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Investigating Factors Influencing Consumers’ Purchase Intention and Decisions towards Bubble Tea in Phnom Penh, Cambodia

Sambath Phou

Royal University of Phnom Penh

Sokha Norng

ACLEDA University of Business

Orvatey Hann

Royal University of Phnom Penh

ISSN: 3078-4131 (Print)

DOI: https://doi.org/10.XXXXX/XXXXX

Keywords: Purchase Intention, Purchase Decision, Taiwan Bubble Tea, Conjoint Analysis Approach; Theory of Reasoned Action, CFA, HTMT Ratio, SEM

Published: 2024-08-30

How to Cite: Phou.S., Norng.S., & Hann.O.(2024). Investigating Factors Influencing Consumers’ Purchase Intention and Decisions towards Bubble Tea in Phnom Penh, Cambodia. Cambodia Journal for Business and Professional Practice, 2024(1), 01–30. https://doi.org/10.XXXXX/XXXXX

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Abstract

Bubble tea was invented in Taiwan in the mid-1980s, and its popularity has taken the world by strom in recent years, particularly the first, second, and third largest markets in Southeast Asia were Indonesia, Thailand, and Vietnam, respectively. Bubble teas entered Cambodian markets in the early 2000s and in recent years expanded throughout the country with many different brands, namely Tiger Sugar, Xing Fu Tang, KOI, Gong Cha, An Cha Taiwan Milk Tea, Chatime, etc., making the bubble tea business an intensely competitive industry. Hence, this study aims to empirically investigate the important factors that influence consumers' purchase intention and decision towards bubble tea in Phnom Penh, the capital city of Cambodia. The study collected data from 400 bubble tea customers while they were buying the drinks from bubble tea shops in Phnom Penh, Cambodia. Using the Structural Equation Modeling (SEM) technique, the study found that product quality, price, promotion, location, perceived value, hedonic value, brand image, and atmosphere of the shop positively influence consumers' intention to purchase bubble tea. Atmosphere of the shop not only positively influence consumers ‘intention to purchase the bubble tea but also significantly influence their decision to purchase the drinks. In turn, purchase intention has a significantly positive influence on purchase decisions. However, E-WOM does not have any impact on purchase intention. Based on these findings, the study recommends that bubble tea shop owners in Phnom Penh city improve these factors to attract and keep consumers for longer business performance.

Authors’ Biography

Sambath Phou is a full-time professor and Head of the International Business Management (IBM) Department, the Royal University of Phnom Penh. He has taught English, Marketing, Strategic Management and Research Methodology at various universities from 2003 to 2005 and from 2013 until present days. He has published scholarly articles in, among others, Tourism Management, International Journal of Tourism Research, Southwest Review of International Business Research, Annual of Academic of Marketing Science, and Annual Decision Science Institute (DSI). In addition, he has decades of experiences in marketing, sales and administration and management in some businesses, particularly real estate development business and taxation.

Sokha Norng was born in 1979 in Kampong Cham Province and he hold his PhD in Business Administration in 2022 from Beltei International University. He graduated his MBA in General Management from Assumption University, Thailand in 2011 and graduated his Bed. In TEFL from IFL in 2004. Dr. Norng's field of research falls into business, marketing, leadership and education technology. His main focus is on consumer's attitudes and behavior in product/service purchase by utilizing technology adoption theory. He used to be the Assistant Professor and holds his current position as a Director of Graduate School and Chief Center for Research & Innovation, at ACLEDA University of Business. From 2004 to 2015, he used to hold two the academic positions at two other universities in Cambodia. He has been teaching at higher education level for nearly 20 years in the relevant disciplines.

Orvatey Hann got her Bachelor of Science in International Business Management (IBM), the Royal University of Phnom Penh in 2023 and Bachelor of Education in Teaching English as a Foreign Language (TEFL) from the Institute of Foreign Languages, Royal University in Phnom Penh in 2024. During her studies at the Royal University in Phnom, she had an Exchange Opportunities to Vienna University of Economics and Business, Austria. Currently, she was awarded a full scholarship by the Italian Government to pursue her Master of Business Administration at the University of Turin in Italy for the Academic Year 2024-2026. She has presented her research work at both local and international conferences such as IBTSS Conference and International Conference on Investment and Talent Development (ICIMTD) in Nanua, Taiwan. In addition, she has got internship working experience as a Marketing and Communication Intern at E CHHE Group from September 2022 to March 2023 and Digital Marketing Intern at EZ CAZZ Tax Services Co., LTD from May 2023 to June 2024.

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