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Factors influencing the choice of securitiescompaniesby individual investors in vietnam

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CHAPTER 1: INTRODUCTION
1.1 Research Purpose
To survive in the fierce competition as well as to achieve the
business objectives, securities companies have to find out the measures
to attract customers to open accounts and use their own services, take a
good care of and retain existing customers. The study of choice
behaviors for securities companies, including the choice for account
opening and the choice for service usage at a securities company, is
necessary to help both investors and brokers to easily achieve their goals
on the Vietnam Stock Market.
1.2

Research Objectives
Recognizing the factors that influence the choice behavior of
securities companies by individual investors on the Vietnam stock market.
Determining the influence level of factors to the individual
investors’ behaviors of choosing securities company on the Vietnam
stock market.
Proposing a number of solutions in order that securities
companies can serve investors better as well as to retain and attract

customers for benefits of the investors and securities company.
Subject and scope of the research
Subject: factors that influence the individual investors’ choice
behaviors for securities companies on Vietnam stock market.
Object: individual securities investor using services of securities
companies on Vietnam stock market.

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Researching time: sociological investigation activities and indepth interviews are conducted from the beginning of August.
1.4

Overview of research methodology
- Data collection method
Secondary data collection
The study synthetized and analyzed secondary information
from home and international available documents, articles.
Secondary data collection
(1) Qualitative research
The study was conducted by interviewing high-ranking leaders
in some securities companies in Hanoi.
(2) Quantitative research
The study used control chart to collect information and
convenience sampling method to select the investigable sample:
(i) directly giving control charts to 500 investors using services of
securities companies; (ii) conducting a survey through Internet.
-

1.3

Researching scope: limitation in the Vietnamese private
investors’ choice behavior for securities companies on Vietnam stock
market, including both HSX and HNX.
Researching space: securities companies operating are based
in Hanoi and/or Ho Chi Minh City.

1.5

Data processing method
After the survey, the data will be processed by statistical
analysis software SPSS version 20.0. Cronbach’s Alpha;

Exploratory Factor Analysis (EFA); T-Test and ANOVA will
be used to analyze the collected data.

New contributions of the study
New contributions in terms of academic and theoretical fields
The research has launched a model of influencing factors on the

choice of securities companies by individual investors on the Vietnam
Stock.
Thesis is to build measure system of factors influencing choice
behavior of securities companies of individual investors in line with the
context of Vietnam stock market. The measure system consist of 32


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scales, among that, 05 scales are self-constructed based on the practice
of Vietnam stock company and othersare consulted from abroad
scholar’s researches, translated into Vietnamese and adjusted its words
yet still remaining its own content to be consistent with the context and
practical study of the thesis.

From the result of research and under the marketing perspective, the
study proposes solutions to help securities firms to attract and retain
customers for the benefit of all stakeholders in line with realities of
securities companies in Vietnam.

New contribution in terms of applications/practices
In the thesis, individual investors were directly surveyed,
inspected through the analysis, statistics process and then arrange the
factors that influence the choice behavior of private investors on
Vietnam stock market. The results showed that there are 6 factors that
influence the choice behavior of private investors, ranked in the order
of the highest to the lowest importance: Service Quality; Cost; Types
of Services, Company Reputation; Staff; Convenient Location;
Company Appearance; Influence of Relatives.
Through the direct customer surveys and data analysis and
statistics techniques, the study draws some generalized characteristics
of individual investors in Vietnam: The vast majority of individual
investors Vietnam is young; Most of them have a university degree
and post graduate; Most individual investors have a stable job and
stock investment is just one channel investments; Many of them have
incomes from 10-30 million; The great majority of transactions
simultaneously in both HSX and HNX; Most have five years of
experience or more; Many investors open multiple accounts with
different securities company, but transact in only one account;

CHAPTER 2: LITERATURE REVIEW ONTHE SECURITIES
INVESTORS’CHOICE BEHAVIOR FORSECURITIES COMPANY

Transaction Frequency of individual investors are quite often.
Besides the results of investor direct surveys, the study also conducted
the in-depth interview with some securities company leaders to find
and bring out reasons which cause influencing factors on the choice
behavior of private investors on Vietnam stock market.

2.1 Literature review on customers’ choice behavior.
2.1.1 Customer’s buying and choice behavior
Blench & Blench (1998) defined customer’s buying behavior as:
“human’s process and activity in searching, choosing, buying, using,
evaluating and dealing goods, services in order to satisfy their needs
and wants”. Furthermore, buying behavior is also mentioned in detail
through Salomon et al’s researches (1995); Gabbot and Hogg (1998);
Schiffman and Kanuk (2000); Kotler and Keller (2011) and Stallworth
(2008).
Concept of the first choice is mentioned a lot in research related to
science of psychology.
Gradually, this term is popularized in marketing field to explain
decisive model of consumers. The concept and importance of the
choice are mentioned in their own researches by Hansen (1976);
Kotler (2000) and Sayani & Miniaoui (2013).
2.1.2 Behavior of customers’ choice for organizations providing
services in the field of finance and banking
Aregbeyen (2011) described the behavior of client’s choice in the
finance and banking field based on the theory of reasonable choice
and competition theory.
2.2 Securities company and investment bank


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Investment bank is an intermediary in capital market. It connects
companies, organizations which have strong potential in finance
(investor) to ones in need of it so that they can do business and
manufacture, and then increase GDP. (Pratab 2008). In different
economies, the term “investment bank” is known as different names.
In Asian countries like China, Thailand and Vietnam…, investment
bank sare known as “securities companies”. Investment banks can
function independently or link their works to activities of commercial
banks, insurance companies under the name of general banks. At the
present, most of banks act as general bank model (Mac Quang
Huy,2009) typically such as HSBC, Deutsche Bank, Citigroup,
Creditgroup, Credit Suisse, JP Morgan Chase, Bank of America,
Nomura, Golman Sachs, Morgan Stanley… (Liaw 2012).
In fact, securities company and investment bank are two different
names for the same type of intermediate model in stock market, as
Mac Quang Huy asserts that “investment bank” and “securities
company” can be used to replace for each other without changing
contextual meaning. From this fact, the study collected and had
references to the worldwide researches related the client’s choice
behavior at banks including investment bank, a highly-developed form
of securities companies.
2.3 Literature Review
2.3.1 Foreign studies on the choice behavior of the banking and
financial services organizations
Studies on influencing factors to individual customer’s choice
behavior of organizations that provides banking and finance services
are published by experts in the past few years. Many factors were
given as the following summaries:

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1- Factors related to company appearance ( bank) are
mentioned in the following researches: Laroche et al. (1986);
Driscoll (1999); Gerrard & Cunningham (2001); Yavas et al.;
Safakli (2007); Rehman và Ahmed (2008); Rehman và
Ahmed (2008); Chigamba & Fatoki (2011); Katircioglu et al
(2011); Hedayatnia & Eshghi (2011); Mokhlis et al (2011);
Siddique (2012); Sarwar và Mubeen (2012); Okpara và
Onuoha (2013).
2- Factors related to convenient location are mentioned in the
following researches: Kaufman (1967); Mason & Mayer
(1974); Anderson et al (1976); Gray (1977); Riggal (1980);
Lewis (1982); Laroche et al. (1986); Javalgi et al. (1989);
Schram (1991); Kaynak và Kucukemiroglu (1992); Martenson
(1993); Boyd et al (1994); Yue và Tom (1995); Thwaites và
Vere (1995); Mylonakis et al. (1998); Kennington et al.
(1999); Driscoll (1999); Owusu-Frimpong (1999); Tạ và Har
(2000); Almossawi (2001); Gerrard & Cunningham (2001);
Che Wel & Nor (2003); Cicic et al. (2004); Pass (2006);
Safakli (2007);Blankson et al. (2007); Rehman và Ahmed
(2008);Blankson et al. (2009); Jahiruddin & Haque (2009);
Hinson et al. (2009); Rao và Sharma (2010); Maiyaki (2011);
Katircioglu et al. (2011);Hedayatnia & Eshghi (2011);
Chigamba & Fatoki (2011); Mokhlis et al. (2011); Siddique
(2012); Okpara và Onuoha (2013).
3- Factor related to company reputation (bank) are
mentioned in the following researches: Anderson et al. (1976);
Laroche et al. (1986); Javalgi et al (1989); Khazeh và Decker
(1993); Boyd et al. (1994); Yue và Tom (1995); Thwaites và
Vere (1995); Kennington et al (1999); Almossawi (2001); Tank


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& Tyler (2005); Katircioglu et al. (2011); Maiyaki (2011);
Hedayatnia & Eshghi (2011); Chigamba & Fatoki (2011);
Mokhlis et al (2011); Siddique (2012); Okpara và Onuoha
(2013).
4- Factor related to Cost and Price are mentioned in the
following researches: Anderson et al. (1976); Riggal (1980);
Gupta & Torkzadeh (1988); Javalgi et al (1989); Khazeh và
Decker (1993); Boyd et al. (1994); Yue và Tom (1995);
Holstius & Kaynak (1995); Thwaites và Vere (1995); Zineldin
(1996); Tootelian & Gaedeke (1996); Kennington et al (1999);
Driscoll (1999); Tạ và Har (2000); Almossawi (2001);
Kaynak và Harcar (2004); Cicic et al. (2004); Tank & Tyler
(2005); Pass (2006); Safakli (2007); Blankson et al. (2007);
Mokhlis et al. (2008); Blankson et al. (2009); Jahiruddin &
Haque (2009);Katircioglu et al. (2011); Hedayatnia & Eshghi
(2011); Maiyaki (2011); Mokhlis et al (2011); Chigamba &
Fatoki (2011); Siddique (2012); Okpara và Onuoha (2013).
5- Factor related to Staff are mentioned in the following
researches: Mason & Mayer (1974); Anderson et al. (1976);
Tan & Chua (1986); Laroche et al (1986); Holstius & Kaynak
(1995); Thwaites et al (1997); Owusu-Frimpong (1999);
Gerrard & Cunningham (2001); Almossawi (2001);
Katircioglu et al. (2011); Hedayatnia & Eshghi (2011);
Mokhlis et al (2011); Chigamba & Fatoki (2011); Sarwar và
Mubeen (2012); Siddique (2012); Okpara và Onuoha (2013).
6- Factors related to recommendation and effect from third
party are mentioned in the following researches: Mason &
Mayer (1974); Anderson et al (1976); Riggal (1980); Lewis
(1982); Tan & Chua (1986); Schram (1991); Zineldin (1996);

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Gerrard & Cunningham (2001); Tank & Tyler (2005); Safakli
(2007); Blankson et al. (2007); Rehman và Ahmed
(2008);Blankson et al. (2009); Jahiruddin & Haque (2009);
Katircioglu et al. (2011); Hedayatnia & Eshghi (2011);
Chigamba & Fatoki (2011); Mokhlis et al. (2011); Sarwar và
Mubeen (2012); Okpara và Onuoha (2013).
7- Factors related to service quality are mentioned in the
following researches: Kaufman (1967); Laroche et al. (1986);
Kaynak và Kucukemiroglu (1992); Boyd et al (1994); Yue và
Tom (1995);Holstius & Kaynak (1995); Poh (1996); Ma et al.
(1996); Thwaites et al (1997); Mylonakis et al. (1998);
Kennington et al. (1999); Driscoll (1999); Gerrard &
Cunningham (2001); Che Wel & Nor (2003); Cicic et al.
(2004); Tank & Tyler (2005); Safakli (2007); Rehman và
Ahmed (2008); Katircioglu et al. (2011); Hedayatnia &
Eshghi (2011); Maiyaki (2011); Chigamba & Fatoki (2011);
Yavas et al.; Siddique (2012); Okpara và Onuoha (2013).
8- Factors related to kind of service are mentioned in the
following researches: Driscoll (1999); Rao và Sharma (2010);
Katircioglu et al. (2011); Aregbeyen (2011); Hedayatnia &
Eshghi (2011); Mokhlis et al (2011); Chigamba & Fatoki
(2011); Yavas et al.; Siddique (2012); Okpara và Onuoha
(2013).
9- Factors related to security are mentioned in the following
researches: Boyd et al (1994); Zineldin (1996); Katircioglu et
al. (2011).
10- Factors related to time of operation are mentioned in the
following researches: Laroche et al.(1986); Omar & Orakwue
(2006).


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11- Factors related to feeling of safety are mentioned in the
following researches: Javalgi et al (1989); Holstius & Kaynak
(1995).
12- Factors related to marketing are mentioned in the
following researches: Sarwar & Mubeen (2012); Okpara và
Onuoha (2013).
2.2.2 Foreign studies on the individual investor’s choice behavior at
securities companies
Foreign studies about individual investor’s behavior related to
securities companies are commonly researched on investor’s loyalty
to securities company (Opas & Pacapol, 2007) or satisfaction with
services of securities companies.
2.2.3 Domestic studies
Pham Thi Tam and Pham Ngoc Thuy (2010) indicates 6 elements
influencing customer’s trend of choosing bank: “appearance”;
“convenient time”; “convenient location”; “influence of relatives”;
“brand awareness” and “attitudes toward promotion”.
2.3 Context of research on behavior of securities company choices
- actual development situation in stock trading in Vietnam.
2.3.1 Overview of Vietnam stock market
Vietnam stock market had the first transaction on July 28th, 2000
with 3 securities companies and 2 stock codes. Vietnam stock market
boomed, reaching a record 1,170,67 points on March 12,2007 with
VN-Index. HASTC also peaked with 459,36 points on March 19th,
2007. However, after that, Vietnam stock market was into recession
period with constant decrease of index, share price and many shares
were traded with lower price than its par value. VN-Index bottomed
with 235,5 points on February 24th, 2009 and HNX-Index with 50,66

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points on November 6th,2012. Stock market was recovered in 2009
and 2014 but it was just the recovery in recession.
2.3.2 Overview of securities companies and individual investors.
2.3.2.1- Number of securities companies
At the starting point. Vietnam’s stock market went into operation
with only 3 securities companies. The number of securities companies
was increased by 7 after the first year. The number increased rapidly
and reached the top in 2011 with 106 securities companies. However,
due to the recession along with the urgent request to restructuring of
securities companies from State Securities Commission, the number
of securities companies was down to 104 at the present, among that
there are 86 companies which operates normally.
2.3.2.2- Individual investors- the customer of securities companies.
Individual investors play an important role to securities companies.
- First: Individual investor contributes to set up position of
securities companies.
- Second: Individual investor pays salary for securities
companies.
- Third: Individual investor is effective competitive arm for
securities companies.
In 2000, there were less than 3000 securities transaction
accounts in Vietnam stock market. After 15 years, there was
up of 1,54 million securities transaction accounts, among that
the number of domestic individual investors’ accounts are
1,497,544 on July 31st,2015.
2.3.2.3 Securities service for individual investor
Individual investor uses services such as securities investment
consultancy, securities broker, securities depository, management of
securities catalog, value-added services as security deposit, T+2


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2.4 Model, terms and question of research
2.4.1 Proposed research model
Due to the characteristics of investment bank model, investment
bank exists in independent investment banks or general banks in the
developing countries like Europe, America…. In Vietnam, investment
bank model exist under the name of securities company; therefore, the
study acquired, analyzed, inquired, inherited, developed and
summarized the home and worldwide researching models and methods
on influencing factors to the individual customer’s choice behavior,
specially researches of Almossawi (2001); Gerrard and Cunningham
(2001); Yavas et al.; Maiyaki (2011); Salid et al. (2011); Hedayatnia &
Eshghi (2011); Chigamba & Fatoki (2011); Mokhlis et al. ( 2011);
Siddique (2012); Okpara và Onuoha (2013) in order to build, consider
and evaluate influencing factors to individual customer’s choice
behavior of securities company on Vietnam stock market.

2.4.2 Related terms
2.4.2.1 Company appearance
Company appearance relates to factors such as external
architecture, decoration and internal space of the company.
2.4.2.2 Convenient location
Convenient location is close to company location compared with
house and working place location of the customers and/or the others
matters about location making customers feel most comfortable,
pleasant and convenient.
2.4.2.3Company reputation
Company reputation is described as invisible asset that can
influence effect and existence of the company.
2.4.2.4 Cost
Cost is what you give up or sacrifice to get some goods or certain
services (Zeithaml, 1998).
2.4.2.5 Staff
For companies providing services in particular and securities
companies in general, employee are an intangible asset of the
company.
2.4.2.6 Influence of relatives
Personal behavior is often influenced by third parties such as
friends, colleagues, parents, relatives.
2.4.2.7 Quality of Service
Quality of service is defined as the overall feeling of the

Company appearance
Convenient location
Company reputation
Cost

Choice behavior
of Securities
Company

Staff
Influence of relatives
Service Quality
Types of services
Demographic Factors(Moderator variables)
Figure 2.1: The Proposed Research Model

customers about the advantages and disadvantages of the organization
and services provided by that organization.
2.4.2.8 Type of Services


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In the fierce competitive environment, the improvement,
innovation and provide of diversified types of products is essential to
the success and growth of business (Strieter et al., 1999).

Main survey was conducted through questionnaire with a
minimum sample size of 500 sample elements for individual investors
who are conducting transactions in securities companies and through
social
networks
Facebook
at
the
link:
http://questionpro.com/t/ALCxyZRbMs.
Qualitative research
An in-depth interview is carried out with 9 leaders of securities
companies in Hanoi.

2.4.3 Researching questions
(1) What are the influencing factors on the choice for Securities
Company of individual investors on the Vietnam stock market?
(2) How do the factors influence to the choice for Securities
Company of individual investors on the Vietnam stock market?
(3) If the different demographic groups have different
evaluation on the importance of these influencing factors on the
choice for securities company of individual investors on the Vietnam
stock market or not?
(4) What are the solutions for Securities Company to serve
investors better, and then they can retain customers or attract target
customers for the benefit of both investors and brokers?
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Research process
Phase 1: Initial research
On the basis of the literature review, the study has evaluated and
summarized the results of previous researches to build researching
theoretical model. Besides that, the study conducted the deep
interview with professors, associate professors and leaders of
securities companies to perfect researching models and scales.
Phase 2: Pilot test
There are 30 individual investors chosen to do the survey forms
by convenience sampling model.
Phase 3: Main test
Quantitative research

3.2 Data collection method
3.2.1 Secondary data collection method
Data source is researches on choice behavior of customers in the
banking and financial sector and reports, summaries of the State
Securities Commission on the electronic information sites on the
internet.
3.2.2 Primary data collection method
3.2.2.1Qualitative research
Qualitative research is used in initial research period (period
1) and main test period (period 3) during researching process.
3.2.2.1 Quantitative research
A- Survey form design
Survey form for quantitative research of the project consists of
3 parts:
Part 1: consists of survey questions about actual situation of
investor’s securities company choice.
Part 2: consists of 35 questions measuring the importance of 35
issues of the 6 factors affecting choice behavior in the company's
securities Vietnamese individual investors by 5 points Likert scale
ranked level 1 = very unimportant to level 5 = very important.


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Part 3: consists of questions related to demography of people
surveyed such as: Gender, Age, Education, Job, Income.
B- Sampling method
The study uses convenience sampling method to carry out the
research. Sampling space is at 18 securities companies in Hanoi and
10 othersin Ho Chi Minh City.
3.3 Data analysis technique
The study uses SPSS software 20.0 version for analysis and
testing. After that, data will be processed according to the following
steps:
- Step 1: cleaning, coding and data entry
- Step 2: Exploratory Factor Analysis
- Step 3: Cronbach’s Alpha
- Step 4: Testing the level of importance of the factors affecting
the choice of securities companies through descriptive
statistical techniques to calculate the average value, T-test
analysis and analysis of variance ANOVA.
CHAPTER 4: RESEARCHING RESULT
4.1 Descriptive statistics of Sample
After investigating, conducting tests and eliminating errors
survey forms, the study collected 379 completed direct answers
and 137 valid online surveys. Finally, 516 valid questionnaires
were processed for statistical analysis.
4.1.1 Demographic characteristics of Sample
For gender: there are 293 male investors accounted for 56,8% and
223 female investors with 43,2%.
For age: Most of those are aged from 25 to 31, with 221 investors
in this age group and accounted for 42,8%.

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For education: Majority of respondents hold university degree or
above and accounted for 95% of investors in total.
For occupation: Almost all investors are officers and employees
in company or enterprises, accounted for 70% with 314 investors
For income: 274 respondents with equivalent rate of 53.1% have
income between 10 to 30 million VNĐ per month.
4.1.2 Actual rates of individual investor using securities
company service.
There are 90,3% of individual investors participating in the
survey did investment in both main transaction office. Most of
them invested on Vietnam stock market up to 2010 (322 investors
with equivalently 42,4%).
There are 232 investor opening the only account in a
securities company compared with 280 investors opening in from
2 to 5 securities companies. However, there are 98 investors with
equivalent rate of 19% accounts opening in many securities
companies, the only transaction was in one securities companies.
There are 349 individual investors with 67,6% trading on
stock market regularly. Most of them are retail investors with the
transaction under 100 million dong/session.
4.2 Factors influencing the choice of securities companies by
individual investors in Vietnam stock market.
4.2.1 Exploratory Factor Analysis (EFA)
The result shows KMO coefficient factor equal 0,870 satisfied
KMO condition that KMO is bigger than 0,5. Barlet test gives
result that p=0,000<5%; therefore, it is enough conditions to
analyze all factors through EFA.
The result of Principal Component Analysis shows that from
32 observed variables can be drawn 8 groups of factor. The total


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variances can be explained when the group of factors drawn is
70,654% (over 50%).
Figure 4.3: The result of Exploratory Factor Analysis EFA

Chung loai 5
Chung loai 4
Chung loai 6
Chung loai 2
Chung loai 1
Chung loai 3
Nhan vien 4
Nhan vien 2
Nhan vien 3
Nhan vien 5
Nhan vien 6
Anh huong 3
Anh huong 2
Anh huong 1
Anh huong 4
Dien mao 2
Dien mao 1
Dien mao 3
Dien mao 4
Vi tri 1
Vi tri 2
Vi tri 3
Vi tri 4
Chi phi 3
Chi phi 1
Chi phi 2
Chat luong 2
Chat luong 4
Chat luong 1
Danh tieng 1

Rotated Component Matrix
Component
1
2
3
4
5
.818
.798
.795
.688
.659
.585
.794
.785
.777
.756
.729
.878
.876
.846
.832
.885
.874
.810
.665
.830
.743
.741
.535

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8

Danh tieng 2
.691
Danh tieng 3
.624
Thus, after EFA analysis, the results showed that from 35
observed variables, we can draw 8 groups of factors that affect the
choice of securities company by the individual investors on the
Vietnam stock market, including: (1) Type of service; (2) Staff; (3)
Effect of relatives; (4) Company Appearance; (5) The service quality;
(6) Convenient location; (7) Costs and (8) The company’s reputation.
4.2.2 Reliability Evaluation of Scales
Most of the observed variables having Cronbach's Alpha
coefficients are smaller than the total variables (except Chat luong 1
and Danh tieng 3). However, the correlation coefficients of the 32
variables whole of observed variables are greater 0.3, so the thesis
proposed two variables continue to retain the reputation Chat luong 1
and Danh tieng 3 in the scales.
4.2.4 Evaluating the importance of the factors to the choice
behavior of securities companies by individual investors.
Among 32 observed variables, there are 11 variables evaluated
“very important; 14 observed variables evaluated “important”; 6
observed variables are significant for “neutral”. The other one is
significant for “not important”.
In 6 groups of influencing factors, the 4 groups of more important
factors in highest to lowest order are: (1) The quality of service; (2)
Staff; (3) Company reputation; (4) Types of Service. The 4 groups of
least important factors in the lowest to highest order are: (1) The
influence of relatives; (2) Company appearance; (3) Convenient
Location; (4) Cost.

.845
.842
.831
.714
.633
.579
.777

4.2.4.4Evaluating the importance of the factors to the choice
behavior of securities companies by individual investors according
to gender


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Both male and female individual investors consider the factors of
"Quality of Service" and “Staff” is two the most important factors.
However, the factor “Cost” are ranked higher by female investors.
This proves that the female investors pay high attention to cost and
interest rate when using services of securities companies.

4.2.4.8 Evaluating the importance of the factors to the choice
behavior of securities companies by individual investors according
to Income
Investors in income-groups totally agreed that “Quality of Service”
is the most important factor and “Influence of relatives” is the least
important factors. The “Cost of factor is ranked the 2nd most important
factor by the group of investors with income of over 50 million/month
while the group of investors with income from 10-50 million/month pay
attention to “Company Reputation” and the group of investors with
income of below 10 million/month care “Staff” factor.

4.2.4.5 Evaluating the importance of the factors to the choice
behavior of securities companies by individual investors according
to Age
All age groups agreed that “Quality of Service” and “Staff” is 2
more important factors and 3 least important factors is “Convenience
Location”; “Company Appearance” and “Influence of relatives”.
However, the different age groups have inconsistent evaluation about
the importance of different factors.
4.2.4.6 Evaluating the importance of the factors to the choice
behavior of securities companies by individual investors according
to Education
Investors in any education level evaluating the 3 least important
factors is “Convenient Location”; “Company appearance”; “Influence
of Relatives”. However, there is the differences in evaluating the first
ranked factors between investors. For example, the group of people
who have university degree highly evaluated “Staff” factors while the
others groups ranked this factor at the fourth and fifth.
4.2.4.7 Evaluating the importance of the factors to the choice
behavior of securities companies by individual investors according
to Occupation
For groups of investor, “Quality of service” is the most important
factor and the 3 least important is “Convenient Location” “Company
appearance” and “Influence of relatives”. The importance of the others
factors are also different for each groups of investor.

4.3 The result of the third period in depth-interview
4.3.1 About the most important factors
The leaders of security companies suggested that there are several
reasons for those influencing factors as followed:
- Service quality: the speed of processing the request is determinant
to the result of exchange, especially in the fierce period when
there exists fighting for selling and buying. In the other side,
investors are not interested in stock exchange, they do their
business on the smart electronic devices, so that they care so
much for service quality provided by security companies.
- Company reputation: Due to the investors’ risk avoidance,
they would like to have trusted companies for their future
exchanges.
- Staff: Because the investors need professional suggestion, they
-

would like to see consultants who have knowledge and experience.
Types of services: Because there are a lot of individual investors
preferring speculation, they may use types of added value
services such as deposits, pre-settlement, T+2 settlement.

4.3.2 About the least important factors


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-

-

-

Costs: The investors don’t care much of costs because exchange
fees, interests of pre-settlement, or loan interests are relatively
small portion in the total of transaction values.
Company appearance: Thank to the development of technology that
helps narrowing the distance between the investors and the
companies and to their stable jobs, they don’t care much of this issue.
Convenient location: The same reasons that happen to the factor
“company appearance” may cause the investors less interested in it.
Influence of relatives: Because of private benefits, the
investors just consider it as a reference besides the factors
have direct impact on their benefits.

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusion
5.1.1 Model of influencing factors on the choice of securities
companies by individual investors on Vietnam Stock market
Research has launched a model of influencing factors on the
choice of securities companies by individual investors on the Vietnam
Stock market, including 32 observed variables belonging to 8 groups
of factors. It consists of: (1) Company appearance; (2) Convenient
Location; (3) Company Reputation; (4) Cost; (5) Staff; (6) Influence
of relatives; (7) Quality of Service; (8) Types of Service.
5.1.2 The importance of influencing factors on the choice of
securities companies by individual investors on Vietnam Stock
market
According to the result, in 8 groups of factor influencing the
choice behavior of securities companies by individual investors on
Vietnam stock market, there are 4 the most important groups of

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factors arranged in order: (1) Quality of Service; (2) Company
Reputation; (3) Staff; (4) Types of Service.
Among 32 observed variables- considered “small” factors the
choice behavior of securities company by individual investors on
Vietnam stock market, there are 6 most important observed variables
in highest to lowest order are: (1) The modern online transaction
system, compatible with many electronic devices and user friendly;
(2) Strong financial situation; (3) quick and effective service; (4)
efficient investment advisory services; (5) reputation, good brand; (6)
Staff and Investment Consultancy”.
5.1.3 The importance of influencing factors on the choice of
securities companies by individual investors on Vietnam Stock
market according to each group of demography.
The study shows that the evaluation on the importance of
observed variables is different for each different demographic group.
Although investors are individuals, each demographic group has
different thoughts than the other groups.
5.1.4 Others conclusions
The assessment results of transactions by individual investors on the
Vietnam stock market also suggest many interesting conclusions: The
majority of Vietnamese individual investors are experienced small
investors with fairly regular transaction on the Vietnam stock market.
Besides that, the result of in-depth interview from some securities
company leaders reinforced and completed the quantitative research
and explained some consistent reasons of influencing factors to the
choice of securities companies by individual investors on Vietnam
stock market during analytic process.
5.2 Some solutions:
5.2.1 Investment in innovations of information technology system


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To ensure information technology system compatible with
specific characteristics of the company and to bring all the best
benefits for both securities firms and investors, securities firms need
to note some following issues when choosing investment:
(1) Being compatible with company strategies
(2) Selecting the form of investment.
(3) Being compatible with characteristics
5.2.2 Promotion in marketing activities
Some issues in marketing research need to be studied:
(1) Target
(2) Program activities
(3) Budget
5.2.3 Enhancement in Staff Quality
Staff is valuable invisible asset of securities companies. To carry
out the enhancement in the investment, consultant and brokerage staff
quality effectively, securities companies can pay attention to some
following issues:
(1) Recruitment
(2) Education
(3) Treatment policies
5.2.4 Maintenance customer relation department
The key issues published for securities companies are not only
“search for customers” but also “search and exploitation for
customers”. Thus, the customer relation department of securities
companies has two tasks: (1) Search for new customers through the
expansion of investors’ transaction accounts; and (2) Take care of the
existing customer.
To do the search and exploitation customers effectively, securities
company can take notice of some following activities:

24
(1)
(2)
(3)
(4)

Customer Orientation
Maintenance in traditional investors
Attraction with new investors
Application in suitable administrative customer relation
department

5.3 Drawbacks of the study
- About theoretical aspect: there are still many different researches
on the choice behavior of customers in financial and banking in the
world. However, the thesis could not study all researches except the
most specific studies.
- The qualitative research was conducted on 9 leaders of 9
securities companies, and then generalizing general evaluation of
securities company leaders about influencing factors to the choice
behavior of securities companies by individual investors.
- The quantitative research was conducted on individual investors
of 21 securities companies among 90 companies operating in Vietnam
by convenient sampling methods.
- In fact, observed variables have consistent influence to behavior
of individual investor, but the study has not mentioned it.
5.4 Suggestion for next studies
- Research on influencing factors to the choice behavior of
securities companies by individual investors on Vietnam stock market.
- About sampling method: can get samples accidentally on all
securities companies in Vietnam.
- Extending more observed variables and completing influencing
factors in researching model.



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