() i VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS IMPACT OF PRODUCT INVOLVEMENT FACTORS ON CELL PHONE USERS’ BRAND LOYALTY IN HO CHI MINH CITY In Partial.
VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS IMPACT OF PRODUCT INVOLVEMENT FACTORS ON CELL PHONE USERS’ BRAND LOYALTY IN HO CHI MINH CITY In Partial Fulfillment of the Requirements of the Degree of BACHELOR OF ARTS in BUSINESS ADMINISTRATION Student’s name: NGUYEN DUC DANH (BAIU09139) Advisor: HOANG THI PHUONG THAO, Ph.D Ho Chi Minh City, Vietnam 2013 i IMPACT OF PRODUCT INVOLVEMENT FACTORS ON CELL PHONE USERS’ BRAND LOYALTY IN HO CHI MINH CITY APPROVED BY: Advisor APPROVED BY: Committee, Hoang Thi Phuong Thao, Ph.D _ Nguyen Quynh Mai, Ph.D., Chair _ Nguyen Nhu Tung, MBA., Secretary _ Ho Thi Bich Van, Ph.D _ Hoang Thi Phuong Thao, Ph.D THESIS COMMITTEE ii ACKNOWLEDGMENTS This is a pleasure to express my sincere gratitude to all those who made this thesis possible First and foremost, I would have not finished this thesis without the support of my professional advisor, Mrs Hoang Thi Phuong Thao, who has always been there for me whenever I need her, the encouragement she gave to keep me going and her care to empower me which never fails all the time Mrs Hoang Thi Phuong Thao, you taught me things beyond my understanding Thank you for treating me with respect and being a friend throughout my time of doing this thesis You really are a wonderful advisor To you, I give you lots of sincere thanks and respect Thank you To Ms Chau Thi Bich Nga, Mr Bui Dac Tri, and all the respondents who facilitated and helped me to conduct my interviews, as well as my surveys Thank you To my friends who supported me in my research work I appreciated all the time and advice you gave to me Thank you Especially, I would like to give special thanks to my family for their patient love, unflagging belief, and dedication during the time of doing thesis and throughout my life To all of you, thanks for supporting me and always being there for me iii TABLE OF CONTENTS LIST OF TABLES vii LIST OF FIGURES ix ABSTRACT x ABBREVIATIONS xi CHAPTER I: INTRODUCTION .1 1.1 Background of the Research 1.1.1 Global mobile phone market 1.1.2 Mobile phone market in Vietnam 1.2 Rationale of the Research 1.3 Problem Statement .5 1.4 Research Objectives .7 1.5 Research Questions 1.6 Research Methodology 1.7 Relative Researches .8 1.8 Scope of the Study 1.9 Implications of the Study .9 1.10 Structure of the Research CHAPTER II: LITERATURE REVIEW .11 2.1 Brand 11 2.2 Brand Loyalty .12 2.3 Product Involvement 13 2.3.1 Involvement and product involvement 13 2.3.2 High product involvement versus low product involvement 15 2.3.3 Product attributes 17 2.3.4 Product knowledge .19 2.3.5 Country of origin 21 iv 2.3.6 Pleasure 22 2.3.7 Self-image expression 23 2.4 Relationship between Product Involvement and Brand Loyalty 24 2.5 Research Hypotheses 26 2.6 Conceptual Framework .29 2.7 Summery of the Chapter .30 CHATER III: METHODOLOGY 31 3.1 Research Design 31 3.1.1 Research methods 31 3.1.2 Research process 32 3.2 Qualitative Research 32 3.2.1 Desk research .32 3.2.2 Individual depth interview 33 3.2.3 Questionnaire construct .34 3.3 Measurement scales .35 3.3.1 Product attributes perception .35 3.3.2 Product knowledge .36 3.3.3 Country of origin 36 3.3.4 Pleasure 37 3.3.5 Self-image expression 37 3.3.6 Brand loyalty 38 3.4 Quantitative Research 38 3.4.1 Sample size 38 3.4.2 Sampling method 39 3.4.3 Data analysis 40 3.5 Summery of the Chapter .40 CHAPTER IV: DATA ANALYSIS AND RESULTS 41 4.1 Descriptive Statistics 41 v 4.1.1 Sample description .41 4.1.2 Descriptive statistics for independent and dependent variables 44 4.2 Reliability and Factor Analysis 46 4.2.1 Reliability analysis .46 4.2.1.1 Reliability test for Product attributes perception scale .48 4.2.1.2 Reliability test for Product knowledge scale .50 4.2.1.3 Reliability test for Country of origin perception scale 50 4.2.1.4 Reliability test for Pleasure scale 52 4.2.1.5 Reliability test for Self-image expression scale 53 4.2.1.6 Reliability test for Brand loyalty scale .53 4.2.2 Exploratory factor analysis 54 4.2.2.1 Independent variables 54 4.2.2.2 Dependent variable 59 4.2.3 Modified conceptual framework 59 4.3 Hypotheses Testing .61 4.3.1 Correlation analysis .61 4.3.2 Regression analysis 62 4.3.3 Checking for regression assumptions violations 64 4.3.4 Hypotheses testing results 65 4.4 Summery of the Chapter 67 CHAPTER V: CONCLUSION AND MANAGERIAL IMPLICATIONS 68 5.1 Conclusion 68 5.2 Managerial Implications .71 5.3 Limitations and Suggestion for Further Research 75 LIST OF REFERENCES 76 APPENDICES 85 vi LIST OF TABLES Table 1: Top ten mobile phone manufacturers in 2012 .2 Table 2: Product attributes perception measurement scale 36 Table 3: Product knowledge measurement scale .36 Table 4: Country of origin perception measurement scale 37 Table 5: Pleasure measurement scale 37 Table 6: Self-image expression measurement scale 38 Table 7: Brand loyalty measurement scale 38 Table 8: Descriptive statistics of mobile phone brands used by respondents 42 Table 9: Descriptive statistics for demographic variables 43 Table 10: Descriptive statistics for independent and dependent variables 45 Table 11: Meaning levels of Cronbach's Alpha 47 Table 12: Reliability test for measurement scales by Cronbach's Alpha 48 Table 13: Initial results of reliability test for Product attributes perception scale 49 Table 14: Final results of reliability test for Product attributes perception scale 49 Table 15: Results of reliability test for Product knowledge scale 50 Table 16: Initial results of reliability test for Country of origin perception scale 51 Table 17: Final results of reliability test for Country of origin perception scale 52 Table 18: Results of reliability test for Pleasure scale 52 Table 19: Results of reliability test for Self-image expression scale 53 Table 20: Results of reliability test for Brand loyalty scale .53 Table 21: Rotated Component Matrix .55 Table 22: Pleasure and Enjoyment measurement scale .56 Table 23: Product quality perception measurement scale 57 Table 24: Results of reliability test for Pleasure and Enjoyment scale 57 Table 25: Results of reliability test for Product quality perception scale 57 Table 26: Summery of reliability test for variables 58 vii Table 27: Mean values of independent variables 58 Table 28: Modified hypotheses 61 Table 29: Correlations 62 Table 30: Standardized Beta coefficients and significance values of independent variables .63 Table 31: Summery of hypotheses testing results 65 viii LIST OF FIGURES Figure 1: Conceptual framework 29 Figure 2: Research process 32 Figure 3: Mean values of independent variables .59 Figure 4: Modified conceptual framework 60 Figure 5: Conceptual framework after regression analysis 65 ix ABSTRACT This study examines the impact of product involvement factors on cell phone users’ brand loyalty in Ho Chi Minh City First, the research gives an overview of the mobile phone market in the world, as well as in Vietnam; and literature review In addition, the relationships between each construct are assumed or indicated based on the previous researches Both qualitative and quantitative research method were applied in this research Questionnaires were designed based on desk research and individual depth interview Data collected from questionnaires was analyzed by quantitative testing methods in SPSS software Finally, the conclusion and managerial implications, as well as limitations and suggestion for further research are reported Total 250 questionnaires were collected in this research The results show four factors have positive impacts on Brand loyalty, include: Product quality perception, Country of origin perception, Pleasure and Enjoyment, and Self-image expression; while there is no relationship between Product knowledge and Brand loyalty of mobile phone users in Ho Chi Minh mobile phone market The managerial implications draw from this study to which mobile phone manufacturers can refer are: 1) Creating pleasure and enjoyment for consumers, 2) Developing technologies to improve product quality, 3) Catching and understanding consumers’ personalities, and 4) Creating good image for products’ country of origin By these ways, mobile phone manufacturers can remain and enhance the brand loyalty of consumers x Lòng trung thành thương hiệu Tôi ý đến thương hiệu X thương hiệu khác chọn mua điện thoại di động Khi nhắc đến điện thoại di động, nghĩ đến thương hiệu X trước tiên Tôi tiếp tục sử dụng X dù thương hiệu khác có tính tương tự 5 5 Nếu mua thêm điện thoại di động thay đổi điện thoại di động dùng, chọn mua thương hiệu X Nếu có tham khảo ý kiến tơi việc mua điện thoại di động, giới thiệu (đề nghị) họ mua điện thoại thuộc thương hiệu X Phần 3: Thông tin cá nhân Xin anh/chị vui lịng cho biết số thơng tin cá nhân sau: Giới tính Nam Nữ Tuổi 18-22 23-29 30-35 >35 Tình trạng nghề nghiệp Thu nhập hàng tháng Sinh viên Dưới triệu Quản lý Trên 10 triệu-15 triệu Nhân viên văn phịng triệu-10 triệu Bn bán tự Trên 15 triệu Khác XIN CHÂN THÀNH CẢM ƠN SỰ HỢP TÁC CỦA ANH/CHỊ! 97 APPENDIX E DESCRIPTIVE STATISTICS RESULTS Cell phone brands Cell phone brands Frequency Percent Valid Percent Cumulative Percent Valid Nokia 72 28.8 28.8 28.8 Apple 54 21.6 21.6 50.4 Samsung 62 24.8 24.8 75.2 LG 11 4.4 4.4 79.6 3.6 3.6 83.2 Sony Ericsson 10 4.0 4.0 87.2 Mobell 8 88.0 HTC 15 6.0 6.0 94.0 FPT 8 94.8 POP mobile 4 95.2 SKY 4 95.6 Lenovo 8 96.4 Alcatel 4 96.8 Gionee 4 97.2 K-Touch 4 97.6 Blackberry 8 98.4 Motorola 8 99.2 Special 4 99.6 Q-Mobile 4 100.0 250 100.0 100.0 Sony Total 98 Demographic variables Sex Frequency Valid Male Percent Valid Percent Cumulative Percent 92 36.8 36.8 36.8 Female 158 63.2 63.2 100.0 Total 250 100.0 100.0 Age Frequency Percent Valid Percent Cumulative Percent Valid 18 - 22 69 27.6 27.6 27.6 23 - 29 125 50.0 50.0 77.6 30 - 35 33 13.2 13.2 90.8 > 35 23 9.2 9.2 100.0 Total 250 100.0 100.0 99 Occupation Frequency Valid Student Valid Percent Percent Cumulative Percent 70 28.0 28.0 28.0 100 40.0 40.0 68.0 Manager 16 6.4 6.4 74.4 Free saleman 10 4.0 4.0 78.4 Other 54 21.6 21.6 100.0 Total 250 100.0 100.0 Office staff Monthly income Frequency Valid Less than million Percent Valid Percent Cumulative Percent 92 36.8 36.8 36.8 million-10 million 100 40.0 40.0 76.8 Over 10 million-15 million 25 10.0 10.0 86.8 Over 15 million 33 13.2 13.2 100.0 250 100.0 100.0 Total 100 Variables Descriptive Statistics N PA1 PA2 PA3 PA4 PA5 PK1 PK2 PK3 PK4 PK5 PK6 COO1 COO2 COO3 COO4 COO5 PL1 PL2 PL3 PL4 SE1 SE2 SE3 SE4 LOY1 LOY2 LOY3 LOY4 LOY5 Valid N (listwise) Minimum Maximum 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 250 1 1 1 1 1 1 1 1 1 1 1 1 1 5 5 5 5 5 5 5 5 5 5 5 5 5 5 250 101 Mean 4.12 3.70 3.78 3.57 4.00 3.64 3.78 3.75 3.32 3.28 3.62 4.03 4.06 4.18 3.67 4.07 3.93 3.78 3.78 3.87 3.18 3.22 3.53 3.11 3.73 3.50 3.48 3.30 3.36 Std Deviation 851 842 926 955 921 845 962 848 1.049 1.007 987 922 857 741 881 891 836 985 970 850 1.075 1.056 999 1.006 980 1.084 1.080 1.057 1.049 APPENDIX F RELIABILITY TEST RESULTS Initial Product attributes perception scale Reliability Statistics Cronbach's Alpha N of Items 611 Item-Total Statistics Scale Scale Mean if Variance if Item Deleted Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted PA1 15.05 5.479 432 524 PA2 15.47 6.355 203 632 PA3 15.40 4.939 518 471 PA4 15.60 5.365 372 554 PA5 15.17 5.691 316 583 Final Product attributes perception scale Reliability Statistics Cronbach's Alpha N of Items 632 Item-Total Statistics Scale Scale Mean if Variance if Item Deleted Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted PA1 11.35 4.189 414 563 PA3 11.70 3.586 545 461 PA4 11.90 4.098 347 611 PA5 11.47 4.178 353 604 102 Product knowledge scale Reliability Statistics Cronbach's Alpha N of Items 837 Item-Total Statistics Scale Scale Mean if Variance if Item Deleted Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted PK1 17.75 13.577 600 814 PK2 17.60 13.108 574 819 PK3 17.64 13.990 523 828 PK4 18.07 12.340 623 810 PK5 18.11 12.121 698 793 PK6 17.76 12.430 664 800 Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted Initial Country of origin perception scale Reliability Statistics Cronbach's Alpha N of Items 784 Item-Total Statistics Scale Scale Mean if Variance if Item Deleted Item Deleted COO1 15.98 6.012 681 700 COO2 15.95 6.210 701 695 COO3 15.83 7.241 539 752 COO4 16.34 7.423 362 807 COO5 15.94 6.639 545 749 103 Final Country of origin perception scale Reliability Statistics Cronbach's Alpha N of Items 807 Item-Total Statistics Scale Scale Mean if Variance if Item Deleted Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted COO1 12.31 3.934 721 707 COO2 12.28 4.170 719 711 COO3 12.16 5.053 546 794 COO5 12.28 4.618 525 807 Pleasure scale Reliability Statistics Cronbach's Alpha N of Items 865 Item-Total Statistics Scale Scale Mean if Variance if Item Deleted Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted PL1 11.43 5.973 687 839 PL2 11.59 5.247 723 825 PL3 11.58 5.024 808 786 PL4 11.49 6.042 649 852 104 Self-image expression scale Reliability Statistics Cronbach's Alpha N of Items 860 Item-Total Statistics Scale Scale Mean if Variance if Item Deleted Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted SE1 9.86 6.876 713 819 SE2 9.82 6.710 773 793 SE3 9.52 7.391 674 834 SE4 9.94 7.402 664 838 Brand loyalty scale Reliability Statistics Cronbach's Alpha N of Items 897 Item-Total Statistics Scale Scale Mean if Variance if Item Deleted Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted LOY1 13.64 13.331 731 877 LOY2 13.88 12.663 737 876 LOY3 13.89 12.739 728 878 LOY4 14.08 12.540 783 865 LOY5 14.01 12.807 748 873 105 Pleasure and Enjoyment scale Reliability Statistics Cronbach's Alpha N of Items 844 Item-Total Statistics Scale Scale Mean if Variance if Item Deleted Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted PL1 19.56 11.790 702 804 PL2 19.71 11.210 658 811 PL3 19.70 10.836 742 793 PL4 19.62 11.820 680 808 PA1 19.37 13.157 427 853 PA5 19.48 12.154 548 833 10 Product quality perception scale Reliability Statistics Cronbach's Alpha N of Items 686 Item-Total Statistics Scale Scale Mean if Variance if Item Deleted Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted PA3 3.57 912 522 a PA4 3.78 857 522 a a The value is negative due to a negative average covariance among items This violates reliability model assumptions You may want to check item codings 106 APPENDIX G EXPLORATORY FACTOR ANALYSIS RESULTS Exploratory factor analysis results for independent variables KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Component … Approx Chi-Square 874 2568.814 df 231 Sig .000 Total Variance Explained Extraction Sums of Squared Initial Eigenvalues Loadings % of % of Cumulative Cumulative Total Total Variance Variance % % 7.239 2.151 1.861 1.685 1.273 899 708 32.905 9.776 8.458 7.658 5.784 4.088 3.220 32.905 42.682 51.139 58.798 64.582 68.670 71.890 7.239 2.151 1.861 1.685 1.273 32.905 9.776 8.458 7.658 5.784 32.905 42.682 51.139 58.798 64.582 Extraction Method: Principle Components Analysis Exploratory factor analysis results for the dependent variable KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square df 863 718.433 10 Sig .000 107 Total Variance Explained Initial Eigenvalues Component Total Extraction Sums of Squared Loadings % of Cumulative Variance % 3.542 70.842 70.842 523 10.450 81.293 371 7.423 88.715 307 6.150 94.865 257 5.135 100.000 Total % of Variance Cumulative % 3.542 70.842 70.842 Extraction Method: Principal Component Analysis Component Matrixa Component LOY1 830 LOY2 837 LOY3 829 LOY4 868 LOY5 844 Extraction Method: Principal Component Analysis a components extracted 108 APPENDIX H MEAN VALUES OF INDEPENDENT VARIABLES Descriptive Statistics N Mean PQ 250 3.67 PK 250 3.56 COO 250 4.09 PE 250 3.91 SE 250 3.26 Valid N (listwise) 250 109 APPENDIX I MULTIPLE REGRESSION ANALYSIS RESULTS Model Summaryb Model R 611a Adjusted R Square R Square 373 Std Error of the Estimate 360 DurbinWatson 707 1.959 a Predictors: (Constant), SE, PQ, COO, PK, PE b Dependent Variable: LOY ANOVAb Model Sum of Squares Regression df Mean Square 72.581 14.516 Residual 121.845 244 499 Total 194.426 249 F Sig 29.069 000a a Predictors: (Constant), SE, PQ, COO, PK, PE b Dependent Variable: LOY Coefficientsa Model Unstandardized Coefficients B Std Error -.326 346 PQ 232 059 PK 045 COO 1(Constant) Standardized Coefficients Beta Collinearity Statistics t Sig Tolerance VIF -.941 348 216 3.946 000 860 1.163 076 036 593 554 686 1.458 170 074 131 2.308 022 797 1.255 PE 390 086 299 4.514 000 584 1.711 SE 172 062 169 2.763 006 683 1.464 a Dependent Variable: LOY 110 111 ... in Ho Chi Minh City? ?? 1.4 Research Objectives The main goal of this research is to investigate how product involvement factors impact on cell phone users’ brand loyalty in Ho Chi Minh mobile phone. .. Chi Minh City Based on that, research questions for the study are as follows: - What are the main product involvement factors of cell phone brands in Ho Chi Minh City? - How these factors influence... attributes 2) 3) 4) 5) Cell phone users’ product knowledge Cell phone users’ perception in product? ??s country of origin Cell phone users’pleasure Cell phone users’ self images 16 2.3.3 Product attributes