Antecedents of shopper loyalty in the Vietnamese supermarkets

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After being graded, I share my thesis to you!


I would  like  to express my sincere  thankfulness  to my  research advisor, Dr. Nguyen
Thi  Mai  Trang,  who  made  me  believe  in  myself  and  gave  me  the  possibility  to
complete  this  thesis. Her guidance helped me  in all  the  time of  research and writing
this thesis. I am sure that this thesis would not have been possible without her support.
I also thank Prof. Nguyen Dinh Tho. I am extremely grateful and indebted to him for
his  expert,  valuable  guidance,  insightful  comments,  and  encouragement  extended  to
I  would  like  to  express  my  gratitude  to  all  ISB  staffs  that  supported  necessary
materials and helped summit my papers.
Especially, I would like to give my special thanks my family for supporting me
spiritually throughout my life.

With a population of 91 million consumers and economic growth  rate averaged 6.37
percent  from  2000  until  2012,  Vietnam  has  been  an  attractive  foreign  investment
destination.  Moreover,  consumer  preference  has  been  changing  along  with  higher
income,  becoming  sophisticated  and  improving  living  standard  in  recent  years.  In
addition, Nguyen, Nguyen, and Barrett (2007, p. 228) claim that “little has been paid
to  transitional  markets  like  Vietnam,  where  supermarkets  are  still  a  new  retailing
system, appealing primarily  to upper class consumers  in urban areas of  the country”.
Therefore, supermarket  retailers have  to  take advantage of new  innovations  to create
their  competitive  advantages. When  a  customer  goes  shop  at  certain  supermarket,
what make him/her  keeping buying? And what  are  factors affecting  his/her  loyalty?
The retailers had to find out the answer to identify appropriate strategies for achieving
their  own  goals.  Based  on  that,  the  study  was  carried  out  to  reveal  the  impact  of
service quality, product quality and assortment,  layout, perceived price  fairness, and
convenient  location  on  shopper  loyalty.  The  study  was  conducted  by  the  survey
questionnaire. A  sample of  420  consumers  are  living  and working  in Ho Chi Minh
City. The result revealed that service quality, product quality, perceived price fairness,
and convenient location have positive relationships with shopper loyalty.

This chapter introduces the background of the Vietnamese supermarket industry as well
as  the  status of  shopper  loyalty. The  research questions and objective are proposed  to
explore the factors determining customer loyalty. Based on these, research delimitation
is proposed and thesis structure is presented.
1.1. Background
According  to “Vietnam Retail Analysis  (2008-2012)”  (2010),  the  researchers claimed
that  “fast  pace  growth  in Vietnam’s  retail market  has made  the  country  an  attractive
destination  for  multinational  retailers.  Vietnam  holds  the  4th
  position  among  30
countries attracting foreign investors. As per the WTO agreement, the government has
removed  limitation on capital  invested by  the  foreign  investors.”. “The value of  retail
sales  in  Vietnam  has  rapidly  risen  over  the  past  few  years”.  “The  retail  sales  are
expected to surge at a CAGR of around 20% during 2010-2012.”
C. V (2012) states that although the nation has faced a difficult year, the retail market in
2011 still grew and made up 15-16 percent of Vietnam’s GDP with an increase of 29.3
percent  over  the  previous  year. Currently,  there  are  approximately  900  supermarkets,
shopping  malls,  and  convenience  stores,  along  with  a  system  of  9,000  traditional
markets  in  Vietnam.  Moreover,  the  spending  and  consumption  habit  of  Vietnamese
people has change a lot in the last few years.
As  stated  in  “Vietnam  Retail  Market  Forecast  to  2014”  (2012),  “the  modern  retail
channels are expected to play a crucial role in future growth”. Moreover, it is estimated
that the retail sale will continue to grow at a CAGR of around 26% during 2012-2015.
In  addition,  the  report  also mentioned  that Vietnam  is  one  of  the world’s  five most
lucrative  retail markets.  Therefore,  Vietnam’s  retail  market  will  attract  a  number  of
foreign investors as well as international brands.
These  researches have pointed out  that Vietnam has been considered  to be one of  the
most potential markets in Asia. In addition, foreign firms (like Big C, Metro) have been

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