FACTORS IMPACT CONSUMERS' BUYING DECISION IN SOCIAL NETWORK ONLINE PURCHASE - THE SIGNIFICANCE OF WORD-OF-MOUTH IN FUNCTIONAL FOODS MARKET: A STUDY IN HO CHI MINH CITY, VIETNAM

Abstract

This research aims to evaluate the impacts of word-of-mouth, trust and perceived value as predicting factors on customers’ behavior in functional foods market in social networks. Based on the proposed relationships of word-of-mouth, trust, perceived value, purchase intention and purchase decision, a model has been established. A survey was conducted and 381 responses were collected from people who used to buy functional foods through social networks. By using quantitative approach and verification techniques, the findings show that consumers’ purchase intention and buying decision are predicted by word-of-mouth, trust and perceived value. Besides, word-of-mouth is considered as predicting factor that directly impacts trust. In addition, trust also has the positive effect on perceived value. Moreover, there is a significant signal of the positive relationship between customers’ purchase intention and their buying decision. The study also provides some strategic recommendations to functional food sellers and suppliers in social networks which reflect the research findings and analysis.