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  1. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 IMPACT OF MARKETING COMMUNICATIONS ON PURCHASE DECISION TOWARD SUSTAINABLE FOOD THE ROLE OF AGE AS MODERATOR TÁC ĐỘNG CỦA TRUYỀN THÔNG MARKETING ĐẾN QUYẾT ĐỊNH MUA THỰC PHẨM BỀN VỮNG VAI TRÒ CỦA ĐỘ TUỔI MA, Nguyen Hien Anh - MA, Vu Phuong Anh - MA,Pham Trinh Yen Chi Thuongmai University anh.nth@tmu.edu.vn Abstract Sustainable food consumption tends to increase rapidly in big cities like Hanoi in recent years. This study aims to reveal the impact of marketing communications on the purchasing de- cision of Hanoi consumers while clarifying the role of age as mediator variable. The researchers have surveyed 404 regular consumers who purchase different types of sustainable food at super- markets located in Hanoi. Research has shown that all marketing communications variables in- cluding Advertising, Sales promotion, direct marketing, public relations, personal selling have positive influence on sustainable food purchase decision. Among those variables, direct marketing and public relations show the biggest impact. At the same time, the study also found the difference in the purchase decision of consumers among age groups as a moderator variable. Accordingly, the age group from 35 to 45 has stronger purchase decision than the other groups. Keywords: Sustainable food; marketing communications; the purchasing decision, the age. Tóm tắt Tiêu dùng thực phẩm bền vững đang tăng mạnh tại các thành phố lớn như Hà Nội trong những năm gần đây. Nghiên cứu đo lường tác động của truyền thông marketing đến quyết định mua của người tiêu dùng, đồng thời xem xét tác động của độ tuổi. Kết quả khảo sát từ 404 người tiêu dùng thường xuyên của nhiều loại thực phẩm bền vững tại các siêu thị trên địa bàn Hà Nội cho thấy tất cả các biến số truyền thông marketing gồm Quảng cáo, Xúc tiến bán, Quan hệ công chúng, Marketing trực tiếp, Bán hàng cá nhân đều tác động thuận chiều lên quyết định mua thực phẩm bền vững. Trong đó, marketing trực tiếp và quan hệ công chúng có khả năng tác động mạnh nhất. Nghiên cứu cũng cho thấy có sự khác biệt trong quyết định mua giữa các nhóm tuổi khác nhau, theo đó, nhóm người tiêu dùng từ 35 đến 45 tuổi có quyết định mua thực phẩm bền vững mạnh hơn so với các nhóm tuổi khác. Từ khóa: thực phẩm bền vững, truyền thông marketing, quyết định mua, độ tuổi. 1. Introduction Sustainable food is defined as premium, rich in nutrition food which is produced according to the principles of sustainable development (Liu, 2003). According to the Law on Food Safety 704
  2. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 of Vietnam - No. 55/2010 / QH12, sustainable food are products that do not harm human health and lives. Under the Law, foods classified as safe include nontoxic, green, and organic foods. In emerging economies such as Vietnam, the sustainable food market tends to thrive due to the increase in people’s income that leads to more spending on high-quality, safe, and healthy products. Nielsen report (2014) shows that spending on these products increased from 5.5% in 2008 to 7.06% in 2014. Market research firm Q&M (2018) reported that safety and health benefits were on top concerns of Vietnamese consumers in Hanoi and Ho Chi Minh City when purchasing food, especially for consumers aged 25 to 29 who had average or high incomes. This was the age group that shows the highest interest (88%) towards purchasing sustainable products like organic foods. Research by Le Kim Sa, Vo Hoang Dat (2014) clarified the characteristics of the middle class in Vietnam, and she concluded that this class, ranging from 29 to 55 years old, was more likely to buy sustainable, eco-friendly products than other groups. The 2018 Nielsen report stated that the total value of Vietnam’s sustainable food market was 131 million USD, and the annual growth rate till 2025 of this market could be at 17.2%. Up to now, there are 80 Vietnamese enterprises involved in the production of sustainable food, and many large retailers offer to sell these food products. Despite many optimistic indicators, aware- ness, and behavior of Vietnamese consumers towards sustainable food is still not completed. A study by Vietnam National University in 2015 showed that only 10% of consumers in Hanoi fully and correctly understood about organic food. Although most of the consumers asked knew about organic foods, 50% of them did not understand the meaning of the term. At the same time, many consumers, although expressing high buying intentions for sustainable food, did not seem to have actual buying behavior. This is also a common situation in many markets shown in several studies. For example, One research conducted in Spain concluded that Spanish consumers spent 1.018 million euros on clean food, compared with 101,250 million euros they spent on traditional food (Maria Hidalgo-Baz. et al, 2017). One of the reasons is the difficulty in distinguishing and rec- ognizing clean food and, businesses that produce and supply clean food did not efficiently make use of marketing communication tools (Aertsens et al., 2009). In the Vietnamese market and many developing countries, although advertising and sales promotion are the two major budget contributors in the total media budgets of Vietnamese food retailers (Worsley et al. , 2015) undeniably the power and influence of public relations, direct marketing, and personal sales tools (Peachman and Catlin, 2016). However, almost all researches on marketing communications for sustainable foods focus on the message creation aspect and the impact of the message on consumer behavior (Melovic et al., 2020). Up to now, there have not been many direct studies on the relationship between marketing communication tools and the decision to buy food, not mention sustainable food. In those studies, some only tested a few communication tools (Ruswanti et al., 2017). The results of the previous studies were also not consistent. Manengkey and Tielung (2015) studied the role of sales promotion for food retailers and concluded that individual sales and sales promotion do not significantly affect the possibility of sales increase. The research team of Ruswanti et al. (2019) also shared this view with the con- clusion that personal selling and sales promotion did not affect the buying organic vegetable be- haviors of Malaysian consumers, and only advertising and marketing were proved to have an impact. Wagner and Hansen (2002) also found that advertising related to organic food character- 705
  3. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 istics and a healthy lifestyle have a strong impact on consumer buying behavior. However, in the 2017 organic food buying behavior study, Ruswanti’s team found that marketing communications factors all influenced consumer buying behavior. Age has been shown by many studies to have an impact on the decision to buy sustainable foods. Balasubramanian (2006) and Connor and Douglas (2001) researched the US and Ireland market, and both identified that consumers aged 50 and over had more negative attitudes towards organic food and also spent less on this product group. The reason was the difficulty in accepting innovations. Nayga (1995) also concluded that consumers in the older age group wanted to spend more on traditional foods than organic foods. Nayga (1995) also found that consumers in the younger age group tended to pay 6% higher prices for foods that did not contain pesticides com- pared to other age groups. However, research by Yin’s team (2010) concluded that age does not affect the decision to buy organic food for Chinese consumers. Therefore, the role of age in sus- tainable food purchasing decisions is not consistent. In particular, there are no studies on age as a variable that regulates the relationship between marketing communications and consumer purchasing decisions in this product area. Therefore, this study is conducted with two objectives: First, to assess the impact of mar- keting communication on the decision to buy sustainable food of Vietnamese consumers; sec- ondly, to judge the significance of age as a moderator variable. 2. Defining research hypotheses 2.1. Marketing communication on the food purchasing decision The term “marketing communications” appeared in the 1980s, referring to a combination in the direction of integrating all marketing communication efforts including advertising, sales promotion, public relations, personal selling, and direct marketing (Anantachart, 2006). The role of communication tools in retail and food retail particularly has been confirmed by many studies, but very few studies have looked into the impact of these tools in an integrated method. When it comes to the need for information, consumers are increasingly looking for guar- antees and guidelines on food quality and safety (Verbeke, 2008). Consumers use this information to make purchasing decisions and to achieve satisfaction with products and suppliers. Information on nutritional ingredients and healthy relationships with food has supported consumers in eval- uating products and setting quality expectations. Information related to product characteristics, nutritional value, and supplier image have helped consumers form buying intent and deciding to choose products. 2.2. The impact of marketing communication on the purchasing decision of sustainable food 2.2.1. The connection between advertising and purchasing decision Advertising’s impact on food purchase decisions has been a controversial subject. One of the reasons is the link between consumer health and food advertising (Robinson, 1998). Adver- tising plays a crucial role in modern business because it is all about educating consumers’ behavior towards products. Ads help consumers get more information about the products and sellers, from which to make purchasing decisions. Advertising influences perception, knowledge, wants, ref- erences, and purchase decisions. Consumers are exposed to many advertisements in a day, on 706
  4. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 many different media channels such as television, radio, online channels, printed newspapers, catalogs, leaflets, etc. However, they only remember a few brands. It is easier for consumers to turn to and buy a competitor’s brand if the retailer does not provide all the information they want. The job of advertising is to attract customers’ interest in the products. Previous studies have shown a positive relationship between TV advertising and consumer purchasing decisions (Malik et al., 2013). TV advertising leads to demand from which consumers are willing to pay higher prices, and the buying patterns have also evolved (Fathi All-Share and Marwan Al Salaimeh, 2010). In the current context, advertisers are more likely to use Internet advertising than advertising on traditional channels such as television as they believe that cus- tomers perceive the added value of a product through advertising interactions. These interactions will increase consumer engagement and interest, and lead to loyalty to the brand (Priyanka, 2012). According to Pughazhendi’s group (2010), advertising in emerging markets such as Vietnam often uses celebrities to promote product images. Xanat and Han (2016) analyzed the significant effects of online advertising on consumers’ interest and the decision to buy organic food between South Korea and Mexico. The results show that Twitter is an effective tool for word-of-mouth marketing between consumers and businesses. Online advertisements in Korea often focus on promotions and news about suppliers. Meanwhile, content in Mexico often emphasizes the or- ganic food products themselves. Green and Peloza (2014) synthesized two ways to advertise clean food products. They mentioned advertisements emphasizing products with environment- friendly features and ads introducing products with beneficial features (financial benefits, health benefits). H1: Advertising positively affects consumers’ decisions to purchase sustainable food. 2.2.2. The connection between sales promotion and purchasing decision Sales promotion has shown itself to have a significant impact on consumers’ purchasing decisions. About 70% of purchasing decisions happen at the point of sale (De Pelsmacker et al., 2001). In addition to product characteristics and price, sales promotion programs are a common tool used by retailers to influence the purchasing decisions of customers (Nagar, 2009). The goal of sales promotion is to attract new customers, increase market share in selected, competitive market segments. Cole (2011) identified sales promotion as a means of guiding consumers with low aware- ness of the benefits of sustainable food, attracting their attention, and leading to buying decisions. Dickieson and Arkus (2009) conclude that consumers’ purchasing decisions on organic foods are strongly influenced by economic factors, for example in the case of economic recession, con- sumers will consider buying high-priced products such as organic food. Based on this conclusion, Krnáčová and Závodský (2018) studied the effect of sales promotion on the buying behavior of organic food by Slovak and Czech consumers. The authors conclude that sales promotion influ- ences the decision to buy organic food, and each method has a different level of influence, in which free samples, coupons and discounts, and price bundles are the most effective methods. However, some studies have shown opposite results. Ngobo (2011) points out that for or- ganic food, an increase in price to a certain level will lead to increased demand; however, if the retailer keeps raising it excessively, demand decreases. The author also said that sales promotion 707
  5. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 negatively affects the decision to buy organic food, since this is a product positioned as premium since it offers a higher value in nutrition, better health benefits, and more environment-friendly. Ruswanti et al. (2017) also stated that sales promotion did not affect organic food buying behavior. Chichudean et al. (2012) stated that for organic food, sales promotion has a big impact on the be- havior of customers aged 30 and over. H2: Sales promotion positively affects consumers’ decisions to purchase sustainable food. 2.2.3. The relationship between public relations (PR) and purchasing decision Johnston and Sheehan (2009) define PR as the development and management of ethical communication strategies for building relationships with shareholders and the public. Mokhtar and Yusr’s research (2016) suggested that PR activities could help in building strong brands for a retail company, and thereby, affect customer’s loyalty. PR plays an essential role in introducing new products, repositioning saturated products, building interest in products, and influencing at- titudes and behaviors of target groups (Kotler, 2003; Bruning, 2002; Bruning and Ralston, 2001; Hon and Brunner, 2001). PR adds to the credibility of communication messages because con- sumers usually perceive information from PR programs to be more reliable. Nour et al. (2014) stated that the effectiveness of corporate PR activities can be measured through customer’s supportive behaviors towards the business such as buying and repeat buying. According to Boztepe (2012), PR is necessary for stimulating consumer buying intent and deci- sion-making for green products. Banyte et al. (2010) also concluded that in the green marketing strategy, PR is the most important communications tool due to its strong impact on consumer’s awareness and on the buying decision toward green products. H3: Public relations positively affects consumers’ decision to buy sustainable food. 2.2.4. The relationship between direct marketing and purchasing decisions Hanchion team (2002) affirmed that direct marketing positively affects companies’ direct communication with consumers. The research of Virgilijus and Vilija (2013) synthesizes direct marketing tools used for agricultural products including kiosk marketing, e-commerce, sale to restaurants, hotels, direct sale on the farm. Under this approach, direct marketing coincides with direct selling. This approach has been used in many studies, including the research of Uematsu and Mishra (2011), Zanoli (2004), Trappy, and Lai (2016). Zanoli (2004) stated that organic food consumers tend to buy their favorites directly from producers because they think that they are truly organic. As a result, more and more retailers are participating in the production of sustainable foods such as organic foods. However, direct marketing needs to be understood in a broader con- text, that is “the relationship marketing process includes identifying target customers, converting, maintaining relationships with those customers with personalized feedbacks and control using direct response advertising with observation codes” (Bauer, Miglautsch, 1992). According to this approach, tools like teleshopping and mail order are also direct marketing. Direct marketing is considered as one of the modern retail forms developed in Asian mar- kets (Trappey, Lai, 2016). It appears as the major method to help retailers increase the effective- ness of communication strategy, customer relationship development, and cost reduction (Flici et al., 2011). Direct marketing relies on customer identification processes to measure their values 708
  6. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 and predict the ability that they may respond to other promotional programs such as sales pro- motion (Changchien et al., 2004). Kotler and Armstrong (2008) concluded that direct marketing is effective due to its ability to connect directly with target customers, and this is an interactive marketing system using one or more advertising channels that can measure sale results. Some studies have shown that marketing directly affects customer behavior, such as the study of Hill, Provost, and Volinsky (2006), Prins and Verhoef (2007), Risselada et al. (2014). In the last decades of the 20th century, direct marketing was mainly used by retailers in developed countries as the primary tool to place orders (via mail, catalog, free phone ordering service, interactive response advertising, and home shopping TV program). With the development of information technology, many new direct marketing tools have emerged and developed (e- catalogs, e-mail, etc). H4: Direct marketing positively affects consumers’ decision to buy sustainable food. 2.2.5. The relationship between personal selling and purchasing decisions The importance of personal selling is that salespeople are the bridge connecting businesses with consumers. Murianki (2015) pointed out that personal selling has the ability to help busi- nesses increase sales because salespeople’s efforts increase customer understanding of the prod- ucts, and thereby driving buying behavior. Yousif (2016) also concluded that increasing individual selling efforts positively impact retailer sales. De Pelsmackeret (2007) emphasizes that personal selling includes not only selling activities but also after-sales activities such as guidance and sup- port. Nowadays, sales forces use a variety of techniques, such as SPIN (Kotler, 2012), to develop long-term relationships with valuable customers. Since each consumer has unique personal char- acteristics and requirements, managers need to understand their behavior to design and to use the most appropriate marketing communication tools. Hence the role of personal selling is getting more and more crucial, especially for products that consumers still have misconceptions about like sustainable food. Getting consumers’ attention through direct communication has a big part in building relationships with them and also influences buying decisions (Oladipo, 2019). Kotler (2003) added that personal selling is a communication tool to establish a two-way relationship between businesses and buyers. Customers can ask questions directly to salespeople, give their opinions, and discuss to increase understanding. Consequently, they can make appro- priate buying decisions and have a high chance to repeat the buying behavior. Azam et al. (2016) stated that the ability of consumers to make buying decisions at retail points increases if they are provided with information from salespeople. H5: Personal selling positively affects consumers’ decision to buy safe food. 2.3. The relationship between age and purchasing decision There have been quite a few studies looking at the role of consumers’ age in different buy- ing behaviors of sustainable foods like green and organic foods. However, the results of these studies did not coincide. Yin et al. (2009) observed that there was a difference in the buying be- havior of Chinese green food consumers among different age groups while young consumers are more likely to buy this product than older age groups. However, the authors also emphasized that age only influenced buying intent slightly. Balasubramanian (2006) did research with American 709
  7. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 consumers, and Connor and Douglas (2001) did one with Irish consumers, and they all agreed that older consumers (50 and above) spent less on organic food. Some studies drew the opposite conclusion. Research by Paul and Rana (2012) concluded that among the demographic variables studied (gender, age, education level, and income) only educational level influenced consumers’ intention to buy organic food. This result coincides with the analysis of Dimitri and Dettmann (2012) which concluded that there is no difference in organic food buying behavior among different age groups. Q6: There is a difference in the decision to buy sustainable food among consumers in different age groups. 3. Research methodology 3.1. Research Process and Subjects This research applied a quantitative method to study the effects of marketing communica- tions tools on Hanoians’ decision to buy sustainable food. The research is divided into two main phases. Phase one is experimental research, and phase two is the official investigation. The main purpose of the experimental research is to examine the feasibility, to test the compatibility of the variables after synthesizing previous studies with different research contexts, and to adjust the academic language. From the results of phase one, the authors would be able to complete the of- ficial questionnaire to extend the survey. The authors have issued direct questionnaires with 12 people, of which 10 regularly buy (4 times a month on average) sustainable food. They are knowl- edgeable about organic food in general and sustainable food in particular, and have a large pur- chasing frequency; consequently, they can give valid answers. Besides, two shop owners specializing in selling sustainable food, “Kona Food” and “The King of Specialty” were inter- viewed also. The interviews helped to explore opinions from food retailers who have direct con- tact with the markets and practice marketing communication activities themselves. After calibrating the data and scale according to the comments of experts and customers, the authors conducted a large-scale official survey with respondents in Hanoi area. The research focused on sustainable food as a typical research product. There are two main reasons for the authors to make this decision. Firstly, although organic consumption is on the rise among young people, the concept of organic food is still relatively new in the Vietnamese market, and the quantity of organic products is still limited. Sustainable food is a more popular and ap- pealing product in this market. The second reason comes from the Vietnamese market context that stresses the alarming topic of food safety and hygiene. Recently, people have gradually paid more attention to safety factors when buying food. Moreover, it not only takes place among young people but also among the elderly - who are very concerned about health issues for themselves and their families. 3.2. Research instrument The study used questionnaires with close-ended questions to collect research data. The questions were centrally designed and the factors that made up the independent variable are the marketing communication activities of the retailers, the dependent variable of purchasing deci- sions as well as the questions related to the regulatory variables such as gender, age, education 710
  8. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 level, occupation, etc, to collect information to test research hypotheses. The 7 items of the ad- vertising variable are compiled from the research of Mahmud I. Nour et.al (2014), Priyanka (2012), Kuo Ming Chu (2018), and Huong (2017). The sales promotion variable with 9 items is synthesized from the research of Mahmud I. Nour et.al (2014), Huong (2017). The direct mar- keting variable with 6 items is synthesized from the studies of Kuo Ming. Chu (2018), Pradeep K. Korgaonkar, et.al (2000) and Sharma, N., Patterson, PG (1999). The Public relation variable was synthesized from An-tien Hsieh, Chungkai Li (2008) with 5 observed variables. Finally, the individual sales variable includes 6 variables synthesized from the study of Sharma, N., Patterson, P.G (1999). Likert 5 scale was used with the corresponding answer: totally agree, agree, normal, slightly agree, and disagree. 3.3. Data collection and samples The sampling method in the study is a convenient sampling method. Investigated subjects are Hanoi people, aged 22 - 60 years old, working or retired, having a regular income, and having bought sustainable food in the past three months. To be able to collect accurate data, the author used collaborators who were trained and had an understanding of the details of the questionnaire, knew the content and purpose of each ques- tion, and were ready to advise and answer questions of customers when required. The assistants reached out directly to the consumers at the store (with the consent of some store owners such as Ecofood, Cleverfood) after they had completed the purchase. For each completed reply, they will receive a 20,000vnd discount vouchers that can be applied at the store they are buying. In addition to using the investigative collaborators at the store, the authors also contacted Women’s Unions of some residential groups to directly investigate retirees aged 55-60 years old. Besides, the au- thors and their assistants also use familiar relationships, distribute online coupons to some 25-35 year-old who work in the office, and have the habit of reading emails frequently. In summary, the author’s team issued a total of 450 questionnaires, then collected 404 with 46 invalid ques- tionnaires, 407 valid ones. 3.4. Data analysis With the data collected from the investigation, the author used SPSS20 software to process them. Quantitative methods such as descriptive analysis, Cronbach Alpha, EFA, regression will be applied to test research hypotheses, to determine mean of each constituent factor and each factor, as well as consider the relationship between independent variables (marketing communi- cation factors of TPAT enterprise) with dependent variable (Decision to buy TPAT). 4. Research results and discussion 4.1. Describe the study sample set Table 1 describes the demographic information of the interviewees, of which out of 404 respondents, 299 people (accounting for 74%) are female, and 105 people, or about 26%, are male. This is also completely consistent with the research context, because women are often re- sponsible for food shopping every day, especially sustainable food for the family. Besides, the majority of people were under the age of 25 or from 25 to 35 years old, about 33%. The third- largest group is 35-45 years old (accounting for 16.1%), and the number of retirees is 10, 9%. 711
  9. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 The rest were from 45 to 55 years old. Most of them had completed high school, mainly with university degrees (81.7%) and married (63.1%). Table 1: Demographic information of the Target Respondents Demographic No % Demographic No % Gender male 105 26 occupation Office worker/ State 239 59.2 female 26 74 employees age Under 25 Manager 25 6.2 25 tounder 35 Freelancer 50 12.4 35 tounder 45 Industrial worker 34 8.4 45 to under 55 Stay-home moms/dad/ 56 13.9 over 55 retirees Education level Highschool 32 7.9 Vocational school/ college 21 5.2 Thu nhập Under 10 mil 81 20 Bachelor 330 81.7 bình quân 10-20 mil 184 45.5 Master/ PHd/ Prof. 21 5.2 tháng 20-30 mil 79 19.6 marital Single 255 63.1 30-40 mil 43 10.6 status Married 149 36.9 over 40 mil 17 4.2 People with a total household income of 10-20 million accounts for the majority of about 45.5%. They are mainly young aged 25-35 years old. They are mostly office workers or free- lancers who have a busy lifestyle and the habit of shopping for food at retail stores or supermar- kets instead of traditional markets. Meanwhile, people with incomes below 10 million are mostly government officers, under the age of 30 or single people. Those who have a high income of 30 million or more are usually married, already have children, and have reached manager positions. 4.2. Data Analysis Results 4.2.1 Cronbach Alpha reliability analysis This Cronbach Alpha coefficient was to determine the reliability of each observed compo- nent that constitutes the independent variable and the dependent variable before considering each relationship between the variables. The reliability of each variable must be between 0.7 and 1.0 to ensure that the observed variables in a factor have a significant correlation. The higher the co- efficient, the higher the correlation between the variables (Trong & Ngoc, 2008). Variables with Corrected item-total Correlation
  10. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Table 2: Results of analysis of Cronbach Alpha reliability Corrected Variables coding Mean a Item-Total Item-Tota and items Correlation Mass Media Advertising QC1 3.10 0.883 .699 Online advertising (Social networks, websites) QC2 3.36 .714 Advertising through flyers and posters at stores QC3 3.28 .633 Content about variety QC4 3.22 .581 Content about product’s origin QC5 3.49 .694 Instore sale-promotion signs QC6 3.41 .685 Message’s format and display QC7 3.30 .699 Loyalty/ reward programs XTB1 3.40 0.869 .569 Discount offers XTB2 3.38 .516 Gift-vouchers XTB3 3.42 .710 Additional gifts XTB4 3.29 .600 Fair XTB5 3.17 .488 Price bundles XTB6 3.19 .577 Special promotion events XTB7 3.30 .611 Instore trial XTB8 3.38 .662 Distinctive exhibit area XTB9 3.41 .706 I get information on organic foods by DM1 3.51 0.852 .684 email/mail/phone calls from my favored organic foods retailer. The direct communication provide a valuable source DM2 3.23 .544 of information about local sale DM tells me which brands have features I am looking DM3 3.24 .572 for Word-of-mouth from friends, family members, DM4 3.66 .630 referrals, or food blogs, has affected my knowledge of organic foods. The DM used by this retailer carry enough DM5 3.60 .697 information needed by customers The DM used by this retailer help me up-to-date DM6 3.45 .707 about product/service available in the marketplace The message about the retailers’ PR obtain from the PR1 3.21 0.759 .442 media are more than other competitive brands I feel that the retailer often holds PR activities to PR2 3.61 .582 enhance consumers’ understanding about the company/products I feel that the retailer is involved in sponsorship PR3 3.41 .573 activities, special events I feel that the retailer would deal with emerging issue PR4 3.10 .283 timely and sincerely I feel that the retailer would handle consumers’ PR5 3.51 .561 comment timely and sincerely 713
  11. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 This retailer’s employees are always ready to help BHCN1 3.79 0.837 .736 customers Generally, this retailer’s employees have good BHCN2 3.54 .669 knowledge of their jobs Generally, this retailer’s employees have good service BHCN3 3.61 .533 attitude Generally, this retailer’s employees are presentable BHCN4 3.41 .511 Generally, this retailer’s employees have been well BHCN5 3.35 .635 trained The organic retailer’s employees are friendlier than BHCN6 3.52 .613 those of other traditional retailers I decided to buy sustainable food QD1 3.58 0.839 .751 I may buy sustainable food QD2 3.46 .648 I will recommend others to buy sustainable food QD3 3.53 .712 After analyzing the reliability of Cronbach’s alpha, there was variable PR4 with a total variable correlation coefficient of 0.283 0.7, and that ensured the conditions of 4 observed components. All the remaining independent variables had Cronbach alpha coefficients from 0.837 to 0.883 to ensure that they satisfied the above condition, the component observed variables have the total variable correlation coefficient satisfying the condition of being higher than 0.3, indi- cating the reliability and high correlation between observed variables, and all the observed vari- ables of the remaining independent factors are retained to perform the EFA discovery factor analysis. 4.2.2. Results of factor analysis EFA Exploratory factor analysis was performed with the Principal Component Analysis method with Varimax rotation. The results of EFA analysis for independent variables after eliminating some variables with unsatisfactory factor load factor 0.5 means factor analysis is appropriate with research data, with 0.000 significance in Bartlett’s test. Thus, we can completely reject the hypothesis that homoge- neous factors, or in other words, these observed variables are correlated with each other on the overall scale and satisfy the conditions in factor analysis for regression analysis 714
  12. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Table 4: Results of factor analysis to discover EFA Items Factor Loadings 1 2 3 4 5 XTB9 .778 XTB3 .757 XTB8 .743 XTB7 .706 XTB4 .654 XTB1 .629 XTB6 .610 XTB5 .589 QC2 .810 QC7 .784 QC6 .754 QC1 .749 QC5 .723 QC3 .672 BHCN1 .818 BHCN 2 .769 BHCN 6 .713 BHCN 5 .706 BHCN 3 .635 DM6 .823 DM1 .786 DM5 .741 DM4 .664 DM3 .559 PR3 .765 PR2 .752 PR1 .729 PR5 .673 Total Initial Eigenvalues 8.140 2.912 2.702 2.032 1.498 Cumulative % 27.135 36.840 45.848 52.620 57.613 Based on the above results table, it can be included that the extracted index of each com- ponent factor which is higher than 1.0 is satisfactory. Consequently, it can be concluded that 5 independent factors can influence the purchasing decision. The progressive value of the total 715
  13. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 variance extracted = 57.613> 50%, so 57.613% of the data variation is explained by the above 5 factors. In which, with factor load factor satisfying> 0.5, each independent variable is described by observed variables as shown in the table presented. Therefore, the independent variables will be the same from the initial hypothesis set as Advertising, sales promotion, direct marketing, PR, and personal sales. For the dependent variable with coefficient KMO = 0.710> 0.5, the significance level p- value = 0.000 in Bartlett’s test. The extraction coefficient 2.269 with the cumulative% of 75,645% gives a single factor named “decision to buy safe food” (QDMTPAT) with the load factors of the ingredient variables respectively 0.897, 0.875, 0.836. 4.4. Research hypothesis test results Regression analysis is a widely-used and popular method in studying the dependency re- lationship between the dependent variables and the independent variable. The regression method was applied by putting all variables at the same time. In the regression model, to evaluate the suitability of the model that the independent variables explain how many percent of the variation of the dependent variable, the researchers use the adjusted R2 coefficient. Specifically, in this study, the authors used linear regression analysis with five independent variables: advertising (QC), sales promotion (XTB), direct marketing (DM), public relations (PR), and personal selling (BHCN) with one dependent variable is “decision to buy sustainable food” (QDMTPAT). Table 5: Table of results of linear regression analysis Model R R Square Adjusted R Std. Error Durbin- Square of the Watson Estimate 1 .730a .533 .528 .51333 2.050 ANOVA Model Sum of Squares df Mean F Sig. Square 1 Regression 119.937 5 23.987 91.031 .000b Residual 104.877 398 .264 Total 224.814 403 Model Unstandardized Standard- Collinearity ized Coef- Statistics Coefficients ficients t Sig. B Std. Error Beta Toler- VIF ance (Constant) -.587 .207 -2.841 .005 XTB .151 .046 .129 3.266 .001 .751 1.332 QC .147 .040 .146 3.671 .000 .738 1.355 DM .474 .052 .393 9.159 .000 .635 1.574 BHCN .114 .044 .101 2.606 .010 .782 1.279 PR .308 .047 .248 6.510 .000 .806 1.241 716
  14. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 The results of the regression analysis indicated that the adjusted R2 coefficient equaled 0.528, meaning that the independent variables can explain 52.8% of the variation of the dependent variable. The value of the model’s conformity test with the coefficient of F = 91,031 with the co- efficient of p-value = 0.000 showed that the model was consistent with the population; or in other words, there was at least one independent variable in the model could explain the variation of the dependent variable. The VIF magnification factor of the model ranged from 1.241 to 1.574, which was less than 2, the tolerance coefficient was so low that it could be concluded that there was no sign of the multicollinearity phenomenon and no correlation among the independent variables. Table 6. Results of hypothesis testing Hypothesis Hệ số Beta t-value P-value Hypothesis Conclusion Advertising g Purchase Decision .147 3.266 .001 H1 accepted Sales Promotion g Purchase Decision .151 3.671 .000 H2 accepted Direct Marketing g Purchase Decision .474 9.159 .000 H3 accepted Public Relations g Purchase Decision .308 2.606 .010 H4 accepted Personal Selling g Purchase Decison .114 6.510 .000 H5 accepted From the results of multiple regression analysis, the decision to buy sustainable food of Hanoi consumers is influenced by 05 factors including (1) advertising, (2) sales promotion, (3) direct marketing, (4) public relations, and (5) personal selling which are related to the dependent variable, purchasing decisions, because they both have significant p-value
  15. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 According to Samuel B. Green (2005) and Andy Field (2009), The Levene test showed that p-value = 0.02
  16. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 The table of descriptive statistics and PostHoc results indicate that the age group from 35 to 45 (mean = 3.8564) has a statistically significant difference with the other age groups which have small p-value coefficients of less than 0.05. (under 25 group (sig = 0.003, mean = 3.4862), from 25 to under 35 (sig = 0.001; mean = 3.4621), from 45 to 55 (p-value = 0.013, mean = 3.3778) and over 55 years old (p-value = 0.005, mean = 3.4091). In conclusion, the age group from 35 to
  17. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 The personal selling variable has the smallest impact on the purchase decision. Customers always appreciate the willingness to support the sales staff (3.79) and require them to have pro- fessional attitudes when performing sales activities (3.61). The availability of sale person was assessed as less important with an average score of 3.41, and the least significant is the methodical training with a 3.35 score. Personal selling has the weakest impact on buying decisions for two reasons. Firstly, sales teams of sustainable food retailers are usually not well trained, and their skills to solve problems at the store for customers are still very weak. From time to time, they may show bad attitude while selling products, such as being indifferent to customers entering the store, misunderstanding the origin and characteristics of other foods, providing contradictory ad- vice to customers. The second reason is the customers themselves. Before going to the sustainable food store, they have already thoroughly researched through detailed product introduction articles, or they go to the store simply because of the trust factor. From the above conclusion, it implies that retail stores need to pay more attention to direct marketing and public relations tools and develop them as strategic tools to attract and encourage customers to consume more sustainable products. There is a need to enhance activities of personal selling and direct marketing through online channels such as Facebook messaging, Zalo, mobile application software. Enterprises need to keep detailed records with updated names, addresses, phone numbers, Facebook accounts, delivery addresses, a convenient time for customers to re- ceive goods, and their habits when buying goods. There should be details about their purchasing volume, types of purchases, payment methods, benefits they seek. From that information, com- panies can develop a more proactive approach to customers, introducing new products, new cat- egories, answer customers’ questions better, and proactively contact customers to evaluate from their side about the transactions performed. Managers should pay attention to customer satisfac- tion by storing customer addresses and contact phone numbers to avoid customers having to type too many times when ordering. Customers in the age groups of 35-45, who are shown to make more buying decisions than the rest of the customer groups, should be the focus. Besides, it is also necessary to focus on exploiting online advertising tools, diversifying PR articles with more topics from product information, origin to the synchronization in website design, or fan page with the brand identity system to increase the awareness and understanding of customers about the store as well as sustainable products. Phone advertising channels can even be developed with the development of shopping applications so that modern customers can be more convenient in choosing and buying safe products. Moreover, it is necessary to pay attention to the training of staff at the store, especially the ability to advise on products, to help customers distinguish dif- ferent types of food and what sustainable food is. They should also invest in images and costumes for employees to enhance customers’ shopping experience, and improve service attitude and en- thusiasm to help customers at the store. Businesses need to diversify promotional activities such as increasing the number of gifts or discounting rates for loyal customers, create more price bun- dles such as developing more combos to encourage customers to purchase more goods, increase promotion activities at the point of sale to influence the decision-making process of instore cus- tomers, especially the elderly group. 720
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