Key Factors Influence Brand Trust And Brand Loyalty A Study On Smartphone Consumers.pdf

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Truong Hong Ky KEY FACTORS INFLUENCE BRAND TRUST AND BRAND LOYALTY A STUDY ON SMARTPHONE CONSUMERS MASTER OF BUSINESS (Honours[.]

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Truong Hong Ky KEY FACTORS INFLUENCE BRAND TRUST AND BRAND LOYALTY A STUDY ON SMARTPHONE CONSUMERS MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Truong Hong Ky KEY FACTORS INFLUENCE BRAND TRUST AND BRAND LOYALTY A STUDY ON SMARTPHONE CONSUMERS ID: 22110033 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr Tran Ha Minh Quan Ho Chi Minh City – Year 2014 Acknowledgement I would like to express my sincere gratitude to my supervisor, Dr Tran Ha Minh Quan for the valuable supervision, the support and encouragement he gave me I would like to express my gratitude to my ISB class friends for thesis support and direction Your encouragement, friendly guidance and critical comments have greatly contributed to this thesis Finally, I would like to thank all of the respondents without whom, this research would have been difficult to make Truong Hong Ky July, 2014 Abstract In each industry, there is a competition between companies to win customers’ trust and make them become loyal Customers, after getting the satisfaction of the product/service they consume, come to ask for value, belief, social status and life style orientation that company/brand makes When customers become more loyal to the brand? The most important reason is that product or service meets their expectation and demand More than that, brand has to come with distinctive message and build a social status that customers need to fulfill their selfdefining This study is conducted to find out the key factors affect brand loyalty and brand trust This context of this research is technology equipment smartphone The factors found have explaind how customers maintain loyalty with smartphone product The results indicate all dependent factors : (1) Brand Identity (BI), (2) Brand Identification (BID), (3) Customer Satisfaction (CS) have significant impact on dependent variavles (4) Brand Trust (BT) and (5) Brand Loyalty (BL) Brand Trust also has strong impact on Brand Loyalty The last part of this study gives some recommendation to brand executives and marketing practitioners to gain trust and win loyalty of customers Tables Of Content Research Formulation 1.1 Background 1.2 Research Problem 1.3 Research Objective 1.4 Research Scope 1.5 Significance 1.6 Structure Of Thesis Literature Review 2.1 Brand and Brand Loyalty 2.2 Brand Trust 2.3 Customer Satisfaction 2.4 Brand Identity and Brand Identification 2.4.1 Kapferer’s Brand Identity vs Brand Image 2.4.2 Brand Identity in other research journal 10 2.4.3 Brand Identification 11 2.5 Research Model and Hypothesis Research Method 12 17 3.1 Research Process 17 3.2 Measurement Scale 20 3.3 Data Analysis Method 21 3.3.1 Source of Data Summary 21 3.3.2 Sampling 22 3.3.3 Data Analysis Method 22 Research Result And Discussion 24 4.1 Descriptions of Sample 24 4.2 Measurement Scale Assessment 28 4.3 Exploratory Factor Analysis 30 4.3.1 EFA Analysis results for measurement scales of independent factors (Brand Identity, Brand Identification, Customer Satisfaction) 31 4.3.2 EFA Analysis results for measurement scales of dependent factor (Brand Trust, Brand Loyalty) 4.4 Multi-Linear Regression Analysis for hypothesis testing 33 34 4.4.1 Checking Regression Assumptions 35 4.4.2 Hypothesis Testing 38 4.4.2.1 Testing hypothesis on the impact of independent factors on Brand Trust 39 4.4.2.2 Testing hypothesis on the impact of independent factors on Brand Loyalty 4.5 Discussion 40 42 4.5.1 Regression analysis result 42 4.5.2 Brand Identity Finding 42 4.5.3 Brand Identitfication Finding 43 4.5.4 Customer Satisfaction Finding 43 4.5.5 Brand Trust Finding 43 4.6 Summary 44 Conclusions and Implications 45 5.1 Research Overview 45 5.2 Key finding 45 5.3 Managerial Implication 46 5.4 Contribution of the study 47 5.4.1 Contribution of theory 47 5.4.2 Contribution to practical 47 5.5 Limitation Reference Appendix 47 49 LIST OF TABLE Table 1: List of Hypothesis 15 Table 2: Summary of the concept studied 16 Table 3: Descriptive Statistics of Sample 21 Table 4: Description Table 26 Table 5: Reliability Analysis Results 28 Table 6.1: Correlation Matrix 31 Table 6.2: EFA Analysis for independent variables after running 31 Table 6.3: Total Variance Explained for independent factors 32 Table 6.4: Rotated Component Matrix for independent variables 32 Table 7.1: EFA Analysis for dependent variables after running 33 Table 7.2: Total Variance Explained for dependent factors 33 Table 7.3: Rotated Component Matrix for dependent variables 34 Table 8: Collinearity Statistics for two dependent variables 35 Table 9.1: Multiple Regression result with dependent Brand Trust 39 Table 9.2: Research Result of what positively influence Brand Trust 40 Table 9.3: Multiple Regression result with dependent Brand Loyalty 40 Table 9.4: Research Result of what positively influence Brand Trust 42 LIST OF FIGURE Figure 1: Proposed Research Model 16 Figure 2: Research Process 19 Figure 3.1: Gender 24 Figure 3.2: Age 25 Figure 3.3: Degree 25 Figure 3.4: Job Position 25 Figure 3.5: Income 26 Figure 3.6: Brand Used 26 Figure 4.1: Normality of the residuals 37 Figure 4.2: Histogram 38 Figure : Research Regression Result 44 Chapter 1: Research Formulation This chapter indicates the context of this study, including a short introduction of smartphone industry in Vietnam, the purpose of this study, research problem statement, research scope and methodology 1.1 Background Vietnam smartphone market is growing fast According to Vietnamese Online Jounal of Investment, in December of 2013, the International Market Rearch GFK showed a result that Vietnam’s smartphone market has the rapid growth in the South-East of Asia Referring to the result, after months of 2013, the growth rate of this market in Vietnam is 156% to 2012 According to Google statistics, at the end of quarter of 2013, the number of smartphone users in Vietnam is 17 millions This number is rising in the near future In the middle of 2013, the proportion of smartphone among handphone device is 38% (*) This technology industry attract millions of consumer Smartphone becomes a very convenient product with many useful features A good looking and high-rated smartphone is an image of life style In October of 2013, at a Technology Conference, Thinh Pham, Wada Technological Application Buider Representative, stated that we are watching the age of smartphone Many significant facts are shown First, smartphone users in Vietnam takes 20% of Vietnam population Second, smartphone is the popular device to access Internet in Vietnam 60% of smartphone users tend to shop online, 97% of them search for information Smartphone users tend to access Internet and social media(**) Smartphone industry turns to be impactful and so potential In addtion, as the price of a smartphone has become reasonable, smartphone segment can attract more potential consumer in low-price market (*): Retrieved from: http://www.baodautu.vn/thi-truong-smartphone-viet-mieng-banh-beobo.html (**): Retrieved from: http://vietnamnet.vn/vn/cong-nghe-thong-tin-vien-thong/136651/google-17-trieu-nguoi-vn-dang-dung-smartphone.html Within the smartphone market in Vietnam, the competition between handphone producers/brands become more fiere and vigorous The prestigous world-wide handphone producers Apple, Samsung, Nokia, LG, HTC… is competing to take over the market of Vietnam Many new-comers like Huawei and Oppo try to get into this potential market Some China producers also launch product targeting low-price market This industry keeps on growing fast and the penetration phase is almost over In order to maintain competitive advantage, smartphone company has to invest a lot on R&D to meet many new demands of consumer and follow the technology innovation which keeps changing over time As the result, top brand also introduce their newest products to the consumer in Vietnam as the same time as in other potential markets Every quarter of the year, consumer see many new products launched Consumer now have many choices for choosing a smartphone more than ever They are easy to find a smartphone with practical features and inexpensive price The switching cost is not so high to change from a brand to another In 2014, smartphone users tend to look for big screen design and practical function for checking health… Price of a premium smartphone is also going down and become less expensive than before (***) Besides getting along in the R&D race, main effort of company/brand is to encourage the consumer to buy their product and maintain their loyalty There comes the question that, standing before a many products and brands, what would make the consumer confident to make the dicision of buying or re-purchasing? One perspective is that with a strong platform/core value, reasonable price, good after-sale service, a brand can win the market Other perspective is that consumer tend to buy the brand that is believed to be prestigeous Some people say they base on their acquaintances’ suggestion and advice to make decision (***): Retrieved from: http://tuoitre.vn/tin/tuoi-tre-cuoi-tuan/cuoc-song-muonmau/20140927/xu-huong-di-dong-2014-thong-minh-hon-nua-re-hon-nua/650848.html 1.2 Research Problem All the top management executives have to find way to make the company profitable and hold on its competitive advantage They have to learn their consumer, generate more sale of their product/service and build their brand stronger over time Business administration starts with the organization’s vision and mission and develops with functional department operation Marketing department has a role to help build the core value of company, brand and convey that brand message to customers One way to achieve competitive advantage success of a company/brand is how they differentiate themselves in profitable way Consumer will consider purchasing and re-purchasing product/service based on their confidence, trust and the degree of loyalty in the company’s brand name In another word, customer has believe that the product or service under that brand name must perform well and satisfy their needs So companies, marketers and brand executives have done many research and learnt the concept of customer satisfaction, customer loyalty and customer’s perceived value Today, customers not only get influenced by company’s promotional programs but also interact with company and other customers Trust and perceived value drive customers to make recommendation and participate in the development of the company Brand loyalty and trust plays an important role for company success The more loyalty customers are generated, the higher value and more profitable that brand would build to company As in such a rapid-changing industry like smartphone one, facing the competition over time, studying of brand loyalty is necessary In conclusion, each company/brand should find out what to satisfy their customers and make them become loyal Company and brand executives are required to measure customers’ brand value perception This research is tailored in the smartphone product segment The research result contribute to the technology company the way to keep customers loyal to their brand Company will also know how they would positioning their brand inside customer’s mind ... Value approached through two concepts Brand Identity and Brand Identification 2.1 Brand and Brand Loyalty Brand is a precious asset of every organization and company Brand is a big part of company’s... Literature Review 2.1 Brand and Brand Loyalty 2.2 Brand Trust 2.3 Customer Satisfaction 2.4 Brand Identity and Brand Identification 2.4.1 Kapferer’s Brand Identity vs Brand Image 2.4.2 Brand Identity... (5) Brand Loyalty (BL) Brand Trust also has strong impact on Brand Loyalty The last part of this study gives some recommendation to brand executives and marketing practitioners to gain trust and