STRATEGIES FOR RESTAURANTS IN HO CHI

MINH CITY INCREASE SALE VOLUME BY

GROUP BUYING BUSINESS MODEL

APPROVED BY Advisor
Cheah Kuan Yean, MBA, Member

APPROVED BY: Committee,

Ho Thi Bich Van, PhD., Chair

(Committee 3)

(Committee 3)

_____________________________

________________________________
MBA. Nguyen Huu Dang Khoa, Secretary
(Committee 3)
________________________________
MBA. Cheah Kuan Yean, Member
(Committee 3)
________________________________
MBA. Le Trong Hieu, Member
(Committee 3)
________________________________

THESIS COMMITTEE
(Whichever applies)

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

ii

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 dont hurt the brand.

iii

Contents

Chapter 1: .................................................................................................... Error! Bookmark not defined.

Introduction ................................................................................................. Error! Bookmark not defined.
1.1/ Introduction about groupon: ......................................................... Error! Bookmark not defined.
1.2/Group-buying websites in Viet Nam ................................................ Error! Bookmark not defined.
1.3/Restaurants in Ho Chi Minh City...................................................... Error! Bookmark not defined.
1.4/Rationale of the study ........................................................................... Error! Bookmark not defined.
1.5/ Problems statement and objective .................................................... Error! Bookmark not defined.
1.5.1/ Problems statement ................................................................... Error! Bookmark not defined.
1.5.2/Objectives .................................................................................. Error! Bookmark not defined.
1.5.3/Scope of study............................................................................ Error! Bookmark not defined.
1.6/Strengths and limitation of this thesis ............................................... Error! Bookmark not defined.
1.6.1/Strengths: ................................................................................... Error! Bookmark not defined.
1.6.2/Limitation: ................................................................................. Error! Bookmark not defined.
1.7/ Structure of the study ....................................................................... Error! Bookmark not defined.
Chapter 2 : Background of group buying business model, groupon business model and the pro
and cons of using this model ....................................................................... Error! Bookmark not defined.
2.1/Introduction about e-commerce ........................................................ Error! Bookmark not defined.
2.3/introduction about Group buying ...................................................... Error! Bookmark not defined.
2.3.1/ introduction ............................................................................... Error! Bookmark not defined.

iv

2.3.2/The basics of group buying models in e-commerce.................. Error! Bookmark not defined.
2.4/Introduction about Groupon business model .................................... Error! Bookmark not defined.

2.5/ advantage and disadvantage of using groupon business model in restaurantsError! Bookmark not define
Chapter 3: Literature review ....................................................................... Error! Bookmark not defined.
3.1/Business strategies: ........................................................................... Error! Bookmark not defined.
3.1.1/ Definition of business strategies: .............................................. Error! Bookmark not defined.
3.1.2/Strategy at Different Levels of a Business ................................. Error! Bookmark not defined.
3.2/Strategic management ................................................................... Error! Bookmark not defined.
3.3/ Sale and sale promotion: ................................................................... Error! Bookmark not defined.
3.3.1/Definition of sale ............................................................................. Error! Bookmark not defined.
3.3.2/Definition of sale volume .............................................................. Error! Bookmark not defined.
3.3.3/Sale promotion ........................................................................... Error! Bookmark not defined.
3.3.4/Types of sales promotion activities............................................ Error! Bookmark not defined.
3.3.5/Sales promotion strategies ......................................................... Error! Bookmark not defined.
3.4/Consumer behavior ........................................................................... Error! Bookmark not defined.
3.4.1/Definition of consumer behavior ............................................... Error! Bookmark not defined.
3.4.2/ Online consumer behavior ........................................................ Error! Bookmark not defined.
3.4.3/Maslows Hierarchy of needs .................................................... Error! Bookmark not defined.
3.5/Design the model for this thesis ........................................................ Error! Bookmark not defined.
3.6 Questionnaire design ......................................................................... Error! Bookmark not defined.
CHAPTER 4: RESEARCH METHODOLOGY ........................................ Error! Bookmark not defined.
4.1./Secondary data ................................................................................. Error! Bookmark not defined.

4.2/Primary data ...................................................................................... Error! Bookmark not defined.

4.3/Theoretical framework ...................................................................... Error! Bookmark not defined.
4.3.1 /Quantitative Approach .............................................................. Error! Bookmark not defined.
4.3.2/ Qualitative Approach ................................................................ Error! Bookmark not defined.
4.4/Research design ................................................................................ Error! Bookmark not defined.
4.4.1/Research strategy: Survey .......................................................... Error! Bookmark not defined.
4.4.2/Design the measurement ............................................................ Error! Bookmark not defined.
4.4.3/Design the sample ...................................................................... Error! Bookmark not defined.
4.4.5/Sampling size ............................................................................. Error! Bookmark not defined.
4.4.6/ Process of gathering the information: ....................................... Error! Bookmark not defined.
4.4.7/ Statistical analysis technique .................................................... Error! Bookmark not defined.
CHAPTER 5: Discussion and Conclusion .................................................. Error! Bookmark not defined.
5.1/ Filter the data: .................................................................................. Error! Bookmark not defined.
5.1.1/Remove the inappropriate responses ......................................... Error! Bookmark not defined.
5.1.2/Data encryption: ......................................................................... Error! Bookmark not defined.
5.2/ Discussion ........................................................................................ Error! Bookmark not defined.
5.2.1/Customer characteristic: ............................................................ Error! Bookmark not defined.
5.2.2/Environment characteristic ........................................................ Error! Bookmark not defined.
5.2.3/Product characteristic ................................................................. Error! Bookmark not defined.
5.2.4/ Restaurants characteristics: ....................................................... Error! Bookmark not defined.
5.2.5/Distribution channel ................................................................... Error! Bookmark not defined.
5.2.6/ Services ..................................................................................... Error! Bookmark not defined.

vi

5.3/ Establish the strategies for the restaurants to increase their sale volumes via group buying
channel .................................................................................................... Error! Bookmark not defined.
CHAPTER 6 ............................................................................................... Error! Bookmark not defined.
Conclusion and Suggestion ......................................................................... Error! Bookmark not defined.
6.1/ Conclusion ....................................................................................... Error! Bookmark not defined.
6.2/ Suggestion........................................................................................ Error! Bookmark not defined.
6.3/ Implication of this study .................................................................. Error! Bookmark not defined.

vii

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

viii

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. Maslows 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
14. Audience demographic of vndoan.com .................................................................76
15. Discrimination between the customers who have and havent vouchers ..............79

ix