Determination of factors affecting brand in marketing

RESEARCH PROJECT (BMBR5108) DETERMINATION OF FACTORS AFFECTING BRAND IN MARKETING STUDENT’S FULLNAME : HUYNH VAN BINH STUDENT ID : CGSVN00015023 INSTRUCTOR: : Dr. PHAN DINH NGUYEN INTAKE : MARCH 2013 Class: : MBAOUM0313-K08A Ho Chi Minh, September 2014 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh Advisor’s assessment ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… _____________________________________ Advisor’s signature Determination of Factors Affecting Brand in Marketing – Huynh Van Binh ACKNOWLEDGEMENT First and foremost, I would like to give special thanks to for being an excellent professor, advisor, thesis committee chair, and mentor. I appreciate all the insight and time he put into helping me with my thesis. I am also grateful to him for teaching me the basics, and advancing my knowledge and expertise. I’d like to thanks Dr. Phan Dinh Nguyen, who helped me in the data analysis. Many thanks my classmates in MBA class. My special gratitude is extended to all instructors, staff and students of Ho Chi Minh City Open University for their support and the valuable knowledge during my study. Huynh Van Binh Determination of Factors Affecting Brand in Marketing – Huynh Van Binh ABSTRACT The marketing effort orientated to towards strengthening the brand means to increase the degree of knowledge of the brand name. In this paper we want to show the relationship between marketing effort and brand awareness and brand image. Starting out from a theoretical review, we set out a model of effects of the marketing effort -as the brand's antecedents- on brand awareness and brand image. In order to test the defined structural model and research hypotheses empirical research was conducted on the sample of undergraduate students of the Ho Chi Minh City Open University. The structural model of the effects of marketing mix elements on brand equity is defined in line with the existing theoretical findings. Research hypotheses are defined according to the identified structural model. Research results indicate that the structural model has an acceptable level of fit to the empirical data. The estimated structural coefficients and indirect effect coefficients indicate the direction and intensity of effects of each analysed element of marketing mix on brand awareness and brand image. Finally, implications of research results for the theory and practice of brand management are analysed and discussed. KEY WORDS: Brand Image, Brand Awareness, marketing effort, Measurement,Model. Determination of Factors Affecting Brand in Marketing – Huynh Van Binh TABLE OF CONTENTS Acknowledgement Abstract ………………………………………………………………………………………… Table of Contents Figures …………………………………………………… Chapter1 : Introduction ……………………………………………………………………… 1.1 Introduction ………………………………………………………………… 1.2 Research Background ……………………………………………………… . 1.3 ResearchMotives …………………………………………………………… 1.4 Problemstatement …………………………………………………………… . 1.5 Research Ojective …………………………………………………………… . 1.6 Research methodology and design …………………………………………………………. 1.7 Research Procedure ………………………………………………………………………… 6 Chapter : Literature review ………………………………………………………………. 2.1Introduction………………………………………………………………………………… 2.2 Brand ………………………………………………………………………………………. 2.2.1Brand Awareness ………………………………………………………………………… 2.2.2Brand image ……………………………………………………………………………… 2.3Marketing efforts…………………………………………………………………………… 2.3.1Advertising 13…………………………………………………………………………… 2.3.2Distribution intensity…………………………………………………………………… . 2.3.3Store image ………………………………………………………………………………. 2.3.4Price deals ………………………………………………………………………………… 2.4 Relationship between marketing effort and brand awareness and brand image…………… 2.5 Conclusion …………………………………………………………………………………. Chapter : Methodology …………………………………………………………………… 3.1Introduction ………………………………………………………………………………… 3.2Research design …………………………………………………………………………… 3.3Item generation …………………………………………………………………………… . 3.3.1Introduction………………………………………………………………………………. 3.3.2Operationalization of measures………………………………………………………… 3.4 Preliminary study ………………………………………………………………………… 3.5 Main survey………………………………………………………………………………… 3.5.1Brand selection………………………………………………………………………… . 3.5.2Sampling ………………………………………………………………………………… 3.6 Conclusion …………………………………………………………………………………. 12 12 12 14 15 17 18 18 19 20 24 25 27 27 27 28 28 29 33 35 36 36 37 Chapter : Research results ………………………………………………………………… 4.1Introduction…………………………………………………………………………………. 4.2Descriptions of sample………………………………………………………………………. 38 10 10 38 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh 4.3Scales assessment ………………………………………………………………………… 4.3.1Reliability testing ………………………………………………………………………… 4.3.2Exploratory factor analysis ………………………………………………………………. 4.4Testing the research model and the hypotheses ……………………………………………. 4.4.1Testing correlations between all constructs ……………………………………………… 4.4.2Testing research model………………………………………………………………… 4.4.2.1 The relationship between marketing efforts and the brand awareness………………… 4.4.2.2 The relationship between marketing efforts and the brand image………………… . 4.5Testing the effect of brand awareness and brand image on the year in college:……………. 4.6Findings and conclusion ……………………………………………………………………. 4.6.1Findings …………………………………………………………………………………… 4.6.2Conclusion ……………………………………………………………………………… . Chapter : Conclusions and implications ………………………………………………… 5.1 Introduction………………………………………………………………………………… 5.2 Conclusions of the study …………………………………………………………………… 5.2.1 Summary of all hypotheses……………………………………………………………… 5.2.2 Conclusions of the study ……………………………………………………………… . 5.3 Implications of the study …………………………………………………………………… 5.4 Limitations and recommendations for further research……………………………………… 40 42 42 45 46 47 48 49 51 52 53 53 54 54 54 55 55 57 58 List of References………………………………………………………………………………. Appendix………………………………………………………………………………………… 59 63 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh Chapter1 : Introduction 1.1 Introduction This chapter portrays general introduction for the current study with which research background, research motives, research objectives, and research procedures are background, research motives, research objectives, and research procedures are provided as the rationale for this study. An introduction to the methodology to be used and the scope of the study is also addressed in this chapter. At the end of the chapter, the structure of this study is provided. The Outline of this chapter is shown in figure 1. 1.2 Research Background Kathman (2002) described the importance of brand building based on today’s market situation. The author said that as the use of new media (e.g., internet), the rate of transformation in marketplace, and the speed of globalization increase, the role of branding becomes more important than any other season. Kathman added that market fragmentation, product diversity, and short-life-cycle brands also show the importance of building brand equity in the present market situation. The author concluded that brand building is the only way to thrive their business in today’s market situation. The author also added that, in these days, we have many products and brands and the market is segmented so much that make it difficult for the audience to recognize or recall the brand. Studies on branding issue receive the great attention in marketing area in other countries. The growing interest is reflected in the proliferating conferences, articles and press attention on branding, as well as the companies’ huge investments on this area. Brands are powerful strategic weapons which, if handled correctly and managed sensibly, can provide their owners with considerable rewards in terms of Determination of Factors Affecting Brand in Marketing – Huynh Van Binh market share growth and corporate profitability (Aaker, 1996). Branding has always been crucial for anyone who wants to sell something to gain credibility (Keller, 2003). Yet, the concept of a brand which represents the specifics of a product or a company, like a name which describes the character of the person it belongs to, is a new one in Vietnam. Most Vietnamese firms are small or medium sized and have not dealt with problems related to the branding issue. The media had not highlighted it until several Vietnamese brands were recently appropriated overseas (VnExpress, 2002; VET, 2003). The severe shortage of commodities in the late 1980s and early 1990s consolidated manufacturer’s lack of awareness about branding, particularly bearing in mind the low per capita income of Vietnamese people. But the mushrooming of new producers and service suppliers and the arrival of foreign competitors has caused things to change drastically. An abundance of goods and services of higher quality, advanced technologies, and shorter product life spans have forced local businesses to think seriously about building brands which can give them long term and sustainable development (VET, 2003). Right now, building brands is a very important issue in developing country as Vietnam, and it can be considered to be a useful topic for conceptual development and managerial relevance. In several studies, brand awareness and image are considered the most important components of brand equity (Keller, 1993). However, only a few studies delved into how these components are correlated with products or services. 1.3 Research Motives To date, there have been a number of studies that have attempted to examine how consumers think about, respond to, and classify brands within their minds. Branding literature has provided theoretical perspectives to help marketers understand the construct of brand. Brand equity has become a hot topic for chief executives, Determination of Factors Affecting Brand in Marketing – Huynh Van Binh accountants and academics as it is tipped to join other critical measures of long-term business performance. At the same time, the 'knowledge economy' is becoming an accepted It is perhaps framework for management thinking, planning and organisation surprising, therefore, that the designated marketing function in so many companies has done so little to advance the management of one of their most value-adding has done so little to advance the management of one of their most value-adding activities - brand knowledge. Indeed, it is nearly 40 years since Theodore Levitt pointed out the unique perspective of marketing: "The difference between marketing and selling is more than semantic. Selling focuses on the needs of the seller, marketing on the needs of the buyer. Selling is preoccupied with the seller's need to convert the product into cash, marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering, and finally consuming it.” During those four decades, marketing departments have grown as substantially as their budgets, huge quantities of data swamp the brand teams and yet the evidence suggests they have not strengthened their grip on 'knowing and understanding' their users better. Over the same period the reputation of the marketing function has declined in many companies. 1.4 Problem statement Based on the importance of brand awareness and brand image to the company’s surviving, we manage to investigate to what extent the students know about the brand of motocyces (brand awareness) and what kinds perception of the brand of motocycles as reflected by the brand association held in target customers’memory (brand image). Determination of Factors Affecting Brand in Marketing – Huynh Van Binh 1.5 Research Ojective The aim of this paper is to find out the effect of the marketing effort, measured by means of the perceptions of the consumers, on two dimensions of brand equity: brand awareness and brand image. This paper is included within a major investigation that seeks to develop and to contrast a model which allows the measurement of the brand equity through: the influence of the marketing effort of the companies (measured by means of actions of prices, product, distribution and communication) on dimensions of brand equity -brand awareness and brand image. The marketing effort, translated partially to (1) perceived advertising spending, (2) distribution intensity, (3) store image and (4) Price deals , is considered as (a) antecedent in the formation of the level of knowledge of the brand name (Rossiter & Percy, 1987; Aaker, 1991) and (b) determinant of the associations linked to its image (Alba & Hutchinson, 1987; Yoo, Donthu & Lee, 2000). From the theoretical review on brand value we construct a theoretical model of causal relationships between the marketing efforts and the dimensions of brand equity_ brand awareness and brand image. This is defined as a set of assets and liabilities linked to the brand, which adds or subtracts value to or from a product in its relationships with customers (Aaker, 1991). To contrast the model, the linear regression model is applied. Following, Yoo et al. (2000), we analyse how each of the components of brand equity is affected reviously by the perception of the market about the marketing effort the company develops concerning brands. To verify our model we carry out an empirical research of a consumers' sample of a durable goods (motocycle) which we submitted to a questionnaire of attitudes. Once its reliability and validity was determined, this questionnaire could be used for the application of the structural model. To serve this task, two questions need to be 10 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh variables are also presented in the following table. Table 4-5 : The correlations among the dimensions of brand equity Table 4.5a Descriptive Statistics N Minimum Maximum Mean Sts Deviation TBBA 205 1.00 5.00 3.3 88336 TBPAS 205 TBDI 205 Valid N 205 Table 4.5b Correlation TBBA TBPAS TBDI TBBA Pearson Correlation Sig 633 394 TBPAS N 205 205 000 Pearson Correlation 602 205 N 205 205 260 Pearson Correlation 394 000 205 TBDI In the results of the linear regression analysis, we got the adjusted R square of 0.455 that showed the extent of the variance of brand awareness explained. The value of the observed significance level (sig.) was very smaller than the benchmark of 0.05; it suggested that it was safe to reject the null hypothesis of regression coefficients equal to 0. In other words, it induced the conclusion that the linear regression model was fit to data and usable. We in turn considered the hypotheses H1 and H3. Table 4-6 : The results of linear regression analysis_Model I 48 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh Table 4.6 a _Model Summary Model R R Adjusted Std Change Statistics Square R square Error of Estimate R F Square change df1 df2 Sig F change change 0.675(a) 0.455 0.450 0.65510 0.455 84.465 202 000 Table 4.6b Coefficient Model Unstandardized Standardized coefficient Coefficients B Std Error t Sig -1.38 0.890 Beta (Constant) -0.37 0.265 TBPAS 0.750 0.071 0.567 10.549 0.0 TBDI 0.224 0.049 0.246 4.583 0.0 H1: The major perceived advertising spending that the company invests in the brand positively affects brand awareness. This hypothesis suggests that learners tend to be know brand awareness when the company spends majority in advertising. The results of the linear regression in Table 4.6 showed that the standardised coefficient beta between brand awareness and perceived advertising spending was positive, fairly small and non significant (β=0.567, t =10.549, sig. =.000). demonstrating that hypothesis is supported by the data. These results allowed us to reject the null hypothesis that all the regression coefficients equal zero ( = =…= =0). This finding confirms a positive relationship between perceived advertising spending and brand awareness. However, the adjusted R square value is rather low, indicating that the model’s goodness of fit for the population is not so high. H2: The level of intensity perceived with which a product is distributed as a brand positively affects a _brand's degree of awareness. 49 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh Hypothesis suggests that the more distributuion intensity learners have, the more they commit to doing business with that brand. The results of the linear regression in Table 4.6 showed that the standardised coefficient beta between brand awareness and distribution intensity was positive, fairly small and non significant (β=0.246, t=4.583, sig. =.000), demonstrating that hypothesis is supported by the data. This finding confirms a positive relationship between distribution intensity and brand awareness. Table 4-7 : Summary of hypotheses testing results (Model I) Hypotheses Confirmed H1 : The major perceived advertising spending that the company invests in the brand positively affects brand awareness. YES H3 :The level of intensity perceived with which a product is distributed as a brand positively affects a _brand's degree of awareness. YES Figure 4-5 : Results of model I Advertising Brand Awareness Distribution Intensity 4.4.2.2 The relationship between marketing efforts and the brand image. The same way as above, the second regression model (model II) was run to test the hypotheses between marketing efforts and the brand image (see figure 4.6). The adjusted R square of the second model is .467, at .000 significance. These results also allow us to conclude that the model fits with the data. Yet the goodness of fit is 50 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh also quite low.( Table 4.8a) Figure 4-6 : Relationships between marketing efforts and brand image. Advertising Distribution Intensity Brand Image Store Image Price Deals Table 4-8 : The results of linear regression analysis_Model II Table 4.8 a _Model II Summary Model R 0.684 R square Adjusted R Square Std Error of Estimate 0.467 0.457 0.63595 0.467 R square Change Change Statistics F Df1 Df2 change Sig F change 43.868 0.00 Hypotheses from H2, H4, H5, H6 were tested with this model and the results are shown in Table 4.8b and are summarized in table 4.9. Figure 4.7 is used to visually illustrations for the hypotheses testing results. Hypothesis :The level of intensity perceived with which a product is distributed as a brand positively affects its _brand image. This hypothesis suggests that the highness of the perceived intensity of distribution channels will be effective in dispalying a better image. The results of the linear regression in Table 4.13 showed that the standardised coefficient beta between brand image and distribution intensity was positive, fairly small and non significant (β = 0.051, t =0.877, sig. =0.382), demonstrating that hypothesis is not supported by the data. This finding rejects hypothesis 4. According to this result, there is no significant relationship between brand image 51 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh and distribution intensity, which is an unexpected result, due to the previous literature review on the relationship between brand image and distribution intensity. This result will be discussed further in chapter 5. Three residual hypotheses are supported by the results in model II. Table 4-9 : Summary of hypotheses testing results (Model II) Confirmed Hypotheses H2 : The major perceived advertising spending that the company undertakes for the brand positively affects brand image. YES NO H4 :The level of intensity perceived with which a product is distributed as a brand positively affects its _brand image. YES H5 : The store image positively affects the set of associations linked to the brand and that agree with its brand image. YES H6 : The use of price deals for the brand has a negative effect on its image. Figure 4-7 : Results of model II Advertising Brand Image Store Image Price deal 4.5 Testing the effect of brand awareness and brand image on the year in college: H7: There is a significant difference between the year in college and brand awareness. H8: There is a significant difference between the year in college and brand image. By analysing One-Way ANOVA, we compared the mean level of brand awareness of first-years, sophomores, juniors, and seniors. Mean level of brand awareness is 52 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh our dependent variable, and year in college is our independent variable. First, we see the descriptive statistics for each of the years in college. It looks like first-years have the lowest mean level of brand awareness (2.9483) , and seniors have the highest mean level of brand awareness (3.6145). Next we see the results of the Levene's Test of Homogeneity of Variance. Here, we see that the significance is .914, which is greater than .05. We can assume that the variances are approximately equal. We have met our assumption: There is a significant difference between the year in college and brand awareness. Finally, we see the results of our One-Way ANOVA: Our F value is 8.779, our significance value is .000.There is a significant difference between the two groups (the significance is less than .05). Therefore, we can say that there is a significant difference between first-years, sophomores, juniors, and seniors on their level of brand awareness. We can look at the results of the Post-Hoc Comparisons to see exactly which pairs of groups are significantly different. Table 4-10 : Multiple Comparisons Dependent Variable: TBBA (I) Q2 LSD the st The 2nd The 3rd The 4th Mean difference (I-J) 0.218 -0.3303 -0.662 -0.218 0.3303 Std Error Sig 0.21152 0.2 0.175 0.2 0.21 0.918 0.118 0.918 0.82 0.82 95% confidence Inrerval Lower Upper Bound Bound -0.3953 -0.7746 -1.0116 -0.4389 -0.3208 0.4389 0.0840 -0.3208 0.3953 0.453 The mean difference is significant at the .05 level. SPSS notes a significant difference with an asterisk (*). We can see that first-years andsophomores are significantly different than seniors.By analysing the same way, we can confirm hypothese H8: There is a significant difference between the year in college and brand image. 4.6 Findings and conclusion 53 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh 4.6.1 Findings Linear regression results in this chapter have brought out some unexpected outcomes. The established causal relationship between distribution intensity and brand image (H6), formulated in terms of an unfavourable influence, cannot be confirmed due to a lack of meaning in its structural coefficient. It is possible that high level of distribution intensity is sought for a majority of consumer nondurable goods. So, with durable goods, using too many intermediaries can be detrimental to the brand's image and its competitive positionThe rest three hypotheses (H2, H5, H6) were confirmed. Regarding the relationships between marketing efforts and the brand awareness, both two hypotheses were confirmed, H1 (perceived advetising spending), H3 (distribution intensity). In sum, by comparing the results between model I and model II, we can conclude that, perceived advertising spending dominates both brand awareness and brand inage. ( The results in table 4.6b with those in table 4.5b) However, it plays a more important role in brand awareness (β=0.486, sig.=.000) than it does in the brand image (β=0.301, sig.=.000). 4.6.2 Conclusion This chapter provides the analysis results and main findings of the study. The statistical evidence revealed some unexpected results. Several arguments that explain the research results are also presented in this chapter. Not all hypotheses from the research model were supported and therefore, an adjusted model is suggested below (Fig. 4.8). Figure 4-8 : Adjusted the structural model of impact of marketing effort on brand awareness and brand image. Advertising Brand Awareness Distribution Intensity Store Image Brand Image Price deals 54 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh Chapter : Conclusions and implications 5.1 Introduction Chapter presented the analysis results and the main findings of the study. A modified model was also proposed in the chapter. This chapter summarized all hypotheses that will be used to answer for the research questions in this chapter. Some implications are suggested for academics and practitioners as well. The limitations of this study and some suggestions for further research are also presented in this chapter. 5.2 Conclusions of the study 5.2.1 Summary of all hypotheses To draw the conclusion for this study, the hypotheses testing results are repeated in table 5.1 for easier reference. Table 5-1 : Summary of hypotheses Hypotheses Confirmed H1 : The major perceived advertising spending that the company invests in the brand positively affects brand awareness H2 : The major perceived advertising spending that the company undertakes for the brand positively affects brand image. H3 :The level of intensity perceived with which a product is distributed as a brand positively affects a _brand's degree of awareness H4 :The level of intensity perceived with which a product is distributed as a brand positively affects its _brand image H5 : The store image positively affects the set of associations linked to the brand and that agree with its brand image. H6 : The use of price deals for the brand has a negative effect on its Image H7: There is a significant difference between the year in college and brand awareness. H8: There is a significant difference between the year in college and brand image YES 55 YES YES YES NO YES Determination of Factors Affecting Brand in Marketing – Huynh Van Binh 5.2.2 Conclusions of the study From the analysis outcomes and the findings presented in chapter 4, with reference to the above tested hypotheses, this study concludes that the first research question is fully positively answered. This means that different marketing mix elements impact the creation of brand equity with different levels of intensity, as well as that some elements of marketing mix can negatively affect the creation of brand equity. The results recognize two types of marketing managerial efforts from a long-term perspective of brand management: brand-building activity and brand-harming ctivity. According to this analysis, frequent use of price promotions is an example of a brand-harming activity. High advertising spending, distribution through retailers with good store images, and high distribution intensity are examples of brand-building activity. The findings and strategic implications for each marketing mix element examined are discussed. Advertising. The hierarchy of effects model has shown that consumers tend to believe advertising statements and envision the product's likely performance on the basis of the claims (Richins 1995). Hence, as consumers are exposed to a brand's advertising more frequently, they develop higher brand awareness. Brand image is complicated, based on multiple experiences, facts, episodes, and exposures to brand information, and therefore takes a long time to develop. Advertising is a common way to develop, to shape, and to manage that image. Managers should invest in advertising with a clear objective of increasing brand equity. To summarise, perceived advertising spending showed a favourable causal relationship for two components of the brand equity analysed. The higher the spending on advertising for the brand, the higher the level of brand awareness and the more associations linked to the motocycle and forming its brand image. Distribution intensity. The level of intensity in the motocycle retailing, though it has showed a low positive influence (value of the structural coefficient) on brand awareness, that is, that a greater presence in the stores increases the brand's level of awareness of the name of the brand of motocycle; in the case of brand image, the 56 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh favourable relationship proposed in the initial hypothesis has been confirmed in the opposite sense.Making a product available in more stores affords convenience, time savings, speedy service, and service accessibility, thus increasing customer satisfaction. This might be true even for luxury products, for which managers traditionally tend to use a limited number of vendors. However, such a role of distribution intensity might seem invalid because of the fit between distribution intensity and the type of product. Intensive distribution fits convenience goods, whereas selective distribution fits shopping or specialty goods. Therefore, high distribution intensity may offer high brand equity for all types of products, although the effect varies somewhat depending on product luxuriousness. Store image. Managers should distribute products through vendors that have a good image because consumers infer the quality of products from the image and reputation of the store. Similar to price, retail reputation is an important signal of product quality (see Dawar and Parker 1994; Grewal, Krishnan, Baker, and Borin 1998). Also, word of mouth and the store's promotional activity enhance brand associations. Therefore, selecting good image stores as product vendors builds strong brand equity. This result underlines the importance of the brand manager’s active approach in selecting and designing the distribution channels. In doing this, special heed should be paid to the effect of the selected stores on brand image, as well as that, when selecting the distribution channel members, the image of the potential channel members and the potential impact of their image on brand image, and thus the brand equity, is included as a criterion in the decision-making process. Price promotions. Frequent use of price promotions, such as price deals, coupons, refunds, and rebates, causes consumers to infer low product quality. Because they lead consumers to think primarily about deals and not about the utility provided by the brand (i.e., brand equity), price promotions not enhance the strength of brand 57 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh associations. The research results indicate that brand managers should be very careful when applying price deals as a marketing mix element. Even though price deals may lead to certain short-term financial gains resulting from a short-term sales that may arise from the use of this method. Instead of offering price promotions, managers should invest in advertising to develop brand equity. To answer the second research question, the results in chapter reveal that there is a significant difference between the year in college and brand awareness and brand image. 5.3 Implications of the study This conclusion has several important implications for strategic brand management. First, the obtained research results point out very clearly to the importance of a strategic approach for brand management, with creation of brand equity, and not just brand sales, being a criterion for deciding on the application of specific marketing mix elements. The research results also implicate that when allocating marketing budgets to individual marketing elements attention must necessarily be paid to the potential impact of a specific marketing mix elements on the creation of brand equity. This further means that the potential impact of individual marketing mix elements on brand equity must be included as criterion in deciding on the allocation of marketing budgets to individual marketing mix elements. The research results point out to the need for careful selection of individual marketing mix elements in order to avoid deterioration of the achieved brand equity. This additionally emphasizes the importance of a strategic approach to brand management as a means of avoiding that fulfilment of certain short-term goals (e.g. short-term increase in sales) disrupts the possibility for long-term sales growth and achievement of sustainable competitive advantages, undoubtedly resulting from high brand equity. Furthermore, the research results indicate that managers, in their efforts to build the equity of the brands they are managing, should primarily focus on the creation 58 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh of brand awareness and a positive brand image. In the tested model, the said two variables are affected by managers through marketing mix elements, and these two variables have a direct impact on brand equity. All activities aimed at positively impacting the brand equity should be focused either on increasing the brand awareness or on improving the brand image, or both. 5.4 Limitations and recommendations for further research Although it provides theoretical and substantive explanations, our research has several limitations. Overcoming them can be a direction for future research. First, our sample is limited geographically. Our hypothesis should be tested further in other countries to get a universal data. Second, a major conceptual limitation is that our model tests only a few marketing efforts. Future studies should examine more marketing actions such as pricing and sponsorship, needs to be studied. Third, our study examines the effect of individual marketing decision variables and does not investigate the interactions among them. Product could interact with price, and promotion could interact with distribution. It is the mix of marketing strategies that both scholars and managers need to understand in the context of developing and improving brand equity. Future research should explore the interaction effect of marketing mix on brand equity. Fourth, generalizability of the findings can be enhanced, replicating this study with more product categories, including profit or nonprofit services and industrialproducts, different types of subjects, and other cultures. In particular, cross-cultural research may reveal different processes of brand equity formation in different cultures. Cultural differences may moderate the effect of marketing efforts on brand equity. Little empirical research on brand equity in international markets has been reported. In addition, we ignore the contingencies under which marketing efforts might have inconsistent effects on brand equity, such as market structure (e.g., a seller's market versus buyers' market), competition, company condition, legal system, product categories, and consumer types. 59 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh List of References Chay, R. & Tellis, G. 1991. Role of Communication and Service in Building and Maintaining Brand Equity. In Managing Brand Equity, (pp. 26- 27). Cambridge: Eliot Maltz. Cobb-Walgren, C.J.; Ruble, C. A. & Donthu, N. 1995. Brand Equity, Brand Preferences, and Purchase Intent. Journal of Advertising, 24(3), 25- 40. Cravens, K.S. & Guilding, C. 1999. Strategic Brand Valuation: A Cross-functional Perspective. Business Horizons, 42(4), 53- 62. 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Journal of Marketing Research, XXXI (may), 159-172. 61 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh Appendix – Questionnaire (Vietnamese version) Xin kính chào Anh / Chị, Xin chân thành cảm ơn Anh/Chị dành thời gian tham gia trả lời câu hỏi. Bảng câu hỏi tập trung tìm hiểu cho mục tiêu nghiên cứu, câu trả lời sai. Mọi thông tin cá nhân Anh, Chị đảm bảo giấu kín. I. Thông tin chung 1. Xin Anh/Chị vui lòng cho biết tên 2. Tên thương hiệu xe máy mà Anh/Chị sử dụng (đánh dấu x vào ô) Honda SYM Yamaha Suzuki Khác 3. Giới tính Nữ Nam 4. Anh/Chị sinh viên năm Năm Năm Năm Năm II. Câu hỏi: Xin khoanh tròn số ô. Thang điểm từ đến (Hoàn toàn không đồng ý, Không đồng ý, Bình thường, Đồng ý, Hoàn toàn đồng ý) Hoàn Không Bình Đồng Hoàn toàn đồng ý thường ý toàn không đồng đồng ý ý Phát biểu Quảng cáo Tôi nghĩ quảng cáo nói chung tốt Nói chung, thích chọn sản phẩm có quảng cáo thương hiệu Tôi quan tâm đến quảng cáo Giảm giá Tôi nghĩ giảm giá tốt Tôi quan tâm nhiều đến sản phẩm 62 1 2 3 4 5 1 2 3 4 5 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh giảm giá Nhãn hiệu X thường hay giảm giá Nhận biết thương hiệu Tôi biết thương hiệu X trông Tôi nhận nhãn hiệu X với nhãn hiệu cạnh tranh khác Hình ảnh thương hiệu X có cá tính mạnh mẽ X sáng giá tiền mà ta bỏ mua 1 2 3 4 5 Chúng xin chân thành cám ơn đống góp ý kiến Bạn. 63 [...]... of the measurement cale in order to make the research model more suitable Chapter 3 will discuss this matter in more details 26 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh Figure 2-3 : Model of effects of marketing efforts on brand awareness and brand image Advertising Brand Awareness Distribution Intensity Brand Image Store Image Price Deals 27 Determination of Factors Affecting. .. manifested in controllable marketing actions are related to brand equity through the mediation of the dimensions of brand equity Therefore, to create, to manage, and to exploit brand equity, the relationships of marketing efforts to the dimensions of brand equity must be determined 18 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh We investigate consumers' perceptions of four selected... measure the advertising spending perceived by the consumer consists of seven indicators Table 3-1 : Measures of perceived advertising spending 30 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh Item wording Item code PAS1 I think advertising is, in general, very good PAS2 In general, I like the advertising campaigns for X brand PAS3 My opinion about X´s Advertising is very high... associations linked to the retailer will make the distributed brands receive the reflex of the same associations This is why the store image determines brand image and the set of positive associations linked to it 24 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh The importance of channel design and management as a marketing tool of increasing brand equity is growing (see Srivastava... conceptualizations of particular phenomena and the language they use 34 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh to describe such phenomena.The focus group discussion for this study was held at the Meeting Room of Business Administration Faculty, University of Technology, HoChiMinh City.Finding and recruiting individuals to join the pool of participants for the focus group initially... et al., 2001) In the general sense, brand equity can be defined as the marketing effects that are 13 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh uniquely attributable to the brand (Keller, 1993, p 1) In other words, because of the product or service’s brand name, different outcomes may result from the same marketing activity (Keller, 1993) Customer-based brand equity is... danger by provoking Consumer confusion; instability and variability leads to an image of unstable quality In this regard, using price deals means deterioration in brand equity in both perception of the brand s quality and its image Also, price promotion campaigns do not last long 25 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh enough to establish long-term brand image, which... covers the giving of information about goods and services to promote sales but also its use to inform, propagandize and motivate the public regarding social and cultural life 2.3.2 Distribution intensity Distribution intensity has been commonly defined as the number of intermediaries 19 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh used by a manufacturer within its trade areas... researchers have in defining the construct (e.g., Sewell,1974) Martineau (1958) is the first one that put the concept of store image into retail business He first defined store personality or image as follows The way consumers 20 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh define their favorite store is based on the functions and characteristics of store, aura of psychological... brand s presence in the customer’s mind (Aaker 1996) High levels of brand name recognition was those that present the brand with a high degree of brand awareness For this reason, knowledge and recognition of the brand compared to its competitors are indicators that serve to form the measurement scale for this 33 Determination of Factors Affecting Brand in Marketing – Huynh Van Binh dimension In this study, . that are Introduction Brand Marketing efforts Relationship between marketing mix and brand awareness and brand image Conclusion Determination of Factors Affecting Brand in Marketing – Huynh. perception of the brand of motocycles as reflected by the brand association held in target customers’memory (brand image). Determination of Factors Affecting Brand in Marketing – Huynh Van Binh . brand are often an outcome of inferences that are made about the users or usage of the brand or a combination of both (Plummer, 1985). Determination of Factors Affecting Brand in Marketing – Huynh