AIC Algorithm for Making Decisions on Supermarket Choice: Evidence from Vietnam Nguyen T. Ngan 1 and Bui H. Khoi 1 1 Industrial University of Ho Chi Minh City, Vietnam Abstract The paper explores factors influencing making decisions on supermarket choice: Evidence from Vietnam. Data used in the study were gathered from highly reliable information sources and primary data collected through a survey of 201 clients living in Ho Chi Minh City, Vietnam. To analyze and evaluate data, this paper has used the following methods as the AIC algorithm and regression analysis. Through research results show that most customers are most concerned with the factors of a decision to choose the supermarket. Based on theory and previous studies, this research is done through 2 phases, qualitative research and quantitative research, using non-probability sampling. Finally, research results have identified four factors affecting the decision to choose the supermarket for shopping, including Location, Perception of prices and products, Attitude of employees, and Reference. The paper uses the optimal selection by the AIC Algorithm for Making Decisions on Supermarket Choice: Evidence from Vietnam. Keywords 1 AIC algorithm, decision, the supermarket 1. Introduction The study investigates the factors that influence supermarket brand selection behavior in Vietnam, as well as the degree to which these factors influence the customer's choice intention. The factors of store picture, price perception, risk perception, attitude, knowledge, and familiarity were determined, according to the findings [1]. Currently, the supermarket business is always welcome in Vietnam's retail market. Because the retail market is a potential market, bringing high profits for participating businesses, there are now many supermarkets in the market, especially in Ho Chi Minh (HCM) City, Vietnam, supermarkets continuously. Formed as Big C, Co.opmart, Emart, Aeon, ... To fully meet the requirements of consumers, businesses besides providing full products to consumers, businesses should also attract consumers, along with the challenge is also an opportunity for retailers to show professionalism, build image, retail skills, and art, etc. to fully meet the requirements and bring the best experience to consumers. The Vietnam retail sector is attracting both large and small companies to take part. In the first ten months of 2019, retail sales of products totaled 3 million billion VND, accounting for 76 percent of overall retail sales and up 12.8 percent from the same time last year [2]. This paper uses the optimal choice by the AIC Algorithm for making decisions on supermarket choice: Evidence from Vietnam. 2. Literature Review ICTERI-2021, Vol I: Main Conference, PhD Symposium, Posters and Demonstrations, September 28 – October 2, 2021, Kherson, Ukraine EMAIL: buihuykhoi@iuh.edu.vn; nguyenthingan@iuh.edu.vn ORCID: 0000-0002-0851-1177; 0000-0002-4976-7435 ©️ 2020 Copyright for this paper by its authors. Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0). CEUR Workshop Proceedings (CEUR-WS.org) 2.1. Relevant previous studies The paper seeks to identify the factors affecting food purchasing decisions at the Co-opmart supermarket chain in HCM City through the application of a mix of qualitative and quantitative. The study found four aspects to be important: commodities, cost, convenience, and communication. These factors influence the decision to shop at the Co-opmart supermarket [3]. One of the most convenient methods to buy groceries is at a supermarket. Ease of use, convenience, and a better shopping experience are all significant factors at the supermarket. The independent variables in the study were convenience, variety & assortments, product quality, price, and private label, whereas the dependent variable was consumers' supermarket selection choice. Consumer decisions on supermarket selection are positively influenced by variety and assortments, product quality, and private labels, according to the findings of this study [4]. Every month, the number of visitors to Brastagi Supermarket Medan grows. Typically, large events during the month stimulate a rise in the number of visitors, a factor of customer satisfaction that is high enough that tourists continue to pick Berastagi Supermarket for shopping and fruits in Medan's modern market. This study used incidental sampling, which is a sample collection strategy based on chance, in which anyone who crosses paths with a researcher can be used as a sample. According to the findings, product, price, location, and advertising all have a substantial impact on consumer decision-making [5]. Along with reviewing previous research models, we give 04 factors affecting the decision to choose the supermarket as the shopping address of Ho Chi Minh City consumers includes (1) price and product perception, (2) location, (3) employee attitude, (4) reference. We use the above 4 factors as a proposed research model for our research paper. 2.2. Perception of prices and products (PP) According to Kotler [6], the product factor comprises 3 levels: core product, actual product, and supplementary product. That core product is the value the product brings to the consumer or the value that meets and satisfies the needs of consumers, the actual product is the function, the packaging, product quality, and supporting products are sales policies, customer care, and after-sales service. In most of the above research on the factors affecting shopping decisions at retail stores mentioned above, the product factor is an important factor, directly influencing the purchasing decision of consumers. The price not only includes the content of the price of the product or service that the consumer pays to the supplier or retailer, but also refers to the total cost that the consumer pays for that product or service [7]. 2.3. Location (LO) Location is often one of the most influential considerations in a customer's store choice. For example, a working couple may easily decide to shop closest to their bus stop. Most similar consumers shop at the retail stores closest to them. Placement determines strategic importance because they are an advantage for developing sustainable competition. If a retailer has the best position, which is most attractive to its customer, it will relegate the competitor to the second-best position (Levy et al. 2012). The convenience of location makes it convenient in shopping for customers. Most consumers will prefer to choose supermarkets close to home for shopping because of the convenience of transportation, which not only saves time but also reduces stress, costs, and other problems. Therefore, the location of the supermarket has a certain influence on consumers' decisions [8]. 2.4. Attitude of employees (AE) For the retail sector supermarkets, in particular, the interaction between supermarket staff and customers is always highly appreciated [9]. Customers or consumers who go shopping at the supermarket will feel more excited if the collective of supermarket staff gives them a friendly and comfortable atmosphere. Not only influence during shopping but also employee's attitude will make you appreciate going to the supermarket where you are shopping. That affects whether you continue to choose that supermarket in the future [10]. 2.5. Reference (RE) A reference group is a group of people influencing the formation of customer attitudes, perceptions, and behaviors towards a product, brand, or business [11]. Normally, people will always pay attention to the opinions of others such as friends, relatives ... in anything. For example, I like that bag but friend's advice you not to buy it because it doesn't look right for me, and it is the comments that will make me confused about shopping. Here in supermarket selection too, when my friends have a good rating of a supermarket and recommend it to me, I will consider that supermarket more than the others because here I already have confidence in my friends, I will be more secure in their referrals. 2.6. The decision to choose the supermarket (DE) Supermarkets have a major influence on food prices all over the world. The paper shows the major factors that influence supermarkets. They will use the model analysis results to intelligently combine the effects of each supermarket option factor [12]. The factors of store picture, price perception, risk perception, attitude, knowledge, and familiarity were determined to influence a decision to choose the supermarket [1]. Besides, the author's research model is reasonable because of its science, because this model is built on the consumer model of Kotler [13]. The author combines the "price", "product" factors of Chamhuri and Batt [14], the "location" factor of Roig-Tierno et al. [15], the "employee attitude" factor of Newman et al. [16]. 3. Method 3.1. Sample Approach According to Bollen [17], the minimum sample size is 5 samples for one parameter to be estimated. The sample size can be defined as 5: 1 (5 observations per 1 variable) [18]. In this study there are 21 variables, therefore, the minimum sample size can be calculated as n = 5 x 21 = 105. Although the minimum sample size requires only 105 surveys, the author submitted go 221 survey questionnaires indirectly via the Internet with tools supporting Google Forms for consumers to ensure sample diversity and representativeness. Table 1 shows sample characteristics statistics. Table 1 Research Sample Characteristics Amount Percent (%) Male 88 43.8 Female 113 56.2 Below 18 16 8.0 Sex and Age 18-25 71 35.3 26-35 51 25.4 36-45 43 21.4 Above 45 20 10.0 Below 3 million VND 5 2.5 Income/Month 3-6 million VND 77 38.3 7-10 million VND 59 29.4 Over 10 million VND 60 29.9 Job Student 25 12.4 Office Staff 71 35.3 Homemaker 79 39.3 Other 26 12.9 Always 37 18.4 Usually 95 47.3 Buying in Supermarket Often 39 19.4 Sometimes 30 14.9 Collected data will be encrypted, entered in Table 2. Table 2 Factor and Item Factor Code Item PP1 I feel price goes hand in hand with quality PP2 I feel that the prices of products are always clearly communicated PP3 I feel that frozen food here is always fresh PP PP4 I feel the full product supply is always available I feel there is always an alternative product available and can easily find PP5 products Supermarkets have many convenient branches for shopping, no matter LO1 where they are LO2 Supermarket locations are always in a crowded residential area LO LO3 Shopping places near my home help you to easily move LO4 I can easily find supermarkets in the area near my home, company, ... LO5 The supermarket is in a place with a convenient traffic location AE1 I feel that the staff always provides services quickly I feel the staff are always ready and enthusiastic to respond to AE2 customer requests Employees have a certain level of knowledge about the product that AE AE3 makes me feel secure in using the product AE4 I feel the staff are always polite and happy for customers I feel employees are always attentive in protecting customers' AE5 belongings RE1 I feel that the opinions of friends and relatives affect my decisions When I see many people trusting supermarkets to shop, I will also want RE2 to shop here RE Having the recommendation of others will save you time in choosing RE3 the supermarket RE4 I feel secure when being introduced to others RE5 I appreciate the opinions of everyone around me DE1 The supermarket will be the supermarket that you prioritize to choose DE DE2 I decide to choose the supermarket as a shopping place in the future DE3 I will recommend the supermarket to your friends and relatives The items used for these concepts will be measured using a 5-point Likert scale: 1 Totally Disagree, 2 Disagree, 3 Normal, 4 Agree, 5 Totally Agree. 3.2. Blinding For the duration of the study, all study staff and respondents were blinded. No one from the outside world had any contact with the study participants. 4. Results 4.1. AIC (Akaike's Information Criteria) algorithm R program used the AIC to select the best model. In the theoretical environment, AIC has been used to select models. The AIC technique can also handle many independent variables when multicollinearity develops. AIC can be used as a regression model to estimate one or more dependent variables from one or more independent variables. The AIC is a crucial and useful metric for determining a full and straightforward model. A model with a lower AIC is chosen based on the AIC information standard. When the minimal AIC value is reached, the best model will end [19-22]. Every step of the search for the best model is documented in R reports. For DE = f (PP + LO + AE + RE), the step stop with four independent variables has an AIC of -355.12. Table 3 Estimates SD t-value p-value Decision DE Estimate Intercept 0.49925 PP 0.21635 0.04384 4.935 0.000 Accepted LO 0.40515 0.05249 7.719 0.000 Accepted AE 0.12723 0.03719 3.421 0.000 Accepted RE 0.12890 0.04312 2.989 0.000 Accepted We use t-value by p-value. The p-value for all variables is less than 0.05 [23], so they are correlated with the decision to choose the supermarket (DE) in table 3 was influenced Perception of prices and products (PP), Location (LO), Attitude of employees (AE), Reference (RE). 4.2. Model Evaluation Table 4 Violations of regression model PP LO AE RE VIF 1.225733 1.208596 1.095582 1.118131 test for autocorrelation Autocorrelation Durbin-Watson = 1.7654 p-value = 0.04398 R-squared F-statistic p-value: Model Evaluation 0.5129 51.6 0.00000 When the independent variables in regression models have a high correlation, the phenomenon of multicollinearity arises. When the VIF coefficient is over 10, Gujarati and Porter's model show evidence of multicollinearity [24]. Table 4 shows that the VIF (variance inflation factor) for independent variables is less than ten [25], as a result, the independent variables are not collinear. Because the p-value = 0.04398 is less than 0.05, the Durbin-Watson test shows that the model in table 4 has autocorrelation [26]. According to the results from table 4, the Perception of prices and products (PP), Location (LO), Attitude of employees (AE), Reference (RE) impact the decision to choose the supermarket (DE) is 51.29% in table 4. The regression equation below is statistically significant, according to the analyzes above [27]. DE = 0.49925 + 0.21635PP + 0.40515LO + 0.12723AE+ 0.12890RE 5. Conclusions The results of the analysis of the influence from high to low are Location (β = 0.40515), Perception of price and products (β = 0.21635), Reference (β = 0.12890), and Attitude of employees (β = 0.12723). After determining the influencing factors and their influence on the decision to choose a supermarket, the author concludes that the factors that have a powerful influence on the decision to choose a supermarket are location and feel on price and product. The factors are related in the same direction with the decision to choose a supermarket, so if any factor is increased, the decision to choose will increase. Therefore, businesses can influence the above factors to promote their business and create customer loyalty. 6. Acknowledgments This research is funded by the Industrial University of Ho Chi Minh City, Vietnam. 7. References [1] T. T. Bui, H. T. Nguyen, and L. D. Khuc, "Factors Affecting Consumer's Choice of Retail Store Chain: Empirical Evidence from Vietnam," The Journal of Asian Finance, Economics and Business, vol. 8, pp. 571-580, 2021. [2] Vietnam news. (2021). Viet Nam's 2020 retail sales see the lowest growth in nine years. Available: https://vietnamnews.vn/economy/841600/viet-nams-2020-retail-sales-see-the- lowest-growth-in-nine-years.html [3] Q. H. LE, "Factors Affecting Consumer Purchasing Behavior: A Green Marketing Perspective in Vietnam," The Journal of Asian Finance, Economics and Business, vol. 8, pp. 433-444, 2021. [4] L. Liyanage, P. PLGSD, and T. Rathnayake, "Determinants of Consumers' Selection of Supermarkets for Grocery Shopping; Empirical Evidence from Western Province, Sri Lanka," in International Conference on Marketing Management, Sri Lanka Institute of Marketing, 2020. [5] A. R. Azhar, "The Effect of Marketing Mix Strategy on Consumer Decision to Choose Modern Berastagi Supermarket in Buying Plums in Medan," IOSR Journal of Agriculture and Veterinary Science, vol. 13, pp. 61-64. [6] P. Kotler, G. Armstrong, S. H. Ang, S. M. Leong, C. T. Tan, and O. Yau, Principles of marketing: A global perspective: Prentice-Hall, 2009. [7] R. Wang, C. Ke, and S. Cui, "Product Price, Quality, and Service Decisions Under Consumer Choice Models," Manufacturing & Service Operations Management, 2021. [8] Z. Zhang and W. Zhu, "Location and Motion Prediction of Consumers in a Large Shopping Mall," in 2017 Fifth International Conference on Advanced Cloud and Big Data (CBD), 2017, pp. 250-255. [9] N. Nickanor and L. Kazembe, The supermarket revolution and food security in Namibia: Southern African Migration Programme, 2017. [10] A. M. Alhemoud, "Shopping behavior of supermarket consumers in Kuwait," Journal of Business & Economics Research (JBER), vol. 6, 2008. [11] P. Yürük-Kayapınar and S. Ergan, "Consumer Behaviors and Perceptions Towards Luxury Brands," in Building Consumer-Brand Relationship in Luxury Brand Management, ed: IGI Global, 2021, pp. 24-44. [12] M. Suresh, G. Mahadevan, and R. D. Abhishek, "Modelling the factors influencing the service quality in supermarkets," International Journal of System Assurance Engineering and Management, vol. 10, pp. 1474-1486, 2019. [13] P. Kotler, Marketing management: A south Asian perspective: Pearson Education India, 2009. [14] N. Chamhuri and P. J. Batt, "Factors influencing consumers' choice of retail stores for fresh meat in Malaysia," Acta Horticulturae, vol. 831, pp. 237-245, 2009. [15] N. Roig-Tierno, A. Baviera-Puig, J. Buitrago-Vera, and F. Mas-Verdu, "The retail site location decision process using GIS and the analytical hierarchy process," Applied Geography, vol. 40, pp. 191-198, 2013. [16] D. A. Newman, D. L. Joseph, and C. L. Hulin, "Job attitudes and employee engagement: Considering the attitude "A-factor."," The handbook of employee engagement: Perspectives, issues, research, and practice, pp. 43-61, 2010. [17] K. A. Bollen, "Overall fit in covariance structure models: Two types of sample size effects," Psychological bulletin, vol. 107, p. 256, 1990. [18] J. F. Hair, W. C. Black, B. J. Babin, R. E. Anderson, and R. L. Tatham, "Multivariate data analysis (Vol. 6)," ed: Upper Saddle River, NJ: Pearson Prentice Hall, 2006. [19] K. P. Burnham and D. R. Anderson, "Multimodel inference: understanding AIC and BIC in model selection," Sociological methods & research, vol. 33, pp. 261-304, 2004. [20] B. H. Khoi, "Factors Influencing on University Reputation: Model Selection by AIC," in Data Science for Financial Econometrics, ed: Springer, 2021, pp. 177-188. [21] D. S. Mai, P. H. Hai, and B. H. Khoi, "Optimal model choice using AIC Method and Naive Bayes Classification," presented at the IOP Conference Series: Materials Science and Engineering, 2021. [22] K. Bui Huy, "AIC Algorithm for Online Purchasing Intention," in Blockchain Technology and Applications for Digital Marketing, B. Rohit, M. Pacha, S. Amandeep, and P. Asif, Eds., ed Hershey, PA, USA: IGI Global, 2021, pp. 52-63. [23] R. C. Hill, W. E. Griffiths, and G. C. Lim, Principles of econometrics: John Wiley & Sons, 2018. [24] D. N. Gujarati and D. C. Porter, "Basic econometrics (international edition)," New York: McGraw-Hills Inc, 2009. [25] J. Miles, "Tolerance and variance inflation factor," Wiley StatsRef: Statistics Reference Online, 2014. [26] J. Durbin and G. S. Watson, "Testing for serial correlation in least squares regression. III," Biometrika, vol. 58, pp. 1-19, 1971. [27] W. H. Greene, Econometric analysis: Pearson Education India, 2003.