FOREIGN TRADE UNIVERSITY
FACULTY OF INTERNATIONAL ECONOMICS
***********

ESSAY

THE FACTORS AFFECTING COSMETIC
CONSUMER ACTS OF
STUDENTS IN FOREIGN
TRADE UNIVERSITIES
Instructor: Dr. Nguyen Thuy Quynh
Class: KTEE301(1-1920).1_LT
Name
Đỗ Hoàng Khánh Linh

Student’s ID
1813340033

Nguyễn Anh Thơ

1813340062

Lê Trịnh Bá Đức

1813340014

Nguyễn Ngọc Sơn

1813340058

Nguyễn Trung Kiên

1813340031


th

Hanoi, December 16 , 2019


EXECUTIVE SUMMARY
Our research paper evaluates and analyzes the factors affecting cosmetic
consumption behavior of students in Foreign Trade University, Hanoi. We have
collected data from students who are still studying at the school by using a survey
questionnaire then conducted regression analysis with the help of STATA software.
The regression results show that factors such as gender, price, income, brand and
quality of the products have great influence on the money that Foreign Trade
University students spent monthly for cosmetic.

2


TABLE OF CONTENTS
EXECUTIVE SUMMARY ..................................................................
TABLE OF CONTENTS .....................................................................

2
3

TABLE OF FIGURES .........................................................................


5

TABLE OF TABLES ...........................................................................

5

PREFACE ............................................................................................. 6
PART 1 THEORETICAL BASIS..................................................... 7
1. An overview of related theory .......................................................................

7

2. Definitions and model of customer behavior ...............................................

7

2.1.

Consumers and the consumer market ....................................................

7

2.2.

Consumer behaviour ...............................................................................

8

2.3.


Model of consumer behavior ..................................................................

8

3. Factors affecting consumer behavior ......................................................... 10
3.1.Factors outside the “black box” of consumer consciousness ................. 10
3.1.1. The stimulus of Marketing ................................................................. 10
3.1.2. Other stimulus ................................................................................... 10
3.2.

Factors within the "black box" of consumer consciousness .............. 11

3.2.1. Cultural factors ................................................................................. 11
3.2.2. Social factors ..................................................................................... 11
3.3.

Personal factors..................................................................................... 12

3.3.1. Age and stage of life cycle ................................................................. 12
3.3.2. Occupation and economic status ....................................................... 12
3.3.3. Lifestyle ............................................................................................. 12
3.4.

Psychological factors ............................................................................ 13

3.4.1. Engine ................................................................................................ 13
3.4.2. Awareness.......................................................................................... 13
3.4.3. Understanding ................................................................................... 13

PART 2


PRACTICAL APPLICATIONS ...................................... 13

1. Relevant economic results ........................................................................... 13

3


1.1.

Research on “Consumer decision-making style” by Sproles & Kendall
13

1.2.

Research by Zeithaml and Bitner (1996) ............................................. 1
4
Research on service quality of Parasuraman (1985) ........................... 1
4
Fishbein and Ajzen (1980)'s study of Theory of Reasoned Action

(1986)

1.3.
1.4.
(TRA).

15
1.5.


"Components of brand value in Vietnam's consumer goods market"

model by Nguyen Dinh Tho and Nguyen Thi Mai Trang (2002) ............................... 15
2. Research objectives: ..................................................................................... 15
3. Subject and scope of the study .................................................................... 15
4.

Research Methodology ................................................................................ 16
4.1. Qualitative analysis ............................................................................... 16
4.1.1. A number of key factors directly affecting cosmetic consumption

behavior

16

4.1.2. Data description ................................................................................ 18
5.

Quantitative analysis ................................................................................... 19
5.1. Selecting the Econometrics model ........................................................ 19
5.1.1. Conducting the model of Econometrics ............................................ 19
5.1.2. Variables in the model ....................................................................... 20
5.1.3. Analysis of relationships between variables ..................................... 21
5.2. Data source ............................................................................................ 22
5.3. Expected results ..................................................................................... 22
5.4. Estimated results of regression model .................................................. 23
5.4.1. Meaning of the coefficients ............................................................... 23
5.4.2. Regression results ............................................................................. 25
5.4.3. Relevance of the model ...................................................................... 26
5.4.4. Testing the regression coefficient ...................................................... 26

5.4.5. Verification of model conformance ................................................... 27
5.5.

Test model defects and how to fix them ............................................... 27

5.5.1. Test of omitted variables ................................................................... 27
5.5.2. Test the normal distribution of noise ................................................ 28
5.5.3. Multicollinearity test ......................................................................... 29
5.5.4. Variance of error of change .............................................................. 30
4


PART 3 SOLUTIONS.............................................................................................. 32
CONCLUSION................................................................................................................ 33
REFERENCES................................................................................................................ 34
APPENDIX......................................................................................................................... 35

TABLE OF FIGURES
Figure 1: Summary statistics table of overall data....................................................... 19
Figure 2: Coefficient correlation matrix.......................................................................... 21
Figure 3: Estimating regression model............................................................................. 23
Figure 5: Residual graph - Test the normal distribution of the sample................28
Figure 6: Skewness/ Kurtoris tests.................................................................................... 29
Figure 7: Multi-collinear test – VIF.................................................................................. 30
Figure 8: White Test................................................................................................................ 31

TABLE OF TABLES
Table 1: Consumer behavior’s model by Philip Kotler (2005)................................... 9
Table 2: Table of regression results.................................................................................... 25
Table 3: Survey data on factors affecting cosmetic consumption behavior of

Foreign Trade University students.................................................................................................. 35
Table 4: Group members list............................................................................................... 51
Table 5: Evaluation of members......................................................................................... 51

5


PREFACE
Society has always appreciated human qualities, personality is always very
important, but nothing is more perfect than a person who has both good
characteristics and a beautiful face. Therefore, since thousands of years before, our
ancestors had already found ways to beautify themselves such as staining teeth,
eating betel nut to have red lips. Today, the economy is growing robustly, helping to
improve the living standards, income, living conditions. Trade between countries is
expanding and facilitating the integration and absorption of new cultures, making the
use of cosmetics and makeup become increasingly simple and popular, becoming an
indispensable part of the lives of many people, especially students.
Beauty will help students gain confidence in communicating with the other
people both in working environment as well as in basic daily life. Beauty is also about
showing respect to others, helping students to harmonize better with the society which
loves perfection. Moreover, with a good appearance, students may be offered many
chances or amazing opportunities in the future. To have a thorough understanding of the
student's cosmetic consumption behavior, our team chose the topic: "USING THE

RECOVERY MODEL TO ASSESS THE FACTORS AFFECTING COSMETIC
CONSUMER ACTS OF STUDENTS IN FOREIGN TRADE UNIVERSITIES"
The essay aims to evaluate the factors affecting the cosmetic consumption
behavior of Foreign Trade University students, from which we can have an objective
view and propose appropriate solutions to develop the cosmetic industry in Vietnam.
Our team is very grateful that (Ms Quynh) has assisted and answered

questions during the implementation of our project. Despite our best efforts, we still
have many limitations about academic knowledge and the data collection methods,
therefore it is inevitable that there are some flaws in our essay. We look forward to
receiving your comments and suggestions to improve our essay!
We sincerely thank you!

6


PART 1

THEORETICAL BASIS

1. An overview of related theory
A thorough research into customer behavior is an important stage to identify
the needs of customers, helping businesses choose the right customer segment,
positioning the right product / brand in the market and having the effective strategies
and plans in Marketing as well as business production. In addition, conducting
research on post-purchase customer behaviour has impact on the effectiveness of
customer retention strategies.
There have been many researchers around the world who study and research
on this issue. One that can be named is the detailed and accessible Philip Kotler's
model of consumer behavior research. Therefore, we decided to choose Philip
Kotler's theory of consumer behavior.
According to Philip Kotler (2001), research on consumer behavior is quite
complicated, because there are many variables involved and their tendency is to
interact and influence each other. The marketing and environmental factors come into
the consciousness of the buyer. The characteristics and decision-making process of
buyers will lead to the final decisions.
Now we are going to consider how consumer behavior patterns, the factors

that influence consumer buying behavior and the decision-making process are made?
2. Definitions and model of customer behavior
2.1.

Consumers and the consumer market

Consumers are people who buy and consume products, services to satisfy
their individual needs and desires. Consumers can be individuals, households or
groups of people.
The consumer market includes all individuals, households and groups of
people and the potential to buy goods and services for the purpose of satisfying
individual needs.

7


2.2.

Consumer behaviour
There are many definitions of consumer behavior given and according to the

researchers, this term can be understood that:
In accordance to Hawkins and his partners: “Consumer behavior is the study
of individuals, groups or organizations and the processes they select, use, preserve
and dispose of products, services, experiences or ideas to satisfy the needs and
impacts of these processes on consumers and society.”
From the perspective of the behavioral science, in a nutshell, "Consumer
behavior is a consumer process in which they form a response to a need."
Consumer behavior is dynamic and interactive because it is influenced by
factors from the outside environment and has an impact on the environment.

At the same time, there are four types of consumer behavior: normal
(habitual) buying behavior, complex buying behavior, buying behavior seeking
diversity and purchasing behavior that ensures harmony.
2.3.

Model of consumer behavior
In order to understand consumers' desires and needs, we must start from their

behavioral models. Researching consumer behavior models helps businesses realize the
different reactions of customers on each product such as quality, price, advertising
programs, promotions, models, ... thereby understanding the needs and tastes of each
customer to choose effective business strategies and enhance competitiveness.

8


Table 1: Consumer behavior’s model by Philip Kotler
(2005)

Stimuli
Mar
keting mix:
Product
Price
Place
Promotion

Enviro
nmental:
Economic

Political
Cultural
Technological

Buyer’s black
box
Cons

Buyer’s
responses

D

Purchase

umer
ecisioncharacteristics making
process
⇨

:

-

Product
⇨

- Brand
- Source
Purchase amount

Purchase timing

1 Hawkins, Mothersbaugh, (2010), Consumer Behavior Building marketing strategy, 11th
edition, Irwin/McGraw Hill

The model depicts the factors stimulating on consumers' black boxes and
generates reactions. The model consists of three basic factors: stimulus, buyer’s black
box and response of buyer. Marketing factors (products, prices, place, promotion)
and other factors (economic, technological, political, cultural) make impacts on the
buyer's black box (perceive issues, seek information, assess, decide buying behavior).
They cause the necessary response from the buyer and result in a definite purchase
decision (product type, brand, quantity, time of purchase and place of purchase). In
particular, each factor in the model is as follows:
Stimulating factors: are all individuals, forces outside consumers that may
influence consumers' behavior, including stimulating factors of marketing and other
stimuli.
Buyer’s black box is the thinking, perception, judgment of consumers.
Buyer’s response: consumer reactions revealed in the exchange process that
we can observe such as: SP choice, brand, ...

9


3. Factors affecting consumer behavior
3.1.

Factors outside the “black box” of consumer consciousness

3.1.1. The stimulus of Marketing
Specifically, the four basic components of Marketing - a powerful stimulus to

consumer behavior are:
•

Product: the most basic ingredient in the Marketing Mix. It could be the
tangible product that the company introduce to the market including product
quality, design shape, characteristics, packaging and brand. Products also
include intangible aspects such as delivery, repair and other forms of service.

•

Price: an equally important component including wholesale prices, retail
prices, discounts, discounts, credits. Price must be competitive and
commensurate with the value received by the customer.

•

Distribution: this is also a key ingredient in mixed marketing. Those are
actions that make the product accessible to customers. The company needs to
understand, recruit and link intermediaries to deliver products to the target
market effectively.

•

Promotion: this fourth component contains many activities used to
communicate and promote products to the target market. The company needs
to set up programs such as advertising, promotions, ... and recruit, train and
motivate the sales team to serve this component.

3.1.2. Other stimulus
•


Economic environment: In our society, apart from people themselves, their
purchasing power is also very important to the market. The level of general
purchasing power depends on the level of current income, prices, etc. Therefore,
studying the economic environment is to study consumers' income issues, the
distribution of income in the society also influences purchasing power.

•

The environment of science and technology: the development of science and
technology brings about great changes to almost every other area of life. Science
and technology change the quality of people's lives and thereby change their
attitudes and behaviors towards life in general and shopping in particular.
10


•

Politics: the political environment surrounding consumers includes laws,
government agencies. Prestigious social groups consumer organizations and
individual co-consumers also limits people’s freedom of action within a
certain framework.

•

Cultural characteristics: people grow up in a specific society and the society
itself has exchanged their basic views to create moral standards and values.
The cultural environment includes basic traditional cultural values with high
sustainability expressed through the attitude of people towards themselves,
others, and everything around them.


3.2.

Factors within the "black box" of consumer consciousness

3.2.1. Cultural factors
Cultural factors have the most profound influence on consumer behavior.
Cultural factors that influence consumer behavior include the buyer's culture,
subculture, and social class.
Culture: Culture is the most basic determinant of a person's wishes and
behaviors. A child growing up will accumulate a number of values, perceptions,
interests and behaviors through his family and other key institutions.
Cultural branches: Each culture has smaller subcultures that create more
specific characteristics and level of social integration for its members. Each cultural
branch can be a market segment. It is formed due to differences in residence,
ethnicity, beliefs, education ... of a community that shares a common culture.
Social strata: Social strata are relatively stable groups within a social
framework that are organized in caste/hierarchy and characterized by the same views,
interests and ethical behaviors between members. People of the same social class
tend to have similar consumption behaviors.
3.2.2. Social factors
•

Reference groups:
According to Philip Kotler, reference groups are those that directly or

indirectly influence people's attitudes and behaviors. Groups that directly affect a
11



person are called membership groups. Those are the groups that people join and
interact with. There are groups that are primary groups, such as family, friends,
neighbors, and colleagues, with whom the person has regular contact. Primary groups
are usually more formal and require less frequent communication.
•

Family:
Family members of a consumer can make a strong impact on the buyer's

behavior. We can distinguish into two types of buyers' families, including oriented
families (including parents) and separate families (including spouses, children).
Family members in one way or another influence consumers' buying behavior.
•

Roles and positions:
In life, each individual participates in a lot of groups such as families, clubs,

organizations. People choose products that reflect their position and role.
3.3.

Personal factors

3.3.1. Age and stage of life cycle
Even for the same needs, consumers still choose different goods and services
according to their age. The same is the need for food but for younger customers they
will choose a wider variety of foods, but as they age they tend to abstain from certain
foods. Consumer tastes on clothing, furniture or entertainment products also depend
on age.
3.3.2. Occupation and economic status
Occupation and economic conditions are one of the conditions that have a

strong influence on a person's way of cosuming. Occupation influences the nature of
goods and services chosen by consumers: A worker chooses different types of
clothing, work shoes, and entertainment from the director of a company. Economic
circumstances have a great impact on product selection behavior. When the economy
is well off, consumers tend to spend more on expensive products.
3.3.3. Lifestyle

12


People from the same cultural, social, and professional backgrounds may still
have completely different lifestyles and their consumption patterns will also differ. A
person's lifestyle is his or her self-expression, expressed in his activities, interests and
views in life.
3.4.

Psychological factors

3.4.1. Engine
Kotler concludes: "Motivation is a need that has become so urgent that people
have to find ways and means to satisfy it." At any given time, people have many
different. For example, some biological needs such as hunger, thirst, irritability, or some
psychological needs such as the need to be acknowledged, respected by others or
mentally relaxed and all of which need to be satisfied by action.

3.4.2. Awareness
Cognition is the ability to think and see of people. Motivation has the effect
of promoting the process of human action, and the action depends on the perception.
The two housewives who went into the supermarket with the same motive but the
choice of consumer products could be completely different. Their perception of

factors such as design, price, quality and service attitude are not entirely the same.
3.4.3. Understanding
Understanding helps people to have different opinions when it comes to
products of similar properties. When consumers have a certain understanding of
goods, they will choose to consume in the most beneficial way.

PART 2

PRACTICAL APPLICATIONS

1. Relevant economic results
1.1.

Research on “Consumer decision-making style” by Sproles & Kendall
(1986)
Sproles and Kendall have developed a scale, called Consumer Style Inventory

(CSI), which identifies eight psychological characteristics of consumer decision-making
style. CSI provides a quantitative tool to classify different decision-making
13


characteristics of consumers into shopping-oriented groups. Sproles (1986)
exploratory research provides the basis and conceptual framework for CSI Sproles
and Kendall (1986) define consumer decision-making style based on personal
characteristics. They then continue to suggest that consumers reach the market with a
specific style for making product purchase decisions. According to Sproles and
Kendall price is an indicator of quality and reputation. A high quality product with
many benefits will be associated with the idea of a good choice.
1.2.


Research by Zeithaml and Bitner (1996)
Zeithaml and Bitner argue that consumers make their purchase decisions based

on assessments of the value of products provided by suppliers. Once a product is
purchased, the satisfaction depends on the actual perceived performance compared to the
buyer's expectation. Customer satisfaction occurs when performance of the product feels
consistent and exceeds expectations. Accordingly, failure to meet customer needs and
expectations will lead to unsatisfactory results for that product or service.

In addition, researchers have also demonstrated that customer satisfaction is
influenced not only by service quality but also by product quality, price as well as
emotional and personal factors.
Earlier in 1988 Zeithaml stated the relationship of product quality and price
of products to customer satisfaction. He said that perceived quality is a subjective
assessment of the perfection or superiority of a product.
1.3.

Research on service quality of Parasuraman (1985)
A. Parasuraman, Valarie A. Zeithaml and Leonard L. Berry first published a

model of factors affecting SERVQUAL's service quality, including: (1) Tangibles ; (2)
Reliability ; (3) Responsiveness; (4) Service capacity; (5) Access; (6) Communication;

(7) Information; (8) Credibility; (9) Security; (10) Understanding. This model covers
almost every aspect of the service, but the prefix of satisfaction is not specified.
Many later authors have demonstrated that, although service quality and satisfaction
have in common, they are two different concepts.

14



1.4.

Fishbein and Ajzen (1980)'s study of Theory of Reasoned Action (TRA).
The model shows that consumer trend is the best factor to predict consumer

behavior, which is a combination of three cognitive, emotional and trend components. In
Theory of Reasoned Action model, attitude is measured by perception of product
attributes. Consumers will pay attention to the attributes that bring about the necessary
benefits and have different levels of importance. If we know the weight of those
attributes, we can predict close to the consumers' selection result.

1.5.

"Components of brand value in Vietnam's consumer goods market"
model by Nguyen Dinh Tho and Nguyen Thi Mai Trang (2002)
When deciding to buy a product, the desire of the customer usually has two

parts: the functional needs of the product and the psychological needs of the
product. Because the product only provides users with both functional benefits and
psychological needs, customers gradually switch from buying products to buying
products through brands.
2. Research objectives:
The project aims at some of the following research objectives:
• Research on theoretical basis, models and researches on consumer
behavior of customers.
• Identify the main factors influencing cosmetic consumption behavior of
Foreign Trade University students in Hanoi campus. Determine the degree of the
opposite or opposite impact of those factors affecting cosmetic consumption behavior

of students of Foreign Trade University - Hanoi.
• From the results of the research, it is possible to propose, recommend and
help businesses in the cosmetics industry to have reasonable marketing policies and
strategies to improve satisfaction and gain trust from customers and also grow
long-term.
3. Subject and scope of the study

15


Target audience: Factors that directly influence students' cosmetic purchasing
decisions and behaviors, including factors in consumer black boxes and external
factors coming from businesses.
Research scope:
Students at Foreign Trade University.
Recent data and information from sources.
4. Research Methodology
In order to achieve the research objectives of the project, my group used
a combination of two methods of analysis, including qualitative analysis and
quantitative analysis.
4.1.

Qualitative analysis

4.1.1. A number of key factors directly affecting cosmetic consumption behavior
Previous research models using different research methods have identified a
number of important key factors that directly affect cosmetic consumption behavior
of the world in general and in our country in particular, like:
•


Sproles & Kendall (1986) Research on Consumer decision-making style
identifies 8 psychological characteristics of consumer decision-making style
including:
o Consciousness of perfection / high quality: Consumers seek carefully and
systematically to get the best quality products.
o Brand awareness / price by quality: Consumers associate quality with price,
they believe that the higher the price, the higher the quality, and always
focus on luxury, expensive brands.
o Recreational consciousness / hedonism: A measure of the extent to which
consumers see shopping as an act of entertainment they buy for fun and
enjoyment.
o Sense of price / value for money: A consumer is always looking for cheap
products, and discounted products. They shop by searching for the best
product for their money.
16


o

Impulsive, careless: A consumer has no previous or specific procurement
plan and doesn't care about the money spent.

o

Confused by so many options: A consumer is confused and overwhelmed
with too much product information or too many product choices.

o

Loyalty / brands: A consumer tends to stick with a product brand.


o

Sense of novelty and fashion: consumers like the novelty and creativity of
the product and these people are increasingly interested in finding new
things.

•

Research on "The impact of self-image congruence on brand preference and
satisfaction" by Ahmad Jamal and Mark M.H. Goode, 2001: This study
examines the influence of individual factors, mainly self-awareness on brand
choice and consumer satisfaction, specifically on high-class jewelry products
market (mainly cosmetic products). A person's perception is closely related to
their behavior, and they tend to buy products and brands that they feel are
close to their image. In other words, a person expresses himself through
choosing products and brands that match their personal values.

•

Nguyen Thi Mai Trang's research on service quality, satisfaction and loyalty
of supermarket customers in Ho Chi Minh City: using the research concept
scales first assessed by Cronbach alpha reliability coefficient and continuously
tested (aggregate reliability, unit validity, convergent value, and price
discriminatory treatment) through CFA (Confirmatory Factor Analysis)
method. SEM (Structural Equation Modeling) is used to test theoretical
models with hypotheses. The estimation method is maximum likelihood. The
multi-group analysis method in SEM is also used to examine the differences
between groups (age and income) for the relationships.


•

Survey on the impact of income on cosmetic consumption in Vietnam:
Currently, a Vietnamese woman spends an average of 300,000 VND / month on
makeup products, twice as much as two years ago. The number of women who
spend 500,000 VND or more per month on makeup cosmetics accounts for
15%. This increase in average spending is mainly coming from young women
aged 20-29 with a monthly income of VND 20 million or more.
17


•

From the results of the aforementioned studies, our group draws on
factors that greatly affect the cosmetic consumption behavior of Foreign
Trade University students including the following factors:
o Price
o Income
o Brand
o Quality
o Gender

4.1.2. Data description
•

The research components used in this study include:
o Price
o Quality
o Income
o Brands

o Gender

•

Data source: Data sets were taken from STATA software run by the model
group

•

Descriptive statistics: For the purpose of providing an overview of the data,
prior to qualitative analysis, our team describe the data collected in the
overall statistics table:
Kurokawa Kengo, (2019), Vietnam Cosmetics Market: Trends and potential incentives for

development, BRANDS Vietnam, Website: />
18


Figure 1: Summary statistics table of overall data

5. Quantitative analysis
5.1.

Selecting the Econometrics model
On the basis of Philip Kotler's theory of "consumer behavior theory", along

with CSI theory scale: Sproles and Kendall's 1986 consumer style scale,Sproles and
Sproles 1990. The scale in this study is adjusted and supplemented to suit consumers
in Vietnam market in general as well as student segments in particular based on the
survey results.

5.1.1. Conducting the model of Econometrics
Use classical linear regression model:
Overall regression equation:
Yi = β1 + β2X2i + β3X3i + ...βkXki+ ui
Yi: dependent variable: student's cosmetic spending level
Xi: independent variables, explanatory variables (including the above seven
variables)
Ui: remainder of the model

19


Estimated model:
Structural form:
lnY = f (X_2, X_3, X_4, X_5, X_6, X_7)
Estimated form:
%=(+

+.(+..++/..+0./+1.0+%

5.1.2. Variables in the model

Dependent variable: Y: lnspend - The total monthly spending on cosmetics of
Foreign Trade University students is in thousand VND.
Independent variables:
X1: wage - Monthly income (thousand VND)
X2: male - Gender students using cosmetics
X2 = 1 if female
X2 = 0 if male
X3: brands - Are used cosmetics brands famous?

X3 = 1 if the cosmetic brand is famous
X3 = 0 if the cosmetic brand used is not famous
X4: Price - Threshold price cosmetic spending
X4 = 1 if not buying cosmetics with unit price of over 250 thousand VND
X4 = 0 if buying cosmetics with unit price of 250 thousand VND
X5: quality - Quality of used cosmetics
X5 = 1 if consumers care about product quality.
X5 = 0 if the consumer is not interested in product quality.

20


5.1.3. Analysis of relationships between variables
Before running the regression model, we consider the degree of correlation
between variables and obtain a correlation table between variables as follows:

Figure 2: Coefficient correlation matrix

Comment: Based on the correlation coefficient matrix table, we find:
•

r (wage, lnspend) = 0.4159 => positive correlation, low correlation

•

r (male, lnspend) = 0.2597 => positive correlation, low correlation

•

r (male, wage) = 0.1884 => positive correlation, low correlation


•

r (brands, lnspend) = 0.3422 => positive correlation, low correlation

•

r (brands, wage) = 0.1884 => positive correlation, low correlation

•

r (brands, male) = 0.2450 => positive correlation, low correlation

•

r (prices, lnspend) = 0.6824 => positive correlation, average correlation level

•

r (prices, wage) = 0.2099 => positive correlation, low correlation

•

r (prices, male) = 0.2025 => positive correlation, low correlation

•

r (prices, brands) = 0.2408 => positive correlation, low correlation

•


r (quality, lnspend) = 0.5777 => positive correlation, average correlation
level

•

r (quality, wage) = 0.2780 => positive correlation, low correlation

•

r (quality, male) = 0.0751 => positive correlation, low correlation

•

r (quality, brands) = 0.2003 => positive correlation, low correlation

•

r (quality, prices) = 0.4626 => positive correlation, low correlation

21


The correlation coefficients are all in the same direction, the correlation level
is relatively low or medium: r (quality, male) = 0.0751; r (quality, brands) = 0.2003; r
(male, wage) = 0.1884; ...; the highest coefficient r (price, lnspend) = 0.6824 is still
relatively low, so the model showed no signs of collinearity.
Regression model is less likely to have polyline disease.
5.2.


Data source
In order to carry out this research, the style model that determines consumer

behavior and CSI scale of Sproles and Kendall (1986) will be applied and developed as
a questionnaire for research. The questionnaire includes the following questions:

•

Your gender?

•

Your monthly income?

•

Are cosmetic brands you use famous?

•

Cosmetics you buy:

•

Buy only good quality cosmetics

•

Poor quality cosmetics also buy


•

Are you willing to buy a cosmetic product with a price of over 250,000 VND?
Survey through questionnaire. More than 300 questionnaires were given out

to randomly survey students at Foreign Trade University, the subjects were surveyed
in a variety and dispersed manner, with no restrictions on conditions, interests, habits,
gender, collection. import, …
5.3.

Expected results
Income, quality, and product brands all influence the students' cosmetic

purchasing behavior in the same direction
This can be explained by:
•

Increased income leads to increased demand for cosmetics.

•

Good cosmetic quality stimulates consumer loyalty to the product

22


•

Product brand: customers tend to feel more secure when buying products with
clear brand names and widely available


•

Price has a negative effect on cosmetic consumption behavior of students

•

This can be explained by the law of supply and demand, in which cosmetics
are common goods

5.4.

Estimated results of regression model
Based on OLS estimation results, we have a model regression model random:
3

= 4,818876 + 0,0000873.
+0,1162513.

/

+ 0,6425393.

0

+

+ 0,3337313.

+ 0,113855375.

1

.

Figure 3: Estimating regression model

5.4.1. Meaning of the coefficients
( = 4.818876: The average monthly spending on cosmetics is VND 4,818876 thousand in
the absence of any influence.

+ = 0.0000873: If your monthly income increases by 1 thousand VND, the
average monthly total spending on cosmetics increases 0.00873% in the case of other factors
unchanged.
. = 0.113855375: The average monthly spending on cosmetics of women is 11.3855375% more
than men in the case of other factors unchanged.

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/ = 0.1162513: The average monthly amount spent on cosmetics of famous
cosmetics more than non-famous cosmetics is 11,62513% in the case of other factors
unchanged.
0 = 0.6425393: The average monthly spending on Cosmetics costs less than VND
250,000 than 64.25393% cosmetics costing VND 250,000 or more in case the other factors are constant.
1 = 0.3337313: The average monthly spending on cosmetics of consumers who care
about product quality is 33.37313% more than consumers who do not care about product quality in the
case of weak Other elements are not changed.

24