FACTORS THAT INFLUENCE THAI CONSUMER’S BUYING …

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FACTORS THAT INFLUENCE THAI CONSUMER’S BUYING BEHAVIOR FOR CHOCOLATE SARINTHORN INPOOMMA A THEMATIC PAPER SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF MANAGEMENT COLLEGE OF MANAGEMENT MAHIDOL UNIVERSITY 2014 COPYRIGHT OF MAHIDOL UNIVERSITY

Transcript of FACTORS THAT INFLUENCE THAI CONSUMER’S BUYING …

FACTORS THAT INFLUENCE

THAI CONSUMER’S BUYING BEHAVIOR

FOR CHOCOLATE

SARINTHORN INPOOMMA

A THEMATIC PAPER SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE

OF MASTER OF MANAGEMENT COLLEGE OF

MANAGEMENT MAHIDOL UNIVERSITY

2014

COPYRIGHT OF MAHIDOL UNIVERSITY

Thematic paper

entitled

FACTORS THAT INFLUENCE

THAI CONSUMER’S BUYING BEHAVIOR

FOR CHOCOLATE

was submitted to the College of Management, Mahidol University

for the degree of Master of Management

on

Dec 21, 2014

……………………….….…..………

Asst. Prof. Nathasit Gerdsri,

Ph.D. Advisor

……………………….….…..………

Assoc. Prof. Annop Tanlamai,

Ph.D.

Dean

College of Management

Mahidol University

……………….………….…..………

Miss Sarinthorn Inpoomma

Candidate

……………………….….…..………

Asst. Prof. Pornkasem Kantamara,

Ed.D.

Chairperson

……………………….….…..………

Asst. Prof. Winai Wongsurawat,

Ph.D.

Committee member

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ACKNOWLEDGEMENTS

This research could not have been done without the support of researcher

beloved family with understanding and encouraging throughout her study.

Special thanks goes to Inpoomma family for their continued faith and

encouragement over this research and special thanks to my love Gettae,

Mr.Wattanapong Ratchatasap for his moral support and precious love, who was always

stand by me in my hard times during this research. Without them, I cannot finished this.

The researcher wishes to thanks her thematic paper adviser, Dr.Nathasit

Gerdsri for his suggestions and advices.

Sincere thanks goes to all participants who took part in this research.

Sarinthorn Inpoomma

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FACTORS THAT INFLUENCE THAIS CONSUMER’S BUYING BEHAVIOR

FOR CHOCOLATE

SARINTHORN INPOOMMA 5649128

M.M. (MARKETING MANAGEMENT)

THEMATIC PAPER ADVISORY COMMITTEE: ASSOC. PROF. NATHASIT

GERDSRI, Ph.D., ASST. PROF. PORNKASEM KANTAMARA, Ed.D., ASST.

PROF. WINAI WONGSURAWAT, Ph.D.

ABSTRACT

There have been several previous studies aiming to measure customer

behavior for chocolate in India. The purpose of this study are to understand more

about Thai consumer’s buying behavior for chocolate. This study would like to know

the factors that affect Thai consumer’s decision making process for buying chocolate

and the association among the factors that influence consumer’s buying behavior. Also

can create and develop marketing strategies and marketing plan. Quantitative

questionnaire survey has been use as a tool to collect primary data from 532 actual

consumer sample and 387 responses who have just purchased chocolate last one week.

The finding of this research conclude that three groups of variables, Emotional

benefits of chocolate which is consumers believe that chocolate have an effect with

emotion. Second groups of factor is Marketing program, consumer aware impulsive

product like chocolate and call to action when they perceived the marketing program.

And the last is Country of origin which is the country that be produce and establish the

brand of chocolate. The recommendation for this study is develop the marketing

program for chocolate product.

KEY WORDS: Chocolate / Buying behavior / Emotional Benefits / Country of origin

40 pages

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CONTENTS

Page

ACKNOWLEDGEMENTS ii

ABSTRACT iii

LIST OF TABLES vi

LIST OF FIGURES vii

CHAPTER I INTRODUCTION 1

1.1 History of Chocolate and Thailand Chocolate Market 1

1.2 Objective of the Study 4

1.3 Research Question 4

CHAPTER II LITERATURE REVIEW 5

2.1 Consumer Decision – Making Process 5

2.1.1 Consumer Decision – Making Process and

Compulsive Buying 5

2.1.2 Consumer Food Choice and Perception 6

2.1.3 Socioeconomic Conditions and Consumer Behavior 7

2.1.4 Brand Choice and Consumer Behavior 7

2.2 Consumer’s Buying Behavior 8

2.2.1 Complex Buying Behavior 8

2.2.2 Dissonance-Reducing Buyer Behavior 8

2.2.3 Habitual Buying Behavior 9

2.2.4 Variety Seeking Buying Behavior 9

CHAPTER III RESEARCH METHODOLOGY 10

3.1 Research Strategy and Design 10

3.2 Samples Selection 11

3.3 Survey Instrument 12

3.4 Data Collection 12

3.5 Data Analysis 13

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CONTENTS (cont.)

Page

CHAPTER IV RESEARCH FINDING AND ANALYSIS 14

4.1 The Analysis of Demographic Information of Samples 14

4.2 The Analysis of Reliability Statistics and KMO Bartlett’s Test 16

4.3 The Analytical Results for Factor Analysis 17

CHAPTER V CONCLUSION, LIMITATION AND RECOMMENDATION 21

5.1 Conclusion 21

5.2 Limitation of the Study 23

5.3 Recommendations of the Study 23

REFERENCES 24

APPENDICES 26

APPENDIX A: Questionnaire 27

BIOGRAPHY 40

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LIST OF TABLES

Table Page

4.1 Frequency and Percentage of Demographic Information from Samples 15

4.2 Reliability Statistics Summary from samples 16

4.3 KMO and Bartlett’s Test Summary from Samples 16

4.4 Total Variance Explained from Samples 17

4.5 Rotated Component Matrix from Samples 18

4.6 Screen Plot from Samples 19

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LIST OF FIGURES

Figure Page

1.1 Universe of Chocolate of Thai consumer 3

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CHAPTER I

INTRODUCTION

1.1 History of Chocolate and Thailand Chocolate Market

People have been eating cacao which is the dried partly fermented seeds of

Theobroma cacao or cacao tree, native to the deep tropical regions of Central and South

America. It is called seeds, cocoa beans, which are used to make cocoa mass, cocoa

powder, and chocolate. Theobroma cacao’s seeds used for making cocoa, chocolate, and

cocoa butter since at least 460-480 A.D. the estimated age of a cocoa residue found in

Mayan vessels discovered in Northeast Guatemala. (An, J Clii Nutr 1994)

Author stated that step back to 4000 years with an origin in the Amazon on

Orinoco basin but also Europeans have no idea about what is chocolate until it was

discovered by Columbus during his fourth voyage to the New World in 1502. Columbus

brought cacao beans to Spain’s King as a curiosity and was ignorant of its potential

commercial value. In 1528 fellow countryman Cortes observed Montezuma, emperor of

the Aztecs of Mexico, consuming a bitten drink consisting of burnt and ground cacao

nibs, maize, water, and spices, and he sent beans and recipes back to Spanish king. The

Spanish also added sugar and heated the mixture to improve deliciousness. British

eventually added milk to produce a blended chocolate beverage. Drinking cocoa

beverages became popular among the wealthy and privileged class. (An, J Clii Nutr

1994)

Although cocoa was consumed as a beverage for centuries, it was not used

in confections until the 9th century when the cocoa press was discovered in 1828. The

first eating chocolate was made by adding extracted cocoa butter to ground roasted

beans and sugar, this dark chocolate was produced from 1847. (Chocolate in

Perspective; Cocoa Butter a Unique Saturated Fat)

Swiss people invented milk chocolate in 1876 by processing ground cocoa

with sugar and dried milk solids. Cacao is now consumed not only in cocoa beverages

and chocolate confections but also in instant coffee mixes, milk, ice cream, puddings,

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meal beverages, soft drinks, syrups and toppings, dry cereals, cakes, cookies, and other

baked goods. (An, J Clii Nutr 1994)

Now chocolate products share consumer preferences among other

confectionery products as above, not only for their nutrition value, but especially due to

their emotional and functional benefits perceived by consumers as unique sensory. Also

flavor, brightness and complete melting in the mouth are some of the sensory attributes

that contribute to the uniqueness of chocolate (BECKETT, 2000).

Thai consumers define chocolate into 5 groups classified by quality of

chocolate and format. Firstly named other chocolate dessert like cake chocolate, ice

cream chocolate etc., Second named chocolate flavored snack like Glico Pocky, Alfie,

Tivoli, Loacker etc., Third is called pure chocolate coated like Kit Kat, Mars, Snicker,

M&M, Ferrero etc., Fourth is called pure chocolate plus inclusions like Hershey, Van

Houten, Dars etc., and the last is called pure chocolate like Hershey bar, Van houten,

Dove, Cadbury Dairy Milk etc., (Understanding Thai Consumers by Vitamin (FG 18-

30 yrs old, Sep’13)

This study will focusing on the chocolate in last 4 groups ; Moulded

Chocolate, Countline Chocolate, Chocco-panned chocolate, Suger-pannded chocolate

(see figure 1.1) (PATNAIK,PRADEEP KUMAR SAHOO,2012) because there are the

market leader and most popular brand in customer minds as you can see from the market

share above.

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Figure 1.1 Universe of Chocolate of Thai consumer

Also this study aims to improving chocolate business performance through

an understanding of customer’s preferences which is influence the consumer’s buying

behavior for chocolate product. As today’s chocolate market are growing, high

competitions, market have many brands selling the same products, consumers have a lot

of choices and many diverse factors influence their buying behavior.

Thailand market size of chocolate last year (2013) was 4,838 million baht.

And 2014 the market size is 5,328 million baht which is increase 10.1% growing.

Market leader is Kit Kat from Nestle (15.1% MS), Hershey (10.2% MS), M&M

(10.0%), Ferrero (8.6% MS) and Milo (4.5% MS) (Retail Index by Nielsen, Apr2014)

The ongoing urbanization trend in Thai society is fostering the spread of

Western food culture, including the consumption of milk, breakfast cereals and cheese

as well as chocolate. The strong economic recovery in the aftermath of the severe floods

has also led to a recovery in consumer confidence and spending on indulgence products.

The growth of modern retail channels is also reinforcing retail sales of chocolate

confectionery; particularly high-end imported brands as market leader brand are the

imported chocolate brand.

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Over the forecast period demand for chocolate confectionery in Thailand is

expected to approach maturity. However, the ongoing economic recovery together with

strengthened political stability will provide an opportunity for imported brands to

penetrate the Thai market in response to the greater purchasing power of Thai consumers

in major cities. (Chocolate Confectionery in Thailand, Euro monitor, Apr 2014) These

will be an opportunities for chocolate for growing in Thailand market. Also this study

is useful to the marketers as they can create various marketing programs that they

believe will be of interest to the consumers.

1.2 Objective of the Study

1.2.1 To understand more about Thai consumer’s buying behavior for

chocolate.

1.2.2 To know the factors that affect Thai consumer’s decision making

process for buying chocolate.

1.2.3 To know the association among the factors that influence Thai

consumer’s buying behavior for chocolate.

1.2.4 To create and develop marketing strategies and marketing plan for new

branded chocolate.

1.3 Research Question

What is the factor that influences Thais consumer’s buying behavior for

chocolate?

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CHAPTER II

LITERATURE REVIEW

The study was necessary to study, understand and apply the theory of

Consumer decision making process and Consumer buying behavior together with

relevant concept and researches. The concepts, theories and researches can be classified

into:

2.1 Consumer Decision – Making Process

2.2 Consumer Buying Behavior

2.1 Consumer Decision – Making Process

2.1.1 Consumer Decision – Making Process & Compulsive Buying

Consumer buying process offers two useful perspectives: the decision-

making process associated with consumer buying and the factors which affect the

buying process (Rowley, 1997). The writer stated that the consumers buying process

can be divided into personal, psychological, social and cultural factors.

Consumer’s decision-making process is influenced by many factors such as

cultural, social, personal and psychological. Cultural factors influence on consumer

behavior. It represents beliefs, in many cases, researchers was learn to act by interact or

observe other members of society. Social factors such as consumer small groups, family,

reference group, social roles and status can affect consumer responses and influence

their buying behavior. Personal factor such as age, occupation, education and economic

status. Psychological factor such as, motivation, perception, learning, beliefs, attitudes

and personality. Also Marketing can influence on consumers buying decision,

sometimes can make consumers not to think about the quality of the product when they

are so influenced by the marketing program. “Customer satisfaction is the major aim of

the marketing concept” (Dibb et al., 1994)

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The reasons behind consumer’s research are many seasons, consumer

information research has been focusing of many articles studying consumer behavior

during the last 30 years (Bettman, 1979). Many studies have provided information about

the measures of compulsive behavior, which help for analyzing compulsive buying

trend of consumers. The study of compulsive buying is a very important for consumer’s

behavior research. It was defined as “chronic, repetitive purchasing, that becomes a

primary response to negative events or feeling (Kotler and Armstrong, 2010). Many

studies have highlight the fact that compulsive buyers have a lower self-esteem, a higher

level of emotion, and a higher level of depression, and obsession if compared to other

consumers (Grunert et al., 1996). One of study talked about human food choice as one

of the basic and common components among consumers but is also one of the most

complex functions having multiples of influences. (Furst et al., 1996)

2.1.2 Consumer Food Choice and Perception

Consumer Food Choice and Perception Consumers appear to have much

more pragmatic considerations in mind when making their decisions. These

considerations include sensory aspects of food e.g., taste and quality (Brunsø K., Fjord,

T. A. and Grunert K. G., 2002) Quality and safety are thus two very important elements

in consumer’s food perception and decision-making associated with food choice

(Grunert et al., 1996).

Consumers purchasing decisions are normally based on their perception and

representations of quality and safety. However, quality and safety are the concepts that

cannot be easily to understand, because consumers are most likely to derive quality or

safety perceptions from other product cues, either intrinsic (e.g. appearance of the

product) or extrinsic cues (e.g. a quality label) (Grunert, 2005). Hence, it is quite

difficult to analyze and discuss all the potential determinants of food choice, because

food choice is a very complex issue in which many factors play a role, including

biological, psychological and cultural (Frewer and van Trijp, 2007; and Rozin, 2007).

In fact, perceptions of food quality and safety are influenced by

psychological and cultural factors rather than product experiences alone. (Shaharudin et

al., 2011) It is quite evident from studies that analyzed factors that influence food choice,

it is important to consider consumer’s cultural background (Overby et al., 2006;

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Namkung,and Jang, 2008). Study believe that people from different cultural

backgrounds have different perceptions and experiences related to food (Lennernas et

al., 1997). Hence it can be noticed that some consumers are more oriented towards food

quality, and for others food safety is a primary concern.

2.1.3 Socioeconomic Conditions and Consumer Behavior

Consumer behavior is also affected by the socioeconomic conditions of the

markets namely, income, mobility, media access. It has been observed that per capita

income and disposable income indicates the amount of resources consumers allocate to

consumer goods (Johansson and Moinpour, 1977).

More resources become available, consumers may desire more emotional

image attributes in products or brand. Personal values have been found to be the

underlying determinants of various aspects of consumer attitude and behavior (Peneau,

et al., 2006). Thus, values of product are the one of the most important influential factors

that affected type of needs for consumer which tried to satisfy through purchase and

consumption behaviors. (Debajani Sahoo and Shreya Garg, 2012)

2.1.4 Brand Choice and Consumer Behavior

Brand of a particular product plays a fundamental function in consumer’s

perception of a product. It helps in developing a market position, prestige and image of

the product and for these reasons the brand constitutes a mechanism of risk reduction

(Aaker, 1996). Hence, selection of brand is another major constituent of consumer

behavior. In the complex brand selection environment, there has been a widely reported

research work which discusses and reports that consumers defer product or brand

selection on a variety of factors (Tversky and Shafir, 1992 ; Dhar, 1997).

The buying behavior of consumers is the result of strongly held values and

attitudes of their perception into the world. They was position in it, from common sense

or from impulse. Consumers primarily face two kinds of purchase decisions, one is new

purchase such purchases are very complicated to be made by the buyer due to lack of

confidence in decision making and the second one is repurchase, where the buyers feel

comfortable and confident in such decisions owing to their prior experience in buying

the product (Babin et al., 1994)

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2.2 Consumer’s Buying Behavior

Consumer’s buying behavior can be broadly classified into four main

categories.

2.2.1 Complex Buying Behavior

Consumers engage in ‘Complex Buying Behavior’ when they are highly

involved in a purchase and are aware of significant differences among brands. This is

usually the case when the product is expensive, bought infrequently, risky and highly

self-expressive. (Manoj Patwardhan, Preeti Flora and Amit Gupta, 2010)

Complex Buying Behavior defines buying scenarios that are characterized

by high levels of consumer involvement in a purchase decision with significant amounts

of perceived differences between brands in the product category. Involvement refers to

actions the consumer must take to understand the product or service they are motivated

to buy. When high involvement is necessary, the consumer does whatever they can to

learn research, read reviews, talk to others, and "test drive" different models at retail

locations. (Online,marketmedialife.blogspot.com)

High involvement tends to be associated with products that are more

expensive, infrequently purchased, technologically advanced, and highly expressive of

the buyer's personality profile.

The involvement process helps the consumer understand the differences

between the brands of products they are motivated to buy. This process is where the

consumer develops their beliefs and attitudes. These beliefs and attitudes, along with

their buying motives, will influence the consumer's decision.

2.2.2 Dissonance-Reducing Buyer Behavior

“Dissonance-Reducing Buyer Behavior” is observed when the consumer is

highly involved in a purchase but sees little difference in brands. In this case, the buyer

will shop around to learn what is available but will buy fairly quickly, perhaps

responding primarily to a good price or to purchase convenience. After the purchase,

the consumer might experience dissonance that stems from noticing certain disquieting

features or hearing favorable things about other brands. (Manoj Patwardhan, Preeti Flora

and Amit Gupta, 2010)

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Same as Complex Buying Behavior, consumers with Dissonance-Reducing

Buying Behavior have high amounts of involvement. However, buyers in this

behavioral situation perceive very few differences among the brands they are selecting

products from. The key word here is perceiving. There may be many real differences

between the different brands, however the buyer's beliefs about the other brands are that

there are very similar or essentially the same.

2.2.3 Habitual Buying Behavior

In “Habitual Buying Behavior” products are brought under the conditions

of low involvement and the absence of significant brand differences, e.g., salt.

Consumers have little involvement in this product category. (Manoj Patwardhan, Preeti

Flora and Amit Gupta, 2010)

Habitual Buying Behavior refers to situations where a consumer has low

involvement in a purchase, and is perceived very few significant differences between

brands in a given product category. Most of them are everyday use products and

commodities, such as toilet paper, salt and pepper etc.

2.2.4 Variety Seeking Buying Behavior

“Variety Seeking Buying Behavior” involves buying situations,

characterized by low involvement but significant brand differences. Here consumers

often do a lot of brand switching for the sake of variety rather than dissatisfaction.

(Manoj Patwardhan, Preeti Flora and Amit Gupta, 2010)

Variety Seeking Buying Behavior refers to situations where there is low

consumer involvement, but the consumer perceives significant differences between the

brand options in front of them. In variety seeking situations consumers tend to do a lot

of brand switching. Author state that there is no real brand loyalty.

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CHAPTER III

RESEARCH METHODOLOGY

The main purpose of this chapter is to introduce the methods and techniques

used to collect the primary data required in this research. It will emphasize the data

collection process and reasons why quantitative method is used rather than qualitative

methods as well as the explanation of each type. As data collection and its analysis have

an important influence on the quality of the research, it is imperative to carefully define

each step of the process which can classify into:

3.1 Research Strategy and design

3.2 Samples selection

3.3 Survey Instrument

3.4 Data collection

3.5 Data analysis

3.1 Research Strategy and Design

When conducting a research, selecting the right methodology is imperative

for the research as it will affect the relevant information extract from the data. From

previous studies, there are used a qualitative method for carry out a research.

According to McDaniel and Gates (2002), qualitative research is a research

which findings are not obtained from quantitative or quantification analysis and usually

uses to examine the attitudes, feelings, and motivations of the respondents. The simple

techniques which has been used in qualitative method is to set up in-depth interviews or

conduct a small number of focus groups in order to gain consumers’ insights. However,

there are some drawbacks for this method. First, since only small samples are normally

used in qualitative research, it is strongly rely on the researcher’s subjectivity and

interpretation which is hard to make it reliable that much. As a result, the research

findings can be biased and clear-cut answer is hard to provide by this approach

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(McDaniel and Gates, 2002).In contrast, quantitative research is concerned with

mathematical analysis aiming to classify features, counting, and contrast statistical

models in an attempt to explain what is observed which the data collected are in form

of number and statistics (McDaniel and Gates, 2002). Quantitative research often

involves the use of structured questions where the response options have been

predetermined and a large number of respondents are involved. Furthermore,

quantitative research searches for implication from a larger population, giving a result

that illustrates statistical analysis capability with high reliability (Sae-Jiu, 2007).

Therefore in this research, the researcher has separated into two steps: desk

research and survey research. Tull and Hawkins (1984) posited that in any research, the

first step is to search for secondary data which were conducted for some purposed in the

previous study because these data provide relevant information and easily obtain for the

researcher, helps to formulate a research design suitably. According to this, the desk

research was conducted with the review of the relevant literature which are relating to

global buying behavior of chocolate. The second step of the study is to gather primary

data through a questionnaire-based survey method. Therefore, in order to answer the

objectives of this research, the large-scale sample is needed and after considering several

benefits offered, quantitative survey research method is suitable for collect the primary

data along with analyze the obtaining data for the study. Also to make a comparison

with previous study within the same context.

3.2 Samples Selection

In this study that due to the time and research constraints the researcher

relies on using nonprobability sampling method with convenience samples technique

from correspondence who have purchased chocolate with in last week which is easy to

recognized their behavior and experience from the last purchase.

3.3 Survey Instrument

The questionnaire composed of attributes which are analyzed form

secondary data. This research have concluded four variables of buying behavior of

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chocolate which are Physical Aspect of the product as taste, flavor, packaging, and price.

Influencer as friend and family who have influenced and gifting occasion. Brand

component as a brand name, country of origin, logos and packaging. Last is Marketing

Aspect of the product such as advertising, communication and availability.

Part1. Screening Question. Selected people who have experience and

purchased chocolate in last one week.

Part2. General Question. Base on previous literature review, the

questionnaire was developed and modified from the context buying behavior of

chocolate.

Part3. Specific Question. Base on previous literature review too and

conclusion about variables and all attributes. Each question scales from Number 1 with

the statement “Strongly Disagree” to number 5 with the statement “Strongly Agree”

Part4. Comprise of demographic information such as gender, age, monthly

income, occupation. The questions are close-ended questionnaire and the answer of each

question is check list type with a total number of 5 questions.

3.4 Data Collection

In this study, data used within this research comprise of two types of data

which are secondary data and primary data.

1. Secondary data is the study and research from essays in scholastic journal,

magazine, periodicals, newspapers, and internet.

2. Primary data is the data received from questionnaire instruments that has

been self-administered by sample group which are who have purchased chocolate with

in last week and age not over 30 years old. Total number of questionnaire is 532

responses, and 387 responses who have purchased chocolate in last week.

3.5 Data Analysis

Total 387 surveys were considered valid and were used in the final analysis

through the SPSS programing statistical analysis as follow:

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3.5.1 Reliability Statistics Analysis by using Cronbach alpha for measuring

the reliability of the questionnaire. Malhotra (2004) states that the coefficient varies

from 0-1. Value of 6.0 or less generally signifies unsatisfactory internal consistency

reliability.

3.5.2 Descriptive Statistics Analysis by using frequency and percentage to

explain demographic data which consist of gender, age, monthly income and

occupation.

3.5.3 The researcher used factor analysis and KMO scores by using factor

analysis for identifying a smaller number of factors underlying a large number of

observed variables. Variables that have a high correlation between them are largely

independent of other subsets of variables, are combined into factors. As rule of thumb,

a sample size of 200-300 is considered to be adequate for proper analysis (A.S. Gaur

and S.S. Gaur 2009) Kaiser Meyer – Olkin (KMO) measure of sampling adequacy, a

popular diagnostic measure, tests whether the partial correlations among variables are

small. It is a measure of homogeneity of variables (Sharma, 1996). KMO scores statistic

recommends bare minimum of .5and that values between.5 and.7 are mediocre, values

between .7 and .8 are good, values between .8 and.9 are great and values above .9 are

superb (Hutcheso & Sofroniou,1999)

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CHAPTER IV

RESEARCH FINDING AND ANALYSIS

In this chapter, the author presents the empirical study of the research along

with an analysis of the empirical study. The analysis part will be conducted by using the

framework of references from the second chapter and method given in the third chapter.

The results of this research will be presented within 3 parts as followed:

4.1 The analysis of demographic information of samples

4.2 The analysis of Reliability Statistic and KMO Bartlett’s Test

4.3 The Analytical Results for Factor Analysis

4.1 The Analysis of Demographic Information of Samples

The distribution of demographic variable of the sample indicated that most

of the respondents were young adult generation who are students and also working in

private company with the low income. Among 387 respondents 72.9 percent were

female (n = 282) and 26.4 percent were male (n = 102). More than 40 percent (n = 143)

were between 27-30 years old, 37.7 percent (n = 146) were students and 32.3 percent

(n=125) were working for private company and 26.9 percent have income 10,000 to

20,000 baht per month. The detail of frequency and percentage also provide in Table

4.1.

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Table 4.1 Frequency and Percentage of Demographic Information from Samples

Demographic and General Information Frequency Percentage

1. Sex

Male 102 26.4

Female 282 72.9

Not specific 3 0.7

Total 387 100.00

2. Age

15-18 Years old 53 13.7

15-18 Years old 84 21.7

19-22 Years old 104 26.9

23-26 Years old 143 37.0

Not specific 3 0.8

Total 387 100.00

3. Income per month

Below 10,000 94 24.3

10,000 – 20,000 THB 104 26.9

20,001 – 30,000 THB 81 20.9

30,001 – 40,000 THB 50 12.9

40,001 – 50,000 THB 18 4.7

Over 50,001 THB 37 9.6

Not specific 3 0.8

Total 387 100.00

4. Occupation

Business Owner 45 11.6

Company Employee 125 32.3

Students 146 37.7

Government Employee 52 13.4

Others 8 2.1

Not specific 11 2.8

Total 387 100.00

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4.2 The Analysis of Reliability Statistics and KMO Bartlett’s Test

For the questionnaire which used for this research, the amount Cronbach

alpha coefficient was obtained as 0.942. Hence it concluded that the desired

questionnaire enjoyed the strongly of reliability level.

Table 4.2 Reliability Statistics Summary from samples

Case Processing Summary

N %

Cases

Valid 22 100.0

Excludeda 0 .0

Total 22 100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics

Cronbach's

Alpha

N of Items

.942 41

Table 4.3 KMO and Bartlett’s Test Summary from Samples

The Kraiser-Meyer-Olkin value of 0.901 indicate that pattern of correlation

were relatively acceptable (Kraiser, 1974). Future, Bartlett.s test of sphericity (Bartlett,

1950) was highly significant (P=.000; p<0.001) and hence the factor analysis conducted

was appropriate. As table below.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .901

Bartlett's Test of Sphericity

Approx. Chi-Square 2165.710

df 78

Sig. .000

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4.3 The Analytical Results for Factor Analysis

As show on the table below; Total variance explained conclude that after

cut all low scored, cross-loading, mismatch meaning out, can groups into 3 components.

These qualify to explain minimum at 63.418% of the variance in the model from the

rotated component matrix. And all 3 component have initial eigenvalues > 1 and

percentage of cumulative are not less than 60%.

Table 4.4 Total Variance Explained from Samples

Total Variance Explained

Component Initial Eigenvalues Rotation Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative %

1 5.763 44.333 44.333 3.389 26.069 26.069

2 1.468 11.296 55.629 2.604 20.033 46.101

3 1.013 7.789 63.418 2.251 17.317 63.418

4 .703 5.411 68.829

5 .625 4.810 73.639

6 .579 4.451 78.090

7 .517 3.980 82.069

8 .491 3.777 85.847

9 .436 3.357 89.204

10 .420 3.234 92.438

11 .404 3.106 95.543

12 .326 2.506 98.049

13 .254 1.951 100.000

Extraction Method: Principal Component Analysis.

18  

Table 4.5 Rotated Component Matrix from Samples

Rotated Component Matrixa

Component

1 2 3

Specific35 I think expensive chocolate

have good taste

.801

Specific14 I think imported brand

chocolate has good taste

.776

Specific10 I prefer to buy chocolate

for releasing my stress

.713

Specific6 I prefer chocolate even it

has high calories

.679

Specific34 I feel happy when I eat

chocolate

.649

Specific32 I prefer chocolate for

indulge myself

.602

Specific27 I prefer chocolate which

have celebrities endorsement

.769

Specific19 In store promotion is the

factor that influenced me when buy

chocolate

.737

Specific17 Print advertising is the

factor that influenced me when buy

chocolate

.733

Specific20 Activities in store have an

impact on me when buy chocolate

.653

Specific11 I prefer to buy imported

brand chocolate

.831

Specific26 I think local brand

chocolate has good taste

.731

Specific13 I prefer to buy local brand

chocolate

.643

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.a

a. Rotation converged in 5 iterations.

19  

Table 4.6 Screen Plot from Samples

From the table 4.5: Rotated Component Matrix from samples, factor loading

less than 0.4 were not shown. From the table 4.6: Scree plot with Eigen values greater

than 1 converged and suggested a 3 factor solution. There was a sharp break in the size

of Eigen values which resulted in change from steep to shallow after the first 3 factors.

The Eigen values also show more than 1.0. This suggested that a 3 factors solution may

be the right choice.

The obtained result from the table 4.4 Rotated Component Matrix shown

that variables as below:

Specific35 “I think expensive chocolate have good taste”

Specific14 “I think imported brand chocolate has good taste”

Specific10 “I prefer to buy chocolate for releasing my stress”

Specific6 “I prefer chocolate even it has high calories”

Specific34 “I feel happy when I eat chocolate”

Specific32 “I prefer chocolate for indulge myself”

20  

All variables had the highest loading at the first component and hence

grouped under factor name “Emotional Benefits”. As specific question which are in this

component talked about the personal reason for purchased chocolate and personal

opinion when purchased chocolate.

Variables as below, had the highest loading at the second component and

hence grouped under the factor name “Marketing Program”. All question are about the

communication and marketing program such celebrity’s endorsement, in-store

promotion, print advertising and activities or event for chocolate.

Specific27 “I prefer chocolate which have celebrities endorsement”

Specific19 “In store promotion is the factor that influenced me when buy

chocolate”

Specific17 “Print advertising is the factor that influenced me when buy

chocolate”

Specific20 “Activities in store have an impact on me when buy chocolate”

Variables as below, had the highest loading at the third component and

hence grouped under the factor name “Country of Origin” which are from specific

question about the country of origin of product such imported and local producer.

Specific11 “I prefer to buy imported brand chocolate”

Specific26 “I think local brand chocolate has good taste”

Specific13 “I prefer to buy local brand chocolate”

21

CHAPTER V

CONCLUSION, LIMITATION

AND RECOMMENDATION

This chapter discusses the purpose of this study that has the five objectives

purpose in the beginning chapter which are to know about the factors that effected

consumer decision process for buying behavior and the association among each factors

and to create and develop for marketing strategies and marketing plan for chocolate.

5.1 Conclusion

This study presented an empirical approach to understand the factor that

influenced Thais consumer’s buying behavior when they purchased or planned to

purchase chocolate from the market. The study found 3 groups that effected their

behavior were Emotional benefits, Marketing Program and Country of origin.

One of specific question from component one is “I buy chocolate for indulge

myself” or “I feel happy when I eat chocolate” are show that people who purchased

chocolate have their personal perception that chocolate can heal their emotion. Also one

question which have high loading score is about believe that chocolate can relief their

stressing that also show people willingness to fulfill the need and improving their mood.

With all this contradictory information on the effects of chocolate on mood, which has

to observe from despondence’s experiences and decide whether chocolate is right for

them. But, certainly, large amounts of chocolate will effected their physically or

emotionally one way or another. (Michael Russell, 2014) In the same way we can said

that chocolate is the impulse product which is consumer do not plan to buy one and also

they will think about chocolate as a commodity product. Means that have to put more

passionate from insight to motivate them to have an action. Also lead to the second

group is marketing program, which are including celebrities’ endorsement, in store

promotion, print advertising and activities in store. Refer to Thai market chocolate

22

nowadays still have small consumption that will generate income for company not too

much. So marketing activities which are above the line as others commodity product

will not happen as much. In opposite way a lot of promotion, in store media and

activities are very popular for Thais market. The result from study also show that

marketing activities is the one factor that influenced buying decision process for them.

Even though chocolate buying behavior is impulsive, research suggests that the relative

accessibility of inputs such as costs versus the benefits of impulsiveness influences

impulsive behavior. Impulsiveness is unaffected by cost highlighting arguments which

explains the ineffectiveness of advertisements. When the benefit of impulsiveness was

the pleasure of yielding to temptation, the advertisements, that 'triggered the desire' or

'highlighted the benefits of giving in to the temptation' appealed most to their buying

behavior. Thus, the benefits are relatively non-influential in judgment. Thus,

advertisements that justify the cost of impulsiveness can help provoke impulsiveness in

such consumers. (Rook, Dennis W. and Fisher, Robert J., 1995).

The last group is country of origin, which is the country of manufacture,

production, or growth where an article or product comes from also can say “Made-in

image” (Wikipedia, Online). From the study have group of country of origin which

come from specific question about imported brand and local brand. Respondent have

strongly agree in imported brand of chocolate will have good taste and would like to

buy for gift. As chocolate not created from the Asian country and not related with Thai

consumer as much so they have to trust the brand and have to have strongly awareness

of product. In the globalized marketplace, consumers are paying more attention to the

country of origin and authenticity of chocolate more and more, heritage will become the

dominant criteria for measuring quality and building their trust with consumers (Jorana

Jonhson, 2013)

According to three groups of factors that influenced Thai consumer’s buying

behavior for chocolate which can answer the research question as above and also can

develop the marketing strategies and marketing plan by focusing on the group of factors

as above for chocolate product which still have more potential for Thai’s Market.

23

5.2 Limitations of the Study

This study has two major limitations. First, it is limited to people who have

purchase chocolate for last week, which mean the respondent will be the heavy user for

chocolate. Focus only people who chocolate lover may not be broadly to all consumers

which can purchase chocolate either. Secondly, the age of respondent should be added

more than 30 years old to conduct for further research in order to strengthen this research

in term of all segmentation.

5.3 Recommendations of the Study

Thai chocolate market nowadays, mostly chocolate product will be

communicated with the taste of product only. After this study we found that have four

groups of factors that influence customer’s behavior about chocolate product which are

including emotional benefits, marketing program and country of origin. I would like to

recommend for marketing plan of chocolate which we should communicate for

emotional benefits and also country that product was produce and establish the brand

for make consumer trust the quality and brand image of product. According to chocolate

is the impulse product which customer normally not plan to purchase then we have to

create awareness and create need in store level as the result of this study that marketing

program have an effect on buying behavior and also we should communicate to

customer for country that product was invent and establish since which years for make

consumer trust in the brand.

24  

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26  

APPENDICES

27  

APPENDIX A: Questionnaire

FACTORS THAT INFLUENCE CONSUMER'S BUYING BEHAVIOR FOR CHOCOLATE AMONG YOUNG THAIS

We are postgraduate student at the College of Management at Mahidol University. We would like to invite you to participate in research study, which aims at collecting data

for a thematic project. Your individual privacy and confidentiality of the information you provide will be

maintained in all published and written data analysis resulting from the study. This questionnaire will ask you about your buying behavior for chocolate.

This questionnaire will take about 10 minutes.

* Required

Definition of Chocolate

28  

Example of size of chocolate

Have you purchase chocolate last week? * คณไดซอชอคโกแลตในอาทตยทผานมาบางหรอไม?

o Yes

o No

Do you purchase chocolate occasionally or on usual basis? * คณซอชอคโกแลตเพอโอกาสพเศษๆหรอซออยแลวเปนประจา?

o Occasionally / เพอโอกาสพเศษ

o Usual basis / เปนประจา

What is the brand that you prefer? (You can should more than one) เมอคณซอชอคโกแลต แบรนดใดทคณเลอกซอเปนอนดบแรก (คณสามารถเลอกไดมากกวา 1 ขอ)

o Kit Kat

o Milo

o Nestle

o Hershey

o Ferrero

o M&M

o Snickers

o Mars

o Toblerone

o Lindt

o Van Houten

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o Cadbury Dairy Milk

o Other:

Which type of packaging that you prefer? เมอคณซอชอคโกแลต แพคเกจจงแบบไหนทคณเลอกซอเปนอนดบแรก?

o Piece / ชน

o Bag / ถง

o Box / กลอง

How often that you purchase chocolate? คณซอชอคโกแลตบอยแคไหน?

o Several times per day / หลายครงตอหนงวน

o Once a day / หนงครงตอวน

o Several times per week / หลายครงตอสปดาห

o Once a week / อาทตยละครง

o Once a month / เดอนละครง

o Other:

Which size of chocolate that you purchase the most? เมอคณซอชอคโกแลต ขนาดไหนทคณเลอกซอเปนอนดบแรก?

o 10 - 15 g.

o 20 - 50 g.

o 100 - 150 g.

o 200 - 250 g.

How much do you spend on chocolate? คณใชเงนเทาไหรตอการเลอกซอชอคโกแลตตอครง?

o 10-50 Baht

o 50-100 Baht

o 100-150 Baht

o 150-200 Baht

o 200-250 Baht

What are sweet items beside chocolate that you preferred? (You can should more than one) คณเลอกของหวานอยางอนอกไหม นอกเหนอไปจากชอคโกแลต? (คณสามารถเลอกไดมากกวา 1 ขอ)

o Candy

30  

o Bakery

o Ice-cream

o Beverages

o Fruits

o Other:

How do you get the information about chocolate? (You can should more than one) คณไดรบขาวสารเกยวกบชอคโกแลตจากทไหนบาง (คณสามารถเลอกไดมากกวา 1 ขอ)

o Friends / เพอน

o Family / ครอบครว

o Online / Website / Blogger / ออนไลน / เวบไซด / บลอคเกอร

o TV Advertising / Radio / โฆษณาทว / วทย

o Magazine / Newspaper / นตยสาร / หนงสอพมพ

o Other:

Where do you purchase chocolate mostly? คณซอชอคโกแลตจากทไหนบอยทสด?

o Convenience Store / รานสะดวกซอ

o Department store / หางสรรพสนคา

o Hypermarket / ไฮเปอรมารเกต เชน Tesco Lotus , Big C

o Gas station / รานคาในปมนามน

o Supermarket / ซปเปอรมารเกต เชน Tops

o Fresh market / ตลาดสด

o Mom and Pop shop / รานคาเลกๆในชมชน

Which type of chocolate that you preferred the most? ชอคโกแลตแบบไหนทคณเลอกซอบอยครงทสด?

o Moulded chocolate – Comprising slab chocolate like Dairy Milk chocolate etc. These are made by pouring the ingredients into moulds. Like Hershey bar, Cadbury Dairy milk, Van Hauten. / ชอคโกแลตททาจากชอคโกแลตและนม เทสวนผสมทงหมดลงในแมพมพ ออกมาเปนลกษณะบาร เชน เฮอรชย ชอคโกแลตบาร, แคดเบอร เดรมลด, แวน ฮเตนท เปนตน

o Countline chocolate – Comprising bars like Kit Kat, Nestle etc. These have ingredients others than chocolate, making for chunky bites.

31  

/ ชอคโกแลตทมสวนผสมมากกวาชอคโกแลตและนม เชน เวเฟอร, ชอคโกแลตชพ มลกษณะเปนชนพอดคา เชน คทแคท, เนสทเล เปนตน

o Choco-panned chocolate – Comprising chocolate forms like Butterscotch, Nutties, Tiffuns. Like Snicker, Mars etc. / ชอคโกแลตทมสวนผสมมากกวาชอคโกแลตและนม เชน ถว, บตเตอร, คาราเมล, ผลไมแหง เชน สนกเกอร, มาร เปนตน

o Sugar-panned chocolate – Comprising chocolate forms such as M&M, Gems. These generally have a sugar coating on the outside. / ชอคโกแลตทมการเคลอบนาตาลเอาไวดานนอก เชน เอมแอนดเอม เปนตน

o Option 5

What is flavor that you mostly purchase? (Please rank from 4 most preferred to 1 less preferred ) ชอคโกแลตรสชาตใดทคณเลอกซอบอย กรณาใหคะแนน 4 เทากบ ซอบอยครง ไปจนถง 1 เทากบซอนอยสดหรอไมเคยซอเลย

1 2 3 4

Chocolate filled nuts. / ชอคโกแลตสอดไสถว

Chocolate filled with caramel. / ชอคโกแลตสอไสคาราเมล

Chocolate filled with dried fruits. / ชอคโกแลตสอดไสผลไมแหง

Chocolate filled with waffles or biscuits. / ชอคโกแลตสอดไสเวเฟอรหรอบสกต

Please indicate to what extend you agree or disagree with each of the following statement.ร กรณาแสดงความคดเหนของทานกบขอความเหลาน?

Strongly Disagree

Disagree Agree Strongly

Agree

I prefer chocolate milk / ฉนชอบชอคโกแลตนม

I prefer dark chocolate / ฉนชอบดารกชอคโกแลต

I prefer white chocolate / ฉนชอบชอคโกแลตขาว

32  

Strongly Disagree

Disagree Agree Strongly

Agree

I prefer chocolate with low calories / ฉนชอบชอคโกแลตทมแคลอรตา

Price of chocolate is the most important factor for you to buy chocolate / ราคาของ ชอคโกแลต เปนปจจยทสาคญทสดสาหรบคณเวลาซอชอคโกแลต

I prefer chocolate even it has high calories / ฉนชอบชอคโกแลตถงแมจะมแคลลอรสง

Luxury packaging of chocolate is the most important factor for you to buy chocolate / บรรจภณฑท หรหราของ ชอคโกแลต เปนปจจยทสาคญทสดสาหรบคณเวลาซอชอคโกแลต

Famous brand of chocolate is

33  

Strongly Disagree

Disagree Agree Strongly

Agree

the most important factor for you to buy chocolate / แบรนดทมชอเสยงของชอคโกแลตเปนปจจยทสาคญทสดสาหรบคณเวลาซอชอคโกแลต I think chocolate is the best gift for special occasion / ฉนคดวาชอคโกแลตเปนของขวญทดทสดสาหรบโอกาสพเศษ

I prefer to buy chocolate for releasing my stress / ฉนชอบทจะซอชอคโกแลตสาหรบชวยผอนคลายความเครยด

I prefer to buy imported brand chocolate / ฉนชอบชอคโกแลตทเปนสนคานาเขา

I prefer to buy chocolate as gift / ฉนชอบซอชอคโกแลตเปนของขวญ

I prefer to buy local brand chocolate / ฉน

34  

Strongly Disagree

Disagree Agree Strongly

Agree

ชอบซอชอคโกแลตแบรนดทองถน

I think imported brand chocolate has good taste / ฉนคดวาชอคโกแลตทนาเขาจากตางประเทศมรสชาตอรอย

I buy chocolate because i saw their advertisement online / ฉนซอชอคโกแลตเพราะเหนโฆษณาทางอนเตอรเนต

TV commercial is the factor that influenced me when buy chocolate / โฆษณาทางทวมผลตอฉนเวลาเลอกซอชอตโกแลต

Print advertising is the factor that influenced me when buy chocolate / ใบปดประกาศโฆษณามผลตอฉนเวลาเลอกซอชอคโกแลต

In store promotion is the factor that

35  

Strongly Disagree

Disagree Agree Strongly

Agree

influenced me when buy chocolate / โปรโมชนในรานมผลตอฉนในการเลอกซอชอคโกแลต Friend and family are the factors that influenced me when buy chocolate / เพอนและครอบครวมผลตอฉนเวลาเลอกซอชอคโกแลต

Activities in store have an impact on me when buy chocolate / กจกรรมในรานคามผลตอฉนในการเลอกซอชอคโกแลต

I think packaging which can keep good quality is the factor that important for me to buy chocolate / ฉนคดวาบรรจภณฑทสามารถเกบรกษาคณภาพสนคาไดมผลตอการเลอกซอชอคโกแลต

Logo and Brands on packaging is the most attractive

36  

Strongly Disagree

Disagree Agree Strongly

Agree

factor for me to buy chocolate / โลโกและตราสญลกษณมผลตอฉนในการเลอกซอชอคโกแลต I buy chocolate which have low price / ฉนเลอกซอชอคโกแลตทมราคาถก

I buy chocolate which has promotion / ฉนเลอกทจะซอชอคโกแลตทมโปรโมชน

I buy only the imported brand chocolate / ฉนซอชอคโกแลตเฉพาะทนาเขาจากตางประเทศเทานน

I think local brand chocolate has good taste / ฉนคดวาชอคโกแลตทองถนรสชาตด

I prefer chocolate which have celebrities endorsement / ฉนเลอกซอชอคโกแลตทมดาราหรอผมชอเสยงเปนพรเซนเตอร

37  

Strongly Disagree

Disagree Agree Strongly

Agree

I think imported brand chocolate is expensive / ฉนคดวาชอคโกแลตทนาเขาจากตางประเทศมราคาแพง

I think chocolate is good for health / ฉนคดวาชอคโกแลตดตอสขภาพ

I think chocolate is source of energy / ฉนคดวาชอคโกแลตเปนแหลงพลงงาน

I prefer chocolate when I need something sweet / ฉนเลอกซอชอคโกแลต เมอเวลาตองการของหวานใหกบรางกาย

I prefer chocolate for indulge myself / ฉนเลอกซอชอคโกแลตเพราะความตองการสวนตว

I prefer to buy chocolate for cooking / ฉนซอชอคโกแลตมาทาอาหาร

38  

Strongly Disagree

Disagree Agree Strongly

Agree

I feel happy when I eat chocolate / ฉนรสกมความสขเวลากนชอคโกแลต

I think expensive chocolate have good taste / ฉนคดสาชอคโกแลตราคาแพงจะมรสชาตด

I prefer to buy chocolate when I have party / ฉนเลอกซอชอคโกแลตเวลามงานเลยงสงสรรค

I prefer to buy chocolate for special person / ฉนเลอกซอชอคโกแลตใหคนพเศษ

Please select your gender. กรณาระบเพศของคณ

o Male / ผชาย

o Female / ผหญง

Please select your age range. กรณาระบอายของคณ

o 15-18 years old

o 19-22 years old

o 23-26 years old

o 27-30 years old

What is your monthly income? กรณาระบรายไดตอเดอนของคณ

39  

o Below 10,000 THB

o 10,000 – 20,000 THB

o 20,001 – 30,000 THB

o 30,001 – 40,000 THB

o 40,001 – 50,000 THB

o Over 50,001 THB

Please select your education level. กรณาระบการศกษาของคณ

o Less than high school

o High school graduate

o Bachelor's degree

o Master's degree

o Doctoral

o Other:

Please select your occupation. กรณาระบอาชพของคณ

o Government Employee

o Company Employee

o Business Owner

o Students

o Other:

What is your hobbies? (You can should more than one) อะไรทชอบทาในเวลาวาง? (คณสามารถเลอกไดมากกวา 1 ขอ)

o Reading / อานหนงสอ

o Watching movie / ดภาพยนตร

o Surfing internet / เลนอนเตอรเนต

o Shopping / ชอปปง

o Travelling / ทองเทยว

o Party / สงสรรค

o Cooking / ทาอาหาร

o Other:

40  

BIOGRAPHY

NAME Miss Sarinthorn Inpoomma

DATE OF BIRTH 8 August 1987

PLACE OF BIRTH Bangkok, Thailand

INSTITUTIONS ATTENDED Bachelor of Social Administration

Social Administration Faculty,

Thammasat University, 2010

RESEARCH GRANTS -

HOME ADDRESS 55/156 Passorn Village 8,

Kanjanaphisak Rd., Bangyai, Bangyai,

Nonthaburi, Thailand 11140

EMPLOYMENT ADDRESS Mondelez International (Thailand)

Co., Ltd. 35th floor, Q House Lumpini

Tower, 1 South Sathorn Rd.,

Tungmahamek, Sathorn, Bangkok

Thailand 10210

PUBLICATION / PRESENTATION -