Marketing research research on buying behavior of the youth in circle k cao thang

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY FACULTY OF BUSINESS ADMINISTRATION MARKETING RESEARCH RESEARCH ON BUYING BEHAVIOR OF THE YOUTH IN CIRCLE K CAO

HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

- INFORMATION TECHNOLOGY FACULTY OF BUSINESS ADMINISTRATION

MARKETING RESEARCH

RESEARCH ON BUYING BEHAVIOR OF THE YOUTH IN CIRCLE K CAO THANG

Group 5:

Lâm Hữu Đăng 19DH480173

Phạm Nguyễn Quỳnh Nhi_19DH480645

Nguyễn Ngọc Hạ Vy_19DH480574

Class: KM1901

Instructor: Dr Doan Gia Au Du

HCMC, 5/2022

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Figure 2.4.8: Rate the satisfaction of the shopping space - - cc c2 nen se 16

Figure 2.4.9: Rate the level of satisfaction about the neat and clean arrangement of tables

bu iu 1 17 Figure 2.4.10: Evaluation of satisfaction with the varlety oŸgoods - cc.cc se 17

FIieure 2.4.11: Evaluation of satisfaction with the display oføoods - - 18 Figure 2.4.12: Assess the satisfaction level of the food safety and hygiene of the

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0 — 19 Figure 2.4.14: Rate the satisfaction of wIÍi connecfIOH - : c2 1 1122112121212 20 Figure 2.4.15: Rate the satisfaction of the benefits of ATM sc cớ 21 Figure 2.4.16: Evaluate the level of satisfaction about the benefits of 24/24 service 21 Figure 2.4.17: Rate your satisfaction w1th stOre đIsCOUTIfS - óc St S s2 se, 22

Figure 2.4.18: Rate the level of satisfaction with online shopping servIees 23 Figure 2.4.19: Assess the level of satisfaction with the quality of goods upon delivery 23

Figure 2.4.20: Rate employee satisfaction cece eeceeeeeceeeeeeetesneeeseneeseeneesneeeeeneenes 24

Figure 2.4.21: Assess the level of employee satisfaction with responsibilities 25

Figure 2.4.22: Rate the level of satisfaction about the professionalism in the service 25 Figure 2.4.23: Review product prIces af ConVeIence€ SfOF€S ác cớ, 26 Figure 2.4.24: Evaluate the number of promofions at convenence stOr€s - 27

ABSTRACT

In Vietnam, modern retail ideas such as 24-hour convenience stores are becoming

increasingly popular One of the most important factors affecting convenience store

success is customers’ buying behavior Among the active convenience store brands are Family Mart, B's Mart, Mini Stop, GS25, and Circle K, which was one of the first to operate in Vietnam after Shop & Go The fact that the fourth Covid-19 epidemic will

have a significant influence on the retail business in 2021 A lot of businesses have

incurred financial losses as a result of this circumstance As a result of the Covid-19 outbreak, consumer purchasing patterns have shifted and have reduced dramatically

Convenience shops in general have not paid much attention to client buying behavior, which has resulted in poor financial performance The convenience store Circle K, a global brand operated by Alimentation Couche-Tard, was chosen as the study's subject

after much discussion The article deals with how consumers' buying habits have changed

at Circle K convenience stores in Vietnam, a growing market with a changing economy The report will include qualitative research techniques as well as survey data collecting The article will assist Circle K in better understanding client buying behaviors and

providing better service Furthermore, it aids Circle K Cao Thang and the Circle K store

chain in general in becoming Vietnam's most popular convenience shop

KEYWORDS: Circle K, buying behavior, convenience store, the youth

CHAPTER 1: INTRODUCTION

1.1 Background of the research

Nowadays, people's living levels will rise in a quickly msing society, therefore their

buying requirements will become more targeted Furthermore, shoppers are moving their

purchasing patterns away from traditional markets and toward giant supermarkets and

convenience stores However, 2021 was the year of the Covid 19 pandemic, which

wreaked havoc on the Vietnamese economy, particularly in the retail sector Due to the short-term influence of Covid 19, clients' shopping frequency has been drastically reduced in order to restrict their exposure in accordance with state directives

With the presence of numerous local and foreign brands, convenience store chains and

micro supermarkets m Vietnam are presently undergoing substantial changes after a period of relatively moderate expansion According to (Minh Tué, 2018), this model will face strong competition due to the participation of a large number of brands Aside from that, there is a definite trend for retail market supply to shift out from the city core What would convenience store chains such as Family Mart, B's Mart, Mini Stop, GS25, and

especially Circle K do to keep customers in front of their purchasing behavior at the

reducing risk Aside from addressing critical concerns, Circle K has made other

enhancements to product quality and customer service Apart from the good feedback,

some conflicting thoughts regarding Vietnamese customers’ feedback on items and services are unavoidable They consider Circle K has a negative problem with poor

customer service, particularly in terms of not completely refunding clients (Buzzmetrics,

2016) At the same time, this brand's food and beverage selection has been criticized for

being less diversified than those of other convenience store chains

As a result, the research team decided to undertake a study titled "Research on buying

behavior of the youth in Circle K Cao Thang" in order to analyze and evaluate the purchasing behavior of young people at Circle K Circle K 1s a great place to go

shopping Since then, the paper has provided vital information on personal suggestions to

boost Circle K's advantages and improve its disadvantages, so adding to the company's overall success

1.3 Marketing research objectives

Each research paper is designed to achieve the author's objectives Here are some of the

marketing research objectives that led this study:

® To explore the factors that are important for young people's buying behavior at Circle K Cao Thang

e Evaluate the research results through statistical surveys to confirm the research results on purchasing behavior of consumers, especially young people today

® Propose some appropriate and specific personal comments to contribute to the development of Circle K and at the same time make conclusions

1.4 Research methodologies

The author group used two types of research: Descriptive research and Causal research

Descriptive research is used to describe an event, an occurrence, or a group being examined It can help the researchers to clearly explain problems and identify the causes

of those problems (Fox & Bayat, 2008)said: “ful” In a descriptive study, things are measured as they are, but in an experimental study, researchers take measurements, test

an intervention, and then measure the size again to determine how that intervention affected the outcome Descriptive research in this topic helps to clearly explain the

problems and determine their causes

Causal research is a type of study that focuses on establishing a cause-and-effect relationship Causal research is challenging by nature since establishing a causal link between the observed variable and the variable of interest is difficult Other elements, especially when dealing with people's attitudes and beliefs, might really be the cause of

the causal link Even the responder may not be aware of underlying psychological

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variables when answering a question Causal research proves the accuracy of all research and survey work and provides important data (Kultar, 2007)

1.5 Scope and limitation

1.5.1 Scope

The study will take place in the Circle K Cao Thang area The survey will be done among

young individuals aged 19 to 25 who are studying, working, or shopping and using

services in this city The author may approach the study item more readily and conduct the survey more conveniently if the object is identified The scope of the study will be limited to consumers who study and work near Circle K Cao Thang and are likely to utilize Circle K's products and services regularly The research team will be conducted by questionnaire with 200 survey samples

1.5.2 Limitation

Every research project has its unique set of constraints Also, the research's authors bring out substantial study limitations:

e First, limited knowledge is one of the factors that make the research objectives of the

group unclear, the information collected is incomplete, not high accuracy, and only a small partial survey, covering the whole market so it 1s difficult to test the assumptions

¢ Second, some target groups do not cooperate with the surveyor and do it through the speaker, so the information may not be accurate and factual

e Third, the survey is only short-lived because of time and people constraints

CHAPTER 2: FINDINGS AND DISCUSSION

2.1 Overview of Circle K

Circle K has been the largest company-owned and operated (non-franchised) convenience

store chain in the United States since the 1980s A franchising program was launched in

1999 to help operators who wanted to start a company with a well-known convenience store chain Alimentation Couche-Tard bought Circle K in 2003, and it has since grown to

be a worldwide brand with over 20 countries represented Alimentation Couche-Tard reached a new milestone in 1999 when it bought Mac's Convenience Stores and became Canada's largest national convenience store network, a title it still proudly holds today

With the acquisition of Circle K outlets in 2003, Couche-Tard entered the US market and has since grown to be a worldwide brand with over 20 nations represented.(Circle K,

n.d.)

Red Circle Co., Ltd., which was franchised from the United States for a long period in

1951, owns the convenience store chain Circle K Circle K has long prided itself on being

an international convenience store business, having operated before FamilyMart On December 20, 2008, the first one in Vietnam opened Circle Ks may be found all over the streets of major cities, with almost 400 locations nationally Customers that visit this location are always dedicated to using the 4F model's products and _ services (Fresh, Friendly, Fast, and Full) Not only is Circle K a well-known franchise In Vietnam With a range of service amenities, this convenience store business 1s open 24 hours a day,

365 days a year (bill payment, phone card, .) Above all, each product and service is distinguished by its prestige and high quality When people are shopping at your store, you should earn their trust and contentment Our ambition 1s to become Vietnam's most popular convenience store chain Our mission is to provide consumers with a fun, courteous, and dependable shopping experience filled with a wide range of things, services, and foods delivered swiftly and joyfully (Circle K, 2016; Nextbranding, 2018)

Mr Tony Yan was appointed to replace his predecessor in charge of the Vietnamese market of the Circle K convenience store chain He is also the one who devised the

strategy of "creating a destination" and combined the model of a coffee shop and a store

fast food In addition, the store locations must also be placed in visible concentrated locations According to (Trí thức tré, 2019), Mr Tony Yan has been chosen to take over

as the Circle K convenience store chain's Vietnamese market manager He also invented the "building a destination" concept, which combines the coffee shop and fast food store, models Furthermore, the storefronts must be located in highly visible areas Furthermore,

he stated that to succeed in Vietnam, only 3P (Patience) must be very patient to gain people’s confidence He relies on a thorough grasp of the market and the people that inhabit it to capture their buying habits and design effective methods

2.2 Target groups

The study team chose two sampling methods for "Research on buying behavior of the

youth Circle K Cao Thang": convenience sampling and judgmental sampling

Researchers are more likely to encounter the subject by sampling based on the subject's

convenience or accessibility, which is known as convenience sampling The sampling

approach is frequently used to determine practical importance, to ensure that the questionnaire is thorough, or to create a preliminary estimate of the problem without investing a lot of time or money Interviewers make judgments about chosen people in the sample using judgment sampling As a result, the sample's representativeness is heavily reliant on the survey organizers' and data collectors' experience and

understanding

Because the research subjects live near Circle K Cao Thang, the authors used the convenient sample method to make it easier for the group to approach the younger

generation who frequent the store to help survey and collect data The selection of the

judgment sample, on the other hand, aids the author's team in identifying appropriate study participants, which are young individuals aged 19 to 25 These two research

methodologies complement one another in terms of locating and choosing study

participants as well as obtaining and collecting data The statistical results of the survey may then be used by the research team to clarify and assess the study subject they are working on

2.3 Data collection

2.3.1 Primary data

Primary data is information gathered directly from primary sources by researchers using methods such as interviews, questionnaires, and experiments However, in this study, the researchers relied only on a questionnaire survey to get factual data and objective

judgments Thank the Covid-19 outbreak has been controlled and society has returned to

“a new normal”, the group is no longer required to conduct an online survey

From April 11 to April 24, 2022, the author team has two weeks The team maybe acquire

about 60% of the overall survey sample to perform research out of 200 survey samples 2.3.2 Secondary data

Often secondary data is data that has been processed, the difficulty in the work is assessed as the exact level and level of reliability of the source data Data tiers are often difficult to classify data

Secondary data is the source of data collected from:

19 to 25 Conclusions and approaches for attracting additional clients may be formed from this data

2.4 Data analysis

Question 1: How did you know Circle K?

Figure 2.4.1: Evaluate how customers know the store

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According to the above findings, customers who happened to see the Circle K Cao Thang

store accounted for 76.8% of the total survey sample; this number represents customers

who happened to pass by the store and decided to stop in to prove it The store's exterior stands out and is located in high-traffic areas, easily attracting many customers Furthermore, being recommended by others accounted for just 9.1% of the total survey

votes, whereas social media accounted for 17.1% Statistical findings suggest that

advertising and public relations operations on Fanpage are still underutilized and underdeveloped, which will not bode well as people use social media more often Circle

K has to continue to enhance the quality of its products and services so that consumers who have used them will continue to suggest them to others, therefore increasing sales Question 2: How often do you visit Circle K a week?

Figure 2.4.2: Evaluate how often customers come to the store during the week

There is a considerable variation in how often clients arrive in a week based on the aforementioned data The majority of consumers who came to the shop fewer than three times accounted for 54.9% of the total, indicating that there is a low demand for going to the business Following that, the average frequency of students and office employees traveling to the store was 28%, while the number of persons with a significant need to go

to the shop (more than 5 times) was only 17.1%, resulting in a 54.9% reduction in these two proportions combined This is a concerning level for businesses since the diversity of items and services offered is insufficient to suit the demands of young people, and it is easy to lose a competitive edge over other convenience store chains

Question 3: What services do you usually use from Circle K?

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As a result, many individuals will go to locations like Circle K to pay and combine meals

in order to save time and money

Question 4: When you think of convenience stores, is Circle K the first choice you think of?

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Question 5: Are you interested in the quality of products and services at Circle K?

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Figure 2.4.5: Measure interest in the Circle K store

Researchers may estimate the amount of interest in the quality of products and services based on the collected data, which accounts for 96.3% This is a positive figure that indicates that young people are becoming more concerned about their health, even if it 1s

fast food purchased from convenience stores Circle K should continue to improve its

brand so that when people think of Circle K, they think of the high level of service it provides Furthermore, while the indifference rate is just 3.7%, this isn't the reason why

Circle K can't keep marketing and isn't coming up with many new initiatives Circle K

must continue to look for problems to address in order to avoid more major issues in the future

Question 6: The door opens automatically

Figure 2.4.6: Rate the satisfaction of automatic doors

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Circle K Cao Thang automated door earned extremely satisfied 46.3% and satisfied

36.6% feedback for the convenience and modernity it provides, according to the above

rate This is the proportion of individuals who have given this automated door system a

good review However, some guests are dissatisfied with 2.4% of Circle K's automated

doors since the automatic technology occasionally fails This is something that the Circle

K Cao Thang shop should be aware of, and they should inspect the technical condition of

the automated door to ensure that there are no problems when consumers go in When

they are occupied holding stuff or it is difficult to open the door, make it convenient for them As a result, automated doors outnumber regular doors

Question 7: Full range of equipment

Figure 2.4.7: Rate the satisfaction of the device

According to the chart illustrating the level of gadget satisfaction at the Circle K store, 35.4% of customers were happy, while 46.3% were extremely satisfied, accounting for 81.7% of the total samples This demonstrates that the Circle K Cao Thang facilities can meet and service the demands of young people who wish to take a break or need a workplace Aside from the favorable comments, there are those who are extremely

disappointed, with only 1.2% unsatisfied, which is a little amount, but not so that Circle

K 1s allowed to be neglected Circle K needs to establish such requirements for checking equipment and restrooms on a regular basis, as well as cleaning seats after customers have left

Question 8: Make a comfortable shopping environment for customers

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