thesis final)

169
VIETNAM NATIONAL UNIVERSITY – HOCHIMINH CITY THE INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS STRATEGIES FOR RESTAURANTS IN HO CHI MINH CITY INCREASE SALE VOLUME BY GROUP BUYING BUSINESS MODEL Advisor: CHEAH KUAN YEAN Student’s name: NGUYEN TAN MANH (BA070269) 1

Upload: stephennguyen3986

Post on 14-Sep-2014

10 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Thesis Final)

VIETNAM NATIONAL UNIVERSITY – HOCHIMINH CITY

THE INTERNATIONAL UNIVERSITY

SCHOOL OF BUSINESS

STRATEGIES FOR RESTAURANTS IN HO CHI

MINH CITY INCREASE SALE VOLUME BY

GROUP BUYING BUSINESS MODEL

Advisor: CHEAH KUAN YEAN

Student’s name: NGUYEN TAN MANH (BA070269)

Ho Chi Minh City, Vietnam

2011

1

Page 2: Thesis Final)

STRATEGIES FOR RESTAURANTS IN HO CHI

MINH CITY INCREASE SALE VOLUME BY

GROUP BUYING BUSINESS MODEL

APPROVED BY Advisor APPROVED BY: Committee, Cheah Kuan Yean, MBA, Member Ho Thi Bich Van, PhD., Chair

_____________________________ ________________________________ MBA. Nguyen Huu Dang Khoa, Secretary

________________________________ MBA. Cheah Kuan Yean, Member

________________________________ MBA. Le Trong Hieu, Member

________________________________

THESIS COMMITTEE (Whichever applies)

2

Page 3: Thesis Final)

ACKNOWLEDGEMENTS

Foremost, I would like to thank my supervisor, Dr. Cheah Kuan Yean, who is also the

lecturer of the School of Business for his knowledge and helpful advice during the time I wrote

this thesis.

Furthermore, I would like to give many thanks to my friends, ms Pham Huynh Kim

Khanh, Nguyen Ngoc Mai Vy, Hoang Vu Thu Ut Quyen, Nguyen Thi Phuong Loan. They helped

me to find the documentaries, theories, and data for this research.

Also, I would like to express my gratitude to all the respondents for their time and

open-heartedness to participate in my interviews. They made a great effort, and without their

answers, it would not have been possible for me to finalize my research completely.

Last but not least, I greatly appreciate my family, their support and encouragement

helped me so much to finish this thesis

3

Page 4: Thesis Final)

Abstract

This thesis is written to find out the strategies for the restaurants in Ho Chi Minh to

increase their sale volume by Group Buying model. In this study, I will analyze customer

characteristic, restaurants characteristic, product characteristic, environment

characteristic, distribution channel and the services method to build this strategy.

The primary data of this research are from the survey to the customers who used online

coupons in the past. The secondary data are from the previous researches about group

buying, customer behavior, online businesses in the past. The research method will

combine both quantitative and qualitative methods to analyze the data; the quantitative

method will use to analyze the primary data, the qualitative method will use to analyze

the secondary data to support the primary data.

The research will establish the strategies for most of common types of restaurant in Ho

Chinh Minh City to deal with local “groupon” websites smartly, reach the need of

customers and don’t hurt the brand.

4

Page 5: Thesis Final)

TABLE OF CONTENT

Chapter 1:..........................................................................................................................................9

Introduction.....................................................................................................................................11

1.1/ Introduction about “groupon”:.............................................................................................11

1.2/Group-buying websites in Viet Nam....................................................................................12

1.3/Restaurants in Ho Chi Minh City.........................................................................................13

1.4/Rationale of the study...............................................................................................................14

1.5/ Problems statement and objective........................................................................................15

1.5.1/ Problems statement.......................................................................................................15

1.5.2/Objectives......................................................................................................................15

1.5.3/Scope of study................................................................................................................15

1.6/Strengths and limitation of this thesis...................................................................................16

1.6.1/Strengths:.......................................................................................................................16

1.6.2/Limitation:.....................................................................................................................16

1.7/ Structure of the study...........................................................................................................17

Chapter 2 : Background of group buying business model, groupon business model and the pro

and cons of using this model...........................................................................................................18

2.1/Introduction about e-commerce............................................................................................18

2.3/introduction about Group buying..........................................................................................19

2.3.1/ introduction...................................................................................................................19

5

Page 6: Thesis Final)

2.3.2/The basics of group buying models in e-commerce.....................................................21

2.4/Introduction about Groupon business model........................................................................22

2.5/ advantage and disadvantage of using “groupon” business model in restaurants.................26

Chapter 3: Literature review...........................................................................................................30

3.1/Business strategies:...............................................................................................................30

3.1.1/ Definition of business strategies:..................................................................................30

3.1.2/Strategy at Different Levels of a Business.....................................................................31

3.2/Strategic management.......................................................................................................31

3.3/ Sale and sale promotion:........................................................................................................33

3.3.1/Definition of sale.................................................................................................................33

3.3.2/Definition of sale volume..................................................................................................33

3.3.3/Sale promotion...............................................................................................................33

3.3.4/Types of sales promotion activities...............................................................................35

3.3.5/Sales promotion strategies.............................................................................................38

3.4/Consumer behavior...............................................................................................................39

3.4.1/Definition of consumer behavior...................................................................................39

3.4.2/ Online consumer behavior............................................................................................43

3.4.3/Maslow’s Hierarchy of needs........................................................................................44

3.5/Design the model for this thesis............................................................................................46

3.6 Questionnaire design.............................................................................................................48

CHAPTER 4: RESEARCH METHODOLOGY............................................................................50

4.1./Secondary data.....................................................................................................................50

6

Page 7: Thesis Final)

4.2/Primary data..........................................................................................................................50

4.3/Theoretical framework..........................................................................................................50

4.3.1 /Quantitative Approach..................................................................................................50

4.3.2/ Qualitative Approach....................................................................................................51

4.4/Research design....................................................................................................................51

4.4.1/Research strategy: Survey..............................................................................................51

4.4.2/Design the measurement................................................................................................52

4.4.3/Design the sample..........................................................................................................52

4.4.5/Sampling size.................................................................................................................53

4.4.6/ Process of gathering the information:...........................................................................53

4.4.7/ Statistical analysis technique........................................................................................54

CHAPTER 5: Discussion and Conclusion......................................................................................55

5.1/ Filter the data:......................................................................................................................55

5.1.1/Remove the inappropriate responses.............................................................................55

5.1.2/Data encryption:.............................................................................................................55

5.2/ Discussion............................................................................................................................56

5.2.1/Customer characteristic:................................................................................................56

5.2.2/Environment characteristic............................................................................................59

5.2.3/Product characteristic.....................................................................................................62

5.2.4/ Restaurants characteristics:...........................................................................................69

5.2.5/Distribution channel.......................................................................................................71

5.2.6/ Services.........................................................................................................................77

7

Page 8: Thesis Final)

5.3/ Establish the strategies for the restaurants to increase their sale volumes via group buying

channel........................................................................................................................................82

CHAPTER 6...................................................................................................................................86

Conclusion and Suggestion.............................................................................................................86

6.1/ Conclusion...........................................................................................................................86

6.2/ Suggestion............................................................................................................................86

6.3/ Implication of this study......................................................................................................87

8

Page 9: Thesis Final)

LIST OF TABLES

Table Page

1. List of table about customer characteristics.............................................................90

2. List of table about products characteristics .............................................................91

3. List of table about restaurants characteristics..........................................................98

4. List of table about distribution channel.................................................................101

5. List of table about services.................................................................................................105

5. List of survey questions......................................................................................................105

9

Page 10: Thesis Final)

LIST OF FIGURES

Figures Page

1. Groupon business model..........................................................................................23

2. Kinds of sale promotion ..........................................................................................36

3. Advantages and disadvantages of coupon promotions............................................37

4. Influences on and of consumer behavior.................................................................42

5. Influences on and of online consumer behavior......................................................44

6. Maslow’s hierarchy of needs...................................................................................45

7. Model for this thesis.................................................................................................46

8. Internet penetration in selected Asian countries......................................................60

9. Internet usage by city...............................................................................................60

10. Frequency of Internet usage by city.......................................................................61

11. Demand of restaurants vouchers............................................................................63

12. Daily traffic rank trend of nhommua.com.............................................................73

13. Audience demographic of nhommua.com, muachung.vn and hotdeal.vn.............75

10

Page 11: Thesis Final)

14. Audience demographic of vndoan.com.................................................................76

15. Discrimination between the customers who have and haven’t vouchers..............79

CHAPTER I

INTRODUCTION

1.1/ Introduction about “groupon”:

Groupon is the name of the website (groupon.com) which is the pioneer offers the special

deals to the customers by selling vouchers to them via internet. It is the sign off Chicago-

based Internet Company called The Point. Groupon was launched in November 2008, and

its growth since then has been outstanding. It now covers over 565 cities around the

world and has seen its web traffic grow from just 2 million unique visitors per month to

over 15 million (source: Crunchbase). Annual revenue is around $2 billion. They are the

market leader in the group-buying category by some distance. Nowadays, Groupon is not

only a name of the website but also a name of a new E-commerce’s methods.

Groupon is the combination of two words “group” + “coupon” and its meaning also the

combination the meaning of these words. Groupon is a collective buying service, they

will gather customers into a big group and sell vouchers for them with a very special

prices .Groupon firms work with local businesses to create discounts that are offered to

consumers. Put simply, it offers discounts on products and services which only become

valid once a set number of consumers buy into them. The numbers required may change,

as will the amount of discount you get, but the principle remains the same: once enough

people buy, the discount becomes active and everyone benefits. The discounts are

generally greater than 50%, and consumers can buy up to two vouchers for themselves

and up to two vouchers as gifts for others. Groupon does not only work with restaurants

11

Page 12: Thesis Final)

but also with businesses that offer services such as beauty salons, massage, spas,

specialty stores, carpet cleaning, car services, area attractions, and more.

1.2/Group-buying websites in Viet Nam

Group buying and daily deal sites like Groupon and LivingSocial have spawned

thousands of clones around the world and Vietnam is no exception. The coupon sites are

catching on there in a big way.There are: Muachung.com of VC Corp, Vndoan.com of

Thien Hy Long, Nhommua.com of Dia Diem, Cung Mua of Cyvee, Zing Deal of Vina

Game, HotDeal.vn of Vina book, RuNhau.com of Cartel holding SJC, Cucre.com of Vat

Gia, Phagia.com.vn of phununet, Kenhgia.com of PMTIS, and others. In general, Viet

Nam groupon websites operate by basing on the model of the original groupon websites

(groupon.com). they just adjust some features to suit Viet Nam market such as payment

systems, delivery systems.

An article on Vietnam.net says that Groupon-like sites were introduced in Vietnam last

year and have quickly become popular with students and white-collar workers.

According to Vu Hong Quang, a representative of the Southern VC Corp which owns

muachung.com, there are currently 20 such sites in the country offering from 40 to 70

percent savings on products and services. After just 7 months of operation his site already

has 100,000 members. Muachung.com’s main competitor, nhommua.com has the same

number of registered users but even some of the newer sites have 60,000 members.

As we’ve seen here in the states, daily deals sites can create a winning situation all

around. Businesses get some much needed traffic, the coupon sites get a commission for

pulling in that traffic and consumers get a good deal. And Vietnamese love this model.

One expert in online business, Minh Bui, says these sites create a form of interactive

12

Page 13: Thesis Final)

promotion and marketing that allows businesses to have a better idea of how many people

are using their products or services.

The article on Vietnam.net goes on to say that daily deal sites are not without their share

of problems. Since many consumers are not familiar or comfortable with online

payments, most vouchers are purchased by money transfer or cash on delivery. Vouchers

are often lost or delivered late and the cost of delivery can be costly.

There’s also the problem of many merchants that don’t follow the rules of the contract,

provide inferior service or treat voucher holders differently than they do customers that

are paying full price.

Despite these issues, most of which we have seen here in the United States as well, the

group buying and daily deals industry seems to be thriving in Vietnam. Says Manh who

believes offering a deal has benefited his resort, success comes from quality of service,

price and customer trust.

The common customers of “groupon” websites in Viet Nam are the restaurants because

they have tremendous demand on offer promotions and do marketing via these channels.

The vouchers of restaurants also the best seller on those websites because it has

reasonable prices and reaches the demands of customers.

1.3/Restaurants in Ho Chi Minh City

Ho Chi Minh city is largest city in Viet Nam with the population are approximate 10

million people. The restaurant market is very competitive because of the demands of

having a meal outside the house are considerable.

Base on the database of anan-vietnam.com, the big website which provides the

information of restaurants in Ha Noi and Ho Chi Minh City. There are approximate 1500

13

Page 14: Thesis Final)

restaurants in Ho Chi Minh City, but in reality this figure may be bigger. From this

website, we can see too many new restaurants or new branches open each month

1.4/Rationale of the study

In contemporary days, there are many of restaurants in Ho Chi Minh have good facilities,

delicious foods with suitable prices and acceptable services but don’t success on their

businesses. In the other hand, some restaurants have good business but they still don’t

reach their revenue peak. Selling online vouchers can solve these problems for

restaurants if they know how to use it effectively.

In fact, there are many restaurants in Viet Nam tried to use “groupon” websites as a new

sale and marketing tools. We can find many specials online coupons of restaurants easily

in Viet Nam “groupon” websites, and a thousand of it has been sold out. It can be seen

that selling the promotions online is very useful for restaurants in Ho Chi Minh City. For

example, Muoi Xiem – Vietnamese crepe restaurant can sell approximate 3000 vouchers

in just 1 day at nhommua.com.

However, it’s hard for all of these restaurants to sell many of vouchers effectively;

especially the fresh restaurants which are lack of experiences on dealing with groupon.

Furthermore, there are many restaurants in Ho Chi Minh city don’t know about group

buying business model or don’t know how to increase sale volume by selling online

vouchers.

In the other hand, some restaurants have used group buying business model already but

the business still not good, the customer just use the vouchers and never come back. Deep

discount hurt the branding of the restaurants. Reasons of these problems are they don’t

know how to make the online coupon promotions in the right ways. Group buying model

is good for business but if we use it with a wrong ways, it can hurt the business.

14

Page 15: Thesis Final)

In hope to help the restaurants solve these problems, I will do the thesis on:” The

Strategies for Restaurants in Ho Chi Minh City to Increase Sales Volume with

Group Buying Model “

1.5/ Problems statement and objective

1.5.1/ Problems statement

At mentioned, there are many restaurants in HCMC don’t have strategies to deal with

“groupon” websites. Without strategies, their coupons are hard to match the need of

customers and can’t sell the large quantities. In the other hand, the “groupon” websites

will convince the restaurants create the coupons with very deep discounts. These deep

discounts can help the restaurant attract many of customers and sell large quantity of

product in short time but can’t help the restaurants increase profit and will hurt the brand

of the restaurants. Therefore, preparing the strategies before dealing with the group

buying websites is so necessary.

1.5.2/Objectives

Firstly, this thesis will analyze the factors affect to the buying decision of the customers

and create the method for to build the suitable coupon that can reach the customers need

Secondly, this study will find the right “groupon” channel for the restaurants to distribute

their coupon efficiently

Lastly, this thesis will research about the ways to satisfy customers when they use the

restaurant food and drink coupons and build the strategies to bring them back in the next

time.

1.5.3/Scope of study

Geographic: Ho Chi Minh urban areas.

Objects of this thesis: restaurants in Ho Chi Minh City which exclude the street

restaurants along the streets.

15

Page 16: Thesis Final)

1.6/Strengths and limitation of this thesis

1.6.1/Strengths:

The data of vouchers and discount percent were public in Viet Nam groupon websites,

easy to get number for analysis. Moreover, it’s easy to find which restaurants have used

group buying websites in the past to collect the useful data. In the other hand, we can

connect with the customers through the group buying websites or the Facebook, Twitter,

Yahoo blog of these websites to gather their experiments on using the restaurants

vouchers.

1.6.2/Limitation:

Nowadays, groupon methods are so new and there are lacks of academic research about

it, the documents about it in the internet almost written by the end user are hardly to

verify the accurate level.

Controlling this bias: try to find academic literature to support this thesis as much as

possible, try filtering the information in the internet to find the high academic level

document about groupon.

There are too many groupon websites in Viet Nam and many online special deals of

restaurants on there. So, the data will be too complex to analysis.

Controlling this bias: narrow down the data and if the information is similarity choose the

represented data to analysis

The managers of the restaurants or customers who we want to interview or give surveys

may be busy or forget to do that or don’t want to share information with us.

Controlling this bias: sending messages to remind them, or finding others if not being

able to reach them.

16

Page 17: Thesis Final)

1.7/ Structure of the study

This thesis is divided into six chapters.

Chapter 1 - Introduction will introduce the basis of the subject, research objectives, scope

and limitation of research

Chapter 2 – Background of group buying business model, groupon business model and

the pro and cons of using this model

Chapter 3 - Literature review

Chapter 4 – Methodology of study

Chapter 5 - Results of the study

Chapter 6- Conclusions and recommendations

17

Page 18: Thesis Final)

CHAPTER II

BACKGROUND OF GROUP BUYING BUSINESS MODEL, GROUPON BUSINESS MODEL AND THE PROS AND CONS OF USING THIS MODEL

2.1/Introduction about e-commerce

The first e-commerce model was introduced in 1979 by Michael Aldrich base on

Electronic data interchange (EDI) and Electronic funds Transfer (EFT). This model

allowing business to send the commercial documents like purchase orders or invoices

electronically. Nowadays, e-commerce develops with a high speed with the new

inventions of technology and new business models.

Nowadays, E-commerce can be divided into six groups:

E-tailing or “virtual storefronts” or virtual mail: Provide the place for direct retail

shopping with 24-hours availability and can reach worldwide. This model has ability to

interact and give custom information and ordering, and multimedia prospects; the web is

rapidly becoming a multibillion dollar source of revenue of the world’s businesses.

Market research by the gathering and use of demographic data through web

contacts: Companies can collect the data about prospects and customers in

unprecedented amounts through site registration, questionnaires, and as part of taking

orders. The issue of whether data was being collected with the knowledge and permission

of market subjects had been raised.

Electronic data interchange (EDI): EDI is the exchange of business data using an

understood data format. EDI involves data exchange among parties that know each other

well and make arrangements for one-to-one (or point-to-point) connection. EDI is

expected to be replaced by one or more standard XML formats, such as ebXML

Email, Fax, and Internet Telephony: Enterprises can use it as the tools to communicate

with the partner globally with the cheapest cost, utility, and fast. In the other hand, Email,

fax, internet telephony can be used at marketing tools such as unsolicited advertisement.

18

Page 19: Thesis Final)

An increasing number of business websites offer email newsletters for subscribers. This

is a new trend in which web users voluntarily sign up to receive email, usually sponsored

or containing ads, about product categories or other subjects they are interest in.

Business-to-business buying and selling: Thousands of companies that sell products to

other companies have discovered that the web provides not only 24 hours/day showcase

for their products but a quick way to reach the right people in a company for more

information.

The security of business transactions: Security includes authenticating business

transactor, controlling access to resources such as Web pages for registered or selected

users, encrypting communications.

(“What is e-commerce”, 2005, www.cse.buffalo.edu/DBGROUP/, viewed 3/3/2011)

2.3/introduction about Group buying

2.3.1/ introduction

As a channel that is characterized by convenience, wide product selection, and

easy comparison shopping, the Web has enjoyed tremendous growth in consumer

spending in recent years.

Such market mechanisms are what Spulber (1996, 1999) and O’Hara (1997)

refer to as market microstructure, a term that is often associated with the

operational mechanics of the financial markets.Andrews (2000) identifies three

difference kinds of mechanisms including group-buying models, price-reduction

models and traditional auction models. We add to Andrews’ list the non-

traditional auction models, including such recent phenomena as reverse auctions

and other “name-your-own-price” mechanisms

19

Page 20: Thesis Final)

MODEL TYPES KEY CONCEPT

Traditional auctions

Apply long-standing concepts associated with real world auctions.

These include: the single -item open-outcry ascending-price English auction; the

single -item open-outcry descending-price Dutch auctions; the single -item first-

price sealed-bid auction; the single - item second-price sealed-bid Vickrey

auction2; the multiple -item, open-outcry call market; and the open- and closed-

bid, double auctions, in which both buyers and sellers simultaneously update

their bids and offers.Non-traditional auctions Apply variations on the auction approaches mentioned above.

Examples include: reverse auctions, in which buyers either state an interest in

purchasing a sale item or a bundle of items and sellers indicate their offers; 3-D

auctions, in which price-quantity is supplemented by utility reflecting

willingness-to-trade; among others.

Price-reduction models Enables buyers to obtain lower prices, but only based on a pre-

Announced time schedule for price drops from a higher starting price.

Operates without consideration given to the number of participants in the

marketplace. Similar to Dutch auction.Group-buying models Enable buyers to obtain lower prices, as more people indicate a

Willingness to buy from the Internet-based seller’s Web site. There are two

varieties, involving group-buying with a fixed time period to completion of an

auction, and group-buying with a fixed price that is achieved only when enough

buyers participate

Four Types of Dynamic Pricing Models for Internet Marketplaces

(Sources: Robert J. Kauffman, 2001 BID TOGETHER, BUY TOGETHER: ON THE EFFICACY OF

GROUP-BUYING BUSINESS MODELS IN INTERNET-BASED SELLING, Carlson School of

Management)

20

Page 21: Thesis Final)

2.3.2/The basics of group buying models in e-commerce

We next discuss group-buying models in Internet-based selling in greater detail. We

first describe the market mechanisms, and then consider the core value proposition

that they offer to their participants.

The Market Mechanisms

Pricing to match buyers and sellers is an important function of a market (Spulber,

1996). In the bricks-and-mortar world, posted pricing mechanisms have been the

dominant pricing strategies, where retailers display the prices they ask for the

merchandise and consumers decide whether they would accept the prices or not.

Under dynamic pricing mechanisms , however, buyers are no longer left with this

take-it-or-leave-it decision. They can actively negotiate with the sellers to reach a

satisfactory price. For example, buyers in online auctions, such as we have seen at

eBay, place their bids and the final transaction price is the highest price offered at the

end of the auction. At Priceline, for example, consumers can name their own price for

airline tickets and hotel rooms. Based on the demand from consumers and their

assessment of their own supply of perishable assets, sellers then can decide whether

they would like to accept the prices. What makes dynamic pricing different from

posted pricing strategies is that, with the wide network connection and lower operation

costs enabled by technology, consumers become more active in the price discovery

process, resulting in greater a likelihood for transactions to occur and for higher market

efficiency and effectiveness.

As a special instance of dynamic pricing mechanisms, group-buying discounts allow

buyers to aggregately determine transaction prices and take advantage of the savings

that a seller can offer in the presence of many buyers of the same product. This is how

it usually works on group- buying Web sites. A product is put on sale on the company’s

Web site with a specified starting and ending time for what they typically call an

auction cycle . As more buyers join the group to purchase this product, the price drops

from the starting price according to a predetermined price change trajectory. Some

21

Page 22: Thesis Final)

Web sites reveal this price change trajectory, and some do not. The auction cycle can

also end before the specified ending time if a maximum number of units have been

sold. At the end, everyone who participated in the cycle will be charged the same final

low price, even if some of them indicated a willingness to buy earlier at a higher price.

The Value Proposition for Group-Buying on the Internet

The primary value proposition of group-buying business models to consumers is the

lower prices they can provide, due to the buyers’ collective bargaining power. By

accumulating a large number of orders in a short period of time, group-buying Web

sites claim they can negotiate low prices with manufacturers and suppliers, and then

pass these savings on to their customers. On these Web sites, the starting prices are

typically higher than the prices charged by discount posted-price merchants, reflecting

their lack of purchasing power with suppliers in the face of small order quantities.

However, prices drop as more people buy. When enough people join an auction cycle,

it is possible that the final price will be lower than the lowest price charged elsewhere.

In fact, just as the name “group-buying” tells us, if purchasing does not reach a critical

mass, the pre-conditions for the success of this kind of business model will not be in

place.

2.4/Introduction about Groupon business model

Group buying model is the win-win-win business model which can bring benefits

to customers, the sellers and companies who sell online vouchers. Firstly, customer can

buy various vouchers or the special deals with very good prices. Secondly, the vendors

can sell a big amount of products at the sort time; furthermore “groupon” websites are

very useful marketing implement for them to attract customers. Lastly, the enterprises

which offer deals can earn profit base on the commission between them and the

merchants; moreover they will attract the customer base attention to their websites by

these deals, build the reputation to offer another deals.

22

Page 23: Thesis Final)

Figure 1: Groupon business model

(Venkateswaran, Network effects in groupon business

model,2010,<http://www.ebizcolumn.com/2010/12/network-effects-in-groupon-

business.html>, viewed 30th,April,2011)

The deal of groupon wonders for local small businesses that need foot traffic.

Traditional online advertising isn’t nearly as effective as social buying platforms for

getting people to visit local storefronts. For approximately the same price as a decent-

sized online advertising campaign, a collective buying site will feature your business’s

deal offering on their website and notify local email subscribers. With many of these

online services boasting readership in the millions, they can literally flood your store with

hundreds to thousands of new customers within a single day or two. Moreover, these

daily deal websites only charge you when sales are generated. So not only will this

promotional tool earn a bucket load of cash flow and new customers for you, but you’ll

only have to pay when real results are obtained for your business. A pay per sale model

combined with a powerful distribution system, time-sensitive discounts, and social media

23

Page 24: Thesis Final)

based user referral incentives make group buying sites a hands down winner for most

local business owners seeking to gain new customers and elevate sales.

Instantly acquire new customers – For budding small businesses that are starved for

clients, group buying sites are the most effective solution to acquiring new customers.

Groupon and others like it can send you hoards of deal crazed consumers for you to

convert into long-term customers. Your return on investment (ROI), in terms of getting

new customer in the door, is unmatched compared to other advertising options.

Quickly generate cash flow – Top daily deal sites like Groupon have generated sales in

the tens of thousands for some business owners. If a merchant sold 10,000 vouchers at

$10 each, that’s $50,000 (minus Groupon’s standard share) in cash flow that was raised

in just a matter of a few days. No other advertising model rivals the rate at which deal

sites can inject cash flow into a business.

No upfront costs – Deal sites utilize a pay per sale (PPS: a.k.a. cost per sale; CPS) model

to generate revenue which means business owners pay nothing upfront to use their

services. In contrast to traditional cost per thousand impressions (CPM) or cost per click

(CPC) advertising fees, a cost per sale charge ensures that you only pay Groupon when a

sale is generated for your business. Barring unauthorized purchases or any refunds that

buyers submit to the deal site, your advertising expenses produce real results in terms of

customer acquisitions and the production of sales.

Measurable results – Companies can spend millions of dollars on local radio, television,

print, and online advertising campaigns and never see any clear increase in offline sales,

let alone any change in traffic to their local stores. Vouchers require that the customers

visit your storefront in order to redeem them. When they do this, you can easily track the

profits and expenses for each voucher sale that’s generated. Before that however, you’ll

24

Page 25: Thesis Final)

already know exactly how many people received your deal offer in their inbox, how

many people opened it, and the number of people that purchased it.

Increase offline visitor traffic – Previously, the resources available to convert online

sales into foot traffic for local store owners was limited to gift cards and simple coupons.

The conversion rates of the latter are quite poor and without a discount, gift cards don’t

fair much better when it comes to getting customers into stores. Social buying sites on the

other hand represent a very efficient way for merchants to push traffic into local

storefronts and acquire new customers.

Gain Facebook & Twitter followers – People love businesses that offer deals to their

customers and they’re more willing to hit that “Like” or “Follow” button on Facebook

and Twitter because of it. Business owners have reported that their Facebook fans and

Twitter followers have increased after being featured on daily deal websites like

Groupon.

Minimal time commitment – Groupon and other daily deal sites do nearly everything

for you. Your time commitment upfront is limited to gathering a few images and creating

some text copy regarding the limitations of your deal offer. Groupon employs nearly one

hundred full-time writers to ensure your featured deal pops off the page and it creates

quite a buzz for your establishment. In comparison, effective online advertising requires a

much larger investment of time to create the ads, complete the necessary keyword

research, and setup conversion tracking.

Incredible business exposure – Large social buying sites like Groupon have millions of

email subscribers and they get just as website visitors each month. They distribute your

deal offering to local site members that then retweet and share your deal throughout the

Web. Since you only pay when a sale is generated you’re essentially getting free

advertising to boot and lots of more buzz for your business.

25

Page 26: Thesis Final)

Highly desirable customer demographic – The average user of daily deal sites like

Groupon tend to be educated females with money to spend that are socially active both

online and offline. If you’re a local business owner that utilizes Groupon this means that

those new customers possess a great potential to return to your establishment and share

their experience with their friends.

Reduce your advertising budget – The primary goal for advertising is to acquire new

customers for your business. Social buying websites are much more effective at this than

traditional advertising channels. By redirecting your company’s advertising budget to

offer a group deal instead of traditional local ads allows you to spend less on advertising

and still acquire more customers.

(“Top 10 reasons to using groupon”, 2010, http://tomuse.com/daily-deal-sites-groupon-

business-advertise/, viewed 4/3/2011)

2.5/ advantage and disadvantage of using “groupon” business model in restaurants

Groupon has its advantages and disadvantages, so, the restaurant need to decide if this is

something worth thier business getting into. Here are five reasons in favor of and five

reasons against group buying promotions.

Pros

It attracts a lot of consumers. You can reach new customers by appealing to those who

are looking for inexpensive deals and a chance to save money. You get to charge lower

prices to new customers who aren't willing to pay more. Existing customers are willing to

pay full price for products or services. Dholakia says that Groupon promotions offer the

most benefit for businesses in which the promotion does not cannibalize sales to existing

customers.

26

Page 27: Thesis Final)

It advertises your business. A Groupon promotion can be a way to announce the

existence of your business to consumers who are unfamiliar with your products or

services. You get to entice potential customers to try your goods. The idea is that they are

going to like it so much that they will come back and buy from you again. You must

make your promotion grab consumers but at the same time increase your potential

conversion rate for repeat customers, says Dholakia.

It helps move inventory. Use Groupon deals to sell slow moving items in your inventory

or unutilized services. Discounts seem to be most compelling for merchants with low cost

of goods sold. Use price deals to promote a product that is not that expensive. A Groupon

type promotion should be something that you do once in a while for a specific, narrow,

limited reason, adds Dholakia.

It builds relationships. Use price promotion deals for building customer relationships

rather than just creating one-time buys, recommends Dholakia. Meaning, instead of a

restaurant owner offering $60 worth of food for $30, parcel it out to offer $20 worth of

food for $10 over the customer's next three visits. Don't offer discounts on a total bill,

rather offer a specialized discount for various products or services.

It generates incremental revenue. If you have a low-cost or fixed-cost structure, you

can make money on promotions. Take an owner of a rock-climbing business that has

existing equipment and a storefront. The operating costs don't change based on the

number of people who show up. A coupon deal can actually generate some extra cash by

getting more bodies into the facility. Customers paying $10 for a $20 service, still nets

the owner $5 per voucher. Dholakia says each merchant must know their costs, factor in a

price that draws customers, project the number of costumers that will buy the coupon,

and estimate incremental revenues

27

Page 28: Thesis Final)

Cons

Deals attract low-end bargain seekers. Because the Groupon customer base is made up

of deal-seekers and bargain shoppers they might not be willing to purchase beyond the

value of the coupon. So, there are low rates of spending and low rates of return. One

problem with price deals is diminishing returns; thus, merchants need to put a cap on the

number of deal coupons that are to be sold, says Dholakia.

Deals hurt the brand. The obsession with price doesn't necessarily make for a lot of

brand loyalty or even brand awareness. One negative aspect of daily deal sites is that

price promotions usually hurt the brand of the company offering it, says Dholakia. It

makes customers price sensitive. When they get something at a much lower price, they

then become less inclined to pay full price for that same product or service in the future.

Deals don't generate repeat customers. Groupon has a low conversion rate for repeat

customers, according to marketing experts. You may never see the person again once

they use your coupon. Or that person may not be willing to buy from you again without a

coupon in hand. The percent of new customers that redeem the voucher that becomes

repeat visitors of the business is estimated at around 19 percent. It varies by product

categories.

Deals are not profitable. Another problem is the split. Groupon keeps 50 percent of the

revenues from each coupon deal. If you do the math, merchants need to gross margins

well in excess of 50 percent for Groupon to work for them. The promotion is very steep,

usually 50 percent or more. Most businesses are built on margins of 75 percent, which

means if the customer just comes in and buys the deal, the owner is going to lose money,

says Dholakia. Restaurants usually have higher margins. "By offering huge discounts and

giving 50 percent to Groupon, they just aren't earning enough to cover the cost of serving

that customer."

There are better deals out there. Daily deals sites are not the only game in town. You

can run a similar promotion for less money. There are plenty of marketing programs you

can use; does it make sense to use this one, asks Dholakia. For example, you can offer a

28

Page 29: Thesis Final)

discount or promotion on a Facebook fan page. It's an effective way to engage new and

existing customers at a very low cost, he adds.

(“10 pros and cons of using groupon”, 2010, http://www.inc.com/guides/201104/10-

pros-cons-for-using-groupon.html, viewed 4/3/2011)

29

Page 30: Thesis Final)

CHAPTER III

LITERATURE REVIEW

3.1/Business strategies:

3.1.1/ Definition of business strategies:

The object of this research is creating the strategies for the restaurant, so we need to find

out what is strategy?

Strategy is the direction and scope of an organization over the long-term: which achieves

advantage for the organization through its configuration of resources within a challenging

environment, to meet the needs of markets and to fulfill stakeholder expectations.

Strategies exist at several levels in any organization - ranging from the overall business

(or group of businesses) through to individuals working in it (Johnson, 2006, Exploring

Corporate Strategy: Text and Cases, 7th edition, Prentice Hall)

A business strategy typically is a document that clearly articulates the direction a

business will pursue and the steps it will take to achieve its goals. In a standard business

plan, the business strategy results from goals established to support the stated mission of

the business. A typical business strategy is developed in three steps: analysis, integration

and implementation (Geek, 2011, “what is business strategy”,

http://www.wisegeek.com/what-is-a-business-strategy.htm, viewed 4-5-2011)

The definition of business strategy is a long term plan of action designed to achieve a

particular goal or set of goals or objectives. Strategy is management's game plan for

strengthening the performance of the enterprise. It states how business should be able to

achieve the desired goals. (Syd 2008,”A Definition of business strategy”,

30

Page 31: Thesis Final)

http://www.rapid-business-intelligence-success.com/definition-of-business-strategy.html,

Viewed 1/5/2011)

3.1.2/ Strategy at Different Levels of a Business

According to Gerry Johnson (2006), Strategies exist at several levels in any organization

- ranging from the overall business (or group of businesses) through to individuals

working in it.

Corporate Strategy is concerned with the overall purpose and scope of the business to

meet stakeholder expectations. This is a crucial level since it is heavily influenced by

investors in the business and acts to guide strategic decision-making throughout the

business. Corporate strategy is often stated explicitly in a "mission statement".

Business Unit Strategy is concerned more with how a business competes successfully in a

particular market. It concerns strategic decisions about choice of products, meeting needs

of customers, gaining advantage over competitors, exploiting or creating new

opportunities etc.

Operational Strategy is concerned with how each part of the business is organised to

deliver the corporate and business-unit level strategic direction. Operational strategy

therefore focuses on issues of resources, processes, people etc.

3.2/Strategic management

When we have strategies for the restaurant, we must know the way manage it, so this

thesis will research on what is strategic management?

Strategic management is a field that deals with the major intended and emergent

initiatives taken by general managers on behalf of owners, involving utilization of

31

Page 32: Thesis Final)

resources, to enhance the performance of firms in their external environments. It entails

specifying the organization's mission, vision and objectives, developing policies and

plans, often in terms of projects and programs, which are designed to achieve these

objectives, and then allocating resources to implement the policies and plans, projects and

programs. A balanced scorecard is often used to evaluate the overall performance of the

business and its progress towards objectives. Recent studies and leading management

theorists have advocated that strategy needs to start with stakeholders expectations and

use a modified balanced scorecard which includes all stakeholders.( Nag.; Hambrick, and

Chen, 2007,What is strategic management, really? Inductive derivation of a consensus

definition of the field. Strategic Management Journal. Volume 28, Issue 9, pages 935–

955.)

Strategic management is a level of managerial activity under setting goals and over

Tactics. Strategic management provides overall direction to the enterprise and is closely

related to the field of Organization Studies. In the field of business administration it is

useful to talk about "strategic alignment" between the organization and its environment or

"strategic consistency." According to Arieu (2007), "there is strategic consistency when

the actions of an organization are consistent with the expectations of management, and

these in turn are with the market and the context." Strategic management includes not

only the management team but can also include the Board of Directors and other

stakeholders of the organization. It depends on the organizational structure.

Strategic management is an ongoing process that evaluates and controls the business and

the industries in which the company is involved; assesses its competitors and sets goals

and strategies to meet all existing and potential competitors; and then reassesses each

strategy annually or quarterly [i.e. regularly] to determine how it has been implemented

and whether it has succeeded or needs replacement by a new strategy to meet changed

32

Page 33: Thesis Final)

circumstances, new technology, new competitors, a new economic environment., or a

new social, financial, or political environment. (Lamb, 1984:ix)

3.3/ Sale and sale promotion:

This thesis will find the way to increase sale volume of restaurant in HCMC, so I will

review the literature about the sale and sale promotion to make the objects become

clearer.

3.3.1/Definition of sale

A sale is the act of selling of products or services in return for money or other

compensation. It is an act of completion of a commercial activity.

Based on the definition on businessdictionary.com, sale is Contract involving transfer of

the possession and ownership of a good or property, or the entitlement to a service, in

exchange for money or value. Essential elements that must be present in a valid sale

are competence of both the buyer and seller to enter into a contract, mutual agreement

on the terms of exchange, a thing capable of being transferred, and a consideration in

money (or its equivalent) paid or promised

3.3.2/Definition of sale volume

Sale volume is the quantity or number of goods sold or services sold in the normal

operations of a company in a specified period (businessdictionary.com, 11-5-2011)

Another definition about sale volume published by economics-dictonary.com (11-5-

2011) is the amount of sales of goods or services by a company the amount of sales of

goods or services by a company

3.3.3/Sale promotion

Sales promotion describes promotional methods using special short-term techniques to

persuade members of a target market to respond or undertake certain activity. As a

reward, marketers offer something of value to those responding generally in the form

33

Page 34: Thesis Final)

of lower cost of ownership for a purchased product (e.g., lower purchase price, money

back) or the inclusion of additional value-added material (e.g., something more for the

same price) (“What is sale promotion”, http://www.knowthis.com/principles-of-

marketing-tutorials/sales-promotion/what-is-sales-promotion/, University of Sussex,

View day 27/05/2011)

Sales promotion has been defined as “a direct inducement that offers an extra incentive

to buy. This incentive is usually the key element in a promotion program; it may be a

coupon or price reduction, the opportunity to enter a contest or sweepstakes, a money

back refund or rebate, or an extra amount of a product. (E.Blech And A.Blech (2007),

Advertising and Promotion-an integrated marketing communications perspective, 7th

edition)

According to Dave Dolak, MBA, PCM; Sales promotions are short-term incentives to

encourage the purchase or sale of a product or service. Sales promotion includes

several communications activities that attempt to provide added value or incentives to

consumers, wholesalers, retailers, or other organizational customers to stimulate

immediate sales. These efforts can attempt to stimulate product interest, trial, or

purchase. Examples of devices used in sales promotion include coupons, samples,

premiums, point-of-purchase (POP) displays, contests, rebates, and sweepstakes.

Sales promotion is an important component of a company's marketing communication

strategy along with advertising, public relations, and personal selling. At its core, sales

promotion is a marketing activity that adds to the basic value proposition behind a

product (i.e., getting more for less) for a limited time in order to stimulate consumer

purchasing, selling effectiveness, or the effort of the sales force. As this definition

indicates, sales promotion may be directed either at end consumers or at selling

intermediaries such as retailers or sales crews.( Blattberg, Robert C., and Neslin. Sales

Promotion: Concepts, Methods, Strategies. New York: Simon & Schuster, 1995. Bunish,

Christine. "Sales: Expanded Use of Collateral Material, Catalogs Boosts Sales

Promotion." Business Marketing, 1 May 1999.)

34

Page 35: Thesis Final)

Sales promotion is one part of the promotional mix that is becoming an important tool in

Integrated Marketing Communication. This marketing strategy help boost sales. Sales

promotion is an important tool in Integrated Marketing Communication. It provides

several distinct benefits in the achievement of company objectives that may account for it

becoming one of the fastest growing IMC tools. It is one of the four aspects of

promotional mix. Advertising, personal selling, and publicity/public relations are the

other three (Cuizon, “what is sale promotion” article, 2004,

http://www.suite101.com/content/sales-promotions-a96994 viewed may-05-2011)

3.3.4/Types of sales promotion activities

Sale promotion can be divided into two major categories: consumer-oriented and trade-

oriented promotions. Activities involved in consumer-oriented sales promotion include

sampling, couponing, premiums, contest and sweepstakes, refunds and rebates, bonus

packs, price-off, frequency programs, and event marketing. These promotions are

directed at consumer the end of purchasers of goods and services, and are designed to

induce them to purchase the marketer’s brand. Trade-oriented sales promotion includes

dealer contests and incentives, trade allowances, point-of-purchase display, sales training

program, trade shows, and cooperative advertising to motivate distributors and retailers to

carry a product and make an extra effort to push it to their customers. Many marketing

programs include both trade and consumer-oriented promotions, since motivating both

groups maximizes the effectiveness of the promotional program. (E.Blech, and A.Blech

(2007), Advertising and Promotion-an integrated marketing communications perspective,

7th edition)

35

Page 36: Thesis Final)

Figure 2: Kinds of sale promotion

(Sources: George E.Blech, Michael A.Blech (2007), Advertising and Promotion-

an integrated marketing communications perspective, 7th edition)

This study will deep research in the couponing promotion program, I will give the

specific theory about coupons in this part.

In marketing, a coupon is a ticket or document that can be exchanged for a financial

discount or rebate when purchasing a product. Customarily, coupons are issued by

36

Page 37: Thesis Final)

manufacturers of consumer packaged goods or by retailers, to be used in retail stores as a

part of sales promotions. They are often widely distributed through mail, magazines,

newspapers, the Internet, and mobile devices such as cell phones. Since only price

conscious consumers are likely to spend the time to claim the savings, coupons function

as a form of price discrimination, enabling retailers to offer a lower price only to those

consumers who would otherwise go elsewhere. In addition, coupons can also be targeted

selectively to regional markets in which price competition is great. (Geuss, Megan

(October 2010), "First Coupon Ever", Wired)

Coupons have number of advantages and disadvantage that make them popular sales

promotion tools for both new and established products. The chart below will show the

pro and cons of coupon:

Figure 3: Advantages and disadvantages of coupon promotion

(Sources: George E.Blech, Michael A.Blech (2007), Advertising and Promotion-

an integrated marketing communications perspective, 7th edition)

37

Page 38: Thesis Final)

3.3.5/Sales promotion strategies

According to Dave Dolak, MBA, PCM, There are three types of sales promotion

strategies: Push, Pull, or a combination of the two.

A push strategy involves convincing trade intermediary channel members to "push" the

product through the distribution channels to the ultimate consumer via promotions and

personal selling efforts. The company promotes the product through a reseller who in turn

promotes it to yet another reseller or the final consumer. Trade-promotion objectives are

to persuade retailers or wholesalers to carry a brand, give a brand shelf space, promote a

brand in advertising, and/or push a brand to final consumers. Typical tactics employed in

push strategy are: allowances, buy-back guarantees, free trials, contests, specialty

advertising items, discounts, displays, and premiums

A pull strategy attempts to get consumers to "pull" the product from the manufacturer

through the marketing channel. The company focuses its marketing communications

efforts on consumers in the hope that it stimulates interest and demand for the product at

the end-user level. This strategy is often employed if distributors are reluctant to carry a

product because it gets as many consumers as possible to go to retail outlets and request

the product, thus pulling it through the channel. Consumer-promotion objectives are to

entice consumers to try a new product, lure customers away from competitors’ products,

get consumers to "load up" on a mature product, hold & reward loyal customers, and

build consumer relationships. Typical tactics employed in pull strategy are: samples,

coupons, cash refunds and rebates, premiums, advertising specialties, loyalty

programs/patronage rewards, contests, sweepstakes, games, and point-of-purchase (POP)

displays.

38

Page 39: Thesis Final)

3.4/Consumer behavior

In the restaurant online coupons market, people buy product, the coupons online and use

it offline. Therefore, if we want to build the coupons suitable for customers on this

market, we should satisfy both online and offline consumer behavior

3.4.1/Definition of consumer behavior

Professor Lars Perner give "official" definition of consumer behavior is "The study of

individuals, groups, or organizations and the processes they use to select, secure, use, and

dispose of products, services, experiences, or ideas to satisfy needs and the impacts that

these processes have on the consumer and society."

Consumer behavior involves the psychological processes that consumers go through in

recognizing needs, finding ways to solve these needs, making purchase decisions (e.g.,

whether or not to purchase a product and, if so, which brand and where), interpret

information, make plans, and implement these plans (e.g., by engaging in comparison

shopping ocpor actually purchasing a product).

According to Marieke K. de Mooij in “Consumer behavior and culture: consequences

for global marketing and advertising”, 2004, Sage publication, Consumer behavior can be

defined as a study of the process involved when individuals or group select, purchase,

use, or dispose of products, consumer behavior is viewed as a process that includes the

issues that influence the consumer before during, and after a purchase

According to Malcolm Tatum, 2011 Consumer behavior consists of the actions that

consumers take in regard to making decisions about purchasing various goods and

services. A study of this phenomenon will often focus on the psychological and other

factors that motivate people to either buy a product or reject it in favor of some other

option. In order to create a successful marketing campaign, it is necessary to understand

39

Page 40: Thesis Final)

these factors and utilize those behaviors in a manner that motivates consumers to make

purchases.

One of the key elements that influence consumer behavior is the self-image of the

consumer. People who crave admiration in order to feel good about them will often go to

extraordinary lengths to receive validation from others. This will often lead them to

purchase the latest trendy clothing and the newest car loaded with extras, and being seen

in the right places can be extremely important. By contrast, people who are less

concerned with what others think are likely to focus on making purchases they deem as

practical and capable of providing them with the comfort and service they require.

Based on Sandhusen and Richard L: Marketing (2000). Cf. S. 218, Consumer behavior is

the study of when, why, how, and where people do or do not buy a product. It blends

elements from psychology, sociology, social anthropology and economics. It attempts to

understand the buyer decision making process, both individually and in groups. It studies

characteristics of individual consumers such as demographics and behavioral variables in

an attempt to understand people's wants. It also tries to assess influences on the consumer

from groups such as family, friends, reference groups, and society in general.

Customer behavior study is based on consumer buying behavior, with the customer

playing the three distinct roles of user, payer and buyer. Relationship marketing is an

influential asset for customer behavior analysis as it has a keen interest in the re-

discovery of the true meaning of marketing through the re-affirmation of the importance

of the customer or buyer. A greater importance is also placed on consumer retention,

customer relationship management, personalization, customization and one-to-one

marketing. Social functions can be categorized into social choice and welfare functions

Consumer behavior theories are used by businesses in order to optimize their selling and

marketing strategies. These theories tend to concentrate on how consumers spend money,

40

Page 41: Thesis Final)

what causes them to spend more money, and how the spending of consumer money

should impact the planning and strategies practiced by businesses. Different types of

consumer behavior theories may focus on the choices consumers make based on their

budgets, how consumers make decisions to reach the highest level of satisfaction, how

consumers consider the utilities and features of different products, or what and how much

consumers know about particular products.

One of the most commonly used consumer behavior theories states that consumers

behave rationally. In other words, consumers tend to want to get the most from their

products while spending the least amount of money. Likewise, this theory asserts that

consumers are unlikely to spend all of their money at once, leaving them with no savings.

On the other end of the spectrum, consumers often do not save all of their money, an act

which could force them to live without purchasing even basic needs, such as food,

shelter, and clothing.

Another important theory posits that consumers have tastes and preferences that dictate

which products they show interest in. Marketing experts often perform consumer studies

that they break down into different demographics, such as occupation, age, and location,

since these factors contribute to consumer preferences. Income is another important

factor in this theory since income is what places a limit on a consumer's budget.

Prices of products are often considered in one of the most commonly used consumer

behavior theories. In general, businesses believe that by pricing their products at the

lowest possible sums, they can encourage consumers to purchase more of their products.

This is because rational consumers tend to buy products that provide them with the

greatest degree of satisfaction while costing the lowest sum of money.

The features or utilities of different products tend to change the prices of the products.

For this reason, consumers attempt to match features that they can use with added price.

41

Page 42: Thesis Final)

This theory can be applied, for instance, to automobile sales. A consumer may determine

how much extra he or she would pay for a car that has bonus features, such as extra

entertainment or media devices. A professional in the marketing department might try to

determine how much extra the company can charge for bonus features without losing

sales.

The impact of knowledge on consumer behavior is the focus of another of the consumer

behavior theories. Consumers are more likely to choose products that they understand or

which they are familiar with. The nature of the information is also important, since a

company or product's bad reputation can influence an individual to purchase a

competitor's product instead.

Figure 4: Influences on and of consumer behavior

(Lars Perner, 2007,” consumer behavior, viewed 10/4/2011,

<http://www.consumerpsychologist.com/intro_Consumer_Behavior.html>)

42

Page 43: Thesis Final)

3.4.2/ Online consumer behavior

The phrase “online consumer behavior” describes the process of online shopping from a

consumer’s perspective. Online consumer behavior is often described as the study of

trends, including the influence of online advertising, consumer willingness to click on

links, the prevalence of comparison shopping, among others. The decision-making

process of an online consumer is often very different from that of a consumer in a

physical store. Companies are increasingly studying online consumer behavior in order to

adapt their sales and marketing strategies to appeal to the Internet purchaser. (Wisegeek,

“what is consumer behavior”, 2009,<www.wisegeek.com/what-is-online-consumer-

behavior.htm>,viewed 4/42011)

Online sales have increased all over the world, with more and more shoppers looking to

the Internet before they head out to malls or other stores. In order to remain competitive,

many companies are electing to devote at least some of their marketing capital to the

online space. Companies decide many of the finer points of online sales, including

advertising strategies, page layout, and ease of website searching by analyzing online

consumer behavior.

The field of online consumer behavior can be broad. Most of the time, online consumer

behavior theories are posited by economists or market analysts who specialize in

consumer analysis. Companies hire some consumer analysts on a contract basis to

provide tailored advice. Others work for independent market analyst firms, for think

tanks, or in academia.

In many respects, the study of online consumer behavior is the study of the intersection

between online consumers and online businesses. Analysts look at how consumers

respond to various aspects of an online business, and compare the factors that led to a

consumer either making a purchase or leaving the website. The consumer psychology of

43

Page 44: Thesis Final)

making purchases online is usually a major part of an analyst’s considerations, and

analysts often conduct market segmentation studies based on gender, age, and relative

sophistication.

Online consumer behavior can also be forward-looking. Behavior studies can tell

businesses how consumers are responding to ads and site layouts, but they can also

predict how consumers will respond to other future campaigns or web features. Market

analysis in the online space often leads to innovation. Businesses develop new

advertising campaigns, and come up with different ways to reach potential purchasers

based on behavioral statistics

Figure 5: Influences on and of online consumer behavior

(Lars Perner, 2007,” consumer behavior, viewed 10/4/2011,

<http://www.consumerpsychologist.com/intro_Consumer_Behavior.html>)

44

Page 45: Thesis Final)

3.4.3/Maslow’s Hierarchy of needs

Maslow has set up a hierarchic theory of needs. All of his basic needs are instinctoid,

equivalent of instincts in animals. Humans start with a very weak disposition that is then

fashioned fully as the person grows. If the environment is right, people will grow straight

and beautiful, actualizing the potentials they have inherited. If the environment is not

"right" (and mostly it is not) they will not grow tall and straight and beautiful. Maslow

has set up a hierarchy of five levels of basic needs. Beyond these needs, higher levels of

needs exist. These include needs for understanding, esthetic appreciation and purely

spiritual needs. In the levels of the five basic needs, the person does not feel the second

need until the demands of the first have been satisfied or the third until the second has

been satisfied, and so on.

Figure 6: Maslow’s hierarchy of needs

(<http://www.selfmademiracle.com/prosperity/maslow%E2%80%99s-hierarchy-of-

needs-what-are-man%E2%80%99s-needs-according-to-maslow/>, viewed 5/5/2011)

45

Page 46: Thesis Final)

With this hierarchy, we can determined the level of need of target customers of food and

drink online vouchers

3.5/Design the model for this thesis

Figure 7: Model for this thesis

This thesis will establish the strategies for restaurants in Ho Chi Minh City to increase

sale volume of online vouchers via group buying channel. In this case, customers will

buy the food & drink coupons online on Vietnamese “groupon” website and use it offline

in the restaurants which offer these deal. Strategy for this case must focus on both offline

46

Page 47: Thesis Final)

and online consumer behavior. The process to create these strategies will content 3 parts;

part 1 aimed to create the suitable online coupon promotional for the restaurants, part 2

will select the suitable channels for them to enlarge their online sale volume, the rest part

will make the strategies for them to satisfy the offline customers by service tacticals on

sale and after sale.

In part1, I combine and filter the factors affect online and offline consumer behavior of

these literatures above and observation in the online vouchers in Viet Nam, Consumer

characteristics, Social characteristics, Products characteristics, and restaurants

characteristics are 4 main factors have high effects to the buying decision of customers in

these products. The mission of this part are identify the target customers for the

restaurants which want to use online promotion programs, evaluate the environment of

the Ho Chi Minh online market and Ho Chi Minh group buying market for them,

determined the characteristic can make their products become suitable with buyer’s need,

and find the advantages & disadvantages of common types of restaurants in Ho Chi Minh

City which often sell online vouchers. In consumer characteristics, this thesis tries to

research about the age, gender and job of the customers who interest in the online coupon

promotion programs of restaurants in Ho Chi Minh City. In environment characteristics, I

will research about the outside factors effects online customers in “groupon” market, for

example: the effect of comments from the people who used this product in the past. In

product characteristics, this study will find the characteristics make restaurants coupons

reach the demand of the buyers by how to design the promotion, how much percent off

are good, etc. In restaurants characteristics, I will research about types of restaurants

suitable to sell online coupons and the aspects made the customers like the restaurants

and buy their products.

In part 2, after design the coupons suitable with customer needs, I try to find the right

distribution “groupon” websites in Viet Nam to sell these coupons base on the

47

Page 48: Thesis Final)

information from the survey and the real life. This thesis will research on the most

famous group buying websites in Viet Nam such as nhommua, muachung, cungmua,

hotdeal, etc. The distribution channels are found will appropriate with the online

shopping conditions in Viet Nam, online customers and the restaurants.

In part 3, when we have right coupons design and good sale channel, we can have good

sale in online coupons. If the restaurants want the customers use their promotional and

come back in next time, they must have good services to satisfy the offline customers,

make them love their restaurants, their foods and their services. Combination of all

factors above, we can create the strategy for restaurants in Ho Chi Minh City to increase

their sale volume via group buying channels

3.6 Questionnaire design

The model above is used for conducting the survey. I will divide my questionnaire

into 3 parts corresponding with the 3 part in the strategies. In each first part, the question

will try to identify the characteristic of customers, products; restaurants and environment

have effect on the buying decision of online customer. The second part is use to

determine the distribution channel for the restaurants which want to sell online vouchers

and the third part will try to understand the feeling of customers when they used the food

and drink coupons at the restaurants.

Part Question Measurement Purpose

Cus

tom

er

char

acte

rist

ics

How old are you? Nominal Identify target customers

What is you gender? Nominal Identify target customers

What is your job Nominal Identify target customers

48

Page 49: Thesis Final)

Pro

duct

s ch

arac

teri

stic

s.

Interesting level of restaurant online

vouchers5 points Likert scale

Identify the online consumer

behaviors about restaurants

online vouchers

How many percentages off of the

coupons are reasonable with you?4 Option to answers.

Identify the price sensitive

level of customers

What kind of promotions do you want

in online coupon promotion?5 points Likert scale

Identify the online consumer

behaviors about restaurants

online vouchers

What are the factors affect your buying

decision5 option to answers

Identify the online consumer

behaviors about restaurants

online vouchers

Interesting level in online vouchers of

specific types of restaurant5 points Likert scale

Identify the online consumer

behaviors about restaurants

online vouchers

Dis

trib

utio

n

chan

nel

Which are the websites you often buy

the restaurants online vouchers5 points Likert scale

Identify the distribution

channel for the restaurants to

increase sale on online

vouchers

Ser

vice

s

Did you have discrimination from the

restaurants when using their food and

drink vouchers?

5 points Likert scaleIdentify the factor effect the

offline consumer behavior

Have you came back to use the products

of the restaurant that you buy their

coupons in the back without coupons.

5 points Likert scaleIdentify the factor to effect on

the offline consumer behavior

49

Page 50: Thesis Final)

CHAPTER IV

RESEARCH METHODOLOGY

4.1./Secondary data

To support the primary data gathered from the online survey, secondary data will be also

collected. In particular, this will help clarify the study through similar situations in

reality, point out relations among those different circumstances, and make comparison

among them. In this research, there are many sources of secondary data including

electronic articles, websites (specialized in researching Groupon statistics), Internet

reports about Groupon websites and previous studies (from foreign authors and thesis of

previous years).

4.2/Primary data

Form the survey of the customers in HCMC who used the food and drink online coupons

in the past. This thesis will use the combine of both quantitate and qualitative methods to

analyze these data.

4.3/Theoretical framework

4.3.1 /Quantitative Approach

Quantitative approaches deal with numerical measurements (i.e. quantities). They are

typical of the mainstream scientific approach in psychology. They are the preferred

methodologies of empirical, hypothetical-deductive and experimental psychology.

Quantitative approaches aim to test hypotheses, and usually to identify numerical

differences between groups.

50

Page 51: Thesis Final)

Quantitative research attempts precise measurement of something. In business research

quantitative methodologies answer questions related to how much, how often, how many,

when and who.

In this study, quantitative approach is used to analyze the primary data through

descriptive statistic, frequencies statistics and Cross table.

4.3.2/ Qualitative Approach

Qualitative approaches deal with how people understand their experiences (i.e. qualities).

The use of these approaches in psychology is often associated with a broader theoretical

critique of quantitative approaches. This critique tends to point to certain problems with

naturalism. Naturalism is the application of the methods of the natural sciences to the

study of social or psychological phenomena. (Michael, Quantitative and qualitative

approaches to research, http://www.psy.dmu.ac.uk/michael/qual_aims.htm, viewed

14/4/2011)

The purpose of qualitative research is based on “researcher immersion in the

phenomenon to be studied, gathering data which provide a detailed description of events,

situations and interaction between people and things, thus providing depth and detail.

Qualitative research is designed to tell the researcher how and why things happen as they

do.

In this study, qualitative method will be used to get conclusion from secondary data and

support for primary data in giving recommendation for the whole thesis.

4.4/Research design

4.4.1/Research strategy: Survey

Research strategy is a general plan of how to answer the research questions. It is mainly

guided by the research questions and research objectives, among other things. It

51

Page 52: Thesis Final)

determines to a large extent the choice of data collection methods. The main research

strategies are action research, ethnographic studies, experiment, survey, case study,

grounded theory or archival research (Saunders et al 2000, 2007; Cooper and Schindler

2006; Malhotra and Birks 2007). In this study we chose basically survey strategy which

is conducted to collect data that seek a characteristic or the opinion of a target population.

It allows for the collection of large amount of data from a large population economically

and most frequently conducted to answer research questions relating to ‘who, what, how

much and how many’ involved in a problem of study. For the study’s purpose, we use

questionnaire to evaluate customer satisfaction level in online shopping.

4.4.2/Design the measurement

This thesis researches about the strategies to increase sale volume for the restaurants via

group buying websites channels. The strategies must be suitable with the online

consumer behavior to sell a large amount of internet coupons online and satisfy the

customers when they using these coupons offline. To analyzing the behavior of the

people who will do the survey, we can create two types of questions that are open and

close question. In open question, customer can give their own comments or experiences

about using the online vouchers. In close question, the people who do the survey will

answer the question about the factors affect their buying decision, their behavior, or give

their ideas about the wish prices of these coupons. In additional, this study will use the

Likert 5 scales question in the survey. This question will use to analyze the caring level

of customer to specific restaurant types or the satisfy levels when using coupons

4.4.3/Design the sample

To reach the goal of this thesis, non-probability sampling is selected to research this

study. With this sampling method, respondents can reach the question easily and just take

a short-time to answer the question. In the other hand, This method can save time and

cost to collect the data for the writer.

52

Page 53: Thesis Final)

According to Copper and Schindler (1998), the important reasons make people use the

sampling method is saving time and cost for the study. In this aspect, the non-probability

has more advantages than other methods. However, the disadvantage of this method is

biased-opinion in the sampling process can make the result distorted.

4.4.5/Sampling size

Sampling size will depends on what we want from the data collected and the relationship

of this data we want to establish (Kumar, 2005). The large of problems we want to

research, the large sampling size. In additional, the large sampling size can give the level

of correct result.

Gorsuch (1983) and Kline (1979) suggest that the number should be 100 but

Guiford(1954) think the number should be 200. Comrey and Lee (1992) suggest the

scale: 100= bad, 200= fair, 300= good, 500= very good and from 1000 is wonderful

Another research didn’t the specific number. For example, Goursuch (1983) think the

sampling size must greater 5 times than the number of various. Hoang Trong & Chu

Nguyen Mong Ngoc (2005) thinks rate must be 4 or 5 times.

In this thesis, I have 47 various and the necessary sampling size is 47 x 5 = 235.

So the sampling size equal 252 is suitable with this thesis

4.4.6/ Process of gathering the information:

The questionnaire was designed by Google Docs and send to the email of some of my

friends who used restaurants vouchers in the past. In the other hand, I try to post this

survey in some famous forum such as webtretho, 5giay, tinhte, vozforum, vnzoom to

invite the members of these forum help me to do the survey. In addition, I post this

questionnaire on the Facebook fan page of nhommua.com, muachung.vn, cungmua.com,

hotdeal.vn, vndoan.com to calling the help from the “groupon” user in this website to do

this survey

53

Page 54: Thesis Final)

In the other hand, I often buy the restaurant vouchers to use and observation the strategies

of these restaurants. Moreover, I try to interview the restaurant managers if he or she has

free-time

4.4.7/ Statistical analysis technique

This thesis use Excel and SPSS 18 to analyze the data from the surveys. The SPSS

software is the main tools to do the statistical of the data from the answer of the

respondent buy Describe statistic, frequencies statistics and cross table.

54

Page 55: Thesis Final)

CHAPTER V

DISCUSSION AND CONCLUSION

In this chapter, I will show the result of researches via analyzing and processing

the data collected from the surveys and the observations in real-life.

5.1/ Filter the data:

5.1.1/Remove the inappropriate responses

The survey was sending in 20/3/2011 and stop receives the response in 20/5/2011. When

I closed the surveys in Google docs, there are 257 answer sheets was recorded by Forms-

Google Docs. In the Filter process, there are 5 responses are removed which are response

number 3, response number 96 response number 167, response 198 and response 221.

In the response number 3, this is match 100% with the response number 4, the receive

time is only minutes apart. It might be made by the same respondent or there are problem

with Google Docs software and make the answer sheet double. Therefore, I just keep the

response number 4 and remove the response number 3. It’s the same problem in the

answer sheet number 167 and 168. Thus, I remove the response 167.

In response number 96, the respondent answers all questions by the first option. It shows

he didn’t answer the survey carefully and the value of his data is invalid. Therefore, I

removed his response. This is the same with the answer number 221, the respondent

choose all of the last option for her answer. Thus, I removed her answer sheet

In the answer sheet 198, the respondent gives illogical information about their age or

their job. He said that he is under 18 years old but his job is government official. Thus, I

remove this answer sheet

5.1.2/Data encryption:

55

Page 56: Thesis Final)

All of the answer will encode to the number, for example In the question about the age of

the respondent, the people who are under 18 years old will be encode to the numbers 1 or

in the question about the demand level of the customers about the types of restaurants, all

of answer about Asia restaurants will convert to number 1, Europe restaurant will convert

to number 2, etc. the aim of this process to make the answer data suitable with the Spss

software to analyze the result data.

5.2/ Discussion

5.2.1/Customer characteristic:

Using Spss software to analyze the answer about the age of customers who did the

surveys, we have frequencies analysis table of the age of people who use restaurants

online vouchers:

Age

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid <18 12 4.8 4.8 4.8

18-25 216 85.7 85.7 90.5

25-35 15 6.0 6.0 96.4

>35 9 3.6 3.6 100.0

Total 252 100.0 100.0

From these data, we can identify target customers for the restaurants which want to sell

online vouchers. Most of customers who interest in internet coupon are from 18-25 years

old (85.7%). The rest customers just took very little percent such as under 18 group is just

4.8%, 25-35 group is just 6% and over 35 group is just 3.6%. Form this result; the

56

Page 57: Thesis Final)

restaurant must research on the behavior of the people from 18-25 years old and try to

build business strategies to satisfy them

Gender

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Male 123 48.8 48.8 48.8

Female 129 51.2 51.2 100.0

Total 252 100.0 100.0

From the gender frequency table, there are not so different in the gender of customers.

The number of male customers are approximate the number of female customers. From

these figures, the restaurants will not have the strategies to the specific genders, they will

create the sale statics which are suitable for both gender.

57

Page 58: Thesis Final)

Job

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Student 62 24.6 24.6 24.6

Government official 47 18.7 18.7 43.3

Desk worker 142 56.3 56.3 99.6

Other 1 .4 .4 100.0

Total 252 100.0 100.0

This table shows us the occupation of the buyers who have interest in online vouchers.

There are nearly 60% of them are desk worker and most of the rest are student and

government official, the customers who have other job are so little and just took 0.4%.

Thus, restaurants want to sell vouchers online effectively must have strategies to made

their product appropriate with the demand of student and government official, especially

desk worker

Combination of all data about age of the customers and using the Maslow’s hierarchy of

needs, we can determine the need level of customers; that is social needs. In this level,

people want to improve their social relationship. Thus, the restaurants which want to sell

the online coupons must be a good place for customers to date with their friend, to build

friendships, social relationship. If the restaurants can do that, they will attract many of

target customers and make them willing to buy their products.

58

Page 59: Thesis Final)

In addition, the average year income per capital of HCMC in 2011 is approximate 3200

USD. That’s mean the customer have about 9 USD/per day. The restaurants should sell

the coupons with the prices suitable with the income of customers in HCMC. The people

who are 18-25 years old and student or desk worker don’t have high income, their income

just higher than the average income a little. Therefore, the luxury restaurants are not

suitable to sell online coupon join in this market, if they still want to they must have so

deep discount and it’s not good for their business. In addition, it’s so hard for luxury

restaurants increase sale volume with the so deep discount. The suitable restaurants for

this business are the middle-class restaurants which have prices suitable with the budget

of target customers. By observation in some famous group buying website in Viet Nam,

most of restaurants coupons have the prices from 50.000 to 100.000 Viet Nam Dong,

with those prices they can sell many coupons. For example Dijon’s pizza can sell 3000

vouchers in 2 days in nhommua.com at 75.000 Vnd/ voucher or Yasakoi restaurant sell

1595 vouchers at 60000 Vnd/voucher in hotdeal.vn, etc.

5.2.2/Environment characteristic

In this part, I will analyze the outside factor effect on buying decision of the customer via

the data from the real-life data and the result from the previous researches.

Viet Nam is one of 20 countries in the world have highest number of people have used

internet. There are 26% of Viet Nam populations have used internet and more than 50%

of population in Viet Nam urban areas (Sources:

http://www.hanoimoi.com.vn/newsdetail/Cong-nghe/364763/viet-nam-xep-20-the-gioi-

ve-so-nguoi-dung-internet.htm, viewed 20-5-2011). The chart below shows the internet

penetration of Viet Nam and some other Asian countries in the world

Figure 8: Internet penetration in selected Asian countries

59

Page 60: Thesis Final)

Next, I will use some information about the number of people using internet in several

cities in Viet Nam which content Ho Chi Minh City, Ha Noi, Da Nang, Hai Phong, Can

Tho, Nha Trang. This is the result of Cimigo did on March, 2010

Figure 9: Internet Usage by city

Base on the this table, we can see that the number of people use internet in Ho Chi Minh

is so high, there are about 50% people in HCMC have already accessed the internet just

little than Ha Noi. In fact, the population of HCMC is greater than Ha Noi so much and

we can say that HCMC have largest number of people have used internet.If we take a

60

Page 61: Thesis Final)

look at the below chart, we can see the nicer picture about the internet user in Viet Nam

and HCMC

Figure 10: Frequency of internet usage by city

There is 69% of internet user in HCMC use the internet every day, this number is greatest

number in the frequency of usage by city in the research of Cimigo. In additional the

numbers of people use internet few-time a week also so high 24%. We can see that most

of people in HCMC have habit to access internet every day and there are the big chances

for online businesses to introduce their products to customers. Thus, “groupon” business

model will have many potential customers and the restaurants can sell large number of

coupons in short-time if they choose the group buying websites as the distribution

channels.

61

Page 62: Thesis Final)

Groupon business model just appeared in Viet Nam about 10 months but have very high

growth speed and become a trends of youth consumer in Viet Nam nowadays .Ho Chi

Minh City is the place have biggest number of “groupon” today, there are about 20

group-buying in Ho Chi Minh City and most of them have large number of register users

such as Nhommua and muachung have more than 100.000 register users, Hot deal has

about 60.000 register users.

(http://nhipsongso.tuoitre.vn/nhip-song-so/433541/%E2%80%9CSot%E2%80%9D-voi-

mua-hang-theo-nhom.html, viewed 1/5/2011). Because the “groupon” market have high

competitive level, Restaurants in HCMC which want to sell online vouchers will have

many options too choose the good channel for them. In addition, the commission fees

between them and the group buying websites will so little because these websites want

food and drink deals to enrich the product categories.

5.2.3/Product characteristic

Analyze the results of survey question: “Do you interest with restaurants online

vouchers” with Spss 18, we have the below table and chart:

Descriptive Statistics

N Minimum Maximum Mean

Std.

Deviation

Demand of restaurants

vouchers

252 1.00 5.00 3.5040 1.15527

Valid N (listwise) 252

Figure 11: Demand of restaurants vouchers

62

Page 63: Thesis Final)

Base on the table, we can see the Mean of the result is 3.5040; it shows up that the online

vouchers captured high attention of customers. In the graph, we can see the demand of

restaurants coupon clearer, there are approximate 80 people answer the demand of

restaurant is normal, and approximate 130 said they have high and very high demand of

these vouchers. In the other hand, just about 16 people don’t interest with the coupon that

offered by restaurants and the rest have low level of interesting in these products. With

these results, the restaurants have high level of confidence to provide the online coupons

because it matches customer needs Next, we will see how many percentages of

discounts are reasonable with the buyers by analyze the results of question: “How many

percentages of restaurant voucher discounts are reasonable with you”.

63

Page 64: Thesis Final)

N Minimum Maximum Mean Std. Deviation

Asia restaurants 252 1.0 4.0 2.917 1.0660

Eroupe and American

restaurants

252 1.00 4.00 2.9087 .97560

Vietnamese Restaurants 252 1.00 4.00 2.8849 .99733

Seafood, Hotpot, Grill

Restaurants

252 1.00 4.00 3.0198 .93387

Snacks restaurants 252 1.00 5.00 2.5675 1.05968

Coffee Bar, Live music

coffee

252 1.00 4.00 2.7381 .95874

Gardern Coffee 252 1.00 4.00 2.5992 .97073

Cream,Mik Tea 252 1.00 4.00 2.5714 1.02889

Valid N (listwise) 252

This question have 4 option for the customers to choose the discount level that suitable

for them, option number 1 is less than 30%, number 2 is 30-45%, number 3 is 45-60%

and number 4 is greater than 40%. Base on the table, we can see all mean of the rest types

64

Page 65: Thesis Final)

of restaurants are greater than 2 and the seafood, hot pot and grill also have highest mean

compared with the other (their mean=3.0198). It can be seen that beside the demand of

seafood, of pot, grill coupons is highest; customers also want to have deep discount on

these vouchers (>45%). Snacks restaurant, Coffee shop, Cream and milk tea have less

mean value than the other, the reason is their food price is not so high and there are not so

many customers want to have the so deep discount to try their products.

Base on the observation and analyze the data on the 2 biggest group buying websites in

Viet Nam (nhommua.com and muachung.com). All Seafood, hot pot, grill restaurant have

promotion price from 45% always sell the large number of coupons for example, Paradise

Hot Pot restaurant sold 2500 coupons in 3 days at nhommua.com with the discount

approximate 45%, Huong Bien Seafood restaurants sold 1200 coupons in 1 day with the

discount 60% at nhommua.com, Number 1 riverside restaurants sold 1745 60% discount

coupons in 2 days at nhommua.com or Bali Seafood and BQQ sold 1888 50% discount

coupons in 3 days at muachung.vn. Another types of restaurant also thousands of

coupons with the discount from 45% like Samurai sushi bar (Asia restaurant) sold 2400

vouchers at nhommua.com with 53% discount, or Mon Ngon Dan Gian restaurants

(Vietnamese Restaurant) sold 2000 vouchers with 50% discount. From datas of these

websites, we can see most of restaurants often offer the promotion discount from 40%

often sold many vouchers in short-time.

65

Page 66: Thesis Final)

Asia Restaurants

Frequen

cy Percent

Valid

Percent

Cumulative

Percent

Valid Very low 117 46.4 46.4 46.4

Low 8 3.2 3.2 49.6

Normal 108 42.9 42.9 92.5

Very high 19 7.5 7.5 100.0

Total 252 100.0 100.0

Vietnamese Restaurants

Freque

ncy Percent

Valid

Percent

Cumulative

Percent

Valid Very low 78 31.0 31.0 31.0

Low 16 6.3 6.3 37.3

Normal 93 36.9 36.9 74.2

High 8 3.2 3.2 77.4

Very high 57 22.6 22.6 100.0

Total 252 100.0 100.0

Seafood, Hotpot, Grill Restaurant

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Very low 88 34.9 34.9 34.9

Low 15 6.0 6.0 40.9

66

Page 67: Thesis Final)

Asia Restaurants

Frequen

cy Percent

Valid

Percent

Cumulative

Percent

Valid Very low 117 46.4 46.4 46.4

Low 8 3.2 3.2 49.6

Normal 108 42.9 42.9 92.5

Very high 19 7.5 7.5 100.0

Normal 115 45.6 45.6 86.5

High 5 2.0 2.0 88.5

Very

high

29 11.5 11.5 100.0

Total 252 100.0 100.0

Compare the observation with the frequencies tables analyzed by SPSS 18, we can see

the number match with the data in real life. There are 80% of people who did this survey

think the discounts from 45% of Seafood, hot pot, grill restaurants are suitable with them

and in reality, there are huge number of vouchers can sell at this promotion level in sort-

time. It is the same with of other types of restaurants. In conclusion, all kind of restaurant

want to provide online coupons should give to customer the discount from 40%.

Next, The result of the research number 3 about “what are the features of restaurant’s

online coupon promotions make you interest in?” can help us design the coupon features

that suitable for the behavior of the customers who want to buys food and drink online

coupons

67

Page 68: Thesis Final)

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Deep discount (more

50%)

252 1.00 5.00 4.1111 1.20240

0 Dong Discount 252 1.00 5.00 2.5040 1.54223

Multi vouchers per bill 252 1.00 5.00 3.5079 1.23202

Longtime using 252 1.00 5.00 3.3929 1.29987

No time limitation 252 1.00 5.00 3.7302 1.17350

Valid N (listwise) 252

Base on the descriptive statistics table above, the promotions have deep discount make

most of customers interest (its mean value = 4.111). Multi voucher per bill also have high

value of mean (3.5079). It can be seen that customers in food and drink online vouchers

market are very sensitive on price. They want to have chance to use the restaurants

products with low cost and want to try various types of products by combine the coupons

to have deeper discount. About the deadline time and limitation time to use online

coupons, customers want to have long-time using and no limit in time. They want to

dynamic on sort their personal time to use the coupons. With the lowest value of mean

(2.5040), the discount 0 Dong don’t take attention of customers. By observation in the

“groupon” websites in HCMC, these 0 Dong vouchers always have low value of using,

many limitation.

68

Page 69: Thesis Final)

In conclusion, the restaurant should give to customers the online coupons have deep

discount and little limitation to reach the need of customers on food and drink online

vouchers market

Analyzing question “what are the factors affects your buying decision on restaurants

online vouchers”, we can find the features help these online coupons attract the customers

on the group buying websites.

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Promotion program 252 .00 1.00 .9127 .28284

Menu, additional cost

must be display clearly

252 .00 1.00 .8968 .30479

Comment 252 .00 1.00 .6706 .47092

Location 252 .00 1.00 .3770 .48560

Advertising ways 252 .00 1.00 .3254 .46946

Valid N (listwise) 252

This is the Yes-no question, the answer yes will encode to “1”, no will encode “0”. After

using Spss to analyze, we have the chart above. It can be seen that, the promotion

program (with the mean value 0.9127) is the main factor attract the customer when they

look up the restaurants vouchers. In addition, 89.68% customer want menu, addition cost

of the restaurants must be post clearly on “groupon” websites; most of customers don’t

69

Page 70: Thesis Final)

like the hidden cost. About the comment of previous users, 67.06% of customers read

these comments before buying the coupons.

In the other hand, location of restaurants and advertising ways take little attention of

customers. Just 37.7% of customer care about the location of the restaurants and 32.54%

of them are attracted by the ways the restaurants write the advertising on the “groupon”

websites

5.2.4/ Restaurants characteristics:

Survey question is “Do you have demand of online vouchers of the following restaurants”.

Using Spss statistic software to analyze the result of this question we have:

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Demand of Asia

Restaurants coupons

252 1.00 5.00 3.4484 1.38623

Demand of Europe

&American Restaurants

coupons

252 1.00 5.00 3.2302 1.29457

Demand of Vietnamese

Restaurants coupons

252 1.00 5.00 3.5437 1.22152

Demand of

Seafood,Grill, Hot Pot

Restaurants coupons

252 1.00 5.00 3.6111 1.25905

70

Page 71: Thesis Final)

Demand of Snack

Restaurants coupons

252 1.00 5.00 3.1270 1.40565

Demand of Bar coffee,

Live music coffee

coupons

252 1.00 5.00 2.8810 1.37483

Demand of Garden

coffee coupons

252 1.00 5.00 2.8889 1.37550

Demand of Cream,

Milk Tea restaurant

coupons

252 1.00 5.00 3.4841 1.31939

Valid N (listwise) 252

We can see that customers are concerned to most types of restaurants coupon. With the

highest Mean value 3.6111, Seafood, Grill, Hot pot restaurants vouchers have highest

advantages in selling internet vouchers because customers have high demand of their

products. Beside this kind of restaurants, customer also interest in the vouchers of Asia

restaurant, Europe & America Restaurants, Vietnamese restaurants, Snacks restaurants

and Cream, Milk Tea restaurants (these kinds have Mean greater than 3.00). In the other

hand, the Mean of bar coffee, live music coffee and garden coffee have less demand than

the rest (their mean less than 3.00). These kinds of restaurants should be careful before

making decision on provide the online coupon promotion. But the numbers are not too

bad, their mean approximate 3.00 and they still have number of customers interested in

their promotions program.

71

Page 72: Thesis Final)

5.2.5/Distribution channel

In question, we want to identify the good channel for the restaurants sell their coupons.

Analyze result of this question “Did you buy the restaurant coupons from these websites

in the past”, There 7 most famous “groupon” websites in Viet Nam is 7 option for people

who did this survey chose and one option “other” for them if they buy from other

websites.

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Nhom Mua 252 1.00 5.00 3.2661 1.44877

Mua Chung 252 1.00 5.00 1.8669 1.23480

Cung Mua 252 1.00 5.00 1.9274 1.37457

Hot Deal 252 1.00 5.00 2.4516 1.61147

Deal Zing 252 1.00 5.00 1.5282 1.07944

Vndoan 252 1.00 5.00 1.5806 1.03068

Cucre 252 1.00 5.00 1.2581 .84289

Other 252 1.00 3.00 1.1371 .36739

Valid N

(listwise)

252

72

Page 73: Thesis Final)

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Nhom Mua 252 1.00 5.00 3.2661 1.44877

Mua Chung 252 1.00 5.00 1.8669 1.23480

Cung Mua 252 1.00 5.00 1.9274 1.37457

Hot Deal 252 1.00 5.00 2.4516 1.61147

Deal Zing 252 1.00 5.00 1.5282 1.07944

Vndoan 252 1.00 5.00 1.5806 1.03068

Cucre 252 1.00 5.00 1.2581 .84289

Other 252 1.00 3.00 1.1371 .36739

From the descriptive statistics table, we can see Nhommua.com is the website which have

largest customers interest and buy their food & drink vouchers (Its mean have largest

value, 3.2661). About the economics scales or number of registration members in reality,

Hotdeal.vn is less than Muachung.vn but in the restaurants vouchers aspect, they have

lager customer buy their vouchers than muachung.vn (Mean value of Hot Deal is 2.4516

compare with muachung.vn value 1.8669). Other website like cungmua.com,

73

Page 74: Thesis Final)

deal.zing.vn, cucre.vn, vndoan.com has small Mean value, it mean restaurants managers

should careful if choose these websites as the distribution channel for their restaurant

coupons.

Figure 12: Daily traffic rank trend of nhommua.com

(Sources: http://www.alexa.com/siteinfo/nhommua.com, viewed 1/6/2011)

Comparing Nhommua.com with other websites such as muachung.com, hotdeal.vn,

vndoan.com, cungmua.com, it’s has highest rank (12,645 in the world and 68 in Viet

Nam). Nhommua’s rank increase dramatically in the last 3 month from the position

14801 to 12645 in the world. Muachung are seem to be not a good channel for selling

food and drinks vouchers, when lookup at their restaurants deal in the part, the number of

sold coupons were often less than 1000, compare with nhommua.com which always have

the number greater than 1500. However, muachung.vn is also the good channel because

74

Page 75: Thesis Final)

they have a lot of register user (Muachung has a high rank position, which is 111 in Viet

Nam and 17030 in the world and more than 100.000 register user). Hotdeal.vn can be the

good channel to distribute the food and drink vouchers, their register user, ranking just

little than nhommua.com and muachung.vn and there are many food and drink deals can

sell a large quantity on their websites. By observation on hotdeal.vn, we can see many of

food and drink coupons are sold out in there and the quantities often greater than 1000

vouchers.

The chart below will show the statistics of the audience that were access on

nhommua.com, muachung.vn, hotdeal.vn

Figure 13: Audience demographic of Nhommua.com, Muachung.vn and hotdeal.vn

75

Page 76: Thesis Final)

(Sources : http://www.alexa.com/siteinfo/nhommua.com#,

http://www.alexa.com/siteinfo/muachung.vn,

http://www.alexa.com/siteinfo/hotdeal.vn#,viewed 2/6/2011)

76

Page 77: Thesis Final)

Base on the data of audience demographics which is analyzed by income, age education,

gender, children and browsing location on Alexa statistic website of nhommua.com and

muachung.vn. The most of their audiences are match with the target customers that we

determined in the customer characteristics part. For example, most of audiences from 18-

24 years old match with the 18-25 year old of the target customers.

From these databases of this part, nhommua.com and muachung.vn is the best channel for

the restaurants which want to sell the online coupons. However, these websites always

have strict requirements to the restaurants such as high commission fees, deep discount,

etc. If the restaurants conditions can’t satisfy these requirements, there are some smaller

websites can be the good channel to selling food and drink coupon such as cungmua.com,

vndoan.com or deal.zing.vn. These websites also have large number of register customers

and suitable with the customer behavior of “groupon” customers. For example, the chart

below will provide information about audience demographics of cungmua.com.

Figure 14: Audience demographic of vndoan.com

77

Page 78: Thesis Final)

5.2.6/ Services

In this part, we will analyze the services of restaurants which selling online food and

drink coupons. Firstly, I will show the descriptive statistic of the question“ will you go

back to restaurants and use their products without coupons”

N Minimum Maximum Mean Std. Deviation

Asia Restaurants 252 1.00 5.00 2.2659 1.20290

Europe & American

Restaurants

252 1.00 5.00 2.8294 1.39387

Vietnamese Restaurants 252 1.00 5.00 2.7183 1.39292

Seafood, Hotpot, Grill

Restaurant

252 1.00 5.00 2.5238 1.23181

Snack Restaurants 252 1.00 5.00 2.5040 1.33449

Coffee Bar, Live music

coffee

252 1.00 5.00 2.5238 1.23181

Garden Coffee 252 1.00 5.00 2.8413 1.31442

Cream, Milk Tea 252 1.00 5.00 2.6389 1.65337

Valid N (listwise) 252

78

Page 79: Thesis Final)

All of types of restaurants have the mean less than 3, it can be seen that the customers

often don’t go back to the restaurants to use the products if they don’t have other the

coupon promotions. Surprisingly, the Seafood, Hot pot, grill restaurants which are the

restaurant take highest of attention from the “groupon” customers have low mean value

in this case. Their mean value is just 2.5328; it’s greater than snack restaurants mean

value and less than all of the rest. In the other hand, these mean values is not so bad, all

of them are greater 2.5 and many of its approximate 3.0. With the good services and

giving extra promotion for customers, the restaurant can bring more customers come

back and use their products.

In services aspect, many Vietnamese marketing authorities worry about the services

quality of the seller in group buying model when it applied in Viet Nam. They warn the

customers who use the food and drink coupons will discriminate with the ones use the

products without promotion vouchers

79

Discrimination between people have and haven’t coupons

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Very

Low

134 53.2 53.2 53.2

Low 24 9.5 9.5 62.7

Normal 72 28.6 28.6 91.3

High 16 6.3 6.3 97.6

Very

high

6 2.4 2.4 100.0

Total 252 100.0 100.0

Page 80: Thesis Final)

Figure 15: Discrmination between the customers who have and haven’t vouchers

The question about “Do you have discrimination from the restaurants when using their

vouchers”. There are nearly 60% customer said they never ever have discrimination from

the restaurants that provide the coupons for them. Approximate 20% of buyer said that is

normal and just about 5% have discrimination prolems from restaurants. These numbers

are quite good, it can shows the previous restaurants that give the internet coupons

promotion in the past did the good job to statisfy the customers

80

Page 81: Thesis Final)

Discrimination * Asia Restaurants Cross tabulation

Asia Restaurants

TotalNever Few time Sometime Often

Very

often

Discrimination Very Low 11 18 79 13 13 134

Low 15 2 5 1 1 24

Normal 15 3 53 0 1 72

High 8 2 3 0 3 16

Very high 3 2 1 0 0 6

Total 52 27 141 14 18 252

Discrimination * Vietnamese Restaurants Cross tabulation

Count

Vietnamese Restaurants

TotalNever Few time Sometime Often

Very

often

Discrimination Very Low 21 30 54 9 20 134

Low 7 2 8 1 8 26

Normal 7 6 39 3 17 72

High 6 4 4 0 0 14

Very high 4 1 1 0 0 6

Total 45 43 106 13 45 252

81

Page 82: Thesis Final)

Discrimination * Seafood, Hotpot, Grill Restaurant Cross tabulation

Count

Seafood, Hotpot, Grill Restaurant

TotalNever Few time Sometime Often

Very

often

Discriminatio

n

Very

Low

29 23 64 11 9 136

Low 6 2 11 1 4 24

Normal 13 2 46 0 11 72

High 6 4 4 0 0 14

Very

high

2 3 1 0 0 6

Total 56 34 126 12 24 252

By the cross table above, it can be seen that the customer who have high level of

discrimination from the restaurants will have low level of coming back to the restaurant

again. I just show 3 types of restaurant that take high level of interest of customers :Asia

restaurant, Europe restaurants, Seafood, hotpot, grill restaurants for example. You can

find the same stituation of the rest types of restaurants in the chart and table part of this

thesis.In the other hand, most of customer who feel comfortable when using coupons will

come back in the next time to use their products again. In conclusion, customers will

willing to buy the food and drink online coupons if there are no scare of discrimination.

So, the resaurants must trained their staffs to server customers better and do not feel

discriminated.

In the other hand, when the online customers use restaurants products offline; there are

the chances for the restaurant manager collect the information of the customers, build the

relationship, and gather their comment to make the business become better. To increase

82

Page 83: Thesis Final)

the number of user comeback in the next-time, the restaurant should give them an extra

promotion if they back. By interview the manager of Coca hotpot restaurants and

Peperoni Pizza restaurants which are the restaurants have already sold the online coupons

several times; they said that giving the extra promotions bring 40% customer which used

the “groupon” vouchers in the past back. When they didn’t give the extra promotion, it

was just 20% of “groupon” customers back.

5.3/ Establish the strategies for the restaurants to increase their sale volumes via group

buying channel

Base on the data from the discussion part and the theory on Literature review chapter, we

can create the strategy for the restaurants in Ho Chi Minh City to satisfy online customer

behavior, after that we create the sale tactical and select the right marketing channel for

them, and the last is the strategies to satisfy the offline customers to build brand loyalty,

brand reputations. Combined all of these strategies, we will have the strategy for

restaurants in Ho Chi Minh City to increase sale volume by using group buying channel.

In the part designing the suitable online coupon, based on the environment characteristic,

we can affirm HCMC internet conditions is good for growth group buying model and the

restaurants should use this model to promote themselves and increase sale volume. The

target customer of Restaurant online coupon business is the people from 18-25 years old

and most of them are desk worker. In addition, we will determine the factors make online

coupon promotion programs reach the need of online consumer behavior. After all of

these processes, we can have the strategies to design the good online food and dirk

coupons:

Part 1:

83

Page 84: Thesis Final)

Firstly, the prices of the coupon must be suitable for the income of people who are

students or the desk workers. Base on the analyzed about customer characteristics above,

the price should from 50.000 to 100.000.

About the percentage of discount per voucher, the restaurants should give to customer the

discount from 40-60% off. They shouldn’t give so deep discount (more than 60%), it can

hurt the brand, make customers become so sensitive on prices. If the restaurants can’t

give to the customers the discount from 40% because it’s over profit margin of

restaurants and make the restaurants become unprofitable, they can do by the following

ways. The first way is create the “groupon” menu which is the menu just for the

customers who own the vouchers. This menu will content the food that restaurants can

get profit more than 40%. The restaurants must make sure their foods are reasonable

prices and various. The Sushi express restaurant did this way in the past with 8 foods on

their “groupon” menu; price is 50.000 vnd and has using value 100.00 vnd. With this

way, sushi express sold out 4088 vouchers in 4 days at nhommua.com. Another way is

just give discount for only food or drink. There are many restaurants do this way

nowadays, just give discount to food for customers; the buyer must buy the drink at

normal prices and the restaurants will get main profit from the drink. I interview the

manager of Bao Anh restaurant which have sold online coupons and used this strategy in

the past. He said that discount 60% make his restaurant has 0 profit, but the profit from

the drink which sold at normal prices to “groupon” customer help his restaurant increase

sale volumes a lot. Both of two ways have applied on real-life already and can increase

sale volumes for the restaurants which sell online coupons

Secondly, Most of common types of middle-class restaurants in HCMC are suitable to

provide food and drinks online coupon such as Asia restaurants. Europe & American

restaurants, Vietnam restaurants, Seafood, hotpot, grill restaurants, snack restaurants,

Coffee shop, and Milk tea, cream. The inconvenient locations don’t take a big effect on

the business of online coupons of the restaurant. If the restaurants in inconvenient

84

Page 85: Thesis Final)

locations have special foods or special space for customers to date with their friend, they

will sell a large amount of online food and drinks coupons. However, the convenient is

the big comparative advantages.

About the regulations of the online coupons, restaurants should accept the customers

using 2 vouchers/ bill. As we know that most of customers are in social level of

Maslow’s hierarchy, they need to build the friendship, relationship and the restaurants is

the good place for them to do that. Accepting 2 vouchers/ bill help them able to invite

their friends to come together and enjoy the food. In the other hand, accepting 2

vouchers/ bill is not only matching with the customer need but also increase the sale for

restaurants. If the restaurants allow the customer to use more than 1 voucher per bill,

most of them will purchase more than 1 voucher per time. The time limitation and the

using time will decide base on the situation of the restaurants. Commonly, most of

restaurant often limit the time for using online coupons on the National holiday and some

big holiday like valentine, Christmas, etc. The expiry date of these coupons often is 1 to 3

months. In fact, if the restaurants can give the customer the right to take initiative on the

time of using, they will have comparative advantages on selling food and drink coupons.

In addition, the restaurants must public their menu and show all the addition fees on the

“groupon” websites when selling the vouchers. When the customers pay the hidden fees

or eat the food with the higher price than their expectation, they will have bad feeling

about the restaurants and will comment badly about the restaurants on “groupon”

websites or on the social network. These actions will take bad effects on the brand

reputation of the restaurants. On the contrary, if all of extra fee and menu are public on

the websites, the customer will feel secure to buy the coupons.

About the advertising language in “groupon” websites, it doesn’t need to have special or

meaningful advertising language on “groupon” websites. The restaurants just introduce

about them clearly, introduce the promotion program and its regulation by the ways can

85

Page 86: Thesis Final)

me the buyer easy to understand. In fact, there are the comparatives advantages if they

have the attractive advertising languages to promote themselves,

Part 2

In part 2finding the right distribution channel to increase the online coupons sale volume,

Nhommua.com, muachung.vn, hotdeal.vn are the 3 most efficiently channels to distribute

the coupons. In addition, the restaurants can choose cungmua.com, vndoan.com,

deal.zing.vn, etc if don’t suitable with the requirements of nhommua.com, muachung.vn,

hotdeal.vn.

Part 3

Part 3 is about the services to satisfy the offline customers which used the online coupon

of the restaurants. The most important thing is make sure there is no discrimination on

serve between the customers have online coupons and don’t have online coupons.

Moreover, the restaurants should use the chance to gather the information of the

“groupon” customers, build relationship with them to make the good impression to the

customers. In addition, providing the extra promotions such as free some foods and drink

in the next time or the plus point promotion can help the restaurants attract the customers

come back in the next time and use their products without online coupons.

Combine the strategies of 3 parts; the restaurant in HCMC can increase sale volume via

group buying channel.

86

Page 87: Thesis Final)

CHAPTER VI

CONCLUSION AND SUGGESTION

6.1/ Conclusion

These strategies can help the restaurant increase their sale volume by using the group

buying business model and avoid the bad effects from this model. However, it’s just the

general strategies for all common types of restaurants in Ho Chi Minh City. Therefore,

when applied to specific businesses, the owner should change and improve the strategies

to suitable with their conditions and their types of business.

In the other hand, the Viet Nam currency and Viet Nam economics are not stable; the

price of coupons and percentage off can be change a lot in the near future. The

restaurants should adjust these numbers to appropriate with the currency value on that

time.

Moreover, the development speed of “groupon” business model and internet is so fast;

some features of this strategy can behind the time in the near future. The restaurant’s

87

Page 88: Thesis Final)

owner should update the information to improve the backward point of this study if they

want to use.

6.2/ Suggestion

This study is limited on the area of research: just in Ho Chi Minh urban area. The next

research can use the data of my thesis to research on the larger area such as in Viet Nam

or In Asia.

This strategies are general for all common types of restaurants in Ho Chi Minh to

increase sale volume by “groupon” business model. The next research can base on it to

build the strategies for specific types of restaurants.

This strategy is just for the restaurants to using “groupon” efficiently, the next research

can use it to establish the strategies for health care services, travel services, etc.

6.3/ Implication of this study

In general, all results of my study will support the restaurants in Ho Chi Minh City on

dealing with groupon websites. Besides that, groupon companies in Ho Chi Minh City

can use my thesis to adjust some features to more suitable their local merchants.

Furthermore, another business types which offer services in Viet Nam can use this study

to make a decision about using groupon or not and choose the effect ways in offers online

vouchers

In the other hand, there are lacks of academic literatures about groupon in Viet Nam. This

thesis result can be used as references for other peoples who have interest on research

about selling online coupons or do a research about marketing for restaurants.

88

Page 89: Thesis Final)

REFERENCES

1. 10 pros and cons of using groupon, viewed march 4, 2011

<http://www.inc.com/guides/201104/10-pros-cons-for-using-groupon.html>,

USA

2. Blattberg, Robert C., and Scott Neslin. Sales Promotion: Concepts, Methods,

Strategies. New York: Simon & Schuster, 1995. Bunish, Christine. "Sales:

Expanded Use of Collateral Material, Catalogs Boosts Sales Promotion." Business

Marketing, 1 May 1999.)

3. Clone websites of groupon appeared, Thongtincongnghe, Viewed March 14,2011,

<http://www.thongtincongnghe.com/article/19878 >

4. CSE bioinformatics, what is e-commerce, viewed march 3,2011<

www.cse.buffalo.edu/DBGROUP/> , University in Buffalo

5. Donald R. Cooper, Pamela S. Schindler (2003). Business Research Methods, pp

138_200

89

Page 90: Thesis Final)

6. Groupon websites, What is Groupoun, viewed March 6, 2011,

<http://www.groupon.com/faq> , USA

7. George E.Blech, Michael A.Blech (2007), Advertising and Promotion-an

integrated marketing communications perspective, 7th edition)

8. Gerry Johnson, 2006, Exploring Corporate Strategy: Text and Cases, 7th edition,

Prentice Hall

9. Gerry Johnson (2006), what is business strategy, viewed May 2nd , 2011

<http://tutor2u.net/business/strategy/what_is_strategy.htm>

10. Gwendolyn Cuizon, “what is sale promotion” article, viewed may-05-2011,

http://www.suite101.com/content/sales-promotions-a96994

11. Hawkins, D. I., Motherbaugh, D. L., & Best, R. J. (2007). Consumer Behavior

(Vol. e, 10th ed., ). New York: McGraw-Hill Irwin

12. Kevin Eklund ‘Top 10 Reasons for Using Groupon, Daily Deal Sites to Advertise

Your Business’, viewed March 4,2011, http://tomuse.com/daily-deal-sites-

groupon-business-advertise/

13. Miles, M., & Huberman, M. (1994). Qualitative data analysis: an expanded

sourcebook. Thousand Oaks: SAGE publications Ltd

14. Michael, Quantitative and qualitative approaches to research,

http://www.psy.dmu.ac.uk/michael/qual_aims.htm, viewed 14/4/2011

15. M.Dholakia, ‘How effect are groupon promotions for business ‘(2010)

16. Nag, R.; Hambrick, D. C.; Chen, M.-J,What is strategic management, really?

Inductive derivation of a consensus definition of the field. Strategic Management

Journal. Volume 28, Issue 9, pages 935–955, September 2007

90

Page 91: Thesis Final)

17. Sandhusen and Richard L: Marketing (2000). Cf. S. 218

18. Silverman, D. (1993). Interpreting Qualitative Data. London: SAGE Publications

Ltd

19. Syd Stewart, 2008,”A Definition of business strategy”, Viewed May 1st, 2011 <

http://www.rapid-business-intelligence-success.com/definition-of-business-

strategy.html>

20. Robert J. Kauffman, 2001 BID TOGETHER, BUY TOGETHER: ON THE

EFFICACY OF GROUP-BUYING BUSINESS MODELS IN INTERNET-

BASED SELLING, Carlson School of Management

21. Restaurants in Ho Chi Minh City, Goat system, VIETNAM GOURMET

NAVIGATION PROJECT viewed March 14, 2011

22. The trend of group buying in Viet Nam, viewed 1/5/2011

<http://nhipsongso.tuoitre.vn/nhip-song-so/433541/%E2%80%9CSot

%E2%80%9D-voi-mua-hang-theo-nhom.html,>

23. Vietnam business, Viet Nam success with group buying sites article, viewed

march 12,2011, <http://vietnambusiness.asia/vietnam-sees-success-with-group-

buying-sites/,>

24. Wise Geek, 2011, “what is business strategy”, viewed May 4,2011

<http://www.wisegeek.com/what-is-a-business-strategy.htm>, USA

25. “What is sale promotion”, <http://www.knowthis.com/principles-of-marketing-

tutorials/sales-promotion/what-is-sales-promotion/> University of Sussex, View

day 27/05/2011)

91

Page 92: Thesis Final)

APPENDIX

I/ List of table

APPENDIX A: List of table about consumer characteristic

Statistics

Job Age Gender

N Valid 252 252 252

Missing 0 0 0

Frequency Table

92

Page 93: Thesis Final)

Job

Frequency Percent Valid Percent Cumulative Percent

Valid HS-SV 62 24.6 24.6 24.6

Can Bo, CNV 47 18.7 18.7 43.3

Nhan Vien Van Phong 142 56.3 56.3 99.6

Other 1 .4 .4 100.0

Total 252 100.0 100.0

Age

Frequency Percent Valid Percent Cumulative Percent

Valid <18 12 4.8 4.8 4.8

18-25 216 85.7 85.7 90.5

25-35 15 6.0 6.0 96.4

>35 9 3.6 3.6 100.0

Total 252 100.0 100.0

Gender

Frequency Percent Valid Percent Cumulative Percent

Valid Male 123 48.8 48.8 48.8

female 129 51.2 51.2 100.0

Total 252 100.0 100.0

Appendix B: List of table about products characteristic

93

Page 94: Thesis Final)

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Demand of restaurants vouchers 252 1.00 5.00 3.5040 1.15527

Valid N (listwise) 252

Demand of restaurants vouchers

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 14 5.6 5.6 5.6

Low 32 12.7 12.7 18.3

Normal 81 32.1 32.1 50.4

High 63 25.0 25.0 75.4

Very high 62 24.6 24.6 100.0

Total 252 100.0 100.0

Promotion program

Frequency Percent Valid Percent

Cumulative

Percent

Valid No 22 8.7 8.7 8.7

Yes 230 91.3 91.3 100.0

Total 252 100.0 100.0

94

Page 95: Thesis Final)

Menu, addtional cost must be display clearly

Frequency Percent Valid Percent

Cumulative

Percent

Valid No 26 10.3 10.3 10.3

Yes 226 89.7 89.7 100.0

Total 252 100.0 100.0

Comment

Frequency Percent Valid Percent

Cumulative

Percent

Valid No 83 32.9 32.9 32.9

Yes 169 67.1 67.1 100.0

Total 252 100.0 100.0

Location

Frequency Percent Valid Percent

Cumulative

Percent

Valid No 157 62.3 62.3 62.3

Yes 95 37.7 37.7 100.0

Total 252 100.0 100.0

Advertising ways

Frequency Percent Valid Percent

Cumulative

Percent

Valid No 170 67.5 67.5 67.5

Yes 82 32.5 32.5 100.0

Total 252 100.0 100.0

95

Page 96: Thesis Final)

Deep discount (more 50%)

Frequency Percent Valid Percent

Cumulative

Percent

Valid very low 16 6.3 6.3 6.3

Low 12 4.8 4.8 11.1

Normal 37 14.7 14.7 25.8

high 50 19.8 19.8 45.6

very high 137 54.4 54.4 100.0

Total 252 100.0 100.0

0 Dong Discount

Frequency Percent Valid Percent

Cumulative

Percent

Valid very low 97 38.5 38.5 38.5

Low 50 19.8 19.8 58.3

Normal 37 14.7 14.7 73.0

high 17 6.7 6.7 79.8

very high 51 20.2 20.2 100.0

Total 252 100.0 100.0

96

Page 97: Thesis Final)

Multi vouchers per bill

Frequency Percent Valid Percent

Cumulative

Percent

Valid very low 22 8.7 8.7 8.7

Low 26 10.3 10.3 19.0

Normal 73 29.0 29.0 48.0

high 64 25.4 25.4 73.4

very high 67 26.6 26.6 100.0

Total 252 100.0 100.0

Longtime using

Frequency Percent Valid Percent

Cumulative

Percent

Valid very low 24 9.5 9.5 9.5

Low 43 17.1 17.1 26.6

Normal 62 24.6 24.6 51.2

high 56 22.2 22.2 73.4

very high 67 26.6 26.6 100.0

Total 252 100.0 100.0

No time limitation

Frequency Percent Valid Percent

Cumulative

Percent

Valid very low 9 3.6 3.6 3.6

Low 29 11.5 11.5 15.1

Normal 75 29.8 29.8 44.8

high 47 18.7 18.7 63.5

very high 92 36.5 36.5 100.0

Total 252 100.0 100.0

97

Page 98: Thesis Final)

Asia restaurants

Frequency Percent Valid Percent

Cumulative

Percent

Valid <30% 33 13.1 13.1 13.1

30-45% 55 21.8 21.8 34.9

45-60% 64 25.4 25.4 60.3

>60% 100 39.7 39.7 100.0

Total 252 100.0 100.0

Eroupe and American restaurants

Frequency Percent Valid Percent

Cumulative

Percent

Valid <30% 26 10.3 10.3 10.3

30-45% 54 21.4 21.4 31.7

45-60% 89 35.3 35.3 67.1

>60% 83 32.9 32.9 100.0

Total 252 100.0 100.0

Vietnamese Restaurants

Frequency Percent Valid Percent

Cumulative

Percent

Valid <30% 38 15.1 15.1 15.1

30-45% 27 10.7 10.7 25.8

45-60% 113 44.8 44.8 70.6

>60% 74 29.4 29.4 100.0

Total 252 100.0 100.0

98

Page 99: Thesis Final)

Seafood, Hotpot, Grill Restaurants

Frequency Percent Valid Percent

Cumulative

Percent

Valid <30% 28 11.1 11.1 11.1

30-45% 23 9.1 9.1 20.2

45-60% 117 46.4 46.4 66.7

>60% 84 33.3 33.3 100.0

Total 252 100.0 100.0

Snacks restaurants

Frequency Percent Valid Percent

Cumulative

Percent

Valid <30% 53 21.0 21.0 21.0

30-45% 59 23.4 23.4 44.4

45-60% 85 33.7 33.7 78.2

>60% 54 21.4 21.4 99.6

5.00 1 .4 .4 100.0

Total 252 100.0 100.0

Coffee Bar, Live music coffee

Frequency Percent Valid Percent

Cumulative

Percent

Valid <30% 25 9.9 9.9 9.9

30-45% 82 32.5 32.5 42.5

45-60% 79 31.3 31.3 73.8

>60% 66 26.2 26.2 100.0

Total 252 100.0 100.0

99

Page 100: Thesis Final)

Gardern Coffee

Frequency Percent Valid Percent

Cumulative

Percent

Valid <30% 36 14.3 14.3 14.3

30-45% 81 32.1 32.1 46.4

45-60% 83 32.9 32.9 79.4

>60% 52 20.6 20.6 100.0

Total 252 100.0 100.0

Cream,Mik Tea

Frequency Percent Valid Percent

Cumulative

Percent

Valid <30% 51 20.2 20.2 20.2

30-45% 57 22.6 22.6 42.9

45-60% 93 36.9 36.9 79.8

>60% 51 20.2 20.2 100.0

Total 252 100.0 100.0

Appendix C: List of table about restaurants characteristics

100

Page 101: Thesis Final)

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Demand of Asia Restaurants

coupons

252 1.00 5.00 3.4484 1.38623

Demand of Europe&American

Restaurants coupons

252 1.00 5.00 3.2302 1.29457

Demand of Vietnamese

Restaurants coupons

252 1.00 5.00 3.5437 1.22152

Demand of Seafood,Grill, Hot

Pot Restaurants coupons

252 1.00 5.00 3.6111 1.25905

Demand of Snack Restaurants

coupons

252 1.00 5.00 3.1270 1.40565

Demand of Bar coffee, Live

music coffee coupons

252 1.00 5.00 2.8810 1.37483

Demand of Garden coffee

coupons

252 1.00 5.00 2.8889 1.37550

Demand of Cream, Milk Tea

restaurant coupons

252 1.00 5.00 3.4841 1.31939

Valid N (listwise) 252

Demand of Asia Restaurants coupons

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 35 13.9 13.9 13.9

Low 30 11.9 11.9 25.8

Normal 49 19.4 19.4 45.2

High 63 25.0 25.0 70.2

Very high 75 29.8 29.8 100.0

Total 252 100.0 100.0

101

Page 102: Thesis Final)

Demand of Europe&American Restaurants coupons

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 32 12.7 12.7 12.7

Low 40 15.9 15.9 28.6

Normal 70 27.8 27.8 56.3

High 58 23.0 23.0 79.4

Very high 52 20.6 20.6 100.0

Total 252 100.0 100.0

Demand of Vietnamese Restaurants coupons

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 17 6.7 6.7 6.7

Low 33 13.1 13.1 19.8

Normal 70 27.8 27.8 47.6

High 60 23.8 23.8 71.4

Very high 72 28.6 28.6 100.0

Total 252 100.0 100.0

Demand of Seafood,Grill, Hot Pot Restaurants coupons

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 18 7.1 7.1 7.1

Low 33 13.1 13.1 20.2

Normal 60 23.8 23.8 44.0

High 59 23.4 23.4 67.5

Very high 82 32.5 32.5 100.0

Total 252 100.0 100.0

102

Page 103: Thesis Final)

Demand of Snack Restaurants coupons

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 41 16.3 16.3 16.3

Low 48 19.0 19.0 35.3

Normal 64 25.4 25.4 60.7

High 36 14.3 14.3 75.0

Very high 63 25.0 25.0 100.0

Total 252 100.0 100.0

Demand of Bar coffee, Live music coffee coupons

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 44 17.5 17.5 17.5

Low 79 31.3 31.3 48.8

Normal 35 13.9 13.9 62.7

High 51 20.2 20.2 82.9

Very high 43 17.1 17.1 100.0

Total 252 100.0 100.0

103

Page 104: Thesis Final)

Demand of Garden coffee coupons

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 50 19.8 19.8 19.8

Low 62 24.6 24.6 44.4

Normal 47 18.7 18.7 63.1

High 52 20.6 20.6 83.7

Very high 41 16.3 16.3 100.0

Total 252 100.0 100.0

Demand of Cream, Milk Tea restaurant coupons

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 30 11.9 11.9 11.9

Low 24 9.5 9.5 21.4

Normal 65 25.8 25.8 47.2

High 60 23.8 23.8 71.0

Very high 73 29.0 29.0 100.0

Total 252 100.0 100.0

Appendix D: List of table about distribution channels

104

Page 105: Thesis Final)

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Nhom Mua 252 1.00 5.00 3.2619 1.45410

Mua Chung 252 1.00 5.00 1.8611 1.23065

Cung Mua 252 1.00 5.00 1.9127 1.36851

Hot Deal 252 1.00 5.00 2.4603 1.60998

Deal Zing 252 1.00 5.00 1.5198 1.07285

Vndoan 252 1.00 5.00 1.5873 1.04687

Cucre 252 1.00 5.00 1.2540 .83677

Other 252 1.00 3.00 1.1389 .36880

Valid N (listwise) 252

Nhom Mua

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 52 20.6 20.6 20.6

Low 10 4.0 4.0 24.6

Normal 85 33.7 33.7 58.3

High 30 11.9 11.9 70.2

Very high 75 29.8 29.8 100.0

Total 252 100.0 100.0

105

Page 106: Thesis Final)

Mua Chung

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 150 59.5 59.5 59.5

Low 29 11.5 11.5 71.0

Normal 49 19.4 19.4 90.5

High 6 2.4 2.4 92.9

Very high 18 7.1 7.1 100.0

Total 252 100.0 100.0

Cung Mua

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 160 63.5 63.5 63.5

Low 13 5.2 5.2 68.7

Normal 48 19.0 19.0 87.7

High 3 1.2 1.2 88.9

Very high 28 11.1 11.1 100.0

Total 252 100.0 100.0

Hot Deal

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 125 49.6 49.6 49.6

Low 6 2.4 2.4 52.0

Normal 50 19.8 19.8 71.8

High 22 8.7 8.7 80.6

Very high 49 19.4 19.4 100.0

Total 252 100.0 100.0

106

Page 107: Thesis Final)

Deal Zing

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 198 78.6 78.6 78.6

Low 1 .4 .4 79.0

Normal 41 16.3 16.3 95.2

Very high 12 4.8 4.8 100.0

Total 252 100.0 100.0

Vndoan

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 182 72.2 72.2 72.2

Low 12 4.8 4.8 77.0

Normal 47 18.7 18.7 95.6

High 2 .8 .8 96.4

Very high 9 3.6 3.6 100.0

Total 252 100.0 100.0

Cucre

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 228 90.5 90.5 90.5

Normal 16 6.3 6.3 96.8

Very high 8 3.2 3.2 100.0

Total 252 100.0 100.0

107

Page 108: Thesis Final)

Other

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very low 219 86.9 86.9 86.9

Low 31 12.3 12.3 99.2

Normal 2 .8 .8 100.0

Total 252 100.0 100.0

Appendix E: list of table about services of the restaurants

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Discrimination 252 1.00 5.00 1.9524 1.13515

Valid N (listwise) 252

Discrimination

Frequency Percent Valid Percent

Cumulative

Percent

Valid Very Low 134 53.2 53.2 53.2

Low 24 9.5 9.5 62.7

Normal 72 28.6 28.6 91.3

High 16 6.3 6.3 97.6

Very high 6 2.4 2.4 100.0

Total 252 100.0 100.0

108

Page 109: Thesis Final)

Frequency Table

Asia Restaurants

Frequency Percent Valid Percent Cumulative Percent

Valid Very low 105 41.7 41.7 41.7

Low 12 4.8 4.8 46.4

Normal 113 44.8 44.8 91.3

High 7 2.8 2.8 94.0

Very high 15 6.0 6.0 100.0

Total 252 100.0 100.0

Europe&American Restaurants

Frequency Percent Valid Percent Cumulative Percent

Valid Very low 67 26.6 26.6 26.6

Low 17 6.7 6.7 33.3

Normal 111 44.0 44.0 77.4

High 6 2.4 2.4 79.8

Very high 51 20.2 20.2 100.0

Total 252 100.0 100.0

109

Page 110: Thesis Final)

Vietnamese Restaurants

Frequency Percent Valid Percent Cumulative Percent

Valid Very low 72 28.6 28.6 28.6

Low 27 10.7 10.7 39.3

Normal 99 39.3 39.3 78.6

High 8 3.2 3.2 81.7

Very high 46 18.3 18.3 100.0

Total 252 100.0 100.0

Seafood, Hotpot, Grill Restaurant

Frequency Percent Valid Percent Cumulative Percent

Valid Very low 77 30.6 30.6 30.6

Low 23 9.1 9.1 39.7

Normal 120 47.6 47.6 87.3

High 7 2.8 2.8 90.1

Very high 25 9.9 9.9 100.0

Total 252 100.0 100.0

Snack Restaurants

Frequency Percent Valid Percent Cumulative Percent

Valid Very low 91 36.1 36.1 36.1

Low 15 6.0 6.0 42.1

Normal 103 40.9 40.9 82.9

High 14 5.6 5.6 88.5

Very high 29 11.5 11.5 100.0

Total 252 100.0 100.0

110

Page 111: Thesis Final)

Coffee Bar, Live music coffee

Frequency Percent Valid Percent Cumulative Percent

Valid Very low 80 31.7 31.7 31.7

Low 16 6.3 6.3 38.1

Normal 123 48.8 48.8 86.9

High 10 4.0 4.0 90.9

Very high 23 9.1 9.1 100.0

Total 252 100.0 100.0

Garden Coffee

Frequency Percent Valid Percent Cumulative Percent

Valid Very low 61 24.2 24.2 24.2

Low 13 5.2 5.2 29.4

Normal 127 50.4 50.4 79.8

High 7 2.8 2.8 82.5

Very high 44 17.5 17.5 100.0

Total 252 100.0 100.0

Appendix F: The survey that was send to the customers

Khảo sát thói quen mua phiếu ăn uống của bạn trên những trang web mua theo nhóm

(nhommua, muachung,...)

các bạn đã dành thời gian cho bài khảo sát của chúng tôi Bài khảo sát nhằm làm rõ sự tác động

của các deal giảm giá đến thói quen ăn uống của khách hàng ngày nay. Nhiệm vụ của bài khảo sát

là cải thiện các chương trình khuyến mãi cho phiếu ăn uống tại các nhà hàng ở TP HCM cho phù

hợp hơn đối với nhu cầu thực tế của khách hàng. Đối tượng của bài khảo sát là tất cả những

khách hàng đã từng mua và sử dụng phiếu giảm giá ăn uống của các nhà hàng tại thành phố Hồ

Chí Minh trên các website mua theo nhóm hoặc những khách đang quan tâm và có ý định mua

111

Page 112: Thesis Final)

những phiếu giảm giá này Thời gian ước tính để hoàn thành: từ 3-4 phút Sự hợp tác của bạn là

nhân tố chính cho sự thành công của bài khảo sát. Xin chân thành cảm ơn

Bạn là*

Nam

Nữ

Nghề nghiệp hiện tại của bạn *

Học Sinh-Sinh Viên

Cán bộ công nhân viên

Nhân viên văn phòng

Other:

Độ tuổi của bạn *

dưới 18

18-25

25-35

trên 35

Bạn có quan tâm đến những phiếu giảm giá ăn uồng từ các nhà hàng

112

Page 113: Thesis Final)

1 2 3 4 5

Không quan tâm Rất quan tâm

Những yếu tố ảnh hưởng đến quyết định mua phiếu giảm giá của bạn *

Phương thức giảm giá

Menu,giá các món ăn, phụ phí phải được công bố rõ ràng

Ý kiến đánh giá của các thành viên đã từng sử dụng

Địa điểm của nhà hàng

Phương thức quảng cáo của nhà hàng trên các trang mua theo nhóm

Sở thích của bạn với loại hình nhà hàng đang giảm giá

Other:

Bạn quan tâm đến loại hình nhà hàng nào nhất khi mua phiếu giảm giá * mức độ

tăng dần từ 1->5 (1: không quan tâm, 5: rất quan tâm)

1 2 3 4 5

Châu Á (Nhật Bản,

Hàn Quốc)

Âu-Mỹ

Món ăn gia đình,

món ăn Việt

113

Page 114: Thesis Final)

1 2 3 4 5

Món ăn hải sản, lẩu,

nướng

Thức ăn vặt

Cafe bar, nhạc sống

Cafe sân vườn

Kem, Yaourt, trà sữa

Mức độ quan tâm của bạn đến các hình thức khuyến mãi nào từ các nhà hàng * mức độ tăng

dần từ 1->5 (1: không quan tâm, 5: rất quan tâm)

1 2 3 4 5

Giảm giá nhiều (trên

50%)

Khuyến mãi 0 Đồng

Sử dụng nhiều

vouchers trên 1 hóa

đơn thanh toán

Có thời gian sử dụng

dài

Ít giới hạn thời điểm

sử dụng (thứ 7, CN,

ngày lễ)

114

Page 115: Thesis Final)

Theo bạn các loại hình nhà hàng dưới đây nên phát hành vouchers giảm giá bao

nhiêu là hợp lý *

Dưới 30% 30-45% 45-60% Trên 60%

Châu Á (Nhật Bản, Hàn

Quốc)

Âu-Mỹ

Món ăn gia đình, món

ăn Việt

Món ăn hải sản, lẩu,

nướng

Thức ăn vặt

Cafe bar, nhạc sống

Cafe sân vườn

Kem, Yaourt, trà sữa

Bạn thường mua phiếu giảm giá của các nhà hàng tại trang web nào *

115

Page 116: Thesis Final)

chưa bao

giờít khi

thỉnh

thoảng

thường

xuyên

rất

thường

xuyên

Nhommua.com

Muachung.vn

Cungmua.com

Hotdeal.vn

Deal.zing.vn

Vndoan.com

cucre.vn

other

Bạn có bị phân biệt đối xử khi xài phiếu giảm giá *

1 2 3 4 5

Thường xuyên bịChưa

hề bị

Bạn có tiếp tục quay lại ủng hộ tại các nhà hàng

sau khi đã xài phiếu giảm giá của họ *

116

Page 117: Thesis Final)

Chư

a

bao

giờ

Ít

khi

Thỉnh

thoảng

thường

xuyên

Rất

Thường

xuyên

Châu Á

(Nhật

Bản, Hàn

Quốc)

Âu-Mỹ

Món ăn

gia đình,

món ăn

Việt

Món ăn

hải sản,

lẩu,

nướng

Thức ăn

vặt

Cafe bar,

nhạc

sống

Cafe sân

vườn

117

Page 118: Thesis Final)

Chư

a

bao

giờ

Ít

khi

Thỉnh

thoảng

thường

xuyên

Rất

Thường

xuyên

Kem,

Yaourt,

trà sữa

118