent for factors in CFA model and all scales had great eigenvalue.

In addition, the correlation analysis among varaibles showed low value and different from 1 with significance (p= 0.000). This means all scales guaranteed the differientation.

4.4. Results of testing research hypothesis

4.4.1. Results of structural equation model (SEM)

Due to the influence of factors of EWOM on EWOM adoption, the factor “Involvement” held the strongest impact with the standardized coefficient of 0.251, which was followed by “reliability of information source” with coefficient of 0.221, the third one was “quantity of EWOM” with 0.220, the forth one was “expertise” with the number of 0.183, the fifth was “quality of EWOM” with 0.170, the least influencing factor was “engagement” with 0.145. So, the more the customers participated in EWOM by comments on social network sites or software, the higher the rate of EWOM adoption would be. The perception of EWOM information reliability also made consumers believe and accept EWOM more. The results also pointed out the importance of “the quanity of EWOM” towards consumers’ adoption. However, if the quantity of EWOM was great whereas the quality was poor, consumers would not feel satisfied.

Regarding real estate purchase intention, EWOM adoption had an influence with coefficient of 0.555. This showed the quite large value. So, if consumers accepted EWOM at high level, their purchase intention would be the same. The regression equation would be YDM = 0.555* CN

Regarding R square: The influence of independent variables on EWOM adoption with R2 = 0.867 showed that they had big influence on the evaluation of research participants on EWOM adoption. The influence of variable EWOM adoption on real estate purchase intention with R2 = 0.250 showed the influence at average level and there were other factors affecting consumers’ real estate purchase intention.

21 22

4.4.2. Results of Bootstrap test CHAPTER 5 FINDINGS DISCUSSION AND RECOMMENDATIONS

5.1. Findings discussion

Based on the results illustrated in Chapter 4, following conclusions

could be given: In this study, the official survey sample was comprised of 672 consumers. The author selected the number of samples by Bootstrap test with 1.500 consumers to meet the requirement of initial sample with large population. Results of Bootstrap revealed that the standard deviation was limited with low value. Therefore, it was concluded that estimates in the model were reliable and compatiable with big sample size of more than 1.500 consumers. Firstly, factors of EWOM including Expertise, Involvement, Engagement, 4.4.3. Results of multi-group analysis between that of purchasing Reliability of information source, Quality of EWOM information, Quantity of apartment and townhouse, villa

EWOM had influence in EWOM adoption of consumers. Among these factors,

5 ones with positive influences were “Involvement” with the greatest influence,

which was followed by “Reliability of information source”, “Quality of Multi-group analysis demonstrated that there were differences in the interaction among independent variables in the assessment of “EWOM adoption” between two groups as well as in the relationship between “EWOM adoption” and “Purchase intention”, in particular: EWOM”, “Quantity of EWOM information”, “Engagement”; factor “Expertise”

held negative influence on EWOM adoption. So, the more customers

participated in EWOM through ratings and comments on social network sites,

the more information they could receive about real estate market and the more

knowledge they could have about accommodation packages. Then, they could - In terms of consumers buying apartment, the influence of “The quantiy of EWOM” was the largest, which was followed by factors namely “Involvement, reliablity of information source, engagement, expertise” and “the quality of EWOM information”. At the same time, there was influence of “EWOM adoption” on “Purchase intention” with coefficient of 0.493. easily information through EWOM. Beside, “Quantity of EWOM” put an

important influence on customers’ adoption. However, evenwhen EWOM

quantity was great, but its quality was low, customers would feel dissatisfied.

Secondly, EWOM adoption had positive influence on real estate purchase - In terms of consumers buying villa and townhouse, the influence of the factor “partcipation” was the largest, which was followed by “reliability of information source, engagement, expertise, quality of EWOM information” and “the quantity of EWOM”. Also, there was influence of “EWOM adoption” on “Purchase intention” with coefficient of 0.523. intention, which could explain for 57,2% of variation in consumers’ purchase 4.4.4. Results of testing research hypothesis intention. When they also trusted in real estate information provided through The above results showed that initial hypothesis was proved to be EWOM, they would soon have intention of buying real estate.

Thirdly, there were differences in the interactive correlation among factors statistically significant and accepted. of EWOM on “EWOM adoption” between the two groups of participants as

well as differences in the relationship between “EWOM adoption” and “Real

estate purchase intention” of Vietnamese consumers. This makes up new

contributions of the thesis.

23 24

Thirdly, in the research model, the author only measured influencing level 5.2. Recommendations

of 6 factors of EWOM on purchase intention of Vietnamese consumers. In fact, Based on the research findings about influences of EWOM on real estate

EWOM is comprised of other factors. Therefore, further studies can build up purchase intention of Vietnamese consumers, and Beta value of factors

other models for measuring the influencing level of other contributors to belonging to EWOM, the author proposed following solutions to use EWOM as

EWOM on real estate purchase intention of Vietnamese consumers. a marketing tool to develop through the Internet in order to enhance the real

estate market in Vietnam: Forthly, because the study only aimed at real estate products, there could

be differences in the measuring scales of services in other areas. Therefore, - Increasing consumers’ participatory rate in EWOM and their trust in

further studies can research other products to make more comparisons. EWOM

- Improving the quality of EWOM information

- Increasing the quantity of EWOM

- Increasing the relationship between information sender and receiver

5.3. Limitations of the research and future direction

Firsrtly, in terms of sample selection: because the research participants were

consumers having intention of purchasing real estate (townhouse, villa, and

apartment building) through reading, watching and searching for information on

channels of EWOM to buy real estate for living purpose; therefore, sample

selection was non-probability with convenience. Therefore, the survey sample

could not represent for generalization. So, the value of the study on EWOM would

have been greater if further works chooses sample with better representtion.

Secondly, in terms of survey scale: the thesis covered consumers in 6

cities in Vietnam with numerous apartment buildings, villa and townhouse,

which are Hà Nội, Hải Phòng, Hồ Chí Minh, Đà Nẵng, Cần Thơ, Vũng Tàu.

Therefore, futher studies should survey in other cities to achieve better findings

and easier to compare differences in EWOM influence on real estate purchase

intention of consumers there.

25

CONCLUSION Followings are certain achievements of the study:

Firstly, it systemized and clarified the definition of EWOM with 4 groups of factors having influence on purchasing behavior or consumers. These factors included those related to information sender (engagement, reliability of information source, experience of information sender); ones related to information receiver (expertise, involvement, risk awareness); ones related to EWOM message (quality of EWOM information, quantity of EWOM, characters of EWOM; ones related to transmitting channel. Then, the study identified 6 factors of EWOM with influence on real estate purchase intention of Vietnamese consumers. These put influences on purchase intention and regarded as the background for research model development.

Secondly, the thesis provided an overview on real estate market in Vietnam and the fact of real estate purchase of Vietnamese consumers through EWOM. At the same time, it systemized theories on communication and purchasing behavior of consumers. Among these were theories on persuasive communication by McGuice (1985) and TPB by Ajzen (1991), which were selected as the foundation. It also used the experimental model by Yi-Wen Fan and Yi-Feng Miao (2012) and complete theory model by Asso. Pro, Dr. Christy M.K. Cheung et, al. (2012) as the foundation for the research model development.

Thirdly, the thesis also quantified the influencing level of 6 factors of intention of Vietnamese consumers. EWOM on real estate purchase Accordingly, the 6 EWOM factors were Expertise, Involvement, Engagement, reliability of information source, quality of EWOM information, quantity of EWOM. All of these had positive influence on EWOM adoption, which then would impact the real estate purchase intention of Vietnamese consumers.

Forthly, based on the results of measuring the influences of 6 factors of EWOM on purchase intention of Vietnamese consumers, the thesis provided certain recommendations to use EWOM as a tool for marketing in order to imrove business performance for real estate agent and investors in Vietnam, which would develop the real estate market in Vietnam.