(Luận văn) the effects of marketing communication on brand equity

MINISTRY OF EDUCATION TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY oOo - t to ng hi ep HUỲNH KIM PHỤNG w n lo ad y th ju THE EFFECTS OF MARKETING COMMUNICATON ON BRAND EQUITY yi pl n ua al n va ll fu oi m nh Major: Business Administration at Major Code: 60.34.05 z z k jm ht vb om l.c gm Supervior: Dr TRẦN HÀ MINH QUÂN an Lu n va ey t re Ho Chi Minh City - 2011 TABLE OF CONTENT t to ng ACKNOWLEDGEMENTS……………………………………………………….1 hi ep ABSTRACT……………………………………………………………………… BACKGROUND…………………………………………….3 w CHAPTER n Introduction…………………………………………………………………3 lo 1.1 ad Research Objectives……………………………………………………… y th 1.2 Research methodology and scope………………………………………… 1.4 Managerial implications……………………………………………………5 1.5 Structure of the research report…………………………………………… ju 1.3 yi pl ua al LITERATURE REVIEW AND RESEARCH MODEL….7 n n va CHAPTER Introduction…………………………………………………………………7 2.2 Brand equity…………………………………………………………………7 ll fu 2.1 oi m nh at 2.2.1 Brand awareness…………………………………………………… z z 2.2.2 Perceived quality…………………………………………………… ht vb k jm 2.2.3 Brand loyalty…………………………………………………………8 gm 2.2.4 Brand Association……………………………………………………8 The elements of marketing communication…………………………………9 om l.c 2.3 n a Lu 2.3.1 Advertising Spending……………………………………………….10 y Research Model…………………………………………………………….12 te re 2.4 n 2.3.3 Sales Promotion…………………………………………………….11 va 2.3.2 Field Support Activities…………………………………………….11 2.5 Summary………………………………………………………………… 13 t to ng CHAPTER hi ep 3.1 w 3.2 RESEARCH METHODOLOGY…………………………15 Introduction……………………………………………………………… 15 Research design……………………………………………………………15 n lo 3.2.1 Research methodology…………………………………………… 15 ad ju y th 3.2.2 Research process……………………………………………………17 yi 3.2.3 Questionnaire Structure…………………………………………… 18 pl al Measurement scale development………………………………………… 19 n ua 3.3 n va 3.3.1 Measurements of brand awareness…………………………………19 ll fu 3.3.2 Measurements of perceived quality……………………………… 20 m oi 3.3.3 Measurements of brand loyalty…………………………………….20 at nh 3.3.4 Measurements of attitudes toward advertising spending………… 21 z z ht vb 3.3.5 Measurements of attitudes toward field support activities……… 21 jm 3.3.6 Measurements of attitudes toward sales promotion……………… 22 k gm 3.4 Field work………………………………………………………………….23 l.c om 3.4.1 Researched brands………………………………………………….23 n a Lu 3.4.2 Sample…………………………………………………………… 23 Summary………………………………………………………………… 24 n va 3.5 RESEARCH RESULTS………………………………… 28 y te re CHAPTER 4.1 Introduction……………………………………………………………… 28 t to ng hi ep 4.2 Sample Characteristics…………………………………………………….28 4.3 Measure reliability check………………………………………………….28 4.4 Exploratory factor analysis (EFA)…………………………………………31 w 4.5 Examination research model by multiple regression………………………36 n lo 4.5.1 Examination the effects of advertising spending, field support ad ju y th activities and sales promotion on brand awareness……………………………….36 yi 4.5.2 Examination the effects of advertising spending, field support pl activities and sales promotion on perceived quality………………………………37 ua al n 4.5.3 Examination the effects of advertising spending, filed support n va activities and sales promotion on brand loyalty………………………………… 39 fu Summary………………………………………………………………… 41 ll 4.6 oi m DISCUSSION AND CONCLUSION…………………… 43 at nh CHAPTER Introduction……………………………………………………………… 43 5.2 Marketing communication elements and building brand equity………….43 5.3 Limitation and future research…………………………………………….45 z 5.1 z ht vb k jm gm om APPENDIX l.c REFERENCES ………………………………………………………………….46 n a Lu TABLE y te re Table 3.1: Research progression………………………………………………… 16 n marketing communication and brand equity………………………………………13 va Table 2.1: Structural model – Relationship between some key elements of Table 3.2: Research process……………………………………………………….17 t to ng Table 3.3: Measurement scales for brand awareness…………………………… 19 hi ep Table 3.4: Measurement scales for perceived quality…………………………… 20 w Table 3.5: Measurement scales for brand loyalty…………………………………20 n lo Table 3.6: Measurement scales for attitudes toward advertising spending……….21 ad ju y th Table 3.7: Measurement scales for attitudes toward field support activities…… 22 yi Table 3.8: Measurement scales for attitudes toward sales promotion…………… 22 pl al n ua Table 4.1: Sample Characteristics…………………………………………………28 n va Table 4.2: Cronbach’s Alpha coefficient for the used measurement scales……….30 ll fu Table 4.3: Total Variance Explained – elements of marketing communication… 32 m 4.4: Rotated Component – oi Table Matrix(a) elements of marketing nh at communication…………………………………………………………………….33 z z Table 4.5: Total Variance Explained – elements of brand equity…………………33 vb ht Table 4.6: Rotated Component Matrix(a) – elements of brand equity…………….34 jm k Table 4.7: New Variables Computed…………………………………………… 35 Model Summary – Marketing Communication and Brand l.c 4.8: gm Table om Awareness…………………………………………………………………………37 a Lu Table 4.9: ANOVA (b) – Marketing Communication and Brand Awareness……37 n 4.10: Coefficients (a) – Marketing Communication and Brand n va Table Quality…………………………………………………………………………… 39 y Table 4.11: Model Summary – Marketing Communication and Perceived te re Awareness…………………………………………………………………………37 Table 4.12: ANOVA (b) – Marketing Communication and Perceived t to Quality…………………………………………………………………………… 39 ng hi Table 4.13: Coefficients (a) – Marketing Communication and Perceived ep Quality…………………………………………………………………………… 39 w Table 4.14: Model Summary – Marketing Communication and Brand n lo ad Loyalty…………………………………………………………………………… 41 y th Table 4.15: ANOVA (b) – Marketing Communication and Brand Loyalty………41 ju 4.16: yi Table Coefficients – (a) Marketing Communication and Brand pl n ua al Loyalty…………………………………………………………………………… 41 n va Table 4.17: Hypothesis and research results………………………………………42 ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re Page of 52 ACKNOWLEDGMENTS t to The author would like to thank Dr Tran Ha Minh Quan for his instructions and ng hi valuable comments during the research I also would like to thank Mr Dang Huu ep Phuc who gave meaningful advice for processing data w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re Page of 52 ABSTRACT t to ng The objective of this paper is to investigate the relationship between selected hi elements of marketing communication and brand equity of in the body lotion ep category The selected set includes three key elements from each of marketing w factors They are advertising spending, field support activities and sales promotion n lo from communication Plus, awareness, perceived quality and brand loyalty are from ad brand equity With the concrete measurement, the study surveys body lotion users y th ju in HCMC The results show that to selected component of brand equity of body yi lotion category, advertising spending and field support activities response a positive pl ua al side, whereas sales promotion have a negative impact n These findings provide insights for doing strategy of marketing communication va n activities generating and managing brand equity ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re Page of 52 CHAPTER BACKGROUND t to 1.1 Introduction ng hi Brand equity is very important as it is a source of sustainable competitive ep advantages of a brand The brand owning strong equity increases a chance for the w brand to be selected, purchased more frequently and so the loyalty to the brand is n lo higher, Pitta and Katsanis (1995) ad y th Moreover, brand equity has strong relationship with marketing communication ju From various study, importance of brand equity are witnessed yi pl According to Rajh 2005, brand equity is very important because it has many al n ua benefits for companies Bharadwaj et al., (1993) and Hoffman (2000) find that n va brand equity could be considered as a source of sustainable competitive advantage fu while Pitta and Katsanis (1995) discover that there is the positive relationship ll between brand equity and brand loyalty It means that the brand owning strong oi m equity increases a chance for the brand to be selected, purchased more frequently nh at and so the loyalty to the brand is higher Aaker and Keller (1990) also find other z benefits related to brand extension such as strong brand equity of the brand z ht vb enhances possibility of brand extension to other product categories It allows k categories jm companies to use established brand name to drive consumers to enter new product gm l.c In relation to marketing mix, various studies (Barwise, 1993; Farquhar et al., 1991; om Keller, 1993; Keller, 1998; Pitta and Katsanis, 1995; Simon and Sullivan, 1993; a Lu Smith and Park, 1992; Yoo et al., 2000) find that brand equity is one of the sources n to increase efficiency of marketing communication programs Brand equity also y elasticity of consumers to price increases Brand equity has positive relationship te re brand equity increases elasticity of consumers to price reductions and decreases n Brand equity also impact elasticity of consumers to price change More precisely, va increases willingness of consumers to pay premium price for a specific brand Page of 52 with willingness of stores (distribution channel) to collaborate and provide support t to for the brand Brand equity reduces the company vulnerability to marketing ng activities of the competition and their vulnerability to crises hi ep Although of understanding importance of brand equity, managers have not invested w in creation brand equity properly in the body lotion category which is growing in n lo Vietnam market.Top two giant advertisers Unilever and Beiersdorf are competing ad in advertising spending, sales promotion, etc However, they have not hadany y th research to investigate the relationship between elements of marketing ju yi communication and brand equity for this category In the last two years, the pl managers have frequently used sales promotion to improve their sales performance al n ua in the short-term They may ignore to analysis whether sales promotion can va deteriorate brand equity in the long-term In addition, they don’t have clear n communication strategy to enhance brand equity Therefore, it’s necessary to ll fu dimensions of brand equity oi m explore the relationship between elements of marketing communication and Research objectives at nh 1.2 z z ht vb The purpose of this research is to explore impacts of factors of marketing jm communication on brand equity’s elements This has been one of hottest topics in k management today in Vietnam emerging market where building brand equity plays gm an important role for giant advertisers’ communication strategy.The research also and brand equity n Research methodology and scope a Lu 1.3 om l.c provides a starting point for further research on relationship between marketing mix n y te re biggest sales contribution, up to 80% of sales on each key brand (Source AC va The research is conducted in the dynamic market, HCMC in which there is the Nielsen Market Retail Audit 2010)