(Luận văn) the impact of store images on consumer loyalty

t to ng hi ep MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY YZ w n lo ad ju y th NGUYEN VAN CUONG yi pl n ua al n va ll fu THE IMPACT OF STORE IMAGES m oi ON CONSUMER LOYALTY at nh z z k jm ht vb om l.c gm MASTER OF BUSINESS ADMINISTRATION THESIS an Lu n va ey t re th Ho Chi Minh City, July 2011 t to ng hi ep MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY YZ w n lo ad y th ju NGUYEN VAN CUONG yi pl n ua al va n THE IMPACT OF STORE IMAGES fu ll ON CONSUMER LOYALTY oi m at nh z z k jm ht vb Major: Business Administration Major code: 60.34.05 l.c gm MASTER OF BUSINESS ADMINISTRATION THESIS om an Lu n va Supervisor: DR NGUYEN DINH THO ey t re th Ho Chi Minh City, July 2011 t to ACKNOWLEDGEMENTS ng hi ep Firstly, I would like to express my sincere gratitude to my supervisor, Dr Nguyen w Dinh Tho for the patient, dedicated guidance and valuable suggestions for this thesis n lo over the past few months ad y th Also, I am particularly grateful for Mr Tran Khoa Van – GfK Managing Director and ju GfK management board who inspire the study and contribute valuable figures about yi retailer evolution in Vietnam pl al ua Next, I would like thanks to my colleagues Mr Huynh Phuoc Cuong – Senior n Manager of Retail Management and Mrs Nguyen Ngoc Lan Huong – Senior Research va n Manager in helping me to conduct and analyze the qualitative study fu ll I also would to express my gratitude to management boards of the three consumer m oi electronics retailers: Nguyen Kim, Thien Hoa and Cho Lon for the keen support in nh at letting me collect shopper information during the qualitative research z z My heartiest thanks are also sent to Mrs Pham Thi Thanh Nhan, senior assistant of vb Charles Sturt University Australia (CSU) for her non-stop support on books and k jm ht online journal article gm Finally, I would like to send my deep appreciation to more than 500 postgraduate an Lu n va Ho Chi Minh City, Vietnam om ideas and assessment for the whole pilot and main survey l.c students of University of Economics Ho Chi Minh City, who contributed valuable ey t re July, 2011 th Nguyen Van Cuong i t to ABSTRACT ng hi The area of consumer loyalty has received considerable attention during the past few ep years, both in academic and practice area Many retail research has been conducted to answer for the questions such as: what is the most accurate definitions of consumer w n loyalty; are there any models/ generalizations when investigating consumer loyalty; lo ad what the management implications would be for those researches y th There are many antecedent factors affecting consumer loyalty, store image dimensions ju yi were discovered to be among the most important loyalty drivers In order to indentify pl the key determinant image elements and understand their derived importance, this al ua study was implemented The research successfully explored the significant n relationship between Store Service (Employee Service and After-sales Service), Store va n Facilities (Physical Facilities and Store Atmosphere), Product & Marketing fu ll Communication (Merchandising and Advertising & Promotions), Perceived Price and m oi Store Convenience with Consumer Loyalty Also, these independent factors were also at nh discovered that they not equally affect on consumer loyalty z One qualitative study with in-depth interview and one pilot study were performed z vb before the main survey was conducted in Ho Chi Minh City to assess modern trade jm ht consumer electronics retailers The study revealed that five key factors (Store Service, k Store Facilities, Product & Marketing Communication, Perceived Price and Store l.c gm Convenience) positively affect consumer loyalty Besides, the study suggested that Store Facilities and Product & Marketing Programs were the two most important om factors to be invested in modern retailing industry an Lu n va ey t re th ii t to TABLE OF CONTENTS ng CHAPTER INTRODUCTION hi 1.1 Research background ep 1.2 Problem statement w 1.3 Research questions n lo 1.4 Research objectives ad y th 1.5 Research scope ju 1.6 Research methodology and design yi pl 1.7 The significance of research ua al 1.8 Thesis structure n 1.9 Summary va LITERATURE REVIEW and THEORETICAL MODEL n CHAPTER fu ll 2.1 Consumer loyalty definitions m oi 2.2 Store image definitions nh Store convenience 2.2.2 Physical facilities 10 2.2.3 Perceived price 11 2.2.4 Employee service 11 2.2.5 Advertising and promotions 12 2.2.6 After-sales service 12 2.2.7 Store atmosphere 13 2.2.8 Merchandising 13 at 2.2.1 z z k jm ht vb om l.c gm an Lu 2.3 Store image studies 14 Hypotheses 17 2.6 Summary 19 iii th 2.5.2 ey Theoretical model 16 t re 2.5.1 n 2.5 Theoretical model and hypotheses 16 va 2.4 The relationship between store images and consumer loyalty 15 t to CHAPTER RESEARCH METHODOLOGY 21 ng 3.1 Research process 21 hi w Objectives 22 3.2.2 Methodology 23 3.2.3 Sample size and target respondent 23 3.2.4 In-depth interview content 23 n 3.2.1 lo ep 3.2 Qualitative Study 22 ad y th Qualitative result 24 ju 3.2.5 yi pl 3.3 Measurement 26 al Measure of consumer loyalty 26 3.3.2 Measure of store convenience 27 3.3.3 Measure of physical facilities 27 3.3.4 Measure of perceived price 27 3.3.5 Measure of employee service 28 3.3.6 Measure of advertising and promotions 28 3.3.7 Measure of after-sales service 28 3.3.8 Measure of store atmosphere 28 3.3.9 Measure of merchandising 29 n ua 3.3.1 n va ll fu oi m at nh z z jm ht vb k 3.4 Quantitative Pilot study 29 gm Objectives 29 3.4.2 Methodology 29 3.4.3 Target respondent and sample size 29 3.4.4 Pilot study content 30 3.4.5 Pilot study result 30 om l.c 3.4.1 an Lu 3.5.3 Variables 36 iv th Hypotheses modification 36 ey 3.5.2 t re Model modification 34 n 3.5.1 va 3.5 Model and hypotheses modification 34 t to 3.6 Main survey 37 ng hi ep w Methodology 37 3.6.2 Target respondent and sample size 37 3.6.3 Questionnaire content 38 3.6.4 Data analysis method 38 n 3.6.1 lo ad 3.7 Summary 40 DATA ANALYSIS AND RESULT 42 y th CHAPTER ju 4.1 Sample characteristics 42 yi pl 4.2 Cronbach’ alpha reliability analysis 44 al ua 4.3 Exploratory factor analysis 46 n 4.4 Multiple linear regression 49 va n 4.5 Hypotheses assessment and discussion 51 fu ll 4.6 Summary 53 m CONCLUSIONS AND IMPLICATIONS 55 oi CHAPTER nh at 5.1 Conclusions 55 z 5.2 Managerial implications 56 z Store facilities 56 5.2.2 Product and marketing communications 56 5.2.3 Perceived price 57 5.2.4 Store service 57 5.2.5 Store convenience 57 k jm ht vb 5.2.1 om l.c gm an Lu 5.3 Limitations and future research 58 5.3.2 Future research 58 APPENDIX 2: Data analysis 64 v th APPENDIX 1: Overview of Vietnam Retailing Market 63 ey REFERENCES 60 t re 5.4 Summary 59 n Research limitations 58 va 5.3.1 t to APPENDIX 3: Questionnaire 69 ng hi ep LIST OF TABLES w Table 3-1: Qualitative result – important factor to retain loyal customers 24  n lo Table 3-2: Qualitative result – important factor to retain loyal customers 25  ad Table 3-3: Cronbach alpha result for pilot study 31  y th Table 3-4: Rotated component matrix for pilot study 33  ju yi Table 4-1: Descriptive analysis 42  pl al Table 4-2: Average number in one household and average household monthly income 44  n ua Table 4-3: Cronbach alpha result for main survey 44  n va Table 4-4: EFA rotated component matrix for main survey 47  ll fu Table 4-5: Total variance explained 48  oi m Table 4-6: KMO and Bartlett’s Test 49  Table 4-7: Regression model summary 49  nh at Table 4-8: ANOVA F test 50  z Table 4-9: Multiple linear regression result for main survey 50  z ht vb Table 1-1: Vietnam retail outlet evolution of home technology product 63  jm Table 1-2: Organized/ chain store vs independent channel evolution 63  k Table 1-3: Ranking of Retail Market Attractiveness 63  gm l.c Table 4-10: Descriptive statistic 64  om Table 4-11: Correlation between Consumer loyalty, Store Service, Store Facilities, Product & Marketing Communication, Store Convenience and Perceived Price 65  an Lu Table 4-12: Communalities 66  n va ey t re th vi t to LIST OF FIGURES ng hi Figure 2-1: Theoretical model 17  ep Figure 3-1: Research Process 22  Figure 3-2: Modified theoretical model 36  w n Figure 4-1: Result of multiple linear regression 51  lo ad Figure 4-2: EFA Scree Plot 64  ju y th Figure 4-3: Histogram of Consumer Loyalty 67  Figure 4-4: Normal P-P Plot of Consumer Loyalty 67  yi pl Figure 4-5: Scatter plot of Consumer Loyalty 68  n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th vii CHAPTER INTRODUCTION t to ng 1.1 Research background hi ep In recent years, the rapid growth of retailers in both quantity and channels (supermarket, hypermarket, exclusive single brand stores) has resulted in a corresponding increase in w n the competition between retailers The understanding of what motivates consumers to lo purchase from one stores rather than another becomes increasingly important to retail ad ju y th stores design and management (Black et al., 2002) In Asia, retailing has been still one of the most attractive industries over the past few yi pl years Vietnam, an emerging country with a dynamic economy and a potential entry ua al market with more than 85 million people, will be a prosperous land to invest According n to the Global Retail Development Index 2010 of American consulting company AT va n Kearney, Vietnam was ranked as the 14th in 30 countries having the most attractive ll fu retailing industry worldwide m oi The retailing industry is still considered as an attractive industry because Vietnam has a nh young population and promises a robust growth of the industry Furthermore, after at z joining WTO, Vietnamese government continued encouraging and supporting local z jm ht neighbor countries like Thailand, Singapore or Malaysia vb retailers to participate and expand in the regional retailing industry to keep pace with k The growing of retail industry in Vietnam is recorded to be in both channel and outlet gm development Firstly, regarding number of outlet, according GfK Vietnam (see appendix l.c 1, table 1.1), the total number of retailers selling technology products is expected to om increase significantly in 2011 (44%) compared to 2010 Of which, telecom group an Lu (mobile phone retailer) has the largest number of retail store (19,347 outlets) Secondly, modern trade channels continued to emerge despite the dominance of traditional and try products that they wanted GfK retail audit recorded a positive growth in revenue th to come to modern consumer electronics stores because they could freely look, touch ey more competitive price to compete with traditional channels Consumers also preferred t re product ranges In addition, modern trade channels try their best to offer consumers a n and convenience stores because of their pleasant environment as well as their diversified va channels Consumers have been interested in shopping at supermarkets, hypermarkets