DA NANG UNIVERSITY OF ECONOMICS

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The Trend of Purchasing Online of People in Da Nang

Subject: STATISTICS FOR BUSINESS AND ECONOMICS

Instructor: Mr. Nguyen Van Cang

Class: 39K07-CLC

1. Le Thi To Nhu2. Do Thu Trang3. Dang Thi Hoa4. Nguyen Thi My Linh

2014-2015

ContentsI. INTRODUCTION.................................................................................................................................3

A. Background:....................................................................................................................................3

B. Target..............................................................................................................................................4

C. Subject.............................................................................................................................................4

D. Research’s Method..........................................................................................................................4

II. CONTENT............................................................................................................................................5

A. Survey.............................................................................................................................................5

B. The result of Survey:.......................................................................................................................6

C. Variables summary..........................................................................................................................7

D. Data processing...............................................................................................................................8

1. SEARCH......................................................................................................................................8

2. TIMES.......................................................................................................................................10

3. ITEMS.......................................................................................................................................11

4. TRUST.......................................................................................................................................12

5. PAY...........................................................................................................................................14

6. FRIEND.....................................................................................................................................15

7. DISCOUNT...............................................................................................................................15

8. DIST..........................................................................................................................................16

9. TRANS......................................................................................................................................17

E. Hypothesis Testing........................................................................................................................18

1. Mean of times buying online.....................................................................................................18

2. Age & Times..............................................................................................................................18

F. Simple Regression Model.................................................................................................................19

1. Time & Trust.............................................................................................................................19

2. Multiple Regression Model of “Times” and the most important variables:..............................21

III. CONCLUSION................................................................................................................................22

A. Main characteristics of the objective.............................................................................................22

B. Advantages and Disadvantages during the research.....................................................................22

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I. INTRODUCTION

A. Background:According to the development in economy, standard of living of Vietnamese people is also

increasing. The more rising demand shopping of Vietnamese people is, methods of marketing,

selling, purchasing do witness significant change, too. Typically, in recent years, beside

traditional selling, selling online has existed and step by step has been outweighing the former.

This method of selling is developing rapidly, especially in urban areas, among classes of

students, employees and housewives… This is the matter we would like to discuss in our paper:

the trend of purchasing online of Vietnamese people, and in detail people in Da Nang.

Some facts of online-selling in Vietnam

In essence, online-selling is one part of e-commerce. In fact, e-commerce is applied the most

successfully in the area of selling onlineTheir business is selling goods such as clothes, shoes,

accessories, cosmetics and electronics… Some famous websites mentioned here are

lamchame.com, raovat.vn, rongbay.vn…..

Whenever you carry out a survey on students in Da Nang, we can conclude that the trend of

online-purchasing is becoming more and more popular.

As a result, what is the exact explanation for the strong development of trend of online-

purchasing?

First of all, the advantages of this method of purchasing are undeniable.

- Time is precious, which is taken advantage by online-selling. It takes only few minutes to

surf the web, choose whatever you want and then complete your purchase with only one click

while the traditional ways require you to go to brick and mortar stores, which costs you time and

energy.

- Another big advantage of purchasing online is price. Online goods have lower price

because the online owners don’t have to rent infrastructure and cover as large amount of money

for advertising as owners of brick and mortar stores. Furthermore, consumers can easily compare

prices of different suppliers and decide which to buy with the most reasonable price.

- Finally, online-purchasing enables buyers to get access with a more variable range of

goods instead of going to shopping mall. After considering prices, designs and models of goods,

buyers can have a wiser decision.

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However, anything has its two sides and the disadvantages of online-purchasing are

unavoidable.

- The biggest disadvantage is the quality of goods. When joining this method of shopping,

consumers can not directly see or touch the goods before making their decisions. The quality of

goods is still unknown. Online-selling is now in an alarming situation which includes stealing

information, financial fraud, advertising harassment, selling counterfeit goods.

- Another big problem is online payment. Security is another challenge to online payment.

Facing with these difficulties, E-commerce has been growing fast and has larger and larger

number of users. To get know more about this matter, we would like to analyze the trend of

purchasing online of people in Da Nang, therefore can have a deeper understanding.

B. Target- Finding what factors mainly affect the behavior of buying online of Da Nang people

- Practice what we learn about statistic subject

C. Subject- Subject: resident in Da Nang

D. Research’s Method- Data source

+ Primary source: we collected information from people in Da Nang

+ Secondary source: we collected information from the Internet, reports in magazines,

newspapers…

- Form: surveys in form of multiple-choice questions and filling information

- Quantity: 40, In which 36 are applicable

After datas are all collected, we generalize and classify datas on base of the knowledge that we

have learned. Soft-wares used is SPSS to complete this paper

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II. CONTENT

A. SurveyVariables are divided in to 2 subgroups that include variable impacting on this issue we think, as

followed:

Internal factors:

AGE: (Unit: year old)

SEX: Sex = Male as 1 and Sex = Female as 0

INCOME:. (Unit: million VND)

SEARCH (Searching information online): (Unit: Time/a week)

JOB: JOB=0 is student, JOB=1 is worker, JOB=2 is unemployment.

TRUST: This variable is measured following the incremental range from 1 to 10. The more

they believe in the quality of goods sold online, the more they shop.

TIMES: How many times do you buy online?

Society conditions:

FRIEND: Whether friends or relative usually introduce about goods sold online or not.

FRIEND = 1 as YES, FRIEND = 0 as NO

DIST (Distance): How far is shops-online?(Unit: km)

PAY (Payment): Prepayment or deferred payment can have different effects on shopping

online. PAY = 1 as Prepayment, Pay = 0 as Deferred payment

DISC: It means whether the cost of shopping online is cheaper or more expensive than the

cost of shopping directly. DISC =1 is cheaper. DISC = 0 is more expensive.

TRANS (Transportation): How fast is the transportation

Other Factors:

Items: which goods do the customers usually buy most.

B. The result of Survey:Total responses Valid responses Invalid responses

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40 36 4

(4 responses are invalid because questionnaires are not completed)

No. SEX AGE JOB INC Items TIMES SEARCH PAY FRIEND DISC TRANS DIST TRUST

1 1 24 1 3.8 Cloth 10 2 0 0 0 2 2 8

2 1 26 1 4.3 Cloth 12 6 1 1 1 3 5 9

3 1 30 1 4.0 Cloth 10 7 0 1 1 3 10 8

4 0 19 0 0.5 Cloth 2 20 0 1 1 1 5 3

5 0 35 1 7.8 Household 8 1 0 0 0 3 500 9

6 1 20 0 1 Book 1 10 0 0 1 1 3 0

7 0 37 1 3.2 Cloth 2 3 0 0 1 3 20 8

8 1 25 2 0.7 Equipment 6 7 1 1 0 14 5 9

9 0 34 1 5.6 Book 22 6 0 1 0 14 5 10

10 0 40 1 4.5 Food 2 7 1 1 1 2 10 2

11 0 20 0 2 Accessory 2 7 0 0 0 7 2 3

12 1 26 1 6.6 comestic 18 5 1 1 1 5 3 8

13 0 21 0 1.5 Cloth 1 1 0 0 1 2 600 1

14 0 30 2 2.0 Book 1 10 0 0 1 3 8 0

15 0 44 1 8.8 Food 12 2 0 0 1 3 5 8

16 0 21 1 1.0 Comestic 1 5 0 0 0 2 8 1

17 1 33 1 7.0 Cloth 20 1 0 0 1 8 5 9

18 1 20 0 0.5 Cloth 2 21 0 0 1 3 10 2

19 1 25 1 4.5 Equipment 1 1 1 0 0 5 600 1

20 0 42 1 6.2 Household 21 7 0 0 1 6 10 10

21 1 33 1 3.3 Comestic 1 2 0 0 1 3 8 5

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22 0 28 1 4.0 Tour 1 1 1 0 0 4 600 5

23 0 19 0 1.0 Accessory 1 7 0 1 1 2 20 8

24 0 30 1 5.0 Equipment 2 2 0 0 1 3 30 9

25 0 20 0 1.5 Cloth 1 2 1 1 1 2 10 2

26 0 28 1 4.7 Book 4 1 1 0 0 2 16 9

27 0 20 0 0.8 Cloth 4 7 0 0 1 3 10 10

28 1 32 1 5.6 Cloth 3 1 0 0 1 7 40 2

29 1 26 1 6.2 Equipment 10 3 0 0 1 4 45 10

30 1 27 1 2.0 Cloth 5 7 0 0 0 5 40 7

31 1 21 0 1.5 Book 3 5 0 0 1 1 35 2

32 0 36 1 2.8 Household 4 2 1 0 1 7 30 8

33 0 29 1 5.3 Equipment 8 1 0 0 1 7 1 10

34 0 23 1 2.5 Cloth 2 3 0 0 1 14 1 2

35 0 23 1 2.0 Cloth 1 3 0 0 1 30 1 1

36 1 21 0 1.0 Cloth 2 7 1 0 1 1 10 4

C. Variables summaryVariable Quantitative/

Qualitative

AGE Quantitative

SEX Qualitative

INCOME Quantitative

SEARCH Quantitative

JOB Qualitative

TRUST Qualitative

FRIEND Qualitative

DIST Quantitative

PAY Qualitative

DISC Qualitative

TRANS Quantitative

TIMES Qualitative

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D.

E. Data processing

GIOI TINH

Frequency Percent Valid Percent Cumulative Percent

Valid nu 21 58.3 58.3 58.3

nam 15 41.7 41.7 100.0

Total 36 100.0 100.0

TUỔI

N Minimum Maximum Mean Std. Deviation

tuoi 36 19 44 27.44 6.905Valid N

(listwise)36

Cong viec

Frequency PercentValid

PercentCumulative

Percent

Valid student 10 27.8 27.8 27.8

worker 24 66.7 66.7 94.4

unemployment

2 5.6 5.6 100.0

Total 36 100.0 100.0

Thu nhap

N Minimum Maximum Mean

thu nhap 36 0 9 3.46Valid N (listwise) 36

1. SEARCHThe variable of “Search” tells how many time customer searches for goods online every week.

Classes Frequency Relative frequency(%)

1-5 21 58.3

6-10 13 36.2

>10 2 5.5

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From the graph and table above, we can see that most people search for information of goods

sold via Internet for less than 10 times a week. (94.5% ) Only 2 of 36 observations spend more

than 20 times a week for searching.The more people search for information about the goods, the

more people tend to shopping. That means the people who spend much time on searching for the

goods are likely to buy more.

Arithmetic

meanRange Variance

Standard

DeviationCoefficient of variation

5.08 20 21.907 4.681 92.15%

Formulas:

x=x1+x2+…+xn

n=∑ x i

n=5.08

R = the largest value – the smallest value = 21 – 1 = 20

Var = ∑i

n

(x i− x)2

n=21.907

SD = √Var=4.681

CV = SDx

=4.6815.08

×100 %=92.15 %

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From these results, we can see that:

The average time the respondents searched for information online last year was 5.08 (times). The

numerical difference between the smallest and largest values of times searching online is 20

(times) and the standard deviation of variable “times” equals to 4.681. We can see they have a

very large difference among customers about the number of times searching online. We can see

that the coefficient of variation is fairly high, about 92.15%. It means that Da Nang customers

have far different tendency of searching information online.

2. TIMESClasses Frequency Relative frequency(%)

1-5 24 66.68

6-10 6 16.67

11-15 2 5.55

16-20 2 5.55

>20 2 5.55

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Arithmetic mean Range Variance

Standard

Deviation

Coefficient of

variation

5.72 21 38.721 6.223 108.7%

x = x1+x2+…+xn

n=∑ xi

n=5.72

R = the largest value – the smallest value = 21

Var = ∑i

n

(x i− x)2

n=38.721

SD = √Var=6.223

CV = SDx

x 100 %=108.7 %

The average times shopping online last year is 5.72 (times). The numerical difference between

the smallest and largest values of times shopping online is 21 (times) and the standard deviation

of variable “times” equals to 6.223.We can see they have a very large difference among

customers about the number of times shopping online. We can see that the coefficient of

variation is too high which equals to 108.7%.It means that Da Nang customers have far different

decisions on shopping online which is expressed through the number of times shopping online.

3. ITEMS

Items - mat hang mua sam

Frequency Percent Valid Percent Cumulative Percent

Accessory 2 5.6 5.6 5.6

Book 5 13.9 13.9 19.4

Cloth 15 41.7 41.7 61.1

comestic 1 2.8 2.8 63.9

Comestic 2 5.6 5.6 69.4

Equipment 5 13.9 13.9 83.3

Food 2 5.6 5.6 88.9

Household 3 8.3 8.3 97.2

Tour 1 2.8 2.8 100.0

Total 36 100.0 100.0

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From the pie-chart above, 41.67% of 36 people choose clothes as their favorite online-bought

goods, the rest buy another items. That means, to some extent, clothes and related stuff are more

attractive to the customers. In fact, it’s really convenient to buy clothes online: time-saving, easy

to find, feedback and see the plot… Instead of spending much time going around streets to find

something suit you, now you only need a click: all styles, all sizes are ready to serve. See that,

there is one person choosing tour. Nowaday, selling tour-online is developing and I think in the

future, this item will become more popular.

4. TRUSTThis variable is measured following the incremental range from 0 to 10. 0 means totally distrust,

10 means totally trust in the quality of online goods.

Classes Frequency Relative frequency(%)

0-3 14 38.9

4-7 4 11.1

8-10 18 50.0

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As we can see, most people rate their trust in quality of online goods above the median. The

highest rate is 19.4% at 8. Those interpretations tell us people have quite good attitude towards

the quality of online goods. The attitude comes from their own experience, or from what they

heard of. When buyers have good experience, they will have good attitude, and then they trust

you more. As the result, they buy more

Arithmetic

meanRange Variance

Standard

DeviationCoefficient of variation

5.64 10 12.866 3.58 63.59%

x =x1+x2+…+xn

n=∑ xi

n=5.64

R = the largest value – the smallest value = 10 – 0 = 10

Var = ∑i

n

(x i− x)2

n=12.866

SD = √Var=3.58

CV = SDx

=63.59 %

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Prepayment 27.8%

72.2%

From these results, we can see that:

The average trust rate of respondents shopping online last year is 5.64. Most respondents fairly

trust on online shopping. The numerical difference between the smallest and largest values of

trust degree is 10 and the standard deviation of variable “trust” equals to 3.58. We can see they

have a quite large difference among customers about trust rate on online shopping.

5. PAYThis variable tells us which type of payment customers prefer: prepayment or deferred payment.

Frequency Percent Valid Percent Cumulative Percent

tra sau 26 72.2 72.2 72.2tra truoc 10 27.8 27.8 100.0

Total 36 100.0 100.0

Methods of payment

Deferred payment; 75%

Prepayment; 25%

From the pie chart, we can conclude that deferred payment is preferred by most customers. The

number of people who prefer deferred payment is approciate three times as many as prepayment.

This fact is so understandable. Almost people feel afraid of the risk they may face when making

prepayment.

muc do tin tuong0-3 4-7 8-10

hinh thuc tra tien

tra sau 11 2 13 26

tra truoc

3 2 5 10

Total 14 4 18 36

We can see that if customer’s trust increase, they’d prepayment.

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Yes 25%

no 75%

6. FRIENDThe variable “Friend” tells whether friends or relatives of customer tell them about online goods.

Encode 1 as yes, 0 as no

ban be hoac nguoi than gioi thieu

Frequency Percent Valid Percent Cumulative Percent

khong 27 75.0 75.0 75.0

co 9 25.0 25.0 100.0

Total 36 100.0 100.0

Friends usually tell customer about online goods

Not usually; 83%

Usually; 17%

From the pie chart, we see that friends do not usually tell buyers about online goods. Only 25%

say yes to the question.

This fact is not good for the sellers. Customers always are the best ones for marketing for the

goods. A friend tells another about the wonderful goods she bought online, and how fast the

delivery is, and how nice the after-sales service the seller provides.It’s what all the sellers want.

7. DISCOUNTThis variable tells us the price of online good is cheaper or more expensive than the goods sold

at stores. Encode 1 as cheaper, 0 as not cheaper

mua re hoac dat hon

Frequency Percent Valid Percent Cumulative Percent

dat 10 27.8 27.8 27.8

re 26 72.2 72.2 100.0

Total 36 100.0 100.0

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Expensive 27.8%

72.2%

Price of online goods in comparison with offline goods

Cheaper; 82%

Cheaper; 18%

From the pie chart, we can see that most of the online goods are sold at lower price than at the

store. This is an advantage of buying online. Lower price is reasonable because online shops do

not have to pay for the location; they hire fewer staffs and most retail stores of small size don’t

have to pay tax. As operating cost is much lower, the price of goods and services they provide

must be lower.

8. DISTANCEThe variable “Distance” tells the distance between customer’s house and the store where they

buy the goods.

DISTANCE

MiN Max Mean

khoang cach

1.00 600 75.361

We can see from the histogram that the

most usual distance between store and

customer’s house is less than 100 km.

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9. TRANSThis variable tells us the average time buyers receive their goods after they make online order.

Classes(day) Frequency Relative frequency

1-6 27 75%

7-14 8 22.2%

>14 1 2.8

From the table and histogram, we can see that the most common delivery time is between 3 and

5 days. The shops may be in the same city or in the city nearby or the goods are shipped by air.

Some people says they wait more than 10 days for the goods to be delivered, in this case, these

goods might be shipped by road from another city or another country.

The length of delivery time is another factor affecting the decision of buyers to buy online or

not. If the time is too long, they might think of another way to buy the good.

Arithmetic

meanRange Variance

Standard

DeviationCoefficient of variation

5.14 29 30.352 5.509 107.17%

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x=x1+x2+…+xn

n=∑ x i

n=5.14

R = the largest value – the smallest value = 30 - 1 = 29

Var = ∑i

n

(x i− x)2

n=30.352

SD = √Var=5.509

CV = SDx

=5.5095.14

× 100 %=107.17 %

From these results, we can see that:

The average delivery time is 5.14 (days). The numerical difference between the smallest and

largest values of delivery time is 29 (days) and the standard deviation of variable

“transportation” equals to 5.509. We can see they have a very large difference among customers

about the delivery time of goods. There are many single extreme values that make the average

value is not an exact representation of all values. Thus it is necessary to consider about the

relative term or the coefficient of variation. We can see that it is fairly high, about 107.17%

F. Hypothesis Testing

1. Mean of times buying onlineH0 : μ=5

H1: μ>5

One-Sample Test

Test Value = 5

t dfSig. (2-tailed)

Mean Difference

95% Confidence Interval of the

Difference

Lower Upper

ban mua online bao nhieu lan trong nam qua

.696 35 .491 .722 -1.38 2.83

Sig. (2-tailed) < 0.05 : Reject H0, accept H1. It’s mean consumers buy more than 5 goods last year.

2. Age & TimesH0 : Age and times don’t have Contact correlationH1 : Age and times have Contact correlation

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Correlations

tuoi

ban mua online bao nhieu lan trong nam

qua

Spearman's rho

tuoi Correlation Coefficient

1.000 .460**

Sig. (2-tailed) . .005

N 36 36

ban mua online bao nhieu lan trong nam qua

Correlation Coefficient

.460** 1.000

Sig. (2-tailed) .005 .

N 36 36

**. Correlation is significant at the 0.01 level (2-tailed).

Sig. (2-tailed) < 0.05 : Reject H0, accept H1. It’s mean Age and times have Contact correlation

G. Simple Regression Model

1. Time & TrustTime: y

Trust: x

Population regression model y = β 0+β1 xi + ε

In which,

y: The number of time buying online

x: Whether the trust in buying online

Coefficients

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

muc do tin tuong 1.127 .226 .650 4.981 .000

(Constant) -.631 1.506 -.419 .678

Y = -0.636+ 1.127 X

Model Summary

R R Square

Adjusted R

Square

Std. Error of

the Estimate

.650 .422 .405 4.800

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ANOVA

Sum of Squares df Mean Square F Sig.

Regression 571.708 1 571.708 24.809 .000

Residual 783.514 34 23.045

Total 1355.222 35

The independent variable is muc do tin tuong.

In conclusion,

We have b1 = 1.127=> the average times of buying goods online increase by 1.127 (times) when

consumers trust increse 1 unit buying online.

We have b0 = -0.636=> when consumers don’t believe in buying online, they won’t buy

anything.

We have R2 = 0.422 => It means that the variable “Trust” determine about 42% of the value of

times. In other words, the belief of customers determines about 42% of the number of times the

customers shop online. This number is larger, so it proves it plays an important role in the

behavior of online shopping.20

2. Multiple Regression Model of “Times” and the most important variables:We consider:

Time: y Friend: x1

Trust: x2 Discount: x3

Multiple Regression Model

y¿̂

¿ = b0 + b1x1 + b2x2 + b3x3

Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t Sig.B Std. Error Beta

1 (Constant) -1.182 2.103 -.562 .578

ban be hoac nguoi than gioi thieu

1.971 1.900 .139 1.037 .307

muc do tin tuong 1.095 .233 .631 4.696 .000

mua re hoac dat hon

.329 1.825 .024 .181 .858

a. Dependent Variable: ban mua online bao nhieu lan trong nam qua

y¿̂

¿ = -1.182+ 1.971x1 + 1.095x2 + 0.329x3

We have:

+b1 = 1.971 means that the number of times buying online will increase on average by

1.971times when the respondents get the suggestions from friends or relatives.

+ b2= 1.095means that the number of times buying online will increase on average by 1.095

when trust on buying online increase 1 unit

+ b3= 0.329 mean that the average times of buying goods online increase by 0.329 times when

the respondents think the goods are cheaper.

Model Summary

Model RR

SquareAdjusted R

SquareStd. Error of the

Estimate

1 .665a .442 .390

R2 = 0.442 => It means that these three variables determine about 44.2% of the value of times.

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III. CONCLUSION

A. Main characteristics of the objectiveThrough our survey and analysis, we can see that there are a number of factors influencing on

the trend of shopping online, including both objective and subjective factors.

Even though we have tried our best, there may still be mistakes during the research due to the

range of time and knowledge. However, through this research, we have learned a lot about

carrying out survey and analyze data collected so that we could give out useful information for

the ones who have been and will be doing online business.

B. Advantages and Disadvantages during the research Disadvantages:

- Finding suitable independent variables that make it easy to collect data.

- Group members cannot directly communicate with one another to discuss and complete the

assignment.

Advantages:

- We receive much help from the instructor as well as our friends during the research.

------THANK YOU------

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