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Circuit Theory For Semicondcutor

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Circuit Theory For Semicondcutor

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Journal of Economics, Business and Management, Vol. 4, No.

4, April 2016

The Influence of Social Media Marketing on Vietnamese


Traveller’s Purchase Intention in Tourism Industry in Ho
Chi Minh City
Mai Ngoc Khuong and Tran Thi Huong

 to increase in future. In addition, [4] among internet users


Abstract—The purpose of this research was to investigate the 98.79% people use Facebook, following after is Zing me
relationship among online communication including online ads, (54.73%). Therefore, it is high demand to understand deeply
online communities and electronic word-of-mouth (e-WOM) to the behavior of Vietnamese traveller on social media
purchase intention of Vietnamese travellers toward tourism
products in Ho Chi Minh City, Vietnam in order to create more
platforms to build more effective marketing campaigns.
effective strategies on social media platform to attract more This study examined the relationship between e-WOM,
customer’s attention. Basing on the previous theoretical studies, online ads, online communities to purchase intention as well
the proposal framework was constructed. As a result, the study as well as investigated the role of trust as mediating factor
showed the significant role of trust as mediating factor between between independent variables and dependent variables of
independent variables and dependent variable. More Vietnamese travellers toward tourism products. Thereby,
specifically, e-WOM and online ads had directly effect on
purchase intention and online ads, online communities
from the results of the study, marketers can develop more
indirectly impacted on purchase intention through trust. practical strategies to improve customer’s purchase intention
Therefore, tourism companies should pay more intention on and finally lead to purchase decision.
online ads as it was the most significant factor which affected
purchase intention to attract more potential customers.
II. LITERATURE REVIEW
Index Terms—Social media marketing, trust, purchases
intention. A. Purchase Intention
Purchase intention referred to the subjective judgment by
I. INTRODUCTION the consumers that is reflected after general evaluation to buy
products or services [5]. Purchase intention is defined as an
As the advent of internet, Social media has rapidly risen in “individual’s readiness and willingness to purchase a certain
popularity in the 21th century as a new marketing platform product or service [6]. Moreover, Purchase intention means a
that allows users to connect with one another and engage consumer prefers to buy a product or service because he/she
with brands in general. According to “The art of listening finds that he/she needs a particular product or service, or even
social media toolkit for non-profit” [1] in 2013 there are attitude towards a product and perception of product. In other
numerous of people who use Twitter and Facebook with over words, purchase intention means consumer will buy a
500 million users and over 1.11 billion respectively, and product once again after she or he evaluates a product and
these numbers are growing every second. Especially, in finds out that the product worth buying. While consumers
tourism industry the social media plays an important role to select one particular product, the final decision on accepting a
gain more customers’ involvement and increase their product to buy or rejecting it depends on consumers’
purchase intention because the products of tourism field has intention. Also, a large number of external factors have been
long relied largely on destination reputation, consumer recognized, which can affect PI [7]. The study of [8], they
opinion, spread of information, and positive word-of-mouth indicate Purchase Intention was affected by online
advertising. According to Michaela Stelznel [2] in “Social communities, online advertising and e-WOM and the
media marketing report” 97% marketers indicated they are respondents were interested in engaging and giving their
participating in social media marketing in doing their feedback on product through social media marketing medium
business and a significant 92% of marketers said that social to increase purchase intention.
media was important to their businesses.
Moreover, Vietnam has been becoming a country with the B. Trust
increasing number of users using the internet and number of Trust is defined as the positive expectation on tourism
domain rank at 8th in Asia, 18th worldwide and 2nd in South products or services without having prior experience about
East Asia. The statistical report of the Vietnam Internet those after consumer’s awareness is exposed to product
Network Information Center (VNNIC) [3] the number of information which is likely perceived to be credible [9].
Internet users in Vietnam is over 31 million (35.4%) and tend According to [10] essentials of trust includes 5 characteristics
and definition. Especially in tourism industry, he clarified the
Manuscript received August 20, 2015; revised November 22, 2015. definition of trust mainly about the relationship among users.
Mai Ngoc Khuong and Tran Thi Huong are with the School of Business,
International University-VNU-HCM, Vietnam (e-mail: They are “Trust is reliance, and belief that such reliance on
mnkhuong@hcmiu.edu.vn, tranthihuong121@gmail.com). others will result in rewarding relationships, Trust is a

doi: 10.18178/joebm.2016.4.4.404 280


Journal of Economics, Business and Management, Vol. 4, No. 4, April 2016

reflexive relationship of engagement that lasts over time,


Trust is natural, The ‘cunning of trust’ presents itself when
trustworthiness is conspicuously displayed in the presence of
a third party, and Social power is a key threat to a trusting
relationship, turning trust into conflict or negotiation”.
Furthermore, [11] they indicated that trust as mediating factor
which affected their traveller intention. Customers generated
the information on media and they perceived whether it Fig.1. Proposed hypothetical model.
trustworthiness or not before making any decision. [12],
Consumers generally used social media during the research H1: E-WOM positively and directly affects trust
phase of their travel planning process; and trustworthiness H2: Online advertising positively and directly affects trust
was a key antecedent in determining their decision on using H3: Online communities positively and directly affect trust
information on social media to lead to the purchase intention. H4: E-WOM positively and directly affects traveller’s
In addition, [13] found out the role of electronic purchase intention.
Word-of-Mouth and trust effect on purchase intention which H5: Online advertising, positively and directly affects
trust played as a mediating factor between. traveller’s purchase intention.
H6: Online community positively and directly affects
C. Online Communities traveller’s purchase intention.
Online communities consist of individuals with congruent H7: Trust positively and directly affects traveller’s
social needs. Personal relationships confirm the feeling of purchase intention.
engagement that is a base for the certain level of loyalty to the H8: E-WOM positively and indirectly affects traveller’s
community. Member’s contributions to the community purchase intention through trust
consist of the information content they produce i.e. H9: Online advertising, positively and indirectly affects
comments, feedback, attitudes and beliefs as well as traveller’s purchase intention through trust
informative needs [14]. Forum are online communities H10: Online community positively and indirectly affects
formed around a specific interest and are usually divided into traveller’s purchase intention through trust
specific topic areas [15]. The study of [16] proved that online
communities had positive impact on purchase intention and
members of online brand communities had high purchase III. METHODOLOGY
rates and were likely to recommend the brand to friends.
Moreover, the role of trust on online communities that A. Questionnaire Design and Data Collection
provides the information in order to determine the customer’s Quantitative method was mainly applied with primary data
intention to follow the advices toward tourism products was collected by using paper questionnaires. All items of
examined in [17]. dependent and independent variables were measured by
using five-point Likert scale, ranging from 1 is “strongly
D. Online Advertising
disagreed” to 5 is “strongly agreed”.
Online advertising, also called online marketing or Internet The target population was mainly young officers who had
advertising is a form of marketing and advertising which uses high demand for traveling and highly engaged with social
the Internet to deliver promotional marketing messages to media marketing. The questionnaires were distributed
consumers. It includes email marketing, search engine directly to respondents in the center of Ho Chi Minh city
marketing (SEM), social media marketing, many types of (HCMC) which had numerous of big offices such as the area
display advertising (including web banner advertising), and of district 1 and district 3.
mobile advertising. [18], [19] concluded the significant The pilot test N=20 was also conducted to ensure the
impact online advertising on purchase intention. completely understanding questionnaire from respondents.
E. Electronic Word of Mouth ( e-WOM ) After collecting the feedback and modification, the final
questionnaires were directly sent to and filled by 286
According to [20] define electronic Word of Mouth as
qualified respondents in HCMC.
being: “Any positive or negative statement made by potential,
actual, or former customers about the product or company B. Data Analysis
which is made available to a multitude of people and The study used SPSS (Statistical Package for the Social
institutions via the internet”. Explaining by [21] “e-WOM Sciences) version 21.0 to analyze the data. Exploratory
was found to play a very important role on purchase Factor Analysis (EFA) and Reliability Test were conducted
intentions. Furthermore, this study found that positive firstly to identify the interrelationships among a set of
e-WOM is positively related to purchase intentions and has a variables and to ensure the reliability and validity as well.
greater effect on purchase intentions than ads”. The result After that, multiple regression and path analysis were also
from the study of [8], [13] also concluded that e-WOM tested to investigate the causal relationship between
affected directly and indirectly to purchase intention. independent variables and dependent variable.
F. The Proposed Hypothetical Model C. Factor Analysis and Reliability
Fig. 1 illustrates the hypothetical causal model of this Two exploratory factor analysis (EFA) were tested with
study, which was applied from previous studies. Kaiser-Meyer-Olkin and Bartlett’s test of sphericity, and

281
Journal of Economics, Business and Management, Vol. 4, No. 4, April 2016

Varimax Rotation of 28 items of independent variables and In addition, the Cronbach”s alpha of trust and purchase
15 items of dependent variables. The KMO measure of intention after EFA test were .690 and .809 respectively
sampling adequacy for both groups of Independent (above 0.6)
(KMO=.826) and dependent variables (KMO=.827) were These results implied the reasonable internal consistency
greater than the minimum value for a good factor analysis .60 among items in each factor.
[22]. In addition, Barltlett’s test of sphericity was significant
(Sig. =.000), indicating the sufficient correlation between the
variables. IV. RESEARCH FINDINGS

TABLE I: SUMMARY OF INDEPENDENT VARIABLES A. Profile of Sample


The summary of personal information is showed in the
Variables No. α
Items table III including demography and few questions about how
Online Communities (ONLICO) 7 .782 travellers use social media platform.
Online advertising (ONLIAD) 4 .674
Electronic word of mouth (E-WOM) 3 .631 B. Factors Affecting Trust and Purchase Intention
In order to test the research hypotheses, two multiple
TABLE II: SUMMARY OF DEPENDENT VARIABLES
Variables No. Items α
regression analyses were employed. The first multiple
Purchase Intention (PURINTE) 6 .809 regression was conducted to find the effects of ONLIAD,
Trust (TRUST) 5 .690 ONLICO, and E-WOM on TRUST. The second one was
conducted to identify the effects of the three dependent
TABLE III: PERSONAL INFORMATION (N=286)
Frequency Percentage
variables and TRUST on the dependent variable of
Gender PURINTEN.
Male 121 42.3
Female 165 57.7 TABLE IV: CORRELATIONS BETWEEN VARIABLES
Age group PURIN 1 2 3
18-25 123 43 TEN
25-35 162 56.6 1. ONLIAD .439** 1
35-45 1 0.3 2. ONLICO .277** .336** 1
Education 3. e-WOM .262** .393** .262** 1
High School 4 1.4 4. TRUST .356** .309** .441** .131**
Vocational School 7 2.4 Mean 3.29 3.40 3.27 3.87
College 90 31.5 S.D .81 .80 .79 .77
University 184 64.3 **. Correlation is significant at the .05 level
Postgraduate 1 0.3
Income From the result of table IV, three factors were positively
< 5 mil VND 180 62.9
5-10 mil VND 84 29.4 correlated with TRUST. Specifically, the correlation value of
10-15 mil VND 11 3.8 each factor respectively equals to (r=.309, p<.05) for online
15-20 mil VND 4 1.4 advertising, (r=.441, p<.05) for online communities and
> 20 mil VND 7 2.4
Social Media Type
(r=.131, p<.05) for electronic word of mouth. However, there
Facebook 225 78.7 were only two of three factors have significant direct effects
You tube 104 36.4 on TRUST according the multiple regression test. They were
Zing me 26 9.1 online communities and online advertising with β=.390 and
Trip Advisor 73 25.5
Cong Dong Du Lich 60 21 β=.183 respectively. Furthermore, three factors (online ads,
Blogs 7 2.4 online communities, e-WOM) could explain 22.5% the
Activities variation of TRUST (R2=.225).
Read review 174 60.8
Watch Online ads 155 54.4
The Pearson correlation analysis results also showed that
Find Information 145 50.7 four factors had positive associations with purchase intention.
Other activities 0 0 The strongest correlation to the lowest correlation are online
advertising, trust, e-WOM, online communities with r= .439,
Table I represents the results of EFA test of independent r=.356, r=.337, r=.277 respectively. However, there were
variables including online ads, online communities and three variables out of four had significantly direct effects on
e-WOM which divided into three groups as the same as purchase intention including trust, online advertising,
proposal model. All of the factor loadings of remaining items electronic words of mouth with the significant level lower
satisfy the minimum requirements .3 [23] which range than .05. The strongest contribution to purchase intention
from .560 to .793. Moreover, The Cronbach’s alpha values among variables was online advertising with (β=.294, p=.000)
that used to estimate the internal consistency between items and followed after were trust and e-WOM with (β=.257,
in each factor online communities, online advertising, p=.000) and (β=.193, p=.001) respectively. The R2=.279
e-WOM were .782, .674, .631 respectively. Those number implied that four factors could explain 27.9% the variation of
considered acceptable (above 0.6) while the more acceptable purchase intention.
value should exceed .70 [24].
Table II shows the results of EFA of dependent variables C. Indirect Effects of Return Intention
(Trust, purchase intention). The factor loadings of remaining The indirect effect of an independent variable on the
items from .536 to .735 which are satisfied the requirement. dependent variable through the mediate one is the total

282
Journal of Economics, Business and Management, Vol. 4, No. 4, April 2016

product of the effect of that independent variable on the


mediate variable and the effect of the mediate variable on the
dependent variable [25].
As mentioned, trust was positively affected by two factors
including online communities (β= .390, p=.000) and online
advertising (β=.183, p=.000). These two factors directly
impacted on trust and then trust also had directly affected on
purchase intention with β=.257, p=.000. In other word,
online communities and online advertising had indirectly
Fig. 2. Path coefficients of the model.
influence on purchase intention through trust which was
mediating factor between independent variables and
dependent variable. In conclusion, the more travellers trust V. DISCUSSIONS AND RECOMMENDATIONS
on online advertising and online communities, the higher
they intend to purchase products. A. Discussions
D. Significance of the Indirect Effects The result of this study supported the proposal model in
Table V shows the results of the bootstrapping method some extents, which not only proved the relationship among
recommended by [25] to test the significance of indirect variables but also found out the significant role of trust as
effects or mediations. The output provided the bootstrapped mediating factors between independent variables and
confidence intervals (at the 95%). If there is a ZERO (0) lies dependent variable. More specifically, online ads and
within the interval range between the lower boundary (LL) e-WOM had the direct effect on PI and online ads and online
and the upper boundary (UL), then we can conclude that, communities affected PI through trust. In other word, the
with 95% confidence, there is no mediation or indirect effect. more travellers trust the information which they perceived on
On the other hand, if zero does not occur between the LL and online communities and online ads, the higher they intend to
the UL, then we can conclude that, with 95% confidence, the purchase products.
mediation or indirect effect is significant [26]. It is obvious Many researchers investigated the role of these online
that the indirect effects of online communities, online ads and communications on purchase intention. The study of [8]
e-WOM on PI through trust were estimated to lie found that the online marketing communication, especially
between .0548 (LL) and .1514 (UL), .0237 (LL) and .1006 online advertising, online communities and e-WOM have
(UL) and -.0365 (LL) and .0109(UL) with 95% confidence, directly effective effect on purchase intention through
respectively. Because zero is not in the 95% confidence company’s website and social media platform. However, the
interval of two factors including online communities and result of study is slightly difference. Among three
online ads, we can conclude that the indirect effects of these independent variables, there are two variables that have
two factors on PI were indeed significantly different from directly effect on purchase intention including online
zero at p <.05 (two tailed) and the mediation of trust in this advertising and e-WOM. Online communities have indirectly
study was true. effect on purchase intention through trust. The reasonable
explanation for this result is that due to the huge information
TABLE V: DIRECT, INDIRECT AND TOTAL CAUSAL EFFECTS comes from the members on online communities who are
mostly stranger to each other, therefore travellers need to a
Variables Causal Effects LL UL process to assess whether it trustworthy or not before they
Direct Indirect Total associate with the high intent of purchasing and trust is
considered a mediate factor which is influenced by online
ONLICO --- .100 .100 .0548 .1514
ONLIAD .294 .047 .341 .0237 .1006 communities.
e-WOM .193 --- .193 -.0365 .0109 The study of [18] found that online advertising has
TRUST .257 --- .257 positively and directly effects on purchase intention and in
TOTAL .744 .147 .891
term of online advertising characteristic, location of ads is the
most important factor that attack customers’ attention.
E. The Causal Effects of Return Intention Another study of [19] also supported that the online
Fig. 2 shows all the significantly direct effects toward advertising including advertising design, advertising content
purchase intention. In addition, table VI represents the total and advertising attitude has significant effect on purchase
effect of independent variables including indirect effect, intention. Besides, the result from the previous studies, the
direct effect and mediating variable on PI. From this table, it contribution of this study is examined that online advertising
was obvious that online ads had the strongest effect on also have important impact on purchase intention indirectly
purchase intention with total effect equal .341 and β=.294. through trust.
Following after that were e-WOM and online communities Regarding to the e-WOM, the study of [13] found that the
with β=.193 and β=.035 respectively. In addition, the total direct impact of e-WOM to purchase intention and the
effect of these factors on PI was .891 which total direct effect indirect influence of e-WOM to purchase intention through
(online ads, online communities, e-WOM, and trust) trust. However, this study is investigated the only direct
accounted for more than 80% and the rest was indirect effect influence of e-WOM to purchase intention, there is no role
with nearly 20%. for mediate factor as trust.
In conclusion, the results of this study are summarized and

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Journal of Economics, Business and Management, Vol. 4, No. 4, April 2016

presented in Table VI below. All hypothesis are clarified customers that the services of companies are worthy to spend
which provides for marketers better understanding and money on and it is illustrated by experiences of previous
insight about social media marketing in Vietnam tourism customers therefore potential customers are more positive
context to create more efficient campaigns to increase about the companies and the rate of purchase intention is
customer’s purchase intention. higher.
Thirdly, marketing campaign of any companies could be
TABLE VI: RESULTS OF THE RESEARCH’S HYPOTHESES problematic without understanding clearly the insight of
Hypotheses Beta Sig. Results
customers. According to [28] found that travel consumers
H1: E-WOM -> Trust -.044 .406 Rejected would develop purchase intention if they perceive the
H2:ONLIAD -> Trust .183 .001 Accepted outcome of consumption to be similar to their past positive
H3:ONLICO -> Trust .390 .000 Accepted
H4:eWOM -> PI .193 .001 Accepted consumption experiences. Self-identification while reading
H5:OINLIAD-> PI .294 .000 Accepted the travel stories would also lead to intention to consume the
H6: ONLICO-> PI .035 .599 Rejected products. It other words, it is fundamental to know the
H7: Trust -> PI .257 .000 Accepted
customer’s opinion. Therefore, it is necessary to create the
H8: e-WOM -> Trust -> PI --- ---- Rejected
H9:ONLIAD -> Trust -> PI .047 .000 Accepted website for customer’s feedback. There are two reasons to
H10:ONLICO-> Trust -> PI .1 .000 Accepted support this idea. Frist, customers can feedback through
email of the company or others online communication,
however by creating the new website for the feedback only it
B. Recommendation for Tourism Company
show how the professional company is and how the company
The findings of this research proposed some appreciate the suggestion from customers. Moreover they
recommendations for Tourism Company in Ho Chi Minh will get more detail feedbacks from customers to gain the
City in specific and in Vietnam in general. better insight and from that point the marketers can develop
Firstly, online advertising also has stronger impact on the marketing campaign on social media platform to attract
purchase intention than e-WOM. Therefore, it is crucial to potential customer and end with the high intent of
take into account on online advertising on social media purchasing.
platform. According to [18] among the characteristics of Finally, in term of online communities and e-WOM,
advertising, the location was the most important factor which customers can give both negative and positive feedback and
contributed to attract attention from customers. In addition, according to [29] suggested that negative e-WOM could have
the result was found by [27] on the determinants of online an overwhelming impact on a destination image and can ruin
advertising effectiveness, he indicated that the bigger the brand of the companies. Therefore, companies should
advertisements are the more effective in attracting attention instantly offer an explanation and demonstrate how they are
and hence more likely to response. It is reasonable because attempting to recover a service failure to unsatisfied
before customers evaluating the quality of the content and the customers immediately if there is a problem on products,
trustworthiness of all information they receive, the first step service, or operation and never try to hide the negative
they have to do is click on the advertising, therefore the feedback from customers because it is the fastest way to ruin
appearance as well as the location of advertising is significant the reputation of companies.
importance. The effort of advertising campaign is failed if
customers do not click on the advertising. Therefore,
marketers should take into account to online advertising and VI. CONCLUSION
post it more on Facebook as the highest percentage of
The study successfully investigated the causal relationship
engagement of Vietnamese travellers (78%). More
between three independent variables including e-WOM,
importantly, they can use the advertising option which is
online ads and online communities to purchase intention by
offered from Facebook, For example, sponsor boost is
indirect and direct effect through trust. Especially online
popular among the advertising options that is expanded the
advertising had the most significant effect to purchase
target potential customers for companies because not only the
intention of Vietnamese travellers so marketers should take it
people who see the advertising but also their friends in their
into account to create more effective campaigns. However,
list can see this advertising too however, as the discussion in
there were still some different results from previous study
the previous section, the location and the size of the
due to the different context in Viet Nam.
advertising is considered carefully to attract more potential
The results of this study can be considered as valuable
customers.
sources for further research in Viet Nam about behavior of
Secondly, more and more people tend to review the
travellers and how they are affected by social media
feedback of the other people before making any decisions
marketing.
due to the huge information which they receive on the
internet. Therefore, it is necessary for companies to
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