(Luận văn) customer based brand equity a study of trung nguyen coffee in viet nam

t to ng hi ep UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business w n lo ad y th ju Nguyen Thi Kim Nhung yi pl ID: 22110042 n ua al n va ll fu oi m CUSTOMER-BASED BRAND EQUITY nh at A STUDY OF TRUNG NGUYEN COFFEE IN VIETNAM z z k jm ht vb l.c gm MASTER OF BUSINESS (Honours) SUPERVISOR: Prof LE NGUYEN HAU om an Lu n va ey t re th HO CHI MINH CITY - August, 2014 t to ACKNOWLEDGMENTS ng hi ep This research could not have been done without the help and contributions w of many people that I am very thankful to First of all, I would like to express my n lo deepest acknowledge to my supervisor, Professor Le Nguyen Hau for his help, ad ju y th valuable advices and recommendations Especially during the whole time of doing yi thesis, his patient helps me to get through all mistakes in my work Moreover, he pl ua al also teaches me much more than just finishing this thesis Again, I want to say n “Thank You Very Much” to my advisor for all he has done for me n va ll fu I would like to use this chance to express my earnest appreciation to the oi m professors and lecturers of International School of Business (ISB) – UEH for their nh guiding me in during my academic years at ISB I have been assisted very much in at z the completing of this thesis by the knowledge and skills that I have learned z vb jm ht Furthermore, I would like to appreciate the contribution of people who help k me complete the survey questionnaires to share their valuable time and support me l.c gm with useful information for completing this thesis om I also want to say “Thank You” to my friends, other senior students at ISB, an Lu who are doing thesis at the same time with me, for your supporting and n va encouragement during this difficult period of time and two years studying as well ey th support and understanding during the research process t re Most of all, we like to thank our families and friends for their unconditional t to TABLE OF CONTENTS ng CHAPTER I INTRODUCTON hi ep w 1.1 Background of research 1.2 Research problem and purpose 1.3 Research objective n lo 1.4 Scope of the study ad 1.5 y th 1.6 Contribution of the study Organizational structure of the study ju Concepts & Definitions pl 2.1 yi CHAPTER II LITERATURE REVIEW & THEORETICAL FRAMEWORK al Overview of branding 2.1.2 Brand equity 2.1.3 Customer based brand equity 11 2.1.4 Aaker’s Brand Equity Model 12 n n va ll fu Research model 15 m 2.2 ua 2.1.1 Brand awareness 16 2.2.2 Brand association 17 2.2.3 Brand loyalty 18 2.2.4 Perceived quality 19 oi 2.2.1 at nh z z vb jm ht CHAPTER III RESEARCH METHOD 21 Research methodology 21 3.2 Quantitative approach 21 3.3 Questionnaire design 22 3.4 Sampling 27 3.5 Pilot test 28 3.6 Data collection 28 3.7 Data analysis 29 k 3.1 om l.c gm an Lu Respondent demographic profile 32 4.1.2 Central tendencies measurement of construct 34 4.2 Evaluation and refinement of measurement scale 36 iv th Sample demographic 33 ey 4.1.1 t re 4.1 n va CHAPTER IV DATA ANALYSIS & DISCUSSIONS 32 t to 4.2.1 Reliability analysis 36 4.2.2 Exploratory factor analysis 39 ng hi ep w 4.3 n 4.4 4.2.2.1 EFA results for measurement scales of independent factors 40 4.2.2.2 EFA results for measurement scales of dependent factor – brand equity 42 4.2.2.3 Testing the relationship of independent factors and dependent factor 42 Hypothesis testing 44 Discussion 48 lo ad CHAPTER V CONCLUSIONS & RECOMMENDATION 49 Recommendation 50 ju 5.2 Conclusion 49 y th 5.1 yi Perceived quality 51 5.2.2 Brand loyalty 53 5.2.3 Brand association 55 n ua al Limitation and future research 57 n va 5.3 pl 5.2.1 REFERRENCES 59 fu ll APPENDIX A 65 m oi APPENDIX B 71 at nh APPENDIX C 78 z z k jm ht vb om l.c gm an Lu n va ey t re th v t to LIST OF TABLES ng Table 3.1: Measurement scale 23 hi ep Table 4.1: Demographic profile 30 w Table 4.2: Descriptive statistics 33 n lo ad Table 4.3: Reliability Statistics 37 y th Table 4.4: Rotated component matrix 41 ju yi Table 4.5: Cronbach‟s alpha after EFA 42 pl n ua al Table 4.6: Pearson correlation 43 n va Table 4.7: Model summary 45 ll fu Table 4.8: The coefficients 46 m oi Table 4.9: The hypotheses testing result 47 at nh z z k jm ht vb om l.c gm an Lu n va ey t re th vi t to ng hi LIST OF FIGURES ep Figure 2.1: Brand equity 10 w n Figure 2.2: Aaker‟s Brand Equity Model 14 lo ad Figure 2.3: Research model 15 y th ju Figure 3.1: Research design 19 yi pl Figure 4.1: Final model of the study 44 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 t to ng ABSTRACT hi ep Brand equity is one of the important concepts in brand management, as well w as in business practice and academic research Developing and properly managing n lo ad brand equity has been emphasized as an important issue for most firms Along y th with coffee brand in Vietnam, the competition of coffee shop market is fierily and ju yi fragmented due to numerous brands strike for consumer attention This study uses pl n ua al Trung Nguyen coffee as example to explore the impact of brand equity in n va Vietnamese coffee shop market ll fu The research is to develop a model to measure the customer based brand oi m equity of Vietnamese Coffee and study the impacts of the brand equity‟s four nh dimensions on brand equity The findings in this paper with supporting of Trung at z Nguyen Coffee‟s case study were found that only three dimensions of brand equity z vb jm ht (perceived quality, brand loyalty and brand association) have positive effect on k Brand equity gm l.c The study shows that Trung Nguyen Coffee‟s managers and executives om should put their efforts primarily on building brand loyalty, brand association and an Lu perceived quality in designing the marketing and brand building strategies n va This study also provides important insights about the understanding of ey t re Hochiminh City consumers‟ perceptions of brand equity and its dimensions in the th premium roasted coffee market viii t to CHAPTER I ng hi INTRODUCTON ep Background of research 1.1 w n According to data from MARD (2013), Vietnam exported 14.5 million bags of lo ad green coffee in the first seven months of 2013, an increase of percent over the previous y th ju year, designating Vietnam as the second largest coffee exporter in the world Moreover, yi pl Vietnam is also known as a coffee country with a long-standing coffee culture with first al n ua appeared in 1857 Gradually it becomes a popular and important drink in the lives of va many Vietnamese people Nowadays, many coffee brands, both foreign and domestics n fu ll have been penetrating all over Vietnam to satisfy the huge demand for coffee of oi m Vietnamese people nh at Due to globalization, the domestic coffee market has also become very attractive z z ht vb to foreign investors and many famous international coffee brands have appeared and k jm developed in Vietnam, such as NYDC Coffee, The Coffee Bean and Tea Leaf, Angel In l.c gm Us Coffee, Starbucks coffee, etc which make the domestic roasted coffee market become more competitive than ever Confidence with many years‟ experience in producing om roasted coffee, Vietnamese coffee brands like Trung Nguyen coffee, Highland coffee, an Lu Gogo coffee, etc have tried to break into this market Notwithstanding, most companies th becoming more and more significant to Vietnamese customers So, brand equity is ey product‟s quality to brand building, particularly, the branding and product image are t re coffee market in the segment of premium roast coffee is now moving from price and n va have admitted it was difficult to increase even a small market share The competition of t to recognized as an important part that assisting Vietnamese coffee marketers or companies ng hi increase competitive advantage and assist to make management decision ep Beginning with the application of trademarks to products for the purpose of w n product differentiation, brands have developed and become one of the key success factors lo ad in firms achieving competitive advantage though differentiation (Wood, 2000) Brands y th ju create added value for both firms and customer According to Aaker (1991), brands play yi pl a key role in increasing the value of products and protecting the product from being al n ua imitated by competitors If Vietnamese roasted coffee brands could deeply understand the n va importance and get benefit from brand equity, they get greater profit and loyal customers fu ll These circumstances motivated me to investigate the relationship between selected brand oi m equity‟s dimensions and brand equity nh at Founded by Dang Le Nguyen Vu in 1996, Trung Nguyen coffee was a small z z business processing coffee in Ban Me Thuoc city At that time, Vietnam had risen once ht vb k jm again to be one of the leading coffee producers in the world, but almost solely producing l.c gm "green" coffee (unroasted beans) that were sold on the commodity market This resulted in no control over the final coffee quality or prices In 1998, the first Trung Nguyen om coffee shop was officially launched in Ho Chi Minh City In 2001, Trung Nguyen coffee an Lu shops were launched in all provinces Up to now, Trung Nguyen coffee has more than 50 th ey country At the beginning, Trung Nguyen Coffee has recognized the importance of t re future of sustainable development with the emergence and continuous growth of the n va coffee shops operating throughout Vietnam Trung Nguyen coffee is confident in the t to branding and always tried to build its brand to become a high-class brand of coffee for ng hi customers who have high income ep Research problem and purpose 1.2 w n Competition is the most fundamental factor that directly affects the brand lo ad emergence and growth (Laaksonen, 1994) Today, the competition is fiercely in all fields y th ju due to the threat of new entrances and rivals, coffee shop market are not an exceptional yi pl The company always try to outperform their competitors to grab a greater share of al n ua market, thus, an appropriate marketing strategy is necessary Here, brand equity is a va concept in marketing field which plays an important role that affects developing business n ll fu for a company oi m at nh When the market is full of competition, the brand, the style and the quality of a z product are vital points in customer‟s selection Vietnamese roasted coffee brands have z jm ht vb spent much money on producing mass of products, reducing prices, and introducing promotional campaigns to attract customers but they forget that customers always choose k gm famous, trusted and reliable brands Up till now, many domestic coffee enterprises cannot l.c build their own unique brand in an effective way associated with their roasted coffee th equity dimensions, i.e., brand awareness, brand association, perceived quality and brand ey employ in marketing Especially, to measure and examine the effectiveness of brand t re The main purposes of this study are to understand of the brand equity concept n va Research objective an Lu 1.3 om Most of them have not yet achieved national recognition n lo ad ju y th n ua al va oi m ll at nh z ht vb k gm om l.c Lu PQU7 4 4 4 4 3 4 4 4 n PQU8 4 4 4 4 4 4 2 3 4 y te re ac th PQU9 4 4 4 4 3 4 4 4 g e cd si PQU6 4 4 4 4 4 4 2 3 4 va PQU5 4 3 4 4 3 4 3 4 4 2 4 an PQU4 4 4 4 4 4 3 3 2 4 3 4 PQU3 3 4 4 4 3 3 4 4 4 jm PQU2 4 3 4 4 3 2 4 4 z PQU1 4 4 4 4 3 4 4 3 4 3 4 fu BAS6 5 3 4 4 4 4 4 4 3 n BAS5 4 3 4 3 4 4 4 4 4 3 5 pl BAS4 4 3 4 4 4 3 4 5 yi ID 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 jg Page 15 of 29 hg n lo ad ju y th n ua al va oi m ll at nh z ht vb k gm om l.c Lu PQU7 4 5 4 4 4 4 3 4 4 n PQU8 4 4 3 4 4 4 4 4 y te re ac th PQU9 4 5 4 4 4 4 3 4 4 g e cd si PQU6 4 4 3 4 4 4 4 4 va PQU5 3 5 4 4 3 4 4 4 an PQU4 4 4 4 4 4 4 4 3 PQU3 4 4 4 4 4 4 4 jm PQU2 5 3 5 3 3 3 4 3 z PQU1 4 5 4 4 4 4 3 4 4 3 fu BAS6 3 4 4 4 4 4 5 4 4 n BAS5 4 4 4 4 4 4 4 5 pl BAS4 4 3 3 4 3 4 4 5 yi ID 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 jg Page 16 of 29 hg n lo ad ju y th n ua al va oi m ll at nh z ht vb k gm om l.c Lu PQU7 5 4 4 5 4 4 4 n PQU8 4 4 4 4 4 3 3 3 y te re ac th PQU9 5 4 4 5 4 4 4 g e cd si PQU6 4 4 4 4 4 3 3 3 va PQU5 5 4 4 4 4 4 4 an PQU4 5 4 4 4 4 3 4 4 PQU3 5 4 4 4 5 4 3 jm PQU2 5 4 1 3 4 4 4 z PQU1 4 4 3 4 3 4 4 5 4 4 fu BAS6 4 5 4 4 4 5 5 n BAS5 4 4 4 4 5 5 3 pl BAS4 5 4 4 5 5 5 4 yi ID 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 jg Page 17 of 29 hg n lo ad ju y th n ua al va oi m ll at nh z ht vb k gm om l.c Lu PQU7 4 4 3 4 3 3 4 5 n PQU8 4 4 4 4 4 4 4 y te re ac th PQU9 4 4 3 4 3 3 4 5 g e cd si PQU6 4 4 4 4 4 4 4 va PQU5 5 4 3 3 3 4 3 4 4 an PQU4 4 4 4 4 3 4 4 4 4 PQU3 4 5 3 4 4 4 4 4 4 jm PQU2 4 4 3 4 4 4 2 4 z PQU1 4 4 3 4 4 3 4 4 4 fu BAS6 4 4 5 5 4 4 n BAS5 4 4 4 3 5 5 4 pl BAS4 4 3 5 4 5 4 yi ID 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 jg Page 18 of 29 hg n lo ad ju y th n ua al va oi m ll at nh z ht vb k gm om l.c Lu PQU7 4 4 5 4 4 5 4 4 n PQU8 4 4 4 3 4 4 4 5 4 4 y te re ac th PQU9 4 4 5 4 4 5 4 4 g e cd si PQU6 4 4 4 3 4 4 4 5 4 4 va PQU5 4 4 4 4 4 5 4 3 an PQU4 4 4 4 4 5 4 3 3 PQU3 4 5 4 5 4 4 5 4 4 3 jm PQU2 3 4 5 4 4 4 4 4 z PQU1 4 5 4 4 4 4 5 4 4 fu BAS6 3 4 5 4 5 5 4 4 n BAS5 4 4 4 5 5 4 4 3 pl BAS4 3 4 4 4 5 5 4 3 yi ID 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 jg Page 19 of 29 hg n lo ad ju y th n ua al va oi m ll PQU2 3 2 4 at nh PQU3 3 4 4 z z PQU4 5 2 4 PQU5 4 3 4 4 PQU6 4 4 2 3 PQU7 4 4 PQU8 4 4 2 3 PQU9 4 4 n y te re BEQ4 4 5 3 4 4 BEQ5 4 3 3 3 g e cd si BEQ3 4 3 3 4 3 ac th BEQ2 4 4 3 va BEQ1 5 3 2 5 an BLO6 4 3 4 3 3 Lu BLO5 4 4 3 om BLO4 3 4 3 3 l.c BLO3 4 4 3 3 BLO2 4 3 3 4 gm BLO1 4 3 3 4 k ID 10 11 12 13 14 jm ht vb PQU1 4 5 3 4 fu BAS6 5 4 4 4 3 n BAS5 4 4 4 pl BAS4 4 4 3 4 yi ID 228 229 230 231 232 233 234 235 236 237 238 jg Page 20 of 29 hg n lo ad ju y th n ua al n va fu nh z z vb k jm om l.c an Lu n y te re BEQ4 4 3 4 4 5 2 4 2 4 BEQ5 3 4 3 4 4 4 2 4 g e cd si BEQ3 4 4 3 4 4 4 4 4 ac th BEQ2 3 5 4 4 4 4 3 4 va BEQ1 2 4 3 5 2 5 3 gm BLO6 2 3 3 4 3 4 3 4 ht BLO5 3 4 5 4 4 4 4 3 4 at BLO4 2 3 3 4 3 4 3 4 oi BLO3 3 4 3 4 2 4 3 4 m ll BLO2 3 3 2 3 4 4 3 pl BLO1 3 3 4 2 4 4 3 yi ID 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 jg Page 21 of 29 hg n lo ad ju y th n ua al n va fu nh z z vb k jm om l.c an Lu n y te re BEQ4 4 4 4 5 3 4 5 5 3 4 3 BEQ5 4 3 3 3 4 4 4 3 3 4 3 g e cd si BEQ3 4 3 4 4 5 5 3 4 4 ac th BEQ2 5 4 5 4 4 5 4 va BEQ1 4 3 4 4 4 3 3 5 gm BLO6 4 4 3 4 3 3 3 3 4 4 ht BLO5 4 3 5 4 4 5 4 4 4 at BLO4 4 4 3 4 3 3 3 3 4 4 oi BLO3 4 5 4 3 3 5 4 4 4 m ll BLO2 4 2 4 3 4 4 4 3 4 4 pl BLO1 4 3 4 3 4 3 3 3 3 4 yi ID 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 jg Page 22 of 29 hg n lo ad ju y th n ua al n va fu nh z z vb k jm om l.c an Lu n y te re BEQ4 4 3 4 3 4 4 5 BEQ5 4 4 1 3 4 3 4 4 g e cd si BEQ3 4 4 3 5 4 4 4 4 5 ac th BEQ2 5 2 4 4 3 5 4 va BEQ1 4 4 5 4 4 4 4 gm BLO6 4 4 4 3 5 4 3 ht BLO5 4 4 4 4 4 4 4 4 at BLO4 4 4 4 3 5 4 3 oi BLO3 4 4 4 3 4 3 4 3 m ll BLO2 4 3 4 4 4 4 5 pl BLO1 4 3 5 5 5 4 5 yi ID 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 jg Page 23 of 29 hg n lo ad ju y th n ua al n va fu nh z z vb k jm om l.c an Lu n y te re BEQ4 4 4 4 5 3 5 BEQ5 3 4 5 4 4 3 4 g e cd si BEQ3 4 4 4 4 4 4 5 4 ac th BEQ2 4 4 4 4 5 5 5 4 5 va BEQ1 4 4 5 4 4 4 5 5 gm BLO6 4 4 4 5 4 4 4 4 ht BLO5 4 4 4 4 3 4 4 4 at BLO4 4 4 4 5 4 4 4 4 oi BLO3 4 4 4 3 4 5 m ll BLO2 4 4 4 4 4 4 4 5 4 pl BLO1 4 4 4 4 4 5 5 4 4 5 yi ID 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 jg Page 24 of 29 hg n lo ad ju y th n ua al n va fu nh z z vb k jm om l.c an Lu n y te re BEQ4 5 4 4 2 3 2 1 BEQ5 5 4 4 3 3 3 g e cd si BEQ3 5 3 4 4 4 4 3 4 3 3 ac th BEQ2 4 5 5 5 3 4 4 5 va BEQ1 5 4 4 3 3 4 3 5 gm BLO6 4 5 4 4 4 3 3 3 4 2 ht BLO5 5 5 4 5 3 3 4 4 4 3 3 at BLO4 4 5 4 4 4 3 3 3 4 2 oi BLO3 5 4 4 4 4 4 2 4 m ll BLO2 5 5 5 4 4 4 3 4 3 3 pl BLO1 4 5 5 2 3 4 4 yi ID 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 jg Page 25 of 29 hg n lo ad ju y th n ua al n va fu nh z z vb k jm om l.c an Lu n y te re BEQ4 3 5 3 4 4 3 4 4 BEQ5 2 3 3 4 3 4 3 4 g e cd si BEQ3 3 4 5 4 4 4 4 4 4 5 ac th BEQ2 4 4 4 5 5 4 4 5 4 4 5 va BEQ1 4 4 5 4 4 5 4 3 5 gm BLO6 4 3 4 3 4 4 4 4 4 3 ht BLO5 4 4 4 5 4 4 4 4 4 at BLO4 4 3 4 3 4 4 4 4 4 3 oi BLO3 5 4 3 4 4 4 4 3 m ll BLO2 3 4 5 5 4 4 4 4 4 4 pl BLO1 4 4 4 5 5 4 4 4 4 4 yi ID 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 jg Page 26 of 29 hg n lo ad ju y th n ua al n va fu nh z z vb k jm om l.c an Lu n y te re BEQ4 4 4 4 4 4 4 3 BEQ5 4 4 4 5 5 4 4 3 4 4 g e cd si BEQ3 4 4 4 5 4 3 3 3 ac th BEQ2 4 4 4 4 4 4 5 5 5 va BEQ1 5 3 3 4 4 5 4 4 4 gm BLO6 4 4 4 5 5 4 4 3 4 4 ht BLO5 4 4 5 5 5 3 4 4 at BLO4 4 4 4 5 5 4 4 3 4 4 oi BLO3 4 4 3 4 4 4 4 3 4 m ll BLO2 5 4 4 4 5 4 4 pl BLO1 4 4 4 4 4 4 3 yi ID 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 jg Page 27 of 29 hg n lo ad ju y th n ua al n va fu nh z z vb k jm om l.c an Lu n y te re BEQ4 3 4 3 3 4 4 4 2 3 BEQ5 5 4 4 4 4 5 4 3 4 g e cd si BEQ3 3 3 4 3 4 5 4 3 ac th BEQ2 5 5 5 5 5 5 4 5 va BEQ1 4 3 4 4 5 4 3 gm BLO6 4 4 4 4 5 5 5 4 4 ht BLO5 4 4 3 3 5 5 4 4 4 at BLO4 4 4 4 4 5 5 5 4 4 oi BLO3 4 3 4 5 4 5 4 4 m ll BLO2 4 4 5 5 4 5 3 4 pl BLO1 4 3 4 5 4 4 4 3 5 yi ID 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 jg Page 28 of 29 hg n lo ad ju y th n ua al n va fu BLO4 4 4 4 oi BLO5 4 4 BLO6 4 4 4 BEQ1 5 5 3 BEQ2 5 5 4 BEQ3 4 3 3 BEQ4 4 3 2 BEQ5 4 4 at nh BLO3 4 m ll BLO2 4 4 4 pl BLO1 5 5 4 yi ID 231 232 233 234 235 236 237 238 z z k jm ht vb om l.c gm an Lu va n y te re ac th g e cd si jg Page 29 of 29 hg