The influence of brand equity on theintention of buying local brand footweara case of ananas

However, Vietnamese domestic shoe brands have difficulty building a comparable brand awareness, and are often labeled as "durable and reliable" rather than trendy.While the demand for fo

VIET NAM NATIONAL UNIVERSITY HO CHI MINH CITYUniversity of Economic and Law

THE INFLUENCE OF BRAND EQUITY ON THEINTENTION OF BUYING LOCAL BRAND FOOTWEAR

A CASE OF ANANAS

PREPARED FOR MARKETING RESEARCHLECTURER: LÊ THỊ HẢI YẾN

NOVEMBER 1, 2023

4.2 Data Collection and Instrument 8

4.3 Population and Sampling 8

TABLE OF TABLES

Table 1 Respondents CharacteristicRespondents Characteristic 12

Table 2 Brand Equity and Purchasing Intention 13

Table 3 Brand Awareness 13

Table 4 Brand Association 15

Table 5 Perceived Quality 17

Table 6 Brand Loyalty 19

Table 7 Other proprietary brand assets 21

Table 8 Some information about Ananas 27

Table 9 Main questions 29

Table 10 Respondents’ information 30

TABLE OF FIGURES Figure 1 I easily recognize the logo of the Ananas shoe brand 12

Figure 2 I often see advertisements for the shoe brand Ananas 13

Figure 3 I feel comfortable wearing Ananas shoes 14

Figure 4 I feel that Ananas shoes suit my fashion style 14

Figure 5 Ananas products are hand sewn, so I feel they’re very special 15

Figure 6 I feel Ananas shoes are cheap 16

Figure 7 I feel that Ananas shoes are very durable 16

Figure 8 Regarding the price, I feel the quality of Ananas shoes is worth it 17

Figure 9 I'm willing to buy more Ananas products if I can 18

Figure 10 When I think about buying shoes, Ananas is my top choice 18

Figure 11 I tend to buy more Ananas shoes than other brands 19

Figure 12 I'm interested in the customer support services that the Ananas shoe brand offers 20

Figure 13 I'm interested in the events or promotions of the Ananas shoe brand 20

1 Introduction

Customers perceive global brands as reliable and trustworthy which results in their stronger and stronger position It is challenging for local brands to compete with global brands As a result, consumers rely on heuristics, or mental shortcuts, to make decisions, even if they are not aware of them Branding is one of the most powerful heuristics available to consumers (Leighton & Bird, 2014).

In recent years, the Vietnamese footwear market has been dominated by foreign brands However, a number of Vietnamese sneaker brands have emerged that offer affordable products with eye-catching designs and comparable quality to foreign brands These brands are challenging the dominance of foreign brands by focusing on product quality and value According to a report at the 2019 Leather and Footwear Industry Summary Conference and data from Statista, Vietnam is the second-largest footwear producer in the world, but it mainly focuses on manufacturing for major brands The phrase "Made in Vietnam" is often seen on shoes from foreign brands such as Nike and Adidas, which is a testament to the production capability and quality of shoes made in Vietnam However, Vietnamese domestic shoe brands have difficulty building a comparable brand awareness, and are often labeled as "durable and reliable" rather than trendy.

While the demand for footwear among Vietnamese consumers is steadily increasing, there remains a gap in the availability of domestic products A positive development in recent years is the domestic footwear market undergoing a revolution, witnessing increased substantial investments from local brands From startups to well-established names such as Biti’s, Ananas, Đông Hải, Một, etc these local footwear brands, with their enthusiasm and progressive mindset, are reshaping the perception of "Made in Vietnam" products among Vietnamese consumers.

According to Wood (2000), brands play a crucial role in consumer marketing by conveying the primary differentiators between competitive offerings Brand equity stands out as a pivotal factor for any business, as a strong brand asset can attract potential customers, retain their loyalty, and ultimately generate more profits through repeated

purchases Thus, it is essential to investigate the factors influencing consumer behavior in this dynamic landscape.

2 Research Objectives and Research Question

The aim of this research is to bridge this gap and delve into the relationship between brand equity and consumer purchase intention within the context of Vietnamese local footwear brands, with a specific focus on the case study of Ananas Shoes By doing so, this study endeavors to shed light on the factors that influence consumers' decisions in this evolving market, ultimately providing valuable insights that can guide local brands in their quest to compete effectively and establish themselves in the hearts and minds of Vietnamese consumers.

Research Question: How does brand equity contribute to and influence the purchasing intention of consumers when considering local footwear brands in Vietnam?

Detailed research question:

Q1: What are dimensions of brand equity that influence consumers' purchase intention towards local footwear brands in Vietnam?

Q2: How do these factors influence consumers' purchase intention towards local footwear brands in Vietnam?

3 Theoretical base

3.1 Brand

A brand is a fundamental construct that includes elements like a name, term, symbol, or design, either individually or in combination Its central purpose is to delineate the products and services of a particular seller or group of sellers from those offered by competitors (M Ahmed, 2021) Brands act as a bridge between producers and consumers, assisting in the differentiation of similar products, creating confidence in the quality of the products, and guiding producers in establishing what they produce to maintain customer loyalty and product quality.

Brands play a crucial role in shaping a company's marketing strategy, both for self-promotion and for the advertisement of their products and services They influence customers' buying motives and confer a significant competitive advantage by investing resources in maintaining and improving their quality and reputation The American

Marketing Association Dictionary (2011) defines a brand as "the name, term, design, symbol, or any other feature that identifies one seller's product as distinct from those of other sellers."

3.2 Brand Equity and Purchase Intention

Brand equity, an idea that has gained popularity since the 1980s, includes a number of viewpoints Previous research has classified brand equity into three major dimensions: ‘customer-based’ (Aaker, 1991), ‘financial’ (Simon and Sullivan, 1993) According to Aaker (1991), brand equity is a collection of brand assets and liabilities associated with a brand, its name, and symbol, which either improve or subtract from the value a product or service delivers to a firm and its customers.

Consumer-based brand equity is defined primarily using cognitive psychology and information economics This area of study is primarily concerned with cognitive psychology, specifically memory structure (Aaker 1991; Keller 1993) Brand awareness, brand associations, perceived quality, brand loyalty, and unique brand assets such as patents, trademarks, and channel partnerships are among the key elements of brand equity identified by Aaker (1991).

While the first four characteristics represent user perceptions and responses, unique brand assets, on the other hand, have no direct impact on consumer-based brand equity Keller (1993) defines consumer-based brand equity as the varying impact of brand knowledge on customer responses to marketing efforts, and investigates it primarily through the lens of consumer psychology In essence, a brand holds positive or negative value based on how consumers react to its marketing compared to a generic product These reactions influence consumers' preferences, intentions, and ultimately, their purchasing decisions, emphasizing the critical role of consumer perception in brand equity.

Brand equity, as evidenced by various studies, plays a vital role in consumer preferences and purchase decisions Research by Vinh (2016) highlights that perceived quality, brand association, and brand loyalty positively influence overall brand equity, except for brand awareness Notably, perceived quality and brand loyalty significantly impact purchasing decisions This suggests that consumers tend to favor brands that are associated with high

quality and have strong customer loyalty The components of brand equity, including perceived quality and brand loyalty, are causally linked to purchase intentions (Khan, Rahmani, Hoe, & Chen, 2015) In summary, a positive brand image and strong loyalty can drive consumers to choose a particular brand.

Moreover, studies have shown that brand equity has a significant impact on various aspects of a business, such as market share, long-term financial performance, stock prices, mergers and acquisitions, and competitive advantages A strong brand equity contributes to improved consumer preference, purchase intention, loyalty, and even higher stock returns (Cobb-Walgren et al., 1995; Agarwal & Rao, 1996) A brand's role, therefore, extends beyond recognition; it serves as a valuable asset that can be leveraged for financial gain Overall, brand equity is a multi-aspect concept, including brand awareness, perceived quality, brand loyalty, and other proprietary brand assets

3.2.1 Brand Awareness

Brand awareness is a key component of brand equity, with support from Aaker in 1996, Shahrokhi in 1998, and Tong and Hawley in 2009 It represents a consumer's ability to recognize a brand, even when the connection to the product category is weak Shahid (2017) underlines brand awareness’ influence on purchasing decisions Increasing brand awareness boosts the likelihood of a brand being considered, impacting purchase intentions, even when other brand associations are absent

3.2.2 Brand Loyalty

Brand loyalty, a critical aspect of consumer behavior, can be elaborated based on research findings Rubini (2010) defined brand loyalty as the tendency of consumers to make repeated purchases within a specific product category This loyalty not only fosters higher profit margins and price positioning but also enhances overall revenue generation for businesses Further supporting this idea, Yupingliu (2007) provides evidence that loyal consumers exhibit a strong attachment to their preferred brand, often sticking with their choice even in the presence of promotional incentives and competitive offerings This commitment underscores the enduring nature of brand loyalty Additionally, brand loyalty is linked to consumer satisfaction, when consumers exhibit brand loyalty, it signifies their

contentment with the brand's offerings, which can lead to enhanced customer retention and long-term profitability for businesses.

3.2.3 Perceived Quality

Perceived quality, per Kotler in 2008, includes product attributes that meet consumer needs Perceived quality, a key component of brand equity outlined by Aaker in 1991 and 1996, influences brand choice Several studies, such as Shahrohki in 1998 and Yoo, Donthu, and Lee in 2000, establish its importance Perceived quality motivates consumers to choose a brand, setting it apart from alternatives.

3.2.4 Brand Associations

Brand association, as articulated by Aaker (1991), plays a crucial role in enhancing the attractiveness of a brand This idea includes a variety of factors, such as how useful a brand is to consumers and how well it fits into their lifestyles These distinctive characteristics work together to give a product or brand its distinct identity and personality Brand associations can come together to create a consistent brand image when they are carefully arranged and controlled Therefore, these long-standing brand connections have a big impact on customer purchase intentions.

3.2.5 Other Proprietary Brand Assets

Severi et al (2014) indicates that proprietary brand assets, extending beyond existing literature, have a favorable influence on local brand footwear purchases Such proprietary assets may include unique design elements, limited edition releases, and exclusive collaborations that differentiate a brand in the highly competitive footwear market These are just a few examples of how a brand may stand out in the brutally competitive footwear market thanks to its proprietary assets These distinctive qualities increase a brand's appeal and have a significant impact on local consumers, encouraging positive purchase intentions The understanding of how distinctive and cutting-edge brand components contribute to a brand's success in attracting and retaining local customers in the footwear industry is further strengthened by this alignment with brand equity research.

4 Research Method

4.1.Research Design

This study employed a descriptive research design, which allowed for a comprehensive exploration of the influence of brand equity on consumer purchase intentions within the local footwear industry, with a specific focus on Ananas Shoes A descriptive design was chosen to provide an in-depth understanding of consumer perceptions and their relationship with brand equity dimensions.

4.2 Data Collection and Instrument

Primary data will be collected through online surveys The survey instrument employs a five-point likert-type scale to measure respondents' perspectives on brand equity dimensions and purchasing intentions.

The survey was structured into 3 distinct parts, each with a specific focus

PART 1: Some information about Ananas: This section provides a brief overview of the Ananas, and aims to determine how much the respondents already know about Ananas by asking if they are familiar with the brand.

PART 2: Main questions: This section aims to provide valuable insights into how consumers perceive and engage with the Ananas brand across various dimensions of brand equity.

PART 3: Respondent's information: This section collected basic demographic data to gain insight into the characteristics of the respondents.

4.3 Population and Sampling

The target population consists of UEL students engaging with Ananas shoes Convenience sampling will be used to select a representative sample of at least 30 participants

4.4 Data Analysis

Data analysis was conducted using statistical software, including PSPP version 2.0 and Excel The Likert-scale responses were processed to compute descriptive statistics, including means and standard deviations, etc to provide insights of the data.

5 Results:

5.1 Respondents

In this study, demographic information about the respondents provides valuable context for understanding the survey results The survey was conducted with students from the University of Economics and Law (UEL) and focused on their gender, academic year, and monthly income B

Below is a discussion of the demographic characteristics of the respondents:

3 What is your monthly income? Less than 3 mil VND

Table 1 Respondents CharacteristicRespondents Characteristic

Table 1, Item 1, which related to the gender distribution of the respondents, shows that the majority 29 (54.71%) were females, while 24 (45.29%) were females This indicates

that there was a relatively equal distribution of questionnaires between the two genders in our study.

Regarding their academic progress/age, Item 2 reveals that the majority of the respondents, 28 (52.83%), are in their junior year of university Additionally, 5 (9.43%) are freshmen, 10 (18.86%) are in sophomore year, and 8 (15.08%) are in their senior year This implies that the majority of consumers in the study are undergraduates Item 3, which refers to the monthly income of the respondents, shows that 22 (41.5%), had a monthly income less than 3 million VND Furthermore, 21 (39.62%) had incomes in the range of 3 million VND to 5 million VND, and 10 (18.88%) had incomes above 5 mil VND This suggests that the monthly income levels of the majority of consumers in the study area were below 5 million VND.

5.2 Brand Equity and Purchase Intention

Missing N (listwise) 0

Table 2 Brand Equity and Purchasing Intention

5.2.1 Brand awareness

BA1 I easily recognize the logo of the Ananas shoe brand 3.81 BA2 I often see advertisements for the shoe brand Ananas 2.98

Table 3 Brand Awareness

Figure 1 I easily recognize the logo of the Ananas shoe brand.

Variable 1 (BA1) has a mean score of 3.81 and evaluates the brand recognition of Ananas’s logo This indicates that, on average, respondents easily recognize the logo of Ananas wherever they go.

Figure 2 I often see advertisements for the shoe brand Ananas.

Variable 2 (BA2) has a mean score of 2.98 and measures the advertising exposure of Ananas This indicates that advertising efforts are needed if Ananas want to increase their brand awareness.

Brand awareness plays a pivotal role in influencing purchasing intention not only for Ananas but for local brand footwear in general High brand recognition is a valuable asset for local brands, and the industry as a whole can benefit from increased advertising efforts to further enhance their market position and appeal to consumers seeking local brand footwear options.

5.2.2 Brand Association

Figure 3 I feel comfortable wearing Ananas shoes.

Variable 1 (BAs1) displays a mean score of 3.62, evaluating the comfort level of Ananas products On average, respondents find wearing Ananas shoes comfortable.

Figure 4 I feel that Ananas shoes suit my fashion style.

Variable 2 (BAs2) records a mean score of 3.72, assessing the compatibility of Ananas products with their customers' fashion styles This suggests that Ananas products align well with their customers' fashion preferences.

Figure 5 Ananas products are hand sewn, so I feel they’re very special.

Variable 3 (BAs3) registers a mean score of 3.64, examining the uniqueness of hand-sewn Ananas products This signifies that respondents perceive Ananas products as special due to their hand-sewn craftsmanship.

Strong brand associations which included comfort, fashion preferences, and the uniqueness of hand-sewn products, has significantly influenced purchasing intention for Ananas Thus, the positive brand associations make local brand footwears an appealing choice for consumers.

5.2.3 Perceived Quality

PQ3 Regarding the price, I feel the quality of Ananas shoes is worth it 3.85

Table 5 Perceived Quality