BACKGROUND
Introduction
Brand equity is crucial as it provides sustainable competitive advantages for a brand A brand with strong equity is more likely to be chosen, purchased more often, and fosters greater customer loyalty, as highlighted by Pitta and Katsanis (1995).
Moreover, brand equity has strong relationship with marketing communication
From various study, importance of brand equity are witnessed
Brand equity is crucial for companies as it offers numerous benefits, including serving as a source of sustainable competitive advantage (Rajh, 2005; Bharadwaj et al., 1993; Hoffman, 2000) A strong brand equity fosters brand loyalty, increasing the likelihood of selection and frequent purchases (Pitta & Katsanis, 1995) Additionally, robust brand equity enhances the potential for brand extension into new product categories, allowing companies to leverage established brand names to attract consumers (Aaker & Keller, 1990).
In relation to marketing mix, various studies (Barwise, 1993; Farquhar et al., 1991;
Keller, 1993; Keller, 1998; Pitta and Katsanis, 1995; Simon and Sullivan, 1993;
Brand equity significantly enhances the effectiveness of marketing communication strategies, as noted by Smith and Park (1992) and Yoo et al (2000) Additionally, it boosts consumers' willingness to pay a premium for particular brands.
Brand equity significantly influences consumer price elasticity, enhancing responsiveness to price reductions while diminishing sensitivity to price increases It fosters stronger collaboration and support from distribution channels, positively impacting brand partnerships Additionally, robust brand equity mitigates a company's susceptibility to competitive marketing efforts and potential crises.
Despite recognizing the significance of brand equity, managers in Vietnam's burgeoning body lotion market have inadequately invested in its development Major competitors, Unilever and Beiersdorf, are heavily engaged in advertising and sales promotions, yet they lack research on how marketing communication elements impact brand equity Over the past two years, there has been a heavy reliance on short-term sales promotions to boost performance, potentially at the expense of long-term brand equity Furthermore, the absence of a clear communication strategy to strengthen brand equity underscores the need to investigate the relationship between marketing communication elements and brand equity dimensions.
Research Objectives
This research aims to investigate the effects of marketing communication factors on the elements of brand equity In Vietnam's emerging market, building brand equity is crucial for the communication strategies of major advertisers, making it a significant topic in contemporary management Additionally, this study serves as a foundation for future research on the relationship between the marketing mix and brand equity.
Research methodology and scope
The research focuses on the dynamic market of Ho Chi Minh City (HCMC), which accounts for a significant 80% of sales for each key brand, as reported by the AC Nielsen Market Retail Audit in 2010.
Key brands are defined as brands with satisfying one of following criteria:
The brand is the market leading in the body lotion category or
The brands have long heritage in Vietnam market and have influence on the market or
The brand have been active in marketing activities like adverting, promotion, etc or
The brands that have high chance of consideration when making buying decision
This study is conducted by two steps: (1) qualitative study and (2) quantitative study
A qualitative study was conducted by analyzing secondary data and conducting in-depth interviews with current users and brand managers in the cosmetics industry This approach aims to confirm the key drivers of marketing communications and refine the measurement scales used in the analysis.
A quantitative study is performed through face-to-face interviews conducted at consumers' homes The next phase involves (1) reaffirming the components and measurement scales, and (2) testing the research model To analyze the collected data, methods such as Cronbach’s alpha, Exploratory Factor Analysis (EFA), and multiple regression are employed.
Managerial implications
Research findings provide managers with a comprehensive understanding of the elements of marketing communication and their impact on brand equity in the body lotion market This insight enables brand managers to develop effective marketing communication strategies that can enhance or diminish brand equity.
Structure of the research report
This research paper is structured into five comprehensive chapters, commencing with an introduction to the study's background in Chapter 1 A thorough literature review on brand, brand equity, and the proposed research model and hypotheses is presented in Chapter 2 The methodology and measurement scales employed in the study are detailed in Chapter 3, while Chapter 4 outlines the data analysis process and key findings Ultimately, Chapter 5 provides a concise summary of the study's results, discussion, and managerial implications, as well as highlighting the limitations and potential avenues for future research.
LITERATURE REVIEW AND RESEARCH MODEL….7 2.1 Introduction
Brand equity
Brand equity is defined as a set of assets and liabilities linked to the brand, which add value to or subtract value from a product in its relationship with customers
Brand equity is a multidimensional concept that encompasses several key elements, including perceived quality, brand awareness, brand loyalty, and brand associations, as proposed by Aaker (1991, 1996) Other researchers, such as Shocker and Weitz (1998), also highlight the importance of brand loyalty and associations, while Keller (1993) emphasizes brand knowledge, which includes both brand awareness and brand image Additionally, Lasscar et al (1995) identify five critical components of brand equity: perceived quality, perceived value, brand image, trustworthiness, and commitment to the brand.
Brand awareness is crucial for consumer recognition and recall, reflecting the strength of a brand's presence in memory (Rossiter and Percy, 1987) It encompasses two key components: brand recognition, where consumers identify a brand they have previously encountered, and brand recall, which involves the ability to retrieve the brand from memory without prompts.
Perceived quality, as defined by Zeithaml (1988), refers to a consumer's subjective assessment of a product's overall excellence or superiority, influenced by personal experiences, individual needs, and specific consumption contexts When consumers recognize high perceived quality, they acknowledge the brand's differentiation and superiority, often stemming from long-term experiences Additionally, Zeithaml highlights perceived quality as a crucial element of brand value, suggesting that superior perceived quality encourages consumers to prefer a brand over its competitors Consequently, the stronger the perception of brand quality, the greater the increase in brand equity.
Brand loyalty, as defined by Oliver (1997), is a strong commitment to consistently repurchase a preferred product or service, regardless of external influences or marketing strategies that may encourage switching This loyalty leads consumers to regularly choose a specific brand, thereby resisting the temptation to switch to competitors As a result, increased brand loyalty contributes to a rise in brand equity.
Aaker (1991) defines brand associations as “anything linked in memory to a brand” and brand image as “a set of [brand] associations, usually in some meaningful way”
Brand associations that enhance brand awareness are positively linked to brand equity, as they serve as indicators of quality and commitment These associations also facilitate consumer consideration at the point of purchase, ultimately fostering favorable consumer behavior towards the brand.
In the Vietnamese consumer market, particularly among female consumers, body lotion brands exhibit strong branding, a comparable purchasing process, and consistent product consumption This leads to the identification of three key components of brand equity: brand awareness, perceived quality, and brand loyalty High brand equity enables consumers to recognize and differentiate the brand from competitors, associate it with superior quality, and foster loyalty within the body lotion category.
This study will focus on the components of brand equity without examining the specific mechanisms by which each element contributes to its overall increase Research by Yoo et al (2000) and others indicates a positive correlation between brand equity and its key components: brand name, brand loyalty, perceived quality, and brand awareness/associations.
Brand equity is a crucial strategic element in marketing management, as highlighted by researchers like Leuthesser (1998), Farquhar (1989), and Nomem (1996) It can be developed, sustained, and enhanced by focusing on its key components Additionally, various elements of marketing communication significantly influence brand equity.
This study focuses on exploring how marketing communication increase or decrease brand equity Hence, the following part of this chapter concentrates on theoretical framework on marketing communication
The elements of marketing communication
Drawing insights from prior qualitative research conducted at Beierdoft, it is evident that three key components of marketing communication are commonly employed by major cosmetic companies in Vietnam to effectively build brand equity.
(1) advertising spending; (2) field support activities; and (3) sales promotion
This research focuses on key marketing elements commonly employed by cosmetic companies in Vietnam, which, while not exhaustive, effectively illustrate the relationship between marketing communication factors and brand equity Understanding how specific marketing activities impact brand equity will empower marketing managers to create effective strategies It is essential for managers to prioritize brand-building initiatives while minimizing or eliminating activities that may harm the brand (Yoo et al., 2000).
Advertising is defined as a paid, non-personal communication method for promoting ideas or products across both traditional media, such as TV, press, radio, cinema, and out-of-home, as well as non-traditional media like the Internet Research by Jobber (2001) and various studies highlights that advertising spending is beneficial for enhancing brand awareness, as it can reach a mass audience quickly The repetitive nature of advertising allows for effective communication of brand positioning concepts, and it can support sales efforts by legitimizing a company and its offerings However, it is important to note that advertising is impersonal and has limited effectiveness in closing sales.
Research by Simon and Sullivan (1993) indicates that increased advertising spending positively impacts brand equity Additionally, Cobb-Walgren et al (1995) found that the financial investment in advertising enhances brand equity and its various components.
In the Vietnamese market, Unilever Vietnam and P&G have significantly invested in advertising over the past decade, pouring billions of dollars into brand development in this emerging market (Source: Kantar Media, 2010) This substantial advertising expenditure highlights its role as a crucial driver in effectively building brand equity in Vietnam.
Research by Yoo et al (2000) indicates a positive correlation between advertising expenditure and brand loyalty Additionally, Shimp (1997) supports this finding, noting that increased advertising spending enhances brand-related associations and attitudes, ultimately fostering greater brand loyalty.
H1: Advertising spending positively affects brand awareness
H2: Advertising spending positively affects brand loyalty
H3: Advertising spending positively affects perceived quality of the brand
Field support activities involve direct technical assistance from cosmetic firms to consumers through market visits and meetings aimed at driving sales These personal interactions enable immediate question resolution and relationship building, fostering effective two-way communication This approach allows sales teams to better understand consumer needs and tailor their messaging accordingly Additionally, sales materials play a crucial role in effectively conveying product benefits and enhancing the shopping experience Consequently, these activities not only boost brand awareness and perceived quality but also encourage proper product usage, leading to consumer loyalty Overall, field support activities significantly enhance brand equity.
H4: Field support activities conducted for the brand positively affects brand awareness
H5: Field support activities conducted for the brand positively affects brand loyalty
H6: Field support activities conducted for the brand positively affects perceived quality of the brand
Sales promotion is aimed at providing incentives to consumers and trade to boost short-term purchases, but excessive use of such incentives, particularly discounts, can damage brand equity and create a low-quality brand image over time (Jobber, 2001) These incentives are easily replicable by competitors (Aaker, 1991) and may not foster long-term brand associations as effectively as other marketing strategies (Shimp, 1997) Additionally, consumers might become confused about pricing, leading to perceptions of poor quality, which can adversely affect brand choice decisions Sales promotions can also encourage brand switching, as consumers may be drawn to the immediate benefits, but once promotions cease, their interest may wane, prompting them to switch to competing brands (Yoo et al.).
(2000) suggest that manager should focus on advertising spending to develop brand equity instead of offering price promotion.The following hypotheses are proposed: establish
H7: Sales promotion negatively affects brand awareness
H8: Sales promotion negatively affects brand loyalty
H9: Sales promotion negatively affects perceived quality of the brand.
Research Model
This research aims to investigate the connection between essential elements of marketing communication and the components of brand equity The literature review highlights a direct correlation between marketing communication efforts and brand equity The study categorizes the elements of marketing communication and the components of brand equity into distinct groups, as illustrated in the simplified research model presented in Table 2.1.
Table 2.1: Structural model – Relationship between some key elements of marketing communication and brand equity
This chapter reviews the literature on brand equity and marketing communication, identifying three core components of brand equity: brand awareness, perceived quality, and brand loyalty It also highlights three essential elements of marketing communication: advertising spending, field support activities, and sales promotion Furthermore, a structural model is established to explain the relationship between these key elements of marketing communication and the fundamental components of brand equity.
This chapter explores the impact of sales, promotion, and advertising on various components of brand equity, proposing hypotheses on their interrelationships The following chapter outlines the research methodology employed to validate these measures and test the proposed hypotheses.
Introduction
The purpose of this chapter is to explain the research methodology which was used to develop scales for measuring researched concepts and examine the hypotheses
This chapter introduces (1) research design, (2) Measurement scale development, and (3) field work
Research design
This research comprised two phases: a qualitative study followed by a quantitative analysis The quantitative phase involved examining secondary data and conducting in-depth interviews with regular consumers and brand managers The primary aim of this step was to validate the essential components of marketing communication.
From March to May in Ho Chi Minh City, the measurement scales were adjusted and fine-tuned through a qualitative research process This involved initial personal contact via telephone and email, followed by open-ended interviews that allowed participants to provide detailed responses Post-interview, clarifications were sought through emails or informal meetings Additionally, brand managers were interviewed to gather further insights A quantitative study was conducted from June to August using face-to-face interviews at consumers' homes Data analysis utilized Cronbach’s alpha, Exploratory Factor Analysis (EFA), and multiple regression methods, with the research progression detailed in Table 3.1.
Step Methodology Data collection technique Time Location
1 Qualitative Secondary data Mar-Apr 2011 HCM City
In-depth interview May 2011 HCM City
2 Quantitative Face-to-face interview Jun-Aug 2011 HCM City
3.2.2 Research process The process of this study is structured in Table 3.2
Literature review and conceptual framework
Eliminate variables that have low Item-Total Correlation coefficients Check Cronbach’s alpha coefficients
Test convergent and discriminate validity
Eliminate variables that have low EFA loadings Check eigen values and extraction Sums of Squared Loadings
This study evaluates the impact of essential marketing communication elements on brand equity by testing specific hypotheses It assesses the adequacy of the multiple regression model through the coefficient of determination (r²) and examines the significance of this model using the F-test Furthermore, the analysis investigates the significance of individual regression coefficients by employing the t-test, providing a comprehensive understanding of the relationship between marketing communication and brand equity.
To assess the reliability of each component's items, Cronbach’s alpha was calculated, with a recommended cut-off level of 70 for theory testing research (Nunnally & Bernstein, 1994) Following the guidance of Yoo et al (2000), items that did not significantly enhance reliability were removed to ensure parsimony.
Exploratory Factor Analysis (EFA) is a complex set of procedures primarily aimed at data reduction and summarization According to Fabrigar et al (1999), when the goal is to condense information from multiple variables into a few weighted linear combinations, principal component analysis is recommended This process involves a variance maximizing (varimax) rotation of the original variable space, which seeks to enhance the variability of the new variables while minimizing variance around them (Advanced Statistical Analysis Using SPSS, SPSS Inc., 2000) Consequently, EFA was performed using the varimax rotation technique alongside the principal component analysis extraction method.
The purpose of Exploratory Factor Analysis (EFA) is to assess convergent and discriminant validity while removing variables with low EFA loadings It is essential to evaluate eigenvalues and the extraction sums of squared loadings during this process Following Kaiser’s (1960) guidelines, only components with eigenvalues exceeding 1 should be retained.
Multiple regression analysis was employed to evaluate the hypotheses within the research model The fitness of the multiple regression equation was assessed using the coefficient of determination (r²), while the significance of r² was tested through the F-test Additionally, the significance of each regression coefficient was determined using the t-test.
The questionnaire is structured into four key sections: first, it identifies respondents; second, it assesses elements of marketing communication, including advertising spending, field support activities, and sales promotions; third, it evaluates dimensions of brand equity, which encompass brand awareness, perceived quality, and brand loyalty; and finally, it gathers demographic information about the respondents.
Measurement scale development
The set of measurement scales were developed based on (1) the literature review in Chapter 2, and (2) recommendations from other authors (Yoo et al., 2000; Martin,
2000) All items were measured on 5-points Linkert-type scales, with anchors of 1
= strongly disagree and 5 = strongly agree The first set of measurement scales (draft measurement scales) was developed and taken to in-depth interviews
Measurement scales are tailored to align with the consumer and body lotion markets Through comprehensive interviews with both regular consumers and brand managers in the cosmetics industry, initial measurement scales have been refined into a final version The subsequent section of this paper will provide an in-depth explanation of the developed final measurement scales.
Brand awareness (BA) will be evaluated through four key observed variables (BA1 to BA4), which represent the main factors influencing brand recognition A comprehensive list of these variables utilized in this research is available in Table 3.3.
Table 3.3: Measurement scales for brand awareness
I am familiar with brand X and can easily recognize it among competing brands Its unique qualities allow me to distinguish it from other body lotion options, and I can quickly recall its characteristics.
Perceived quality refers to the consumer's subjective assessment of a product's excellence (Zeithaml, 1998) According to Yoo et al (2000), it is essential to evaluate consumers' overall perception of a brand's quality rather than focusing on individual quality components.
The measurement scales for perceived quality have been refined to focus on five key observation variables (PQ1 to PQ5) A comprehensive list of these variables utilized in this research can be found in Table 3.4.
Table 3.4: Measurement scales for perceived quality
PQ1 X provides high efficacy in the body lotion category PQ2 X helps my skinsmooth and whiten
PQ3 X helps to protect my skin PQ4 X is very easy to apply for my skin PQ5 Packaging of X looks very attractive
Brand loyalty refers to a strong commitment to consistently repurchase or support a preferred product or service over time, even when faced with external influences or marketing strategies that might encourage consumers to switch brands.
Yoo et al (2000) identified three observed variables—BL1, BL3, and BL6—to assess perceived quality Additionally, qualitative research indicated the inclusion of three more variables—BL2, BL4, and BL5 A comprehensive list of the variables utilized in this study for measuring brand loyalty is presented in Table 3.5.
Table 3.5: Measurement scales for brand loyalty
BL1 X is my first choice
I am committed to using brand X again and will choose it over other body lotion brands whenever available If I can't find X at my usual store, I will make an effort to search for it at another location I highly recommend brand X to others for its quality and effectiveness.
BL6 I think I am a loyal consumer of X
3.3.4 Measurements of attitudes toward advertising spending
Yoo et al (2000) suggest that controlling actual marketing efforts in their study was impractical, highlighting that perceived marketing efforts significantly influence consumer psychology more directly than the actual marketing strategies employed.
This study explores consumer perceptions of marketing elements, focusing on their attitudes toward advertising expenditures, field support activities, and sales promotions related to body lotion brands.
The full list of measurement scales used in this research for advertising can be found in Table 3.6
Table 3.6: Measurement scales for attitudes toward advertising spending
AD1 In general, I think advertising spending of X are very appeal for me AD2 I mainly know about X through seeing advertisements
AD3 In general, I like the advertisements of X brand
AD4 In general, the advertising spending campaigns for X brand make me think that X is a high quality product
AD5 I think X brand is intensively advertised, compared to other brands in the category
3.3.5 Measurements of attitudes toward field support activities
Consumer attitudes towards field support activities are assessed using five key indicators, labeled from FS1 to FS5, similar to scales employed in measuring advertising effects A comprehensive list of the measurement scales utilized in this research can be found in Table 3.7.
Table 3.7: Measurement scales for attitudes toward field support activities
FS1 In general, I think field support activities of X is very good FS2 I mainly know about X through field support activities FS3 In general, I like the field support activities X brand
FS4 In general, field support activity for X brand makes me think that X is a high quality product
FS5 I think X brand is intensively provided field support activities, compared to other brands in the category
3.3.6 Measurements of attitudes toward sales promotion
Consumer attitudes toward sales promotions are assessed using five indicators (SP1 to SP5), employing measurement scales akin to those utilized for evaluating advertising effects A comprehensive list of these measurement scales for sales promotion is available in Table 3.8.
Table 3.8: Measurement scales for attitudes toward sales promotion
SP1 In general, I think sales promotion of X is very interesting SP2 I mainly know about X through sales promotion
SP3 In general, I like to join sales promotion campaigns of X brand
SP4 In general, sales promotions for X brand make me think that X is a high quality product
SP5 I think sales promotion for X brand is more often than other brands in the category
Field work
Selected brands in the body lotion category must meet specific criteria, including being a market leader, having a long-standing heritage in Vietnam, engaging in significant marketing activities, or being highly considered during purchasing decisions Qualitative research identifies three brands that fulfill these requirements: Nivea, Hazeline, and Vaseline, which collectively account for nearly 90% of the market share in the body lotion sector, according to the AC Nielsen Market Retail Audit (2010).
In fieldwork, a simple random sampling method is employed to gather data The analysis utilizes exploratory factor analysis (EFA) and multiple regression techniques, which rely on the correlation matrix of the variables It is important to note that stable correlations typically require a substantial sample size for accurate results.
Determining an adequate sample size for factor analysis often raises the question, "how large is large?" A commonly accepted guideline suggests a minimum of 50 observations, with at least five times as many observations as there are variables Researchers recommend various sample size to variable ratios, ranging from 2:1 to as high as 20:1, to ensure reliable results in factor analysis.
A minimum sample size of 100 to 200 observations is recommended for stable solutions, as highlighted by Guadagnoli and Velicer (1988) Their research indicates that the absolute sample size is more crucial than its functions in achieving reliable outcomes Given that there are thirty observed variables, the sample size should be at least n to ensure robust results.
To determine the sample size for multiple regression models, Tabachnik and Fidell (1989) recommend using the equation N ≥ 50 + 8m, where m represents the number of independent variables With three independent variables in this analysis, the minimum required sample size is calculated as N = 50 + 8 × 3, resulting in a total of at least 74 participants.
Taking above literature on minimum sample size required for EFA and multiple regression analysis together with time and budget constrain into consideration, this study selects the sample size n = 170
The main objective is to understand the attitudes of consumers toward the efforts made on elements of marketing communication and components of brand equity
Thus, interviewees are body lotion users.These interviewees are identified as female aged at 15 - 39 years old living in HCM City
Summary
This chapter outlines the research methodology employed to create measurement scales for the studied concepts and to test the hypotheses The research is carried out in two phases: a qualitative study followed by a quantitative study The qualitative phase utilizes in-depth interviews, with 170 face-to-face interviews conducted at consumers' homes in Ho Chi Minh City A total of thirty observed variables are identified to assess six latent variables, and details regarding the sampling method and sample are provided.
Chapter 4 presents the methods for data analysis This study uses Cronbach’s alpha, Exploratory Factor Analysis (EFA) and multiple regressions methods to analyze the data and test the research model After all, the research results are interpreted and conclusions on hypotheses are provided
H1: Advertising spending positively affects brand awareness H2: Advertising spending positively affects brand loyalty H3: Advertising spending positively affects perceived quality of the brand
Field support activities significantly enhance brand awareness, fostering a stronger connection with potential customers These initiatives not only boost brand loyalty but also encourage repeat business, as consumers feel more engaged and valued Additionally, effective field support contributes to the perceived quality of the brand, reinforcing consumer trust and satisfaction.
H7: Sales promotion negatively affects brand awareness
H8: Sales promotion negatively affects brand loyalty
H9: Sales promotion negatively affects perceived quality of the brand
AD1 In general, I think advertising spending of X are very appeal for me AD2
I mainly know about X through seeing advertisements
In general, I like the advertisements of X brand
The advertising campaigns for X brand suggest it is a high-quality product, as they are more intensive compared to other brands in the same category.
FS1 In general, I think field support activities of X is very good FS2 I mainly know about X through field support activities
FS3 In general, I like the field support activities X brand
In general, field support activity for X brand makes me think that
I think X brand is intensively provided by the field support activities, compared to other brands in the category
SP1 In general, I think sales promotion of X is very interesting SP2 I mainly know about X through sales promotion
In general, I like to join sales promotion campaigns of X brand
In general, sales promotions for X brand make me think that X is a high quality product
X brand frequently engages in sales promotions, making it more prominent than other brands in its category I am familiar with X and can easily recognize it among competing brands Additionally, I can quickly distinguish X from other body lotion brands due to its unique characteristics, which I can recall effortlessly.
PQ1 X provides high efficacy in the body lotion category PQ2
X helps my skin smooth and whitening
X helps to protect my skin PQ4 X is very easy to apply for my skin PQ5 Packaging of X looks very attractive
BL3 I will not buy other body lotion brands if X is available at the store BL4
If X is not available at the store I will go to another store to find
I will recommend X to others BL6 I think I am a loyal consumer of X
RESEARCH RESULTS
Introduction
This session check measure reliability and show results through EFA and multiple regression
A total of 170 questionnaires were distributed to body lotion users, and after collecting the responses, the data was thoroughly reviewed The analysis revealed that 86% of the respondents were aged between 20 and 34 years, while 80% reported a monthly income of at least VND 4 million The findings are detailed in Table 4.1.
Advertising spending (AD) demonstrates a strong reliability coefficient with a Cronbach’s alpha of 821, exceeding the acceptable threshold Additionally, all item-total correlation values are above 58, indicating that these items are suitable for further analysis.
Field support activities (FS) demonstrate a high reliability coefficient with a Cronbach’s alpha of 854, indicating strong internal consistency Additionally, all item-total correlation values exceed 0.57, confirming the validity of the items for further analysis.
Sales promotion (SP) demonstrates a strong reliability with a Cronbach’s alpha of 852, exceeding the acceptable threshold for reliability coefficients Additionally, all item-total correlation values are above 0.53, confirming the robustness of the data and warranting their retention for further analysis.
Brand awareness (BA) demonstrates a strong reliability with a Cronbach’s alpha of 840, exceeding the acceptable threshold for reliability coefficients Additionally, all item-total correlation values are above 0.58, confirming that each item is suitable for further analysis.
Perceived quality (PQ) demonstrates a strong reliability with a Cronbach’s alpha of 850, exceeding the necessary threshold for reliability coefficients Additionally, all item-total correlation values are above 0.58, confirming the validity of the items, which were therefore retained for further analysis.
Brand loyalty (BL) demonstrates a high reliability coefficient with a Cronbach’s alpha of 842, indicating strong internal consistency Additionally, all item-total correlation values exceed 0.48, confirming the validity of the items for further analysis.
As the result of Cronbach’s alpha analysis, 30 items were retained for coming analysis which is exploratory factor analysis The Cronbach’s alpha coefficient is showed in table 4.2
Table 4.2: Cronbach’s Alpha coefficient for the used measurement scales
Exploratory factor analysis (EFA)
The initial Exploratory Factor Analysis (EFA) utilized a factor criterion of three components across 15 independent variables, yielding a Kaiser-Meyer-Olkin (KMO) measure of 850 The analysis revealed that three components could be extracted, with eigenvalues reaching 1.505, in accordance with Kaiser’s recommendations.
(1960), only components with eigenvalues greater than 1 should be maintained
The total variant extracted was 63.686% The result of the first EFA analysis is presented in table 4.3 and 4.4
The analysis utilized three key components to derive independent variables for further evaluation The first component, encompassing five observed variables related to Field Support Activity (FS1, FS2, FS3, FS4, FS5), resulted in the creation of a new independent variable named TBFS, with scores exceeding 0.64 The second component, which included five observed variables linked to Sales Promotion (SP1, SP2, SP3, SP4, SP5), led to the establishment of another independent variable called TBSP, with scores surpassing 0.56 Lastly, the third component, consisting of five observed variables associated with Advertising Spending (AD1, AD2, AD3, AD4, AD5), formed the independent variable TBAD, with scores greater than 0.62.
The second Exploratory Factor Analysis (EFA) was performed with a factor criterion set to three components across 15 dependent variables, yielding a KMO value of 0.820 This analysis revealed that three components could be extracted, with eigenvalues of 1.363 and a total variance extraction of 64.065% The findings from the initial EFA analysis are detailed in Tables 4.5 and 4.6.
The analysis utilized three key components to derive new independent variables The first component, encompassing six observed variables of Brand Loyalty (BL1, BL2, BL3, BL4, BL5, BL6) with scores exceeding 0.6, was designated as TBBL The second component, consisting of five observed variables of Perceived Quality (PQ1, PQ2, PQ3, PQ4, PQ5) with scores greater than 0.67, was named TBPQ Lastly, the third component included four observed variables of Brand Awareness (BA1, BA2, BA3, BA4) that also scored above 0.6, and was labeled TBBA.
The six new variables were used in multiple regression analysis in the next step
The new variables were summarized in the table 4.7
Table 4.3: Total Variance Explained – elements of marketing communication
Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Extraction Method: Principal Component Analysis
Table 4.4: Rotated Component Matrix(a) – elements of marketing communication
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization.a Rotation converged in 5 iterations
Table 4.5: Total Variance Explained – elements of brand equity
Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Extraction Method: Principal Component Analysis
Table 4.6: Rotated Component Matrix(a) – elements of brand equity
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 5 iterations
The article covers various topics, including FS1 to FS5, which highlight key features and functionalities Additionally, it discusses SP1 to SP5, emphasizing the importance of specific strategies The AD section, featuring AD1 to AD5, presents advertising insights crucial for effective campaigns Furthermore, the BL series (BL1 to BL6) explores best practices and lessons learned Lastly, the PQ section, encompassing PQ1 to PQ5, delves into pertinent questions and answers, while the BA series (BA1 to BA4) provides actionable business advice.
Examination research model by multiple regression
4.5.1 Examination the effects of advertising spending, field support activities and sales promotion on brand awareness
In Chapter 2, there were three hypotheses defined for the relationship between advertising spending, field support activities, sales promotion and brand awareness
H1: Advertising spending for the brand positively affects brand awareness
H4: Field support activities conducted for the brand positively affects brand awareness
Sales promotions for the brand can have a detrimental impact on brand awareness A multiple regression analysis was conducted to evaluate this relationship, examining the new independent variables—TBAD, TBFS, and TBSP—against brand awareness (TBBA), as detailed in Tables 4.8, 4.9, and 4.10.
The Model Summary table reveals a correlation coefficient (R) of 624, indicating a significant relationship between advertising spending, field support activities, and sales promotion with brand awareness, accounting for their inter-correlations Additionally, the R Square value of 389 represents the explained variance, derived from squaring the multiple R The ANOVA table further supports these findings.
F value of 35.291 is significant at the 000 level
The results show that 38.9% of the variance (R Square) in brand awareness has been significantly explained by the three selected elements of marketing communications
Table 4.10, titled Coefficients, reveals that among the three selected elements of marketing communications, advertising spending significantly influences brand awareness variance The Standardized Coefficients show a Beta value of 288 for advertising spending, indicating a strong need for increased investment in advertising to enhance brand awareness Consequently, this supports hypothesis H1.
The Beta (.265) for field supportactivities is significant at 001level, so hypothesis H4 is supported The Beta (-.212) for sales promotion is significant at 004 level, therefore hypothesis H7 is supported
Table 4.8: Model Summary – Marketing Communication and Brand Awareness
Std Error of the Estimate
1 624(a) 0.389 0.378 0.55329 a Predictors: (Constant), TBSP, TBAD, TBFS
Table 4.9: ANOVA (b) – Marketing Communication and Brand Awareness
Model Sum of Squares df Mean Square F Sig
Total 83.228 169 a Predictors: (Constant), TBSP, TBAD, TBFS b Dependent Variable: TBBA
Table 4.10: Coefficients (a) – Marketing Communication and Brand Awareness
4.5.2 Examination the effects of advertising spending, field support activities and sales promotion on perceived quality
In Chapter 2, there were three hypotheses defined for the relationship between advertising spending, field support activities, sales promotion and perceived quality These hypotheses are followed:
H3: Advertising spending positively affects perceived quality of the brand
H6: Field support activities conducted for the brand positively affects perceived quality of the brand
H9: Sales promotion negatively affects perceived quality of the brand
Multiple regression was used to test these three hypotheses The new independent variables (TBAD, TBFS, TBSP) against perceived quality (TBPQ) was reported in Table 4.11, 4.12 and 4.13
The Model Summary table indicates a correlation coefficient (R) of 522, highlighting the relationship between advertising spending, field support activities, and sales promotion with perceived quality, while accounting for their inter-correlations The R Square value of 272 represents the explained variance, derived from the square of the multiple R Additionally, the ANOVA table provides insights into the overall significance of the model.
F value of 20.693 is significant at the 000 level
The results show that 27.2% of the variance (R Square) in perceived quality has been significantly explained by the three selected elements of marketing communication
Table 4.13, titled "Coefficients," reveals that among the three selected elements of marketing communication, advertising spending has the most significant influence on perceived quality, with a Beta of 177, indicating the need for increased investment in advertising to enhance brand perception Additionally, sales promotion shows a significant negative Beta of -.290 at the 000 level, supporting hypothesis H9 Overall, the findings validate hypothesis H3 regarding the importance of advertising in improving perceived quality.
Table 4.11: Model Summary – Marketing Communication and Perceived Quality
Std Error of the Estimate
1 522(a) 0.272 0.259 0.59106 a Predictors: (Constant), TBSP, TBAD, TBFS
Table 4.12: ANOVA (b) – Marketing Communication and Perceived Quality
Model Sum of Squares df Mean Square F Sig
Total 79.679 169 a Predictors: (Constant), TBSP, TBAD, TBFS b Dependent Variable: TBPQ
Table 4.13: Coefficients (a) – Marketing Communication and Perceived Quality
4.5.3 Examination the effects of advertising spending, field support activities and sales promotion on brand loyalty
In Chapter 2, there were three hypotheses defined for the relationship between advertising spending, field support activities, sales promotion and brand loyalty
H2: Advertising spending positively affects brand loyalty
H5: Field support activities conducted for the brand positively affects brand loyalty
H8: Sales promotion negatively affects brand loyalty
Multiple regression was used to test these three hypotheses The new independent variables (TBAD, TBFS, TBSP) against brand loyalty (TBPQ) was reported in Table 4.14, 4.15 and 4.16
The Model Summary table indicates a strong correlation (R = 926) between advertising spending, field support activities, and sales promotion with brand loyalty, considering all inter-correlations The R Square value of 858 reflects the explained variance, representing the square of the multiple R Additionally, the ANOVA table provides further insights into the model's significance.
F value of 335.084 is significant at the 000 level
The results show that 85.8% of the variance (R Square) in brand loyalty has been significantly explained by the three selected elements of marketing communication
Table 4.16, titled "Coefficients," reveals the impact of three marketing communication elements on brand loyalty variance The Standardized Coefficients indicate that Field support activities have the highest Beta value of 552, supporting hypothesis H5 Additionally, advertising spending shows a significant Beta of 235, affirming hypothesis H2, while sales promotion has a Beta of -0.330, also supporting hypothesis H8 All Beta values are significant at levels below 05, confirming their relevance in influencing brand loyalty.
Table 4.14: Model Summary – Marketing Communication and Brand Loyalty
Std Error of the Estimate
1 926(a) 0.858 0.856 0.2384 a Predictors: (Constant), TBSP, TBAD, TBFS
Table 4.15: ANOVA (b) – Marketing Communication and Brand Loyalty
Model Sum of Squares df Mean Square F Sig.
Total 66.568 169 a Predictors: (Constant), TBSP, TBAD, TBFS b Dependent Variable: TBBL
Table 4.16: Coefficients (a) – Marketing Communication and Brand Loyalty
Summary
This chapter explained methods for data analysis and research results There are total 30 variables for analysis All hypotheses are supported and reported in the table 4.17
The next chapter will concentrate on discussions and conclusions and limitations of this paper
Table 4.17: Hypothesis and research results
DISCUSSION AND CONCLUSION
Introduction
This study explores the relationship between three key components of marketing communication and brand equity elements within the body lotion category The findings offer valuable insights and managerial implications for marketing managers Additionally, the session addresses the limitations of the research and provides recommendations for future studies.
5.2 Marketing communication on elements and building brand equity
Brand equity is significantly linked to brand name, loyalty, perceived quality, and brand awareness, as highlighted by Yoo et al (2000) Aaker (1997) emphasizes the importance of these dimensions, suggesting that understanding the foundations of brand equity is crucial for effective brand-leveraging strategies to prevent brand dilution.
Advertising expenditure significantly enhances brand equity, as increased spending leads to greater brand awareness Additionally, there is a positive correlation between advertising investment and perceived product quality; thus, higher advertising spending tends to elevate consumers' perceptions of a brand's quality.
Advertising spending positively influences consumer loyalty towards a brand, aligning with findings from Yoo et al (2000) To enhance brand equity, companies in the competitive body care market must invest in advertising, despite its high costs Effective advertising strategies are essential for body brand managers to build and maintain brand equity Setting clear objectives for each campaign and allocating appropriate budgets is crucial Additionally, implementing a monitoring system to assess the impact of advertising on brand equity elements is necessary Quarterly reports on these metrics will help evaluate advertising effectiveness and enable proactive adjustments to improve the Brand Equity Index (BEI) in the future.
Field support activities significantly enhance brand equity components, highlighting the importance of strategic investment in these efforts Cosmetic companies should prioritize face-to-face technical support through market visits, meetings, and sales materials to foster interactive communication with consumers This two-way engagement enables sales staff to gain valuable insights into consumer needs and effectively convey product benefits, such as the proper use of body lotions As consumers become more informed and satisfied with their experiences, their loyalty to the brand increases, ultimately strengthening brand perception and quality recognition.
Managers must enhance the effectiveness of field support activities, as sales forces play a crucial role in driving success Organizing targeted sales training sessions is essential for enriching the knowledge, skills, and abilities of the team, ultimately leading to improved performance and results.
Good sales team can implement field support activity well, hence enhance brand equity
Sales promotions, while effective for short-term gains, can negatively impact brand equity by diminishing perceptions of quality, brand awareness, and customer loyalty Increased investment in sales promotions may lead to a decline in brand equity over time, as evidenced by the case of body lotion products Although promotions can attract competitors' customers, these individuals often lack long-term loyalty to the brand Furthermore, frequent use of sales promotions may cause consumers to question the brand's quality, ultimately harming its reputation.
Therefore, managers should be careful of sales promotion to avoid deteriorating brand equity in the long term Managers should define clear objectives when deploying promotion campaigns
This study has notable limitations that present opportunities for future research It focuses solely on the relationship between three marketing communication elements and brand equity, leaving out other marketing mix components like price and distribution Additionally, it only examines the one-way influence of marketing communication on brand equity, without considering how brand equity might affect communication elements Furthermore, the research does not delve into specific advertising executions or field support activities that could enhance brand equity Future studies are encouraged to address these gaps to aid managers in crafting targeted marketing strategies.
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APPENDIX: Questionnaire for quantitative survey