MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY UEH BUSINESS SCHOOL INTERNATIONAL BUSINESS MARKETING DEPARTMENT Research the impact of Augmented Reality application and Memory marketing on consumer[.]
MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY UEH BUSINESS SCHOOL INTERNATIONAL BUSINESS -MARKETING DEPARTMENT Research the impact of Augmented Reality application and Memory marketing on consumer attitudes and behaviors Case Study: “The Tale of Cuoi” from The Coffee House Course number: 22C1MAR50313602 Course name: Consumer Behaviour - EN Members of group 04: Tran Ngoc Thien Kim - 31201020435 Nguyen Pham Thanh Mai - 31201025847 Le Thi Thao Trang - 31201024368 Le Thi Tuyet Nhi - 31201023084 Le Ngoc Yen Nhi - 31201024647 Ho Chi Minh City, September 28th, 2022 TABLE OF CONTENTS ABSTRACT .1 I INTRODUCTION Reasons for choosing the topic 2 Summary of The Coffee House's "The Tale of Cuoi" Campaign Research purposes Research subjects .3 Research scope Research methods II THEORETICAL FRAMEWORK Market Overview SWOT and Key Competitor 2.1 SWOT .5 2.2 Key Competitor: Cong Coffee The motivation and goals for The Coffee House to launch the campaign “The Tale of Cuoi” Theories applied to the study: .9 III FINDINGS 11 Summary of the focus group .11 Research results and analysis: 12 IV CONLUSION & RECOMMENDATION .20 Conlusion: 20 Limitations: 21 Recommendations 21 VI REFERENCES .23 ABSTRACT The study aimed to determine the impact of augmented reality technology and nostalgic marketing on the attitudes and behavior of Gen Z consumers in Ho Chi Minh City by interviewing 23 customers (divided into groups) living in Ho Chi Minh City who have experienced advertising using augmented reality technology on mobile phones.This study presents the results of a campaign that uses the fairy tale "Chu Cuoi in the Moon" as the foundation for innovative products combined with technology through AR to stimulate the purchasing power of mooncakes of consumers of The Coffee House Capturing mobile usage behavior of TA, the brand that develops AR technology for The Coffee House app Users can use the new function to scan product packaging to experience the story "The Tale of Cuoi" This method not only helps the brand convey the story more vividly and completely, but also allows users to unleash their imagination when immersed in eye-catching AR movements The results show that the application of AR in marketing and product packaging of The Coffee House has successfully left a positive impression on consumers, and especially stimulated the eyes Since then, the research has contributed academically and practically to businesses in applying AR shopping to provide information and create added experience value for customers At the same time, the study also proposes some managerial implications to help businesses increase customers' positive attitudes towards advertising, thereby helping businesses better meet customers' needs and building customer loyalty as well as building more successful advertising campaigns Keywords: AR technology, Augmented reality, AR apps mobile application, memory marketing, nostalgia, experience, decision-making I INTRODUCTION Reasons for choosing the topic The fourth industrial revolution is well underway, with the introduction of new technology and procedures Smartphones and other technology gadgets have become indispensable components of contemporary life and consumerism (Braun et al., 2016) These technology gadgets have integrated applications such as: Shopping apps with augmented reality technology (Augmented Reality, AR shopping apps for short), allowing consumers to participate and experience a new approach for customers to discover more about items and services and experience them in a real-world context (Huang & Liao, 2015), which can enhance the customer experience Due to the fact that more than 73% of people in Vietnam use smartphones (according to Tin tuc newspapers, 2022), businesses and retailers may benefit from the chance to promote products and services through digital technology platforms like AR shopping applications to their clients The use of technology in daily life has altered how people behave New technology applications, like augmented reality shopping apps, have made it easier to get information and have product images that match the user or their surroundings For instance, users can try on shoes, lipsticks, watches, or home appliances that will fit their space Numerous businesses currently make use of smartphone augmented reality purchasing apps (eg: YouCam App, IKEA, ) It is difficult to ignore the highly effective marketing effort for "The Tale of Cuoi 2020." from The Coffee House (With The Coffee House app, customers may experience the tale of "The Tale of Cuoi" by scanning product packaging This approach not only allows the business to easily transmit the tale in a more vivid and full manner, but it also allows consumers to release their creativity while engaged in eye-catching AR motions; moreover, it recalls recollections of the traditional values and beauty of the event They had forgotten about the mid-autumn celebration because of their present hectic schedule This campaign resulted in a media frenzy, and total sales in 2020 soared by 250% compared to 2019, with items selling out before the Mid-Autumn Festival (with over 60,000 cakes) (Brands Vietnam) As a result, we can conclude that AR shopping application technology is a tool for potential and successful marketing that businesses should use to fit client wants In fact, in a developing country like Vietnam, the application of AR technology is not really popular Therefore, the authors have conducted a research paper “ Research on the impact of AR technology and Nostalgic Marketing on the shopping behavior of Gen Z consumers in Ho Chi Minh City ” is needed to study how the impacts of AR will affect the attitudes, shopping experiences and behavioral trends of Gen Z consumers in Ho Chi Minh City The results of this study will help administrators who have used or intend to use AR advertising on mobile phones to have a more detailed view of the impact of factors on customer attitudes, thereby helping businesses better meet the needs of customers and build more successful campaigns 2 Summary of The Coffee House's "The Tale of Cuoi" Campaign Grasping the trend of the Metaverse Virtual Universe, The Coffee House has developed AR technology for its own branded app Users can use the new function to scan product packaging to experience the story "The Tale of Cuoi" This method not only helps the brand convey the story in a more vivid and complete way, but also allows users to unleash their imagination when immersed in eye-catching AR movements, helping to stimulate the eyes Besides, The Coffee House first aired its own radio program called "Moon Storyteller" The program brings listeners back to their childhood with interesting, honest stories and poetic songs Comment: The Coffee House used Sensory marketing to stimulate customers' vision and Memory Marketing to remind customers of good memories Through the campaign, The Coffee House attracted the public's attention and successfully turned "The Tale of Cuoi" into a strong brand platform to engage with the brand's consumers during each Mid-Autumn Festival The 2020 campaign ended with the following outstanding results: Communication results: Nearly 37 million impressiom, exceeding 116% KPI More than 16 million reach, exceeding 144% KPI; million engagements, exceeding 467% KPI million views of short films, exceeding 139% KPI 200% Earned PR vs Paid PR Business results: Total sales in 2020 increased by 250% compared to 2019 with products sold out before the Mid-Autumn Festival (more than 60,000 cakes) Research purposes This research aims to explore and identify the impacts of augmented reality technology and nostalgic marketing on the attitudes, shopping experiences, and behavioral trends of gen Z consumers in Ho Chi Minh City, thereby proposing proposes some recommendations to increase the positive attitude of gen Z consumers in Ho Chi Minh City towards advertising using AR technology on mobile phones Research subjects Research object: The impact of augmented reality technology and nostalgic marketing on the shopping behavior of gen Z consumers in Ho Chi Minh City Survey object: Gen Z customers living and working in Ho Chi Minh City have experienced advertising using AR technology Research scope Spatial scope: Ho Chi Minh City Time range: Starting time from August 20, 2022 to September 29, 2022 Research methods In this study, the authors used the qualitative research method The authors have conducted a case study using information gathering/exploitation techniques through group interviews and discussions with groups (including 23 people) to be able to comprehensive and in-depth study and assessment of the impact of augmented reality technology and nostalgic marketing on the shopping behavior of Gen Z consumers in Ho Chi Minh City II THEORITICAL FRAMEWORK Market Overview a Market overview: In 2020, the Mooncake market is said to be quite gloomy, without many impressive advertising campaigns Although the Covid-19 epidemic in Vietnam is well controlled, the negative impact on the economy is still heavy and will lead to many changes in the Mooncake market When the economy is affected, the demand for non-essential goods will decrease It can be said that the Mooncake market in 2020 is developing slowly and less excitingly than the previous year b Competition in the high-end segment: Every year, the Mooncake market is fiercely competitive in terms of taste, design, packaging, and even promotions In Ho Chi Minh City, Mooncake products of brands such as Kinh Do, Nhu Lan, Dong Khanh are popularly traded on downtown streets such as Cach Mang Thang Tam, Pham Van Dong, Hoang Van Thu, Cong Hoa, Quang Trung Most business units operate in parallel with traditional and online wholesale methods, so they not store goods in large quantities as in previous years On the other hand, the business unit also provides free home delivery for customers, so the quality of mooncakes is guaranteed from production, distribution and transportation to consumers Some business units also offer paper lanterns of various designs for customers In terms of price, the price of Mooncakes in 2020 has increased by 5-10% compared to the previous year (depending on the type), due to an increase in some input materials Specifically, mooncakes of brands Kinh Do, Nhu Lan, and Dong Khanh are priced from 250,000 to 500,000 VND/box (depending on the number of cakes and weight of each product) c Competition among coffee chains: Mid-Autumn Festival 2020 products associated with the brands of bakeries, coffee shop chains, etc have the upper hand on the brand reputation In particular, this year's mooncake season welcomes the participation of more and more brands such as Givral, ABC, Phuc Long Coffee&Tea, MyLife Coffee, The Coffee House These brands conquer consumers with unique products such as mooncakes produced and processed from green beans, coffee, and salted eggs; or use a variety of specialty ingredients such as ginger jam, lemon, lime leaves, malt, dragon fruit, cheese Meanwhile, the price is only different from other cakes of the same type and weight The price on the market is only about 100,000 - 150,000 VND/box Typically, The Coffee House has a line of Ram Tu Quy mooncakes selling at VND 590,000/box; Ram Song Phuc at 350,000 VND/box; The Tale of Cuoi at 790,000 VND/box And Phuc Long Coffee&Tea has a line of Song Hao Trang Ram mooncakes with the price of 320,000 VND/box; Luc Bao Huong Thu 820,000 VND/box In addition, consumers can choose individual bakery products to design their own cake boxes according to their preferences d Many units enter the market: After years of absence from the market, in July 2020, KIDO Group (KDC) announced its participation in the moon cake market in 2020 with Kingdom In which, KDC with the strength of experience in making fresh cakes (mooncakes) and at the same time processing them will save a lot of costs, this is an advantage that helps the Company to compete on price The company will R&D the product while the production is carried out to order from outside This will help the company avoid the burden of costs (mostly depreciation costs), especially amid the unpredictable COVID-19 pandemic KDC chooses the mid-range segment, the price ranges from 55,000 to 150,000 VND/cake In addition, the Company also develops gift products for the high-end segment, with prices ranging from VND 700,000 to VND 1,000,000/box SWOT and Key Competitor 2.1 SWOT * Strengths: Unique, out-of-the-ordinary content: After only days of release, the film received positive feedback from the online community with nearly 6,000 likes, 396 shares, and thousands of comments on fanpage, more than million views on the Youtube channel The interaction of The Coffee House far exceeds that of competitors in the same industry even though it was launched many days before One of the reasons why "Ve nha don trang" attracted a lot of attention is because of the novel script If every year, users are often overwhelmed by short films, TVC ads focus on exploiting family affection, reunion season has become so familiar, this year, The Coffee House decided to change, and don't follow that path anymore It can be seen that it is rare for brands to develop such a scenario that integrates such folk tales The meaningful message, integrating Vietnamese identity: Integrating Vietnamese identity and national spirit in business is not new, but to cleverly transform into short films, TVC advertising is something few businesses can The image of the god buffalo appearing was inspired by the symbol of the country with wet rice civilization Applying smart technology to business: Capturing customers' mobile device behavior, the brand develops AR technology for The Coffee House application Users can use the new function to scan product packaging to experience the story "The Tale of Cuoi" This method not only helps the brand convey the story more vividly and completely, but also allows users to unleash their imagination when immersed in eye-catching AR movements * Weaknesses: Sparsely distributed selling points: The Coffee House is a chain of stores that is mostly concentrated in the city center, so it has not yet been able to reach customers in more remote areas Many customers still not have access to the product Narrow market segment: In the Nostalgia trend, The Coffee House the target is Gen Z customers, who offer products that combine tradition and modernity But besides that, the product is difficult to reach other segments Narrow market segment (medium to high), price: 350,000 VND - 790,000 VND/box * Opportunities: The rise of the Nostalgia trend: With the rise of the Nostalgia trend in recent years, The Coffee House is also extremely observant when choosing traditional Vietnamese cultural materials with the pure Vietnamese story Chu Cuoi Cung Trang to tell its very own story New technology trends: Combined with available phone applications for both iOS and Android operating systems, AR technology not only brings a special visual experience, pure Vietnamese cultural elements, thereby bringing a new life to life Active in common packaging design, forming an interaction protocol between brands and general customers, especially Millennials and Centennial customers * Threats: Fierce competition: Every year, hundreds of large and small brands, and thousands of production facilities… race to launch new products Besides, under the impact of the Covid-19 pandemic, the lines of "handmade" mooncakes made by hand at home have also sprung up a lot The market fluctuates due to the pandemic: The moon cake market is also greatly affected by the pandemic due to prolonged social distancing Therefore, production must be narrowed due to reduced purchasing ability and a difficult economic situation 2.2 Key Competitor: Cong Coffee * Overview Cong Coffee is a coffee chain established in 2007 At present, Cong Coffee is present everywhere in Vietnam and has opened branches in Korea and Malaysia * Pursuing the Nostalgia trend: Cong Coffee's resounding success is undeniable when it decides to enter the mooncake market Like a nostalgic person who stubbornly refuses to be modern, Cong Coffee mooncakes still appear with rustic green packaging, simple but very familiar to those who are fans of Cong * Cong Coffee's opportunity in the mooncakes market To save the original things of the Mid-Autumn Festival, Cong Coffee only launches users with traditional flavors: Mixed and green beans with melon seeds It is the simplicity of the Cong that has created a great resonance, not only instilling fire in young people about the national culture but also bringing the story of Vietnam further to friends around the world The gift box has the brand's iconic blue color, and the design is inspired by the night of the lantern procession, with innovative flavors: coffee coconut milk, coconut milk green tea, blueberry salted egg and mixed The price of a box of is 360,000 VND, retail is 70,000 VND/piece In addition, this coffee chain also offers cake - tea combos to boost sales at the shop These combos have two prices, VND 85,000 and VND 145,000 Because there are branches in Korea and Malaysia, Cong Coffee can bring traditional flavors to other countries around the world With a nostalgic style and always drawing its own stories for each of its products, Cong Coffee has brought customers special experiences from taste to vibe Therefore, Cong Coffee always creates a great resonance both at home and abroad, always being pursued by young people Cuoi” The motivation and goals for The Coffee House to launch the campaign “The Tale of ● Actual situation: The level of commercialization has increased gradually over time, losing the meaning and cultural value of the Mid-Autumn Festival in the hearts of Vietnamese people Life keeps dragging us away with all our busy worries, so the Mid-Autumn Festival is also difficult to be as complete as before Over time, we also ignored the customs and habits of this traditional festival to adapt to the hustle and bustle of life, leading to the traditional beauty of the August Full Moon festival in danger of being lost before the development of minds However, The Coffee House's connection to mooncake was brought up, and a targeted campaign was recalled The moderator finished the session by asking participants about the potential of Augmented Reality technology in the future, "do you want brands, including The Coffee House, in particular, to continue using augmented reality technology in their goods and services in the future? Why?”, as with these participants (82.6% of respondents encouraged The Coffee House to apply AR more in the future, 17.4% of respondents encouraged The Coffee House not to continue using AR): “I think they should continue because AR and VR applications are quite popular now and their use of them can bring more experiences to customers In a way, it will stimulate customers' curiosity about their products So I think Vietnamese brands should continue to research and have impressive AR products.” “I think most consumers want to eat good, quality food rather than just looking at it.” Research results and analysis: In the Findings section, there will be main topics to discuss: Topic I: Consumers' attitudes towards the application of AR in products Topic II: Buying intentions’ of consumers towards the application of AR in products Topic III: The impacts of memory marketing on customer purchasing decisions We will analyze in detail the data collected from the Focus - Group interview, and delve into the feelings and experiences of the interviewees to find out the attitudes and purchase intentions of Gen Z consumers before the application of AR and nostalgic marketing to Mid-Autumn Festival products The interviewees are all Gen Z generation and come from Ho Chi Minh City In general, in the interview, we see the answers of the majority of the respondents repeating phrases such as "impressive", "new", "unique", and "eye-catching" Thus we also partly see the results of certain effects on the consumer experience We will analyze in more detail the results of the impacts in each chapter 2.1 Consumers' attitudes towards the application of AR in products 2.1.1 Consumers' degree of familiarity with augmented reality (AR) 14 When surveying the level of understanding of Gen Z consumers about AR, the results showed that 95.7% of respondents said that they had heard about the concept of Augmented Reality (AR), but only 4.3% of respondents never heard of AR Most of them know about AR through game applications, real experiences, and information on social networks Never heard or experienced AR Experiences at shopping mall Social Media, Daily News Pokemon Go Game 10 12 14 16 Specifically, 21.7% of respondents said that they had experienced AR through the popular Pokemon Go game, 65.2% of respondents heard about the concept of AR through information on social networks about applications of AR in real life, 8.7% of respondents had real experiences with AR at shopping malls in Vietnam when buying cosmetics and fashion, and only 4.3% of respondents had not been exposed to any information and experiences about AR technology However, the majority of interviewees who have been exposed to AR only know some basic information such as AR which integrates virtual information and graphics into the real world, in real coordinates But when it comes to complex theories such as how AR works, most survey participants not understand The results show that the majority of Gen Z consumers have been exposed to the concept of AR and have basic knowledge of AR This is a good signal that businesses can plan to deploy AR applications in Marketing or business activities This may also be the motivation for The Coffee House brand to launch the campaign "The Tale of Cuoi" The campaign has applied the AR filter scan on the product packaging with many vivid character images The Coffee House's AR application has received many positive responses from customers, attracting more customers because of its novelty and investment, especially the young Gen Z who are passionate about technology 2.1.2 The first impression when being introduced to The Coffee House's "The Tale of Cuoi" campaign 15 In general, most of the respondents felt impressed and new when they heard about the campaign “The Tale of Cuoi” 100% of the respondents responded positively to The Coffee House's mid-autumn promotion campaign Although sharing many different feelings, in most of the responses, the interviewees repeated phrases such as: "impressive", "new", "attractive", and "creative" We can see, the campaign "The Tale of Cuoi" has successfully conveyed the values that the brand wants to customers The core value of the campaign is Impressive, creative, and charismatic Consumers have fully embraced these values When being shown the AR filter scan video on the product cover, most of the respondents were very impressed by the vivid colors and sound of the AR graphic images brought into the real space Respondents said that seeing animated characters in video content move in real space like in their own homes is really interesting and visually stimulating, “Feels like the characters are slowly coming out of the page and dancing in front of me.” The AR images left a lot of impressions on all the respondents, but to reach the "Wow" point, leaving an unexpected and unforgettable feeling, the campaign only reached a few people, specifically: 16 14 12 10 Have a deep impression, feel "wow" Impressive but not impressed to the point of "wow" Only 39.1% of respondents said that AR images reached the "Wow" point, leaving them with a deep and unforgettable impression The reason why they are so impressed is because of the brand's investment, knowing how to grasp trends and refresh the mid-autumn experience The remaining 60.9% of respondents said that the application of AR left a lot of impressions for them, but not to a deep and unforgettable level The reason they weren't so impressed was that they had no interest in the technology, and they didn't care about other factors about the product other than price Through the survey results, we see that the application of AR in marketing and product packaging of The Coffee House has successfully left a positive impression on consumers, and especially stimulated the eyes However, to reach the "Wow" point, and leave the deepest impression, perhaps the brand needs to change its 16 strategy of using AR technology, such as adding eye-catching graphics or diversifying the plot 2.1.3 Visual effects on emotions Have no different feelings Feel different than when watching the video 10 12 14 In the survey, we showed the respondents a 3D animated video of the characters from the short film “The Tale of Cuoi” and then showed the AR filter scan video on the story page of the mooncake box We asked respondents about emotional differences when seeing characters in virtual and real settings The results show that 56,5% of respondents feel that seeing the characters come out of the story and move in real space feels more interesting and vivid, making them feel happy and nostalgic Regarding cozy mid-autumn memories, these respondents also said that they were in a better mood when experiencing this AR filter The remaining 43,5% of respondents feel normal and not too impressed, the emotions are no different when watching 3D cartoons Through the survey results, we see that the visual effects of AR have had a positive effect on consumers' emotions and moods This may be the motivation for The Coffee House brand to apply Sensory Marketing through the use of AR technology to influence consumers' visuals, thereby helping to improve consumers' moods and create motivation to purchase for consumers 2.2 Buying intentions’ of consumers towards the application of AR in products 2.2.1 Consumer preference factors when choosing a brand When asked, "Are you willing to spend money to buy The Coffee House's ARintegrated Mooncake Box instead of famous popular brands like Kinh Do or Nhu Lan?" The number of respondents with the intention of being willing to buy The Coffee House's AR-integrated Mid-Autumn Moonlight Box accounted for 52.2% of the total, while the remaining 47.8% still preferred to choose the cakes of the brands they often buy, the most popular numbers are Kinh Do and Nhu Lan 17 ... "The Tale of Cuoi 2020." from The Coffee House (With The Coffee House app, customers may experience the tale of "The Tale of Cuoi" by scanning product packaging This approach not only allows the. .. impression on customers when they can see the characters in the story moving AR outside reality ● Social: The influence of social on behavior One of the reasons why The Coffee House'' s "The Tale of Cuoi" ... ABC, Phuc Long Coffee& Tea, MyLife Coffee, The Coffee House These brands conquer consumers with unique products such as mooncakes produced and processed from green beans, coffee, and salted eggs;