Abstract

This study examined the Vietnamese consumer behavior on purchasing Korean cosmetics. Empirical data were obtained from 188 Vietnamese people from their high teens to 39 years of age, including men and women, who had ever purchased Korean cosmetics; 75% of the surveyed were in their 20s, and 87% were female. Factor analysis was first conducted to extract the various quality variables related to Korean cosmetics, followed by frequency analysis. Three different regression models were estimated with the same explanatory variables: OLS regression model, Tobit model, and Logit model. The OLS regression model had the Vietnamese annual expenditure for purchasing Korean Cosmetics as the dependent variable. The Tobit model had Vietnamese general satisfaction on Korean Cosmetics as the dependent variable, whereas the logit model had the future intention to increase repurchasing Korean Cosmetics. All three models had common explanatory variables, such as age group combined with job existence (Job*Age), income level, residence area, cost-effectiveness, and general satisfaction along with the three quality factors derived by factor analysis. Vietnamese annual expenditure on Korean cosmetics is affected most significantly by the Job*Age variable, while Vietnamese general satisfaction on Korean Cosmetics is affected heavily by the quality factors of Korean Cosmetics. On the other hand, the future intention to increase repurchasing Korean Cosmetics was not as positive even with the high satisfaction and higher income group, highlighting the need for more deliberate and appropriate strategies in the Vietnamese market.

Full Text
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