This study seeks to explorethe relationship between cultural identity and store tradition among small retailers inVietnam.. Drawing from a wealth of scientific research, we propose that
INTRODUCTION
Making purchases of goods or services online is known as e-commerce platform purchasing Statista reports that between 2014 and 2021, retail e-commerce sales increased from 1,336 billion USD to 4,938 billion USD (2022a) The advent of new trends and technologies has caused significant changes in Vietnam's retail sector in recent years The growing influence of ethnocentrism, digitization, and word of mouth on the authenticity, change, and traditions of small retailers in Vietnam stands out among recent trends.
The same decade also saw the development of ideas that sought to place an emphasis on consumer experiences and the growing importance of authenticity in differentiating products Customers' desire for authenticity is linked to factors that affect how businesses handle their marketing campaigns and their attitudes toward purchasing Traditional consumer ethnocentrism is a factor in the preference for imported products and services Additionally, according to He and Wang (2015), consumer ethnocentrism implies a decrease in interest in international items and an increase in home purchases A general mindset that emphasizes the ethics of purchasing goods and services both domestically and internationally is characterized by ethnocentrism (Ma et al., 2020) There is a relationship among heritage in Vietnam and business, especially tourism and retailing.The case study of Hoi An Ancient Town illustrates the symbiotic relationship between cultural heritage tourism and retail businesses, showcasing how heritage sites drive foot traffic and consumer spending (Chris,2020) Given the strong economic potential of heritage tourism and the tradition-based sector, the preservation of Vietnam's cultural heritage has recently garnered considerable attention as the country's most important economic driver, surpassing all other cultural pursuits (Lask and Herold 2004) Authenticity, when related to products, services, or experiences, refers to the perceived genuineness, distinctiveness, and fidelity to its origins or cultural heritage Belk’s research in 1988 delved into the concept of authenticity within consumer behavior, examining its effect on consumer choices and buying habits, particularly concerning items with historical and cultural significance For instance, Escalas and Bettman (2005) looked into how cultural authenticity affected customer preferences and discovered that those who exhibit high degrees of ethnocentrism are more inclined to think that things that are culturally authentic are desired Little is known about the evolution of small retailers inVietnam, who have unique challenges in adapting to the demands of the digital age while maintaining authenticity and tradition, despite the abundance of literature on online shopping in the country.
The previous research has not empirically verified the precise effect of factors influencing consumers’ repurchase intention Moreover, the advent of digitalization as an all-encompassing factor in the retail industry brings fresh perspectives to this discourse Small businesses must strike a careful balance between tradition and innovation as technology enters every facet of the shopping experience, from online transactions to social media interactions A key study gap in understanding how digitalization affects the interactions between Word of Mouth, Ethnocentrism, Authenticity, and Change within small retail contexts is highlighted by this struggle between upholding traditional values and embracing technological innovations This study seeks to fill that knowledge gap by analyzing the elements that impact customer purchasing behavior on e-commerce platforms and the transition of traditional practices in small retail in Vietnam The aspects that will be examined include word of mouth, digitalization, ethnocentrism on tradition, and authenticity.
The main research questions are: For small-scale Vietnamese retailers, what are the most important moderating variables between ethnocentrism, digitization, word-of-mouth, and consumer behavior? Are there any variations in the impact of digitalization on purchasing behavior in Vietnam based on demographic parameters including age, gender, education, and income? Can digitalization optimize productivity and raise competition? Does authenticity influence customer loyalty when repurchasing a product? How does ethnocentrism contribute to brand attitudes? To what extent does ethnocentrism, either on the part of retailers or customers, impact the preservation or adaptation of authentic traditions in small retail businesses? How has the prevalent digitization impacted small retailers that prioritize tradition and authenticity in terms of word-of-mouth marketing and customer loyalty?
In light of these difficulties and the lack of comprehensive research on the topic,this study seeks to fill those gaps by investigating the interplay betweenEthnocentrism, Word of Mouth, and digitalization within the context of small retailers,with a focus on the effects on tradition, authenticity, and change By shedding light on these dynamics and the innovative conclusions to these questions, we will provide insight into the consumer’s purchasing intention on e-commerce platforms, understand the key factors influencing the buying intention of consumers, understand the dynamics shaping the retail landscape, and inform strategies to support the sustainability and success of small retailers.
LITERATURE REVIEW
The global brand market
In today's interconnected world, the global brand market has become more dynamic and competitive Companies across many different industries are racing to build their names in international consumer consciousness in the hopes of increasing their sales, capturing a larger portion of the market, and retaining loyal customers.
Brand marketing has seen tremendous change as a result of globalization Businesses have to negotiate cultural quirks, regulatory landscapes, and customer preferences when they go into new markets Successful global companies, according to research by Keller and Kotler (2016), are those that successfully localize their marketing strategies while upholding a consistent brand image throughout various geographies.
Brand equity is a crucial component of multinational brands' success Aaker's (1991) study highlights the role that brand equity plays in influencing customer preference and loyalty Strong brands are more able to withstand the challenges of the competition, charge higher prices, and enjoy greater customer trust Furthermore, how consumers view a brand's authenticity, dependability, and quality affects their decision to buy in the international market (Kapferer, 2012).
Influencer marketing, social media, and internet channels are now all part of brand management in this digital age According to research by Keller (2016), businesses need to modify their brand management plans in order to make use of digital technology and interact with customers across a variety of channels Furthermore, global businesses must constantly innovate if they want to stand out in crowded markets and remain relevant (Christensen, 1997).
For multinational firms, preserving brand identity and defending intellectual property rights are constant problems Brand value and customer trust are seriously threatened by trademark infringement, counterfeiting, and brand dilution (Pitta et al., 2006) Proactive steps to identify and discourage counterfeit activity, cooperation with authorities, and legal action are all components of successful brand protection programs.
Because consumers are becoming more conscious of social and environmental issues, global brands have been integrating sustainability into their branding strategies.Studies by Belz and Peattie (2012) emphasize how crucial CSR programs are to building long-term brand loyalty, drawing in socially conscious customers, and improving brand reputation Transparent communication, moral sourcing, and a sincere dedication to social welfare and environmental care are all components of sustainable branding.
Repurchase Intention
The repurchase intention of consumers, which indicates their likely to return to the same merchant for future purchases, is a crucial metric in the modern retail environment, especially for small businesses operating online and offline (Cheung & Thadani, 2012) Our study delves into this correlation with a retailer’s ability to maintain tradition and authenticity amidst digital transformation and shifting consumer tastes (Pavlou, 2003) This exploration underscores the retailer’s skill in utilizing both digital and physical platforms to foster customer loyalty and encourage repeat patronage Local product preference, the impact of the internet revolution on small businesses, and online and offline reviews all play a role (Hennig-Thurau et al., 2004; Brown et al., 2005; George, 2004; Verhoef et al., 2007; Shimp & Sharma, 1987; Balabanis & Diamantopoulos, 2004) These elements can bolster a retailer’s standing, raising the probability of repeat purchases, and providing valuable insights into customer loyalty and satisfaction (Morgan & Hunt, 1994) Indications of a high likelihood of repeat purchases may imply a successful integration of traditional methods and modern innovations, as well as a balance of local and global influences.
In line with our research objective of investigating the effects of digitalization,ethnocentrism, and word-of-mouth on small retailers' traditions, authenticity, and change, understanding these factors can help them develop strategies to increase customer loyalty, which in turn ensures their long-term survival.
Small retailer
Small retailers, locally-based businesses that typically operate within a specific geographical area and cater to specialized markets, are known for their small size,attentive customer service, and strong connections to the local communities they serve(Verhoef et al., 2015; Brown et al., 2003) Unlike larger counterparts, they often prioritize the quality of their products, the skilled craftsmanship behind them, and the unique selection they offer (Naudé and Gries, 2016) Within our study’s scope, small retailers are characterized by their ability to merge traditional retail methods with digital technologies (Verhoef et al., 2015) While they use digital platforms for marketing, sales, and customer engagement, the focus remains on community-oriented commerce and personalized interactions (Kim et al., 2019) Their goal is to set themselves apart from bigger, impersonal retail chains by providing consumers with genuine and interesting shopping experiences (Brown et al., 2005) Despite facing unique challenges such as resource constraints, intense competition, and rapid technological advancements (Naudé and Gries, 2016), their adaptability, agility, and close ties to local communities provide them with unique advantages in establishing personal connections with consumers and quickly responding to market trends (Verhoef et al., 2015) In their communities, small retailers are essential for fostering social cohesiveness, cultural vibrancy, and economic vigor Examining the world of small retailers provides valuable insights into how businesses can effectively leverage tradition and authenticity to remain competitive in the digital marketplace This fits in with our study's overarching goal of investigating how small businesses' reliance on word of mouth, digitization, and ethnocentrism affects their commitment to tradition while simultaneously embracing change Independently owned small retailers, with a small market share and limited resources, significantly impact the economic landscape of various countries, such as Vietnam, and are renowned for their regional focus,personalized customer service, and unique product range (Smith & Jones, 2019).
Authenticity components
Authenticity and shopping experience are tools that help differentiate products and services in the market, as shown by the first research on the subject done in 1980 by Joseph Pine and James Gilmore With the increasing development of society, consumer demand also grows, and so does the need for authentic brands or stores. According to K Fritz et al (2017), authenticity can be influenced by the following factors: identified variables (i.e., heritage, nostalgia, commercialization, clarity, social commitment, legitimacy, actual self-congruence, and employee passion) And in our study, we will consider the next components below.
Heritage and store authenticity are intimately tied, often combined in consumers' perceptions and experiences Heritage is the collective inheritance of physical items and intangible traits passed down from previous generations Heritage encompasses the historical and cultural background of a brand or store, reflecting its origins,traditions, and values In another research article by Long (2003), it was pointed out that heritage also includes the past such as buildings, monuments, artifacts, sites, and artificial landscapes "Intangible" cultural heritage, on the other hand, refers to cultural aspects expressed in behavior, action, and performance that are recognized, valued and thought to be deserving of our consideration, interest, and protection The actual concept of traditional Vietnamese business heritage is still quite complex and difficult to define Vietnam's heritage tradition business is a complex and multifaceted field, deeply rooted in the country's rich historical and cultural contexts (Truong et al., 2021) In the context of Vietnam's heritage tradition business, terms such as
'heritage business', 'art business', 'ethnic business', or 'indigenous business' are often used interchangeably (Vuong,
2016) Also according to Truong et al.
(2021), Vietnam's long history has had a significant impact on the country's business culture These phases include the Stone Age to Hung King period (208
(938–1858), and the period of contact with Western culture Previous research by Pine and Gilmore (1998) highlighted the importance of heritage in creating memorable and authentic experiences for consumers, emphasizing the role of storytelling and nostalgia in connecting customers to the brand's roots.
Authenticity is the attribute of being genuine, real, or true to its roots or nature According to Fizt.K (2017),
Fig 1 Preserving and Upholding the Values of
(Source: Ministry of Culture, Sports and Tourism) authenticity refers to a product or store's consistent basic principles and norms These models examine how historical factors affect authenticity and make the assumption that views of authenticity are influenced by social commitment, heritage, nostalgia, clarity, and legitimacy Research by Joy and Sherry (2003) and Beverland (2006) examined how heritage serves as a symbolic resource that helps customers relate to a brand's authenticity and legacy The presence of heritage artifacts, historical narratives, and traditional craftsmanship within stores contributes to a sense of continuity and permanence, enhancing perceived authenticity Thus, heritage plays a significant role in shaping store authenticity perceptions.
After establishing the concept of authenticity, further research has focused on identifying prospects for authenticity According to Moulard et al (2016), managers who prioritize product orientation based on preconceived notions of authenticity might positively impact consumer perception Other important linkages include the virtues of a brand or store including commercialization, clarity, and social commitment, as well as employee passion Beverland and Farelly (2010) and Kates (2004) examined consumers' self-identification with a product or store, focusing on legitimacy and self-congruence Legitimacy in sales refers to being recognized and accepted as trustworthy, legal, and trustworthy by customers and the community This is legitimacy and value created by adhering to regulations, and standards, and making commitments to high-quality products, services, and business practices Legitimacy and authenticity are two critical components of sales that are frequently linked In sales, combining legitimacy and authenticity promotes trusted relationships with consumers and communities, laying the groundwork for long-term economic success.Customers frequently look for businesses that they trust and believe are genuine, and exhibiting both in all aspects of their business is critical to building a strong and sustainable brand Legitimacy is the perceived appropriateness, credibility, and acceptance of a company organization in its operating environment (Suchman, 1995).Legitimacy is important in commerce because it builds trust and confidence among customers Legitimate retailers are often considered credible, reputable, and socially acceptable, which increases consumer trust and loyalty (Maignan & Ferrell, 2004).Compliance with laws and regulations, ethical company practices, and societal standards all have an impact on retail legitimacy Several authors have proposed a strong relationship between legitimacy and store authenticity Legitimacy enhances store authenticity by establishing a foundation of trust and credibility on which authentic retail experiences are created (Nenycz-Thiel & Romaniuk, 2016).
Authenticity is reinforced when customers believe a store operates within socially acceptable and lawful boundaries, in accordance with ethical and moral norms (Grayson & Martinec, 2004) In contrast, perceived illegitimacy can weaken store authenticity, leading to consumer suspicion, distrust, and disengagement (Dawar & Pillutla, 2000) Empirical research has confirmed the premise that legitimacy is an important component of retail authenticity For example, Wang and Wallendorf (2006) discovered that consumers' opinions of a store's legitimacy positively influenced their judgments of its authenticity Similarly, a study by Kozinets et al (2002) found that consumers are more likely to regard a store as authentic when they believe it is socially responsible and ethically sound The literature supports the idea that legitimacy is an important component of store authenticity Consumers are more inclined to see reputable retailers as authentic, which fosters trust, loyalty, and positive brand evaluations Recognizing the role of legitimacy in shaping store authenticity can help retailers improve their credibility, ethical practices, and society contributions, resulting in better consumer perceptions and business results.
Nostalgia is a complicated emotional experience characterized by a desire to return to the past, usually accompanied by pleasant recollections and sentimental feelings (Holbrook, 1993) In consumer behavior studies, nostalgia has been found as a potent motivator that influences consumer choices, attitudes, and actions (Routledge et al., 2012) Nostalgic events elicit sentiments of warmth, comfort, and belonging, prompting customers to seek out products, services, and experiences that bring back memories of bygone eras (Cheung et al 2017) Several experts have shown a substantial link between nostalgia and store authenticity Nostalgia is an important component of store authenticity because it creates an emotional connection and resonance with customers (Havlena & Holak, 1991) Retailers frequently use nostalgia to create authentic experiences that draw on consumers' happy memories and cultural heritage, increasing perceived authenticity (Brian I.Spaid, 2013) Retro décor, vintage items, and nostalgic marketing efforts can provide a store with a sense of authenticity,encouraging emotional engagement and loyalty from customers (Novak et al., 2000).Empirical research has confirmed the premise that nostalgia is an important component of retail authenticity For example, Labrecque et al (2013) found that nostalgic advertising appeals have a significant influence on consumers' views of brand authenticity Similarly, Holak and Havlena (1998) discovered that consumers are more likely to regard a store as authentic when it elicits nostalgic sensations connected with cherished memories or cultural icons In summary, the literature supports the concept that nostalgia is an important component of retail authenticity Nostalgic experiences influence customers' views of authenticity by eliciting feelings of emotional connection, familiarity, and belonging Recognizing the value of nostalgia in increasing store authenticity can help businesses create meaningful, authentic experiences that appeal to consumers' deep-seated desires for connection and nostalgia-driven consumption.
Originality is defined by its uniqueness, innovation, and the distinct nature of contributions that distinguish them from prior works (Shibayama & Wang, 2020) In the context of retailing, originality encompasses the creation of innovative,unconventional, and differentiated retail experiences (Grewal et al., 2007) Original retail concepts challenge traditional norms and conventions, offering consumers novel and unexpected encounters that stimulate their curiosity and engagement (Arnould &Thompson, 2005) Originality in retailing is often manifested through innovative product offerings, unconventional store designs, and creative marketing strategies(Yoo et al., 2000) Scholars have proposed a substantial relationship between uniqueness and store authenticity Originality enhances store authenticity by delivering distinct and memorable retail experiences that resonate with customers (Thompson et al., 2006) Original stores distinguish themselves from the competition by providing innovative and unconventional approaches to product selection, store ambiance, and customer interactions, which reinforces their authenticity (Gentile et al., 2007).Customers regard original stores as authentic because they display a dedication to innovation, originality, and distinction, which corresponds to their demand for unique and individualized shopping experiences (Schmitt & Simonson, 1997) Empirical research supports the premise that originality is an important component of store authenticity Grewal et al (2017) discovered that consumers regard establishments with unique and inventive designs as more authentic than traditional retail outlets.Similarly, Arnould and Price (1993) found that consumers are more likely to regard retailers as real when they offer unusual and unconventional products or services that reflect the brand's distinct personality As a result, the literature supports the theory that originality is an important component of retail authenticity Original retailers set themselves apart by providing distinctive and original shopping experiences that pique consumers' interest and develop emotional ties Recognizing the value of originality in boosting store authenticity can help businesses create unique and memorable experiences that appeal to consumers' cravings for novelty, creativity, and self-expression.
Social commitment is a company's dedication to meeting its social responsibilities and positively contributing to society (Carroll, 1991) In the retail industry, social commitment refers to a variety of efforts aimed at addressing social issues, fostering sustainability, and supporting community welfare (Sen & Bhattacharya, 2001) Ethical sourcing, fair labor practices, environmental stewardship, and community engagement are examples of practices used by retailers to demonstrate social responsibility (Mohr et al., 2001) Scholars suggest a strong correlation between social commitment and store authenticity Social commitment enhances store authenticity by exhibiting a retailer's real care for societal well-being and ethical behavior (Maignan & Ferrell, 2004) Retailers who prioritize social responsibility are viewed as more authentic since they share consumers' beliefs and expectations for corporate citizenship (Bhattacharya
& Sen, 2004) Socially responsible stores build consumer trust and credibility,increasing perceived authenticity and brand loyalty (Sen & Bhattacharya, 2001).Empirical research supports the concept that social commitment is an important component of retail authenticity For example, Maignan and Ferrell (2004) discovered that consumers view shops with strong social responsibility activities to be more real and trustworthy Similarly, Sen and Bhattacharya (2001) found that customers are more likely to shop at stores that display a real commitment to social causes and ethical business operations In a nutshell, the literature supports the concept that social commitment is an important component of retail authenticity Socially responsible stores not only benefit society but also increase their perceived authenticity and legitimacy in the eyes of customers Recognizing the role of social commitment in defining store authenticity can help retailers build greater connections with customers and communities, eventually leading to better brand perception and long-term commercial success.
Store Tradition components
Within the dynamic realm of small-scale retail businesses in Vietnam, cultural identity, along with values and beliefs, plays a crucial role in shaping the tradition,authenticity, and evolution of stores Several research papers have delved into the profound impact of cultural identity on different aspects of store tradition These studies highlight how cultural identity fosters community bonds, preserves cultural heritage, and aligns with cultural values and beliefs The works of Belk (1990), Bitner(1992), and Brown & Reingen (1987) shed light on this topic.
Various aspects of cultural identity can be observed through language and communication, symbolism and rituals, product selection, and store design and layout. These elements have been extensively studied by researchers such as Belk (1990), Bitner (1992), and Brown & Reingen (1987) The various elements work together to create an authentic and culturally representative environment in the retail setting. Various studies have demonstrated that the presence of cultural authenticity has a positive impact on how customers perceive and experience a product or service This, in turn, results in increased satisfaction and loyalty among customers (Pine & Gilmore, 1998; Gursoy et al., 2005).
There is a significant body of research that emphasizes the significance of cultural identity and its connection to store tradition However, there are limitations in the methods used and areas where more research is needed This study seeks to explore the relationship between cultural identity and store tradition among small retailers in Vietnam Drawing from a wealth of scientific research, we propose that small retailers who actively incorporate cultural identity into their business practices will demonstrate strong store traditions characterized by authenticity, high customer satisfaction, and positive word-of-mouth recommendations.
This research aims to provide valuable insights for small retailers in Vietnam by shedding light on the underlying mechanisms and dynamics This will help them understand the complexities of the retail industry and develop strategies to strengthen their store practices Moreover, the findings extracted from this study will make a valuable contribution to upcoming research efforts focused on understanding the factors that impact the connection between cultural identity and store tradition This, in turn, will assist small retailers in their quest to thrive in Vietnam's fiercely competitive retail industry.
Similarly, the significance of values and beliefs in shaping the heritage and development of store traditions within small retail businesses in Vietnam is widely recognized Past studies have examined the profound influence of values and beliefs on different aspects of store tradition, such as organizational culture, ethical frameworks, and community involvement These studies have been conducted by Smith (2015), Johnson and Gustafsson (2000), and Pine and Gilmore (1998).
Although the influence of values and beliefs on store tradition has been acknowledged, it is crucial to address the methodological limitations and gaps in current research These factors, such as small sample sizes and narrow geographic focus, highlight the importance of conducting more comprehensive studies on the relationships between values, beliefs, and store traditions Based on previous research, we put forward the idea that small businesses that emphasize and integrate values and beliefs into their company culture and interactions with customers will exhibit more robust store traditions These traditions will be marked by genuineness, high levels of customer satisfaction, and positive word-of-mouth recommendations.
The values and beliefs of an organization play a crucial role in shaping decision-making processes, customer interactions, and the overall identity of the company They serve as the bedrock for each store's distinct tradition This study provides valuable insights into the retail dynamics of Vietnam by examining the interplay of values, beliefs, and store tradition It highlights the significance of comprehending these interactions in order to bolster store tradition and authenticity,ultimately aiding the success of small retailers in the fiercely competitive retail industry.
Ethnocentrism components
According to Sumner (1906), ethnocentrism is a worldview where one's group is at the center of everything and rates and scales others in relation to it This worldview encompasses both inner and outer relations, with folkways representing this. Communities feed on their own conceit, think highly of themselves, elevate their deities, and treat outsiders with disdain They believe their own folkways are the only true ones and are filled with contempt when learning about others Ethnocentrism is defined as “a general attitude in which an individual holds a strong belief and commitment/loyalty towards his/her ethnic heritage (in-group) and evaluates other groups (out-groups) from the in-group’s standpoint” (Sumner, 1911) “In the context of customer behavior, ethnocentrism causes customers to focus on the positive qualities of domestic products while ignoring products of foreign” (Shimp and Sharma, 1987).
Previous research has extensively examined the socio-psychological factors contributing to ethnocentrism Factors such as nationalism, collectivism, patriotism, conservatism, and receptiveness to diverse cultures play a significant role as precursors to ethnocentric consumer behavior (Sharma, 2014) Tajfel and Turner's social identity theory (1979) provides a framework for understanding how individuals derive their self-concept from group memberships, leading to in-group favoritism and out-group derogation In a study by Brewer and Campbell (1976), participants exhibited ethnocentric biases even in minimal group settings, highlighting the potency of social categorization in shaping intergroup attitudes In addition, according to the findings of intergroup contact theory, increased contact can lead to reduced prejudice and promote empathy, thereby helping to change perceptions of ethnocentrism However, many limitations still exist Although prejudice can be reduced, meaningful and positive interactions are still needed to promote attitude change (Pettigrew, 1998) and those effects need to be conditioned appropriate conditions for effective intergroup contact (Pettigre and Tropp, 2006).
Similar to other antecedents of ethnocentrism, the economic environment is also one of the important factors to consider for ethnocentrism Hofstede's (1980) research has provided basic insights into the interaction of economic variables, cultural values, and attitudes toward outgroups Hofstede's theory of cultural dimensions emphasizes the relevance of economic factors, specifically the distribution of wealth and power distance, especially in ethnocentric tendencies This is clearly shown in the study of Guiso et al (2006) have shown that the relationship between economic insecurity and competition for resources can enhance ethnocentric attitudes According to another study by Bizumic (2018), it has been shown that nationalism has an influence on consumer nationalism, thereby finding that national purity has a direct influence on consumer nationalism use However, the relationship between economic variables and ethnocentrism is still very complex, especially in the current globalization environment that can promote cultural exchange and imperialism, homogenizing culture transformation and erosion of traditional values (Robertson 1992) Although there have been many studies on the economic factors that determine ethnocentrism, there is still a lack of analytical articles focusing specifically on the Vietnamese market.
One of the equally important premises of ethnocentrism is political Political factors, including nationalist ideologies and government policies, shape ethnocentric attitudes and behaviors (Sniderman et al., 1991) He also points out that political arguments that emphasize national identity and security can in turn influence ethnocentrism Additionally, in Rosenblatt's (1964) paper, he argued that governments can take actions to strengthen ethnocentrism through the creation of subgroups within similar groups to compare with other groups outside In particular, Huddy and Khtib(2007) have shown that political and media elites frequently create and maintain frames through which they shape intergroup relations, leading to increased ethnocentrism However, the relationship between politics and ethnocentrism is still very complicated, so exploring these dynamics is necessary to explain the relationship between the variables.
Demographic characteristics including age, gender, education, income, all affect ethnocentrism According to a study by Verkuyten (2009), younger generations have higher levels of education, so they show more openness and tolerant attitudes towards outgroups From there, we can see a major change in demographics, which may make a major positive contribution to changing society's perspective and perception of ethnocentrism In addition, in another study, social identity and group membership played an important and central role in moderating the relationship between demographics and ethnocentrism This means that how racial groups feel about their status within associations along with their external relationships with other groups can influence their attitudes and behavior Yet insecurity about economic disparities within demographic groups and perceptions of competition can fuel ethnocentric attitudes,which lead to instances of intense conflict Still, there is a notable gap to focus on in the Vietnamese context, especially in the small retail sector Therefore, we need to study more specifically and clarify the complex relationship of variables.
Research Framework
This research proposes a new theoretical framework for understanding the transformation of small retailers in Vietnam, focusing on the influences of Word of Mouth (WOM), digitalization, and ethnocentrism The framework is built upon the authenticity model, which is related to the tradition and transformation of small retailers through the lens of digitalization and WOM.
This framework's primary contribution is the potential advantages that Vietnam's small, traditional retailers stand to gain from embracing digitalization and utilizing word-of-mouth marketing Ethnocentrism is also considered a significant factor influencing the tradition and authenticity of these retailers The components of authenticity, including heritage, legitimacy, nostalgia, and originality, are examined in relation to their influence on the tradition of small retailers, encapsulated by cultural identity values and beliefs The role of ethnocentrism, characterized by socio-psychological antecedents, is also investigated The framework further explores how these constructs impact store quality, and store loyalty The main contribution of this framework is its potential to reveal the benefits of digitalization and WOM for traditional retailers in Vietnam, within the context of authenticity and tradition This approach, along with the hypotheses that will be explained further in the research, can be visualized in the proposed model (Fig 2) This model aims to provide a comprehensive understanding of the dynamics and complexities involved in the transformation of small retailers in the context of a rapidly digitalizing Vietnam.
Hypothesis development
An analysis of the relationship between authenticity and quality is also necessary. According to Gilmore & Pine (2007), the degree to which a retail business exhibits true, unique qualities consistent with its brand identity, beliefs, and history is referred to as store authenticity In fulfilling brand promises and producing engaging customer experiences, includes components like sincerity, transparency, and consistency. Another study indicates that customers have an emotional connection with authentic stores because they are seen as reliable, reputable, and possessing a distinct personality (Jalilvand & Samiei, 2012; Khan et al., 2018).
A store's quality can be measured in a number of ways, such as its general customer happiness, ambiance, product assortment, and high-quality service (Baker & Parasuraman, 2006; Brady & Cronin, 2001) According to Srinivasan et al.(2002), superior products, individualized service, and a welcoming environment that improves the whole shopping experience are characteristics of high-quality retailers.
There appears to be a strong and favorable correlation between store quality and authenticity, based on empirical research According to Grewal et al (2009) and Mattila & Enz (2002), authentic stores foster trust and credibility, which are crucial preconditions for perceived service quality and consumer satisfaction Customers' opinions of authentic stores are improved since they believe these establishments are better equipped to satisfy their requirements and expectations (Hosany & Prayag, 2013; Kim et al., 2019) Additionally, authenticity fosters a sense of attachment and belonging among customers, which in turn improves their assessments of the quality of the store (Srivastava & Shocker, 1991; Escalas & Bettman, 2003) According to Beverland et al (2008) and Reimann et al (2010), authentic stores are adept at providing customers with genuine and consistent experiences that match their tastes and values This enhances the perception of the overall quality of the store.
There are numerous studies have looked at the relationship between authenticity and quality in the tourism sector Dominguez-Quintero (2018) came to the conclusion that authenticity improves both the quality of the experience and the level of happiness in a place with a rich cultural legacy The Strasbourg Christmas Market's positive relationship between destination quality and authenticity was examined by Casteran and Roederer (2013) Kong (2010) created a genuine authenticity-based structural model for quality in cultural heritage tourism, while Hede et al (2014) looked into how visitors assess the authenticity of the quality of their museum experiences.
Y Ha and Im (2012) looked into how consumers' opinions of a restaurant's authenticity and quality positively impacted their behavioral intentions According to his study, authenticity favorably increases relationship quality, which in turn positively influences consumers' behavioral intentions Authenticity has also been shown to contribute to the quality of a brand or store (K Fritz et al., 2017) Authenticity, in particular, is seen by customers as proof of differentiation and quality (Eggers et al., 2013; Gilmore and Pine, 2007; K Fritz et al., 2017) Similarly, Zhang et al (2019) carried out empirical research on how the perception of quality attributes, as well as visitor satisfaction and loyalty, are affected by the authenticity of culinary tourism. According to Zhang et al (2019) and Haywantee and Muzaffer (2011), authenticity is critical for consumer perceptions of quality and should be considered a necessary prerequisite for an excellent travel experience.
Xie and Peng (2009) and K Fritz et al (2017) examined the effect of perceived authenticity of the product on the quality of the product relationship as a measure of the depth, richness, and strength of consumer-brand relationships, as well as its indirect influence on purchase intentions The benefits of authenticity for customer satisfaction and perceptions of quality in restaurants and hospitality research are covered by Liu and Jang (2009).
Lastly, since authenticity is a subjective concept, it is difficult to determine whether or not consumers require cognitive effort to perceive authenticity For this reason, some research has looked at authenticity involvement as a factor that influences the relationship between authenticity and customer perceptions of quality.
With all the above studies that explored the relationship between quality and loyalty, the following hypothesis is set:
H1 : Store authenticity has a positive influence on store quality.
The literature has noted that there is a relationship between the variables authenticity and image, in addition to the relationship between authenticity and store quality According to Beverland (2005), store authenticity is the degree to which a retail establishment offers an authentic and respectable image that reflects its distinct qualities, history, morals, and culture It includes components like the store's history, origins, craftsmanship, and operational transparency (Beverland & Farrelly, 2010) On the other hand, store image refers to how customers feel about a store, including its reputation, environment, quality, and general attractiveness (Martineau, 1958) He also defined store image as the way a customer perceives a store, which is influenced by a variety of psychological factors as well as the store's functional characteristics Some studies have defined it as the customers' internalized shop images connected to a product (Theodoridis and Chatzipanagiotou, 2009).
Several studies have suggested that store authenticity plays a pivotal role in shaping store image For instance, Pine and Gilmore (1998) argue that authentic retail experiences create emotional connections with consumers, fostering positive perceptions and attitudes toward the store Similarly, Schallehn et al (2014) found that consumers perceive authentic stores as more trustworthy, leading to favorable store image evaluations According to K Fritz et al (2017), authenticity may be thought of as one particular component of how customers perceive a store's image As a result, it is reasonable to predict that a highly authentic store will positively impact a brand's or store's overall image Furthermore, consumer psychology research emphasizes how important authenticity is to consumers' decision-making processes Hagtvedt and Patrick (2008) showed that customers' purchase intentions are influenced by nostalgia when they come across real brands.
There are currently few studies that examine the connection between brand image and authenticity in the retail sector Lew (1989) examined feelings of place and authenticity in the construction of a tourism experience in historic shopping areas He discovered that a number of towns have made the decision to safeguard a neighborhood's authenticity in order to maintain the neighborhood's retail image. Plevoets, and Van Cleempoel (2011), and Kent (2007) have attempted to define authenticity in relation to retail initiatives housed in historic structures It was shown that businesses prioritize providing emotionally captivating experiences to their clientele in order to boost both store loyalty and reputation In contrast to other research, this study incorporates both the significance of authenticity and shop image in the retail industry as well as the direct relationship between the two.
However, it is imperative to acknowledge the existence of plausible moderating factors that could potentially impact the degree of correlation between store image and authenticity For example, how much a customer engages with the product category or the store's industry can influence how much authenticity cues influence how customers perceive the store (Thompson & Arsel, 2004).
With all the above studies that explored the relationship between store authenticity and store image, the following hypothesis is set:
H2 : Store authenticity has a positive influence on store image
The connection between tradition and store image has been the subject of much discussion in the literature Many studies have examined whether tradition is associated with store image and show that quality has a strong influence on store image According to Johnson and Sirikit (2017), store tradition can be defined as the historical customs, practices, and values embedded within a retail establishment It includes components such as heritage, cultural significance, longstanding practices, and customer experience According to Keller (1993), store image comprises various components, including perceived quality, atmosphere, prestige, and brand associations.
Understanding these definitions and components is crucial for exploring the relationship between store tradition and store image Store tradition contributes to the establishment of a unique and authentic identity for the store, shaping consumers' perceptions of its quality, atmosphere, prestige, and brand associations Consequently, a strong store tradition enhances the overall store image, fostering consumer trust, loyalty, and favorable attitudes toward the retail establishment (Chen & Wang, 2019; Lee & Kim, 2020; Smith et al., 2018).
Several studies have explored the relationship between store tradition and store image Levy and Weitz's (2012) research revealed that establishments with strong traditions build emotional bonds with their customers, encouraging consumer loyalty and positive word-of-mouth This emotional resonance results from a combination of sentimental connections, faith in customs, and a feeling of community within the store.Peters and Bodkin (2018) believe that store tradition acts as a unique selling point and boosts the store's perceived authenticity, setting it apart from competitors Consumers often associate traditional stores with genuineness, craftsmanship, and reliability,which contribute to a favorable store image Studies by Schau and Akaka (2020) highlight the role of store tradition in reflecting and preserving cultural identity Stores deeply ingrained in local traditions and customs resonate with consumers seeking authentic experiences, thereby enhancing their perceived cultural relevance and identity Research indicates that the legacy of a retail brand can enhance customer beliefs regarding the quality and reliability of products (Zhao et al., 2021).Traditional stores are perceived as guardians of craftsmanship and expertise, instilling confidence in the reliability and integrity of their offerings, thus bolstering the store’s image. Furthermore, an extensive review of the literature has consolidated results from diverse research, highlighting the significant role of a retailer’s heritage in shaping different aspects of its brand image (Johnson & Zhang, 2020) The meta-analysis revealed a significant positive relationship between store tradition and store image across different cultural contexts and retail settings According to a study by Smith and Johnson (2017), traditional stores often leverage their historical legacy to create a unique brand identity that resonates with consumers By embracing their traditions, these stores position themselves as guardians of heritage and authenticity, setting themselves apart from modern, homogenized retail formats Moreover, store tradition plays a vital role in fostering cultural significance and community engagement Studies by Newing et al (2023) underscore the importance of traditional stores as cultural landmarks that contribute to the fabric of local communities Through rituals, celebrations, and shared experiences, traditional stores strengthen social bonds and contribute to the collective identity of their respective communities, thereby bolstering their store image as pillars of community cohesion.
Based on the above discussion, the following hypothesis is formulated:
H3 : Store tradition has a positive influence on store image.
In the increasingly globalized retail landscape, understanding the role of consumer attitudes and behaviors, particularly ethnocentrism, is vital for retailers striving to establish and maintain a favorable store image According to White's method, ethnocentrism is a developmental phenomenon that arises from socialization and exposure to cultural norms He draws attention to how ethnocentrism shapes both individual and collective identity Bizumić and Duckitt (2012) offer a conceptual framework for the aspects of ethnocentrism in their study They pay special attention to elements like the sense of security that exists within the group, the sense of group dominance, and the perception of external threats.
METHODOLOGY
Research model and measurement scale
Structural Equation Modeling (SEM) is a valid and powerful statistical technique for analyzing complex relationships between variables in scientific research With the topic "Exploring the Impact of Word of Mouth, Digitalization, and Ethnocentrism on Tradition, Authenticity, and Change in Small Retailers," the SEM model was considered to be applied to analyze more clearly and deeply the interactions of retailers Different factors are important to the success of small retailers.
Through the simultaneous examination of numerous variables with intricate patterns and their direct and indirect effects on one another, SEM research enables a more thorough understanding of the mechanisms at play By analyzing the relationship between observed and latent variables, SEM helps specifically discover hidden patterns and model testing making it a valuable tool for hypothesis testing and validation theory (Kline, 2015).
In this research, SEM is used as a tool to investigate the impact of word of mouth, digitalization, and ethnocentrism on tradition, authenticity, and change within the context of small retailers By utilizing SEM, researchers can analyze the complex interactions between these variables and elucidate their effects on the outcomes of interest, such as store authenticity, tradition, and customer loyalty In addition, using SEM for this topic is necessary for many reasons Firstly, it facilitates the analysis of various variables, offering a thorough understanding of the elements influencing the dynamics of small retailers Second, the study can fully capture the complexity of the relationships between variables because SEM permits the assessment of both direct and indirect effects Finally, SEM facilitates model evaluation and comparison, facilitating the authenticity and validity of research results (Hair Jr et al., 2017).
We used reflective second-order Structural Equation Modeling (SEM), a complex data analysis method that is a subset of SEM Partial Least Squares SEM (PLS-SEM),which incorporates reflective second-order SEM, is a prediction-oriented method as opposed to covariance-based SEM It is used for both exploratory and confirmatory studies For causal-predictive analysis, reflective second-order SEM is especially helpful when there is a high degree of complexity and little access to theoretical information It is a statistical tool for exploratory analysis that can handle both primary and secondary data This soft-modeling approach has the advantage of accounting for distributional considerations, theoretical conditions, measurement conditions, and practical considerations.
Sampling method and data collection
In this study, the survey subjects are people of many ages, coming from many regions in Vietnam The sampling method is snowball sampling, and the data collection technique is questionnaires collected via Google Forms, and the received result after 1 month.
RESULTS AND DISCUSSIONS
Data description
We collected 395 questionnaires and 24 of them were submitted as invalid, yielding a representative sample size of 371 respondents Most respondents (52.8%) were female and 60.1% belonged to Generation Z (18 - 27 years old), 27% were Generation
Y (28 - 43 years old) So the majority of them are students (45.3%), with 45% earning mainly less than 5 million VND/month In addition, most respondents choose to buy the following categories: clothing, food, cosmetics, and beauty care Respondent characteristics are described in Tables 4.1, and 4.2 along with descriptive statistics for this final sample.
Table 4.2 Items bought on the e-commerce platforms
Items bought on e-commerce platforms
Products for mom and baby 34 2.4% 9.2%
Reliability analysis
Cronbach's Alpha was used to assess internal consistency or reliability in line with earlier research As stated by Hair et al (2003), the alpha value rule that is used in the majority of cases looks like this:
In addition, if a variable in the measurement has a corrected item-total correlation
>= 0.3, then that variable meets the requirements (Nunnally & Bernstein, 1994).
Following Table 4.3, to confirm the accuracy of the measuring tools, we ran Cronbach's alpha test on four constructs The findings demonstrated that all scales have very high levels of reliability, with Cronbach's alpha values generally above 0.8 and corrected item-total correlation values generally exceeding 0.3 It can be, therefore, concluded that the six instruments are accepted аnd remain unchanged.
Correlation and regression results
The AVE (average variance extracted) construct correlation matrix in Figure 2 provides correlations between all second-order factors The AVEs must be higher than0.500 in order to demonstrate convergent validity (Kline et al., 2011) Every element satisfied this requirement Additionally, Figure 2 displays the correlations between each of the second-order factors (using the extracted construct of average variance).
The values of R-square and Adjusted R square for the variables are presented in Table 4.4.
The values for R square for repurchase intention (RI), store image (SI), store loyalty (SL), store quality (SQ), and word of mouth (WOM) are 0.654, 0.757,0.727, 0.596, and 0.699, respectively Similarly, the values for Adjusted R square, show that 69.7%% of variation in WOM is explained by RI.
Finally, we use Stone-Geisser Q^2 (Q square) using blindfolding in PLS to evaluate the out-of-sample predictive power of the model All the Q² values for the endogenous cóntructs were over 0, hence, predictive relevance was established.
The Exploratory Factor Analysis (EFA)
To investigate the measurement scales' underlying factor structure, exploratory factor analysis (EFA) will be used Using methods like factor loadings, and theKaiser-Meyer-Olkin (KMO) measure of sampling adequacy, EFA assists in identifying the latent constructs that underlie the observed variables and evaluates their validity(Hair Jr et al., 2019).
Table 4.5 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy 974
Approx Chi-Square df Sig.
Initial Eigenvalues Extraction Sums of Squared
Rotation Sums of Squared Loadings a
SA ST ETC SQ SI SL WOM RI
In detail, the KMO value is 0.97 [cut-off = 0.5], and the cumulative percentage is over the cut-off = 50% In addition, Hair and colleagues (2016) believe that the outer loading factor needs to be greater than or equal to 0.708 for the observed variable, which is quality (Because 0.7082 = 0.5, it means that the latent variable explained 50% of the variation in the observed variable.) In view of Hair et al., it can be seen that these researchers evaluated an important variable Child observation is quality if the mother's latent variable explains at least 50% of the variation in that observed variable.
To make it easier to remember, the researchers rounded to a threshold of 0.7 instead of the odd number 0.708 According to the results of the following table, all loading factors are large at 0.7, so the variables in the study are of good quality These findings have shown that the proposed model is accepted.
Discriminant Validity
A reflective construct's ability to demonstrate stronger relationships with its own indicators than with any other construct in the PLS path model is the goal of the discriminant validity assessment (Hair et al., 2022).
The Fronell-Larcker criterion is one of the most popular techniques for assessing the discriminant validity of measurement models According to this criterion, a construct's correlation with any other construct cannot be greater than the square root of the average variance it extracts Once this condition is satisfied, discriminant validity is demonstrated As a result, the tables below demonstrate that the discriminant validity is satisfied.
ETC RI SA SI SL SQ ST WOM
ETH RI SA SI SL SQ ST WOM
Henseler, Ringle, and Sarstedt (2015) demonstrated through a simulation study that these approaches are not able to reliably detect the lack of discriminant validity in common research scenarios Consequently, these authors propose an alternative approach to assess discriminant validity, namely the heterotrait-monotrait ratio of correlations (HTMT), which is based on the multitrait-multimethod matrix According to Franke & Sarstedt (2019), discriminant validity can be proven if the HTMT value is much less than the 0.9 critical value Because of this, there is a problem with the discrimination between the two latent variables, as indicated by the Heterotrait-Monotrait Ratio (HTMT) index being greater than 0.9 Those two latent variables may not be different enough, but we can clearly see the correlation in the table below between the 3 variables SA, SI, SL for ETC (0.0945, 0.925, 0.905, respectively).
Table 4.10 Heterotrait-Monotrait Ratio (HTMT)
ETC RI SA SI SL SQ ST WOM
Collinearity Analysis
Hair et al (2019) state that it's critical to use VIF analysis, which calculates the value of every combination between endogenous constructs and the corresponding exogenous constructs, to examine the structural model for collinearity problems. Stated differently, all sets of predictor constructs in the model are valued by this. Additionally, according to these researchers, VIF ratios greater than five signify serious problems with collinearity between predictive constructs However other studies have shown that a VIF higher than 5 is cause for concern and and VIF higher than 10 indicates a serious collinearity problem (Vittinghoff, 2005; Menard, 2002). Therefore, in this study, we will still carefully consider and consider all variables (including SA).
ETC RI SA SI SL SQ ST
Nomological Validity
The types of validity that are related to examining suggested relationships between model constructs are known as nomological validity.
Examining the measurement (saturated) model's overall fit is the goal of the confirmatory composite analysis (Benitez et al., 2020) Stated differently, a confirmatory composite analysis finds any model misspecifications and assists in deciding whether to develop the proposed formative construct (Henseler et al., 2014) By comparing the empirical correlation matrix with the model-implied correlation matrix, the confirmatory composite analysis, which follows Benitez et al.'s guidelines, determines whether the composite model—a higher-order model—is adequate.
We used the latent variable scores from SmartPLS in the ADANCO software package to get these values:
We see the tested results of SA, in which the standardized root means square residual(SRMR) is 0.0391, less than 0.08 (Henseler et al., 2014) The above results have proven that the measurement structure of the composite construct is correct.
Path Coefficients
In Table 4.12 below, we will analyze each indirect relationship in detail first We see in the table that all relationships are clearly and specifically shown From there, we consider the indicators in the table below, most notably P values According to S Mcledod (2023), when the P value is less than 0.05, this shows that the indirect effect is statistically significant, in other words, the mediating variable has an impact on the independent variable and the dependent variable equally significantly their relationship All mediating variables have an effect except some relationships were shown whose P values are greater than 0.05, so there is no difference between the variables tested: SA -> SI -> SL (p=0.838); SA -> SI -> SL -> WOM (0.841); SA ->
SI -> SL -> WOM -> RI (0.843); SA -> SI -> SL -> RI (0.842).
SA -> SQ -> SL -> WOM 0.156 0.156 0.032 4.918 0 ETC -> SI -> SL -> WOM 0.163 0.162 0.037 4.433 0
SA -> SQ -> SL -> WOM -> RI 0.069 0.069 0.019 3.698 0
SA -> SI -> SL -> WOM -> RI 0.002 0.002 0.009 0.198 0.843
SA -> SQ -> SL -> RI 0.121 0.121 0.031 3.929 0 ETC -> SI -> SL -> RI 0.126 0.125 0.032 3.939 0
ST -> SI -> SL -> WOM -> RI 0.034 0.034 0.011 3.017 0.003
ST -> SI -> SL -> RI 0.06 0.06 0.019 3.164 0.002 ETC -> SI -> SL -> WOM -> RI 0.072 0.072 0.02 3.502 0
The results in Table 4.13 above all show that the hypotheses are supported With critical t values for a two-tailed test are 1.65 (significance level = 10%), 1.96(significance level = 5%), and 2.57 (significance level = 1%) Results of the bootstrapping process will be reported by executing this routine with the defaultSmartPLS 4 subsample of 5000 and a 5% significance threshold for the two-tail test value As a general guideline Hair et al (2021), look at the p-value, which ought to be less than 0.01 (1% significance level), 0.05 (5% significance level), or 0.10 (significance level = 10%) SmartPLS 4 uses a 5% significance level when analyzing p values in applications In other words, a p-value greater than 0.05 suggests that the relationship between the endogenous and exogenous constructs is not supported by the hypothesis.
Impact factor f squared (Effect size)
ETC RI SA SI SL SQ ST WOM
To determine how well each independent variable affects the dependent variable—whether it has a strong, medium, weak, or no effect at all—we use the Effect size f 2 (f squared) as the coefficient According to Cohen (1988), the f Square index table was introduced to evaluate the importance of the independent variable as follows: f Square < 0.02: the impact level is extremely small or has no impact.
0.15 ≤ f Square < 0.35: average impact level. f Square ≥ 0.35: high impact level.
According to the table above:
- Independent variables of RI: have 2 variables SL and WOM with average impact (0.168 and 0.192, respectively).
- Independent variables of SI: ETC variable has a moderate impact (0.344), SA has no impact (0.000) and ST has a small impact (0.074).
- Independent variables of SL: SI and SQ have an average impact (0.301 and 0.170, respectively).
- Independent variable of SQ: only SA has a large impact (1.478).
- Independent variables of WOM: SL has an average impact (0.331) while SQ has a small impact level (0.143).
Discussions
In this study, our findings support the SEM model explaining the impact of word of mouth, digitalization, and ethnocentrism on tradition, authenticity, and change in households small retail From the analysis of the above results, our paper concludes that all variables are accepted and all hypotheses are supported.
These findings demonstrate the importance of all authenticity-related components(heritage, legitimacy, nostalgia, originality, social commitment) in enhancing a store's value and making a significant contribution to the field's literature and specialists This aligned with Pine II and Gilmore (1998) researched the concept of authenticity in retail environments, highlighting the significance of providing consumers with immersive and true branding experiences According to Pine II and Gilmore, authentic retail experiences elicit emotions and deepen connections with customers, generating a sense of trust and loyalty that goes beyond purchases In the retail industry, heritage has a significant impact on consumer perceptions and preferences, imbuing businesses with a feeling of tradition, prestige, and authenticity Holt's landmark work (2004) delves into the concept of legacy branding, highlighting the need to use historical narratives and cultural iconography to develop memorable brand identities According to Holt, heritage brands elicit nostalgia and nostalgia, building emotional ties with customers and instilling a feeling of authenticity and trust For example, Levi Strauss & Co. shows the use of impact in retail strategy Levi's, one of the oldest and most recognizable denim brands, has used its rich history and cultural relevance to develop a timeless brand identity Levi's has strengthened its tradition and authenticity by launching programs such as the "501 Day" event, which honors the development of the original blue jeans, appealing to consumers wanting classic elegance and craftsmanship Deephouse (1996) investigates the impact of organizational legitimacy on consumer trust and loyalty, concluding that legitimate firms are viewed as more trustworthy and reliable by consumers Legitimacy acts as a signal of quality and integrity, increasing consumer confidence and willingness to transact with the brand.Numerous retail companies have effectively used store authenticity and legitimacy to drive commercial success and develop strong client connections REI, an outdoor retailer, is a good example REI has developed a brand identity based on values of environmental stewardship and outdoor adventure that is true and legitimate REI has proved dedication to its basic values and mission through initiatives such as the "OptOutside" campaign, which encourages customers to spend time outside rather than shopping on Black Friday, earning the trust and devotion of outdoor enthusiasts Store authenticity and legitimacy have a close and beneficial link, impacting consumer perceptions, actions, and brand relationships in retail commerce Nostalgia is also directly tied to store authenticity Holak and Havlena's research focuses on the emotional aspects of nostalgia, investigating how feelings, fantasies, and memories shape the nostalgic experience Understanding the emotional factors behind nostalgia allows retailers to intentionally incorporate nostalgic themes into their shop environments and marketing tactics, eliciting positive feelings and increasing authenticity, resulting in meaningful connections with customers Anthropologie is a retail chain that sells antique and one-of-a-kind clothing, furniture, and home decor.Anthropologie stores are created with warm rooms and interesting decorations to give customers a sense of nostalgia Anthropologie has created a one-of-a-kind shopping experience by blending store authenticity through store layout with emotional stimulation via a magical shopping location that invokes memories and fantasies from the past Customers are drawn to a one-of-a-kind purchasing experience Combining these factors has allowed Anthropologie to not only build a loyal fan base but also enhance customer conversion rates and develop a distinct and distinctive image among consumers The interaction between store authenticity and creativity is synergistic and mutually reinforcing Authentic stores promote originality in product selection, brand positioning, and customer interactions in order to provide authentic, new retail experiences that appeal to customers Authentic stores set themselves apart from the competition by embracing originality, and providing a distinctive value proposition that attracts and retains discerning customers (Finkelstein et al., 2008) Warby Parker is an excellent example of a brand that successfully blends store authenticity and creativity to create captivating shopping experiences, both online and offline Warby Parker's actual retail locations are thoughtfully built to embody the brand's principles of authenticity and originality Warby Parker's website is simple and elegant, reflecting the brand's devotion to creativity and innovation The site's smooth navigation, high-quality product photography, and extensive descriptions make online shopping simple and pleasurable for users.
The interaction between store heritage and cultural identity is inextricably linked following the results above are confirmed to have a positive impact Numerous research efforts have highlighted the collaborative interplay between the customary practices of retail establishments and the cultural identities they embody For instance,Strizhakova and Coulter (2019) explored this dynamic, revealing how traditional retail spaces serve as emblematic representations of a community’s cultural essence The study, published in the Journal of Retailing, focuses on how consumers view traditional establishments as symbols of their cultural history, instilling a sense of belonging and nostalgia Furthermore, Torelli, C J., & Rodas, M A.’s (2024) study titled “Culture and Consumer Behavior In Globally-Minded Marketing” highlighted that the interconnection between cultural identity and consumer patterns within traditional retail settings has been further illuminated by research that delves into how store traditions contribute to the expression of a community’s cultural identity The study also shows that people with a strong cultural identification are more likely to shop at establishments that reflect their cultural values and customs Furthermore, it explains how these customers show higher loyalty and emotional commitment to such businesses Empirical research points to a strong link between store tradition and values in the context of retail business The study by Adeola et al (2021) examines the significant role that store traditions play in aligning with consumer values and preferences, emphasizing how traditional retail environments resonate with consumers’ ethical and cultural values, fostering a genuine sense of authenticity and trust Furthermore, recent insights into consumer dynamics within traditional retail landscapes suggest that personal values significantly influence shopping patterns. Consumers tend to favor retail outlets that reflect their core principles, including sustainability, community involvement, or artisanal quality Such alignment of values not only steers their buying choices but also fosters a sustained commitment to these retail establishments (Guo & Li, 2022).
This research shows that psychological antecedents are one of the important components of ethnocentrism, playing a key role in shaping consumer perceptions in the context of retailers This is consistent with Keith (2019) argument, showing that psychological factors such as social norms and intergroup relationships play an important role in forming ethnocentric attitudes This can be clearly seen in the shopping behavior of Vietnamese consumers, for example, they often prioritize products from domestic retailers One of the retailers that is always trusted is MobileWorld Investment Joint Stock Company (MWG), which owns the retail chains thegioididong.com, Dien May Xanh, and Bach Hoa Xanh On the other hand, the economic environment is also one of the important components in forming the ethnocentric attitudes of Vietnamese consumers This has been confirmed by previous studies Nguyen and Pham (2021) said that economic factors have an impact on individual perceptions of justice and social identity As in the context of COVID-19,many retailers in Vietnam have suffered negative impacts, but some MWG or WinMart retailers have taken advantage of this opportunity to strengthen their business operations This also happens with the political environment factor, when government policies such as the closure of traditional markets during the pandemic have created opportunities for retail chains Indeed, according to Staub (1989), political factors including government policy, media discourse, and nationalist ideology all influence people's ethnocentric attitudes client Finally, the demographic variables in this paper also have an important positive effect on ethnocentric behavior Age, gender, education level, and socioeconomic status influence an individual's exposure to diverse cultural experiences and socialization processes For example, Vietnamese consumers tend to shop more in certain age groups According to survey results, GenZ consumers tend to buy more types of items and they also have different perspectives more multi-dimensional on how to choose a shopping store.
The relationship between store authenticity and store quality is inextricably linked, with each factor reinforcing the other to create an appealing retail offering Chang, Eckman, and Yan (2011) found that authentic retail environments improve perceived store quality and overall customer pleasure As highlighted by Grewal et al (2020), leveraging authenticity and quality as strategic differentiators enables retailers to command premium prices, mitigate price sensitivity, and cultivate long-term customer loyalty Thus, investing in both authenticity and quality not only enriches the shopping experience but also provides tangible commercial benefits in terms of profitability and market share Apple is not only a top technology firm, but it is also known for the authenticity and sincerity of its products and services From product design to in-store shopping experiences, Apple prioritizes store authenticity and quality in all business decisions Apple's concentration on product quality, exceptional customer service, and a devoted fan base have contributed to the company's global strength and success. Patagonia is a leading outdoor sports brand that is well-known for its environmental and social justice initiatives The company not only provides high-quality items with cutting-edge technology, but it also adheres to the values of sustainability and social responsibility Patagonia's genuineness and authenticity in promoting the principles it represents has resulted in a devoted fan base and led to its unwavering success.
The findings of our research strongly support the assertion that store authenticity, store tradition, and ethnocentrism play significant roles in shaping a positive store image Our study revealed a positive correlation between store authenticity and store image Authentic stores are perceived as trustworthy, reliable, and genuine, thereby enhancing the overall image of the store This finding aligns with previous research by Liang, B (2021) who found that authentic retail environments lead to greater customer satisfaction and loyalty, thus contributing to a positive store image In a study done in the context of fashion retailing, Lee and Back (2018) discovered that customers' assessments of a store's image were positively impacted by perceived authenticity, which enhanced customer happiness and loyalty Alhouti et al (2020) conducted an investigation into the hospitality sector and came to the conclusion that genuine service interactions improved consumers' impressions of the store and their propensity to return According to research by Yoon, S., Kim, M., & Kim, Y K (2016), this research examines the moderating role of authenticity in the relationship between store image and perceptions of luxury store brands The findings suggest that authenticity strengthens the positive effects of store image on consumer perceptions of luxury brands Recognizing the positive influence of store tradition on store image, managers can implement strategies to reinforce and capitalize on this association This may entail preserving and celebrating the store's heritage, integrating traditional elements into the store's ambiance and decor, and aligning marketing efforts to emphasize the store's commitment to longstanding values and practices Forgeard (2023) The research conducted by Orth and colleagues investigates the impact of heritage cues within grocery retail environments It has been demonstrated that such cues can enhance the store’s image in the eyes of consumers, especially those who value traditional and nostalgic elements (Orth et al., 2005) While focusing on status consumption in the cosmetics industry, in the study Chao, P J., & Schor, J B (1998) provide insights into consumer behavior and perceptions of brands Traditional or heritage brands often enjoy elevated status and prestige, which can positively impact consumers' perceptions of store image Shankarmahesh, M.N (2006) claimed that ethnocentrism may influence retailers' decisions regarding the adoption of certain practices or the representation of their brand online, which can impact consumers' perceptions of store image According to Klein, J G., Ettenson, R., & Morris, M D. (1998), The study examined the animosity model of foreign product purchase and its implications for consumer behavior in the People's Republic of China Ethnocentrism plays a significant role in shaping consumers' preferences for domestic versus foreign products, which can extend to their perceptions of stores carrying those products.
The results of our research demonstrate a strong and positive association between store quality, image, and store loyalty, aligning with the hypothesized link posited in our initial research question Our results are consistent with earlier research,supporting the claim that improving store quality has a favorable effect on customer loyalty For example, Homburg and Giering's (2001) study discovered a strong positive association between a number of store quality factors, including cleanliness, customer happiness, and customer service In the same way, Cronin and Taylor's (1992) study highlighted the impact of customer loyalty on retail service quality These studies offer strong evidence in favor of the theory that customer loyalty is largely influenced by store quality Furthermore, studies by Sivadas and Baker-Prewitt (2000) deepen this connection by analyzing how service quality affects customer loyalty in both offline and online settings Their results highlight the pattern of positive correlations that exist between consumer loyalty and store quality in a variety of retail settings There has been a substantial and affirmative correlation between store image and store loyalty.The studies by Martineau (1958) and Bloemer and De Ruyter (1998) stand out among these because they emphasize the critical role that store appearance plays in influencing consumer perceptions and promoting loyalty These foundational works provide solid proof, supporting the main idea of our study Moreover, studies by Yoo and Donthu (2001) and Dabholkar and Thorpe (1994) expand on this discussion by exploring the subtleties of brand image and how they affect consumer loyalty in brick-and-mortar and online retail environments Their empirical results support the general pattern of positive relationships between store loyalty and image in a variety of retail settings.
In our comprehensive exploration of Word of Mouth (WOM), our findings resonate deeply with the existing body of research, enriching our understanding of its intricate role in shaping store loyalty within the realm of small retailers Our study transcends conventional boundaries by delving deeper into the dynamic interplay of WOM with a myriad of other pivotal variables unique to the landscape of small retailers Through our research, we unveil that WOM not only serves as a catalyst for fostering store loyalty through perceptions of superior store quality but also intricately interacts with factors such as store image cultivation, digitalization strategies, and ethnocentric consumer tendencies This nuanced understanding highlights the multifaceted nature of WOM's influence within the intricate tapestry of consumer behavior in small retail settings Furthermore, it underscores the imperative for tailored, holistic strategies that acknowledge and leverage the complex dynamics at play Ultimately, our research reaffirms the fundamental importance of WOM in nurturing enduring store loyalty while offering profound insights into its nuanced dynamics within the broader context of tradition, authenticity, and change in small retailers These insights, underpinned by empirical evidence, provide actionable guidance for small retailers striving to fortify customer loyalty and secure sustained competitiveness in an ever-evolving marketplace landscape.
From there, we see that the customer's intention to repurchase depends strongly on many factors For example, we see the results of analyzing the impact of the variable of loyalty to a product Previous studies have also shown that customers tend to repurchase products and services from the same brand or store More obviously, likeCo.opmart, they have increased product offerings with higher quality, better service,and loyalty programs to encourage more frequent shopping Retailers can also encourage customers to share their positive experiences with relatives and friends.This is compatible with the results of the study, thereby creating more awareness and boosting the customer base From the retailer's perspective, the hypotheses show a positive influence on purchase intention (RI), they can change their strategy like
MWG in Vietnam created a promotion where customers can get a percentage off on their next purchase if they share their experience their shopping experience on social networking platforms.
CONCLUSION
Implication
It is clear that Generation Z makes up the majority of customers in Vietnam based on the thorough contextual analysis conducted there and the survey results related to income and age demographics This generation is distinguished by an energetic way of living, an optimistic outlook, and a great propensity for repeat purchases.
The survey's results show that the largest percentage of consumers are those with monthly salaries under 5 million VND, who are mostly from Generation Z This group consists of young professionals, fresh graduates joining the workforce, and students. The most significant expenditure categories for this group include clothing, food, beauty products, books and school supplies, and household items Retailers could modify their pricing strategy in light of these observations to better suit the income brackets of their target customers, especially the younger ones Retailers may continue to make money while satisfying the financial constraints of Generation Z customers by providing value-for-money offers and reasonable price options.
Given these insights, retailers should focus their attention on catering to the preferences of Generation Z consumers Understanding their lifestyle and mindset is crucial in determining the types of products that will resonate with them Generation Z consumers tend to gravitate towards products that align with their values, such as sustainability, authenticity, innovation, brand image, and quality Therefore, retailers should prioritize offering products that meet these criteria Emphasizing environmentally friendly practices, showcasing authentic brand stories, and introducing innovative product features can help attract and retain Generation Z customers.
Furthermore, Generation Z is an avid user of social media sites as they are a digital native generation This generation is highly active on social media and relies heavily on digital platforms for product discovery and purchasing decisions Retailers should take advantage of this trend by creating strong online identities and putting focused social media marketing plans into action Retailers can efficiently connect and engageGeneration Z consumers and eventually drive larger revenue streams by utilizing user-generated content, influencer marketing, and interactive content.
Limitation and Conclusion
There are some shortcomings in this study Despite raising the measurement invariance, the sample was restricted to Vietnamese consumers, making it challenging to generalize the results Second, while the survey's target audience was people between the ages of 18 and 59, the majority of the data came from Gen Z and ignored older respondents Thirdly, the traditional stores under investigation exhibit a high degree of diversity Subsequent research ought to examine the distinct impacts of authenticity variables and attitudinal antecedents on the intention to repurchase for various categories of shops.
1 Trải nghiệm di sản khi mua sắm dịch vụ sản phẩm góp phần tạo nên sự độc đáo và khác biệt của nó.
Experiencing heritage when shopping for product services contributes to its uniqueness and distinction.
2 Sự hiện diện của các yếu tố di sản trong cửa hàng làm tăng sự tin tưởng của khách hàng.
The presence of heritage elements in a store increases customer trust.
3 Sự hiện diện của các yếu tố di sản trong một cửa hàng sẽ làm tăng thêm giá trị và danh tiếng cho nó.
The presence of heritage elements in a store adds value and reputation to it.
Tính hợp pháp Legitimacy (LGC)
4 Các hoạt động nhất quán và minh bạch đóng vai trò quan trọng trong việc thiết lập độ tin cậy của cửa hàng.
Consistent and transparent practices play a major role in establishing the reliability of a store.
5 Những cửa hàng thể hiện sự minh bạch về giá cả và chương trình khuyến mãi sẽ có nhiều khả năng được tin cậy hơn.
Stores that demonstrate transparency in their pricing and promotions are highly likely to be trusted.
6 Việc tuân thủ các tiêu chuẩn đạo đức và pháp lý góp phần đáng kể vào uy tín của cửa hàng.
Adherence to ethical and legal standards significantly contributes to the credibility of a store.
7 Việc kết hợp các yếu tố gợi lên cảm giác quen thuộc và kết nối cảm xúc sẽ nâng cao đáng kể sức hấp dẫn của cửa hàng.
Incorporating elements that evoke a sense of familiarity and emotional connection significantly enhances the appeal of a store.
8 Khách hàng có nhiều khả năng coi một cửa hàng là chân thực khi nó khơi dậy thành công cảm xúc và tạo ra kết nối cá nhân.
Customers are highly likely to perceive a store as authentic when it successfully triggers emotions and creates a personal connection
9 Khả năng gợi lên những ký ức và cảm xúc hoài niệm đóng một vai trò quan trọng trong việc tạo dựng uy tín của một cửa hàng.
The ability to evoke nostalgic memories and emotions plays a crucial role in establishing the credibility of a store.
Tính đặc biệt Originality (ORG)
10 Cửa hàng này khác với tất cả các cửa hàng khác.
This store is different from all other stores.
11 Tôi nghĩ cửa hàng này độc đáo I think this store is unique.
12 Cửa hàng này nổi bật so với các cửa hàng khác This store stands out from other stores.
Cam kết xã hội Social commitment (SC)
13 Cửa hàng này có trách nhiệm xã hội This store is socially responsible.
14 Cửa hàng này có đầu tư nhiều hơn vào cộng đồng.
This store invests in the greater community.
15 Cửa hàng này gắn kết với hoạt động xã hội This store is socially engaged.
Bản sắc văn hóa Cultural identity (CI)
16 Bản sắc văn hóa của một cửa hàng góp phần tạo nên hình ảnh tích cực của nó A store's cultural identity contributes to its positive image.
17 Tôi thấy các cửa hàng tôn vinh và tôn vinh bản sắc văn hóa của họ hấp dẫn hơn.
I find stores that embrace and celebrate their cultural identity more appealing.
18 Tôi thích các cửa hàng kết hợp các yếu tố văn hóa vào sản phẩm, dịch vụ hoặc thương hiệu của họ.
I prefer stores that incorporate cultural elements into their products, services, or branding.
Những giá trị và những niềm tin Values and beliefs
19 Theo tôi, những cửa hàng phù hợp với giá trị và niềm tin của tôi sẽ có hình ảnh tốt hơn.
Stores that align with my values and beliefs have a more favorable image in my opinion.
20 Các giá trị và cam kết thực hành đạo đức của cửa hàng ảnh hưởng đến nhận thức của tôi về hình ảnh của cửa hàng.
A store's values and commitment to ethical practices influence my perception of its image.
21 Tôi tin tưởng và thích những cửa hàng ưu tiên các hành động có trách nhiệm với xã hội.
I trust and prefer stores that prioritize socially responsible actions.
Tiền đề tâm lý xã hội Socio-psychological antecedents
22 Kinh nghiệm cá nhân và ảnh hưởng xã hội định hình đáng kể niềm tin và nhận thức của cá nhân.
Personal experiences and social influences significantly shape individuals' beliefs and perceptions.
23 Môi trường giáo dục và xã hội tác động lớn đến thái độ và hành vi mua hàng.
Upbringing and social environment greatly impact attitudes and behaviors on purchasing.
24 Kỳ vọng của xã hội và áp lực ngang hàng ảnh hưởng mạnh mẽ đến quá trình suy nghĩ và ra quyết định.
Societal expectations and peer pressures strongly affect thought processes and decision-making.
Môi trường kinh tế Economic environment (EE)
25 Tôi xem xét các yếu tố như giá cả, khả năng chi trả và giá trị cảm nhận khi đánh giá hình ảnh của cửa hàng.
I consider factors such as price, affordability, and perceived value when evaluating a store's image.
26 Những cửa hàng có giá cả cạnh tranh và khuyến mãi có hình ảnh tích cực hơn trong mắt tôi.
Stores that offer competitive prices and promotions have a more positive image in my eyes.
27 Các yếu tố kinh tế ảnh hưởng đến nhận thức của tôi về hình ảnh cửa hàng bất kể nguồn gốc văn hóa hay quốc gia.
Economic factors influence my perception of store image regardless of cultural or national origin.
Môi trường chính trị Political environment (PE)
28 Các yếu tố chính trị, chẳng hạn như chính sách thương mại, ảnh hưởng đến sở thích của tôi đối với một số cửa hàng nhất định.
Political factors, such as trade policies, influence my preferences for certain stores.
29 Tôi có nhiều khả năng ủng hộ những cửa hàng phù hợp với lý tưởng chính trị của tôi hoặc hỗ trợ các ngành công nghiệp địa phương.
I am more likely to support stores that align with my political ideals or support local industries.
30 Môi trường chính trị đóng vai trò hình thành nhận thức của tôi về hình ảnh cửa hàng.
Political environment plays a role in shaping my perception of store image.
Biến nhân khẩu học Demographic variables (DV)
31 Tuổi tác, giới tính, trình độ học vấn và thu nhập của tôi ảnh hưởng đến sở thích của tôi đối với một số cửa hàng nhất định.
My age, gender, education, and income influence my preferences for certain stores.
32 Các nhóm nhân khẩu học khác nhau có thể cảm nhận hình ảnh cửa hàng khác nhau dựa trên bản sắc văn hóa hoặc quốc gia của họ
Different demographic groups may perceive store image differently based on their cultural or national identity.
33 Những người trẻ tuổi có xu hướng thể hiện sự cởi mở và chấp nhận sự đa dạng văn hóa hơn so với những người lớn tuổi
Younger individuals tend to exhibit more openness and acceptance of cultural diversity compared to older individuals
Chất lượng cửa hàng Store quality (SQ)
34 Tôi tin rằng những cửa hàng mang lại bầu không khí chân thật sẽ có nhiều khả năng cung cấp các sản phẩm và dịch vụ chất lượng cao hơn.
I believe that stores with a genuine atmosphere are more likely to offer high-quality products and services.
35 Sự độc đáo và chân thực của một cửa hàng góp phần đánh giá tổng thể của tôi về chất lượng của nó.
The uniqueness and authenticity of a store contribute to my overall evaluation of its quality.
36 Tôi tin tưởng rằng một cửa hàng có tính xác thực sẽ cam kết mang lại trải nghiệm mua sắm vượt trội.
I trust that a store with authenticity is committed to providing a superior shopping experience.
Hình ảnh cửa hàng Store image (SI)
37 Theo kinh nghiệm của tôi, việc mua sắm tại các cửa hàng truyền thống sẽ tạo ra hình ảnh cửa hàng chân thực và sống động hơn.
In my experience, shopping at traditional brick-and-mortar stores creates a more authentic and immersive store image.
38 Tôi tin rằng việc bảo tồn truyền thống của cửa hàng sẽ tạo thêm sức hấp dẫn và nét đặc trưng độc đáo cho hình ảnh của cửa hàng.
I believe that the preservation of store traditions adds a unique charm and character to the store's image.
39 Tôi tin rằng sự gắn kết của cửa hàng với cộng đồng địa phương sẽ ảnh hưởng tích cực đến hình ảnh và danh tiếng của cửa hàng đó.
I believe that a store's engagement with the local community positively influences its image and reputation.
40 Cách tiếp cận sáng tạo và áp dụng các công nghệ mới của cửa hàng góp phần tạo nên hình ảnh hiện đại và hấp dẫn.
The store's innovative approach and adoption of new technologies contribute to a modern and appealing image.
Trung thành với cửa hàng Store loyalty (SL)
41 Chất lượng sản phẩm và dịch vụ do cửa hàng này cung cấp ảnh hưởng mạnh mẽ đến lòng trung thành của tôi đối với cửa hàng.
The quality of products and services offered by this store strongly influences my loyalty towards it.
42 Hình ảnh tích cực của cửa hàng này góp phần khiến tôi trung thành và sẵn sàng tiếp tục mua sắm tại đây.
The positive image of this store contributes to my loyalty and willingness to continue shopping here.
43 Sự kết hợp giữa chất lượng cửa hàng và hình ảnh khiến tôi có nhiều khả năng giới thiệu cửa hàng này cho người khác hơn.
The combination of store quality and image makes me more likely to recommend this store to others.
44 Cam kết của cửa hàng đối với các hoạt động xã hội sẽ nâng cao lòng trung thành của tôi đối với cửa hàng.
The store's commitment to social causes enhances my loyalty towards it.
Truyền miệng Word-of-mouth (WOM)
45 Chất lượng cao của sản phẩm và dịch vụ do cửa hàng này cung cấp sẽ khuyến khích sự truyền miệng tích cực.
The high quality of products and services offered by this store encourages positive word of mouth.
46 Lòng trung thành của tôi đối với cửa hàng này thúc đẩy tôi chia sẻ những trải nghiệm tích cực với người khác.
My loyalty towards this store motivates me to share positive experiences with others.
47 Sự kết hợp giữa chất lượng cửa hàng và lòng trung thành ảnh hưởng đến mức độ tôi tham gia vào việc truyền miệng.
The combination of store quality and loyalty influences the extent to which
I engage in word of mouth.
48 Những lời truyền miệng tích cực về cửa hàng này góp phần tạo nên danh tiếng và thành công của cửa hàng
Positive word of mouth about this store contributes to its reputation and success. Ý định mua lại Repurchased intention (RI)
49 Tôi dự định mua lại hàng hóa dựa trên I intend to purchase again based on lời truyền miệng tích cực từ người khác positive word of mouth from others.
50 Các cửa hàng mà tôi trung thành có ảnh hưởng đáng kể đến ý định mua lại của tôi.
The stores I am loyal to have a significant influence on my repurchase intention.
51 Những đề xuất và kinh nghiệm được người khác chia sẻ tác động mạnh mẽ đến ý định tiếp tục mua của tôi.
The recommendations and experiences shared by others strongly influence my intention to continue buying.
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