Vietnamese consumers’ brand loyalty in fast moving consumer goods

1 INTRODUCTION Choosing a topic In terms of theory, many scholars have pointed out that brand loyalty leads to important consequences Consumers will place their trust in the brand, protect the brand against negative information, and encourage others to buy the brand Additionally, consumers buy the brand again and refuse to buy competing brands In practical terms, maintaining a loyal consumer brings numerous benefits to enterprises, including: (1) stabilizing sales volume and revenue, (2) reducing business expenses, (3) protecting brand, (4) the negligence or error of enterprises would be more accepted and ignored In Vietnam, the reception and research, especially in application of the theory of building brand loyalty proceed slowly and mostly just at the point of summarizing the theory, the studies of foreign countries and practical experience Therefore, the author suggests that the implementation of the subject: "Research the brand loyalty of consumers in Vietnam in fast-moving consumer goods (FMCG) category", with the approach from consumer perspective in order to build the scientific basis for Vietnam enterprises in building and developing consumer loyalty that is a matter of urgency all aspects of theory and practice Objectives and research tasks — Firstly, completing the scale to measure the brand loyalty of consumers in FMCG category in Vietnam — Secondly, exploring the factors that influence the brand loyalty of consumers in FMCG category in Vietnam — Thirdly, determining the relationship of each factor with the brand loyalty of FMCG of Vietnam consumers — Fourthly, proposing a number of solutions to maintain and strengthen the brand loyalty of Vietnam consumers in FMCG category Subject and the scope of research Subject: Due to the number of items and brands in the FMCG category is very much so in the framework of the thesis, it can not research all of these Therefore, the thesis focuses on two types of fast - moving consumer goods in the market that are bottled water and shampoo Other items can be studied by similar methods Thus, the subject of study of the thesis include: — The brand loyalty and fidelity scale with brand fast - moving consumer goods (bottled water and shampoo) — The factors that influence the brand loyalty of Vietnam consumers for fast moving consumer goods The scope of research — Focus on studying two types of FMCG products are bottled water and shampoo — Respondents are people who bought products, have decision to buy the product, and / or influence the decision to buy the product They are consumers whose ages are over 18 living and working in Hanoi and Ho Chi Minh City — Duration of the study is conducted in 2012 Research methodology The author builds research model, the scope of the concepts in model, and scale for factors in the model based on scale and models that tested in India The author conducts interviews with consumers in Hanoi and Ho Chi Minh City (sample size 758 elements) Based on the interviews, the author uses SPSS software to analyze the factors (EFA) and Cronbach Alpha to keep the meaningful and reliable changes The author then conducts testing to evaluate the fit of the model as well as the impact of each factor to the brand loyalty of consumers in Vietnam The scientific and practical meaning of thesis In terms of theory The thesis built and tested the models of factors affecting the brand loyalty in FMCG category of Vietnam consumers — The thesis built the system of scales for brand loyalty and factors affecting brand loyalty in the context of Vietnam for the FMCG category In terms of practical — The thesis has measured the brand loyalty of Vietnam consumers for two typical types of products of FMCG category: shampoo and bottled water — The results of the thesis indicated the level of impact and rate of impact of each factor affecting the brand loyalty for two types of FMCG: shampoo and bottled water — — The thesis detected the differences in the extent of the impact of factors to brand loyalty between two types of FMCG: shampoo and bottled water loyalty is more sustainable, more deeply psychological In addition, the definition also recognizes that consumers can not only be loyal to a brand but also with a set of brands in a product category This is consistent with the fast moving consumer goods category, when the involvement of consumers is relatively low and buyers based on the list of brands, not just to a single brand Within the scope of this thesis, the author uses the definition of Oliver to identify the brand loyalty’s consumers Volume and structure of the thesis The dissertation consists of an introduction, four chapters: general studies, research context, research methodology, research results and conclusions, recommendations All contents are presented in 120 pages, including 25 tables and 11 charts, drawings CHAPTER 1: LITERATURE RESEARCH ON BRAND LOYALTY 1.1 General information about the consumers’ brand loyal 1.1.1 The concept of consumer brand loyalty The researchs have ever shown that there are three approaches to the consumer brand loyalty: (1) the behavior, (2) the attitude, and (3) the complex mixture of behavior and attitude According to behavioral approach, the brand loyalty is a response bias behavior of consumers in chosing a brand between many different brands and this behavior shows in a period of time This approach is only interested in repeat buying behavior of consumers and consider it as a sign of loyalty The definitions not pay attention to the decision-making process of consumers and not distinguish between true loyalty with simple repeat buying behavior In addition, the definition only focuses on the result that is buying behavior without clarifying the reasons for such behavior According to attitudinal approach, brand loyalty is the bias tendency of consumers to the brand as a result of the psychological processes It includes preferred attitude and commitment of consumers to the brand The definitions pay attention to developments in psychology and awareness of the consumer so that explain their brand buying behavior However, definition’s limitation is to exclude actual purchasing behavior of consumers Oliver (1999) defines that brand loyalty is a deeply held commitment to rebuy or repatronize a preferred product/service consistently in the future, thereby causing repeatitive same brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior This definition distinguishes the superficial engagement with the brand and the 1.1.2 Classification of the brand loyalty’s consumers In this section of the thesis, the author gives four classifications for brand loyalty of the foreign scholars, here are two typical ways: — Classifying by the level of loyalty: switchers/price sensitive; satisfied/habitual buyers; satisfied buyer with switching costs; likes the brand; and committed buyers — Classifying by expression: attitudinal loyalty; resistance to competing offers; propensity to be loyal; and complaining behavior The dissertation uses this classification to analyze brand loyalty 1.2 Measuring the brand loyalty of consumers 1.2.1 Measuring based on behavior The brand loyalty is measured by the repeat purchasing behavior One of the most popular measurement methods is: repeat purchasing rate, percentage of purchasing rate, and quantity of purchased brand In addition, usual brand buying behavior is also seen as indicators of loyalty 1.2.2 Measuring based on attitude The measurement method for attitudinal loyalty can be divided into groups as follows: plan to purchase or attitude toward buying action, preference, commitment, word of mouth, and the ability to purchase 1.2.3 Combination measurement This method combines attitudinal measures and behavioral measures In addition, this method also measures loyalty through preference about brand and product, repeat purchasing behavior, and brand changing behavior 5 In summary, measuring loyalty solely based on behavior or attitude reveales many shortcomings Therefore, the author selects measurement that coordinate both attitude and behavior for using in this study 1.3 The model of factors affecting brand loyalty 1.3.1 The model of Punniyamoorthy and Raj (2007) Two scholars have studied the factors affecting brand loyalty with print products in India and withdrew the model as follows: Involvement Functional value The model has the following limitations Repeat purchasing behavior may have a cause and a consequence of fidelity According to cause perspective, repeat buying a brand will create the loyalty in terms of behavior but has not reflected the attitudinal allegiance According to Oliver (1999), the true brand loyalty includes the loyalty to the behavior and attitudes Therefore, in the study model of the author, factor of repeat purchasing behavior is only considered as in terms of the consequence of loyalty 1.3.2 The model of Gounaris and Stathakopoulos (2004) Emotional value Price wothiness Brand loyalty Two scholars assert that the factors affecting the brand loyalty consist of three groups: (1) Consumer drivers: risk aversion, and variety seeking, (2) Brand drivers: brand reputation, and the availability of substitute brands (3) Social drivers: Social group influence, and peers’ recommendation The model has the following limitations: In the model, the kind of brand loyalty mentioned by two scholars that belong to behavioral group Thus, Gounaris and Stathakopoulos ignore component of attitudinal loyalty of consumer As a result, the kinds of fidelity of the model not fully reflect the necessary components of true brand loyalty Social value Brand trust 1.3.3 The model of Ki-Joon Back and Sara C Parks (2004) Satisfaction Brand commitment Repeat purchase Figure 1.3: The model of Punniyamoorthy and Raj Resource: Punniyamoorthy M, and Raj M., 2007, An empirical model for brand loyalty measurement, Journal of Targeting, Measurement and Analysis for Marketing 15, 222-233 The model is based on the stages of loyalty that based on the shift in attitude (cognitive - affective - conative) was launched in 1997 by Oliver In particular, cognitive brand loyalty focuses on performative aspects of brand; emotional loyalty directs to the affective brand loyalty, the conative brand loyalty appears when consumers focus on the desire to purchase brand repeatly, and the behavioral brand loyalty is to commit repeat buying action The model has the following limitations: It is not suitable for low involvement products For products with low involvement, consumer usually form attitudes before and use it to screen the required information, or accept available information A different approach to explain that consumers will buy brands/products based on limited knowledge of it, then they judge it based on usage Attitude is thus formed through the lessons learned from behavior With the above two approaches, the sequential steps in the model will not fit with products that have low involvement 1.4 Explaining the factors in the model affecting brand loyalty In the thesis, the author explains all the factors that appear in the three models described in Section 1.3 In this summary, the author focuses on brief explanation of the factors included in the research model of the authors 1.4.1 The involvement The brand involvement is understood as the attention of consumers to a brand and create a motivation that promote consumers in making appropriate decisions in a particular situation This means that for each product category, consumers tend to care about this brand instead of another brand 1.4.2 Perceived value The perceived value of consumers includes: functional value, social value and emotional value In particular, the functional value is the utility derived from the product's quality and performance of the functions that are expected of the product Social value is the utility derived from association of product with one or a certain social group Emotional value is the utility obtained from the product’s ability to arouse emotional state of the consumer 1.4.3 The satisfaction This is the state that consumers achieve when characteristics of the product or the product itself meet the consumer's expectations 1.4.4 Brand trust This is the state that a consumer is willing to "trust" in the possibility that the brand will perform the functions committed to consumers To form this "trust", consumers base on their experience in the past and previous interactions between them and the brand 1.4.5 Barnd commitment Brand engagement is seen as related to attitude and defined as "a promise or engagement of an individual to choose one brand within the product category" 1.5 The research model of the author Involvement Functional value Emotional value Brand loyalty Price worthiness - Social value Loyalty about attitude Complain behaviour Loyal trend Reject competitive products Brand trust Satisfaction Brand commiment CHAPTER 2: RESEARCH CONTEXT OF BRAND LOYALTY IN FMCG IN VIETNAM 2.1 FMCG and the role of brand loyalty 2.1.1 FMCG Concept In this section, the author mentions some of concepts of fast moving consumer goods 2.1.2 Classifying FMCG The author introduces some of classifications of fast moving consumer goods 10 2.1.3 The role of brand loyalty of consumers in the FMCG sector The author presents the reasons for the necessity of brand loyalty in FMCG sector respondents were interviewed Through the results of this study, the original scales are adjusted and they are called the adjusted scale The complete scale consists of 24 items of the question for the independent variables and 19 items of the question for the dependent variables 3.2 Designing questionnaire The questionnaire is organized into three main parts (Part 1: client profile, Part 2: information about the factors that influence brand loyalty, and Part 3: information about their brand loyalty) The questions in sections and are translated from the original scale (by foreign scholars developed above) and adjusted to suit the style and culture of Vietnam 3.3 Research sample 3.3.1 Overall research Comprehensive study of this research is the Vietnamese consumers They are the decision makers in choosing and buying the brand/product; have significant influence on the decision to buy the brand/product; or directly use the brand/product 3.3.2 Research sample The sample is selected by random sampling method, combined norms for each area that consumers living in Hanoi; with HCM city, due to small number of samples so the author decides not to apply for each area 3.4 Implementing data collection To achieve the sample size based on the structure is determined after removing the sample that lack much information or poor quality or surplus compared to the norm, the author decides to use the 1,000 questionnaires and control samples through the process of interviewing clients Interviews are conducted with respondents in the major commercial centers in Hanoi and Ho Chi Minh City 3.5 Data Analysis 2.2 FMCG market in Vietnam 2.2.1 Overview of the market and FMCG brands in Vietnam The author presents the basic information about the business situation of the groups: family care, personal care, beverage, food, dairy in Vietnam 2.2.2 Bottled water and shampoo market in Vietnam The author describes the competitive situation of the two types of products: bottled water and shampoo in Vietnam market 2.3 The research model is used and research hypotheses 2.3.1 The research model Based on the analysing results of the research context, the author identifies the research model of thesis that is the model presented in Section 1.5 2.3.2 Research hypotheses Based on the research model, the author raises the hypotheses about the relationship of each factor to the brand loyalty CHAPTER 3: RESEARCH METHODOLOGY 3.1 Formation of scales To measure the brand loyalty and the factors that influence the brand loyalty, the author uses the scales of scholars Rundle-Thiele (2005), and Punniyamoorthy and Raj (2007) The author uses Likert scale of grades to assess the extent of the respondents with each issue (in which - strongly disagree and - strongly agree) Due to the differences in culture and level of socio - economic development, so the scales may have been built in developed countries that are not really suitable for Vietnam market Therefore, the original set of scales should be adjusted and supplemented through pilot interviews The interview is conducted for 24 consumers meeting the criteria of selecting for respondents The aim is to evaluate and test the suitability of the wording, the syntax used in the questions to ensure the consistency, clearing and not misleading when 3.5.1 Descriptive analysis The thesis uses descriptive analysis method of frequency with study variables and descriptive analysis method of cross table between individual variables (age, gender, ) with the remaining behavior variables 3.5.2 Test the independent factors Factor analysis is to identify the main factors axis (both cause and result) Test the variables in each factor axis by means of Cronbach alpha testing, 11 12 correlative regression to remove variables that have no statistical significance in the model 3.5.3 Exploratory factor analysis (EFA) 3.5.3.1 Exploratory factor analysis with bottled water product a KMO & Bartlett's Test The author has taken 25 observed variables to analyse to determine the underlying group of elements that influence to brand loyalty The test results in Table 3.1 shows that KMO index = 0.823 is quite high In addition, Bartlett's test results confirms the observed variables are correlated with each other with statistical meaning at the 0.05 level Therefore, factor analysis method is appropriate method to analyze the model in the next step Table 3.1: KMO and Barlett’s Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of df Sphericity Sig .823 5932.14 381 000 a Analysis of factors affecting brand loyalty Based on the result of the total of explained variance, we can draw factors of elements based on Eigenvalues criteria > from the 25 observed variables The total explained variance is equivalent to 73% (> 50%) Table 3.2: The total explained variance Component Initial Eigenvalues % % Total Variation Cumulation 3.215 13.726 13.726 2.644 11.528 25.254 2.473 10.849 36.103 2.286 9.841 45.944 1.837 9.657 55.601 1.602 8.912 64.513 1.475 8.463 72.976 709 3.266 76.242 684 2.784 79.026 Extraction of total loading % % Total Variation Cumulation 3.215 13.726 13.726 2.644 11.528 25.254 2.473 10.849 36.103 2.286 9.841 45.944 1.837 9.657 55.601 1.602 8.912 64.513 1.475 8.463 72.976 The results of rotated factor matrix identify: factor (includes variables CK4, CK1, and CK2) that is named brand commitment Factor includes variables HL1 so the author names this factor as satisfaction Factor (includes variables CN2, CN3, and CN1) is named as functional value Factor (includes variables TC2, TC1, and TC3) is named as brand trust Factor (includes two variables GC1, GC2) is named as price worthiness Factor (includes two variables XH1, XH2) is named as social value Factor (includes three variables QT1, QT3, QT4) is named as involvement Table 3.3: Rotated factor matrix Factor Factor CK4 I will not change my preference though 822 my close friend introduces a different brand CK1 I love this brand 769 CK2 My preference for this brand will not be 683 easy to change CK3 To change my preference for this brand, 451 I will need to be careful in consideration Factor HL1 In general, when using this brand, I 795 believe that I am pleased Factor CN2 I often select products with good 783 quality standards CN3 I often select products that ensure stable 736 quality CN1 I like the style of this product 612 Factor TC2 I trust in this brand 746 TC1 I can say that this brand is honest and 728 sincere TC3 This brand never make me disappointed 689 Factor GC1 This brand is value for money 865 GC2 This brand has reasonable price 749 GC3 This brand is economical 304 13 14 Factor XH1 Using this product will improve how the others acknowledge me XH2 I usually choose the brand that present how am I XH3 I proud of using this brand Factor QT1 I always watch the brand that is important when buying this product QT3 Choosing the suitable product is very important with me QT4 I am very interested in the problems arising when choosing this type of product QT2 These products have different names, the different quality QT5 The purchase of this product is very important with my life Factor 812 758 257 658 635 624 336 254 b Analysis of brand loyalty The table of the total variances shows 19 observed variables that can draw factor s based on Eigenvalues criteria > The result of rotated factor matrix shows: factor (includes variables TT1, TT2, TT3, TT4 and TT5) is named as “attitudinal loyalty” Factor (includes variables TT6, TT7, TT10 and TT11) is named as “complaining behavior” Factor (includes variables TT12, TT13 and TT14) is named as “propensity to be loyal ” Factor (includes variables TT15, TT16 and TT19) is named as “resistance to competing offers” 3.5.3.2 Exploratory factor analysis with shampoo product In this section, the author conducts Exploratory factor analysis with shampoo product 3.5.3.3 Analysis of cronbach alpha 3.5.3.3.1 Analysis of cronbach alpha with bottled water product Table 3.7: The test results of measuring scale for factors that influence the brand loyalty of bottled water products Item-Total Statistics Corrected Cronbach's Scale Scale Mean Variance Item-Total Alpha if if Item if Item Correlation Item Deleted Deleted Deleted Cronbach’s Alpha = 0.714 Involvement QT1 I always watch the brand that is 13.27 4.051 512 634 important when buying this product QT3 Choosing the suitable product is 12.94 3.749 577 612 very important with me QT4 I am very interested in the problems arising when choosing this 14.05 4.376 486 675 type of product — The factor "involvement" values Cronbach’s Alpha = 0,714 Variables QT1, QT3 and QT4 have coefficient of “Cronbach‘s Alpha if Item Deleted” that is smaller than the coefficient of general Cronbach‘s Alpha Therefore, the three observed variables (QT1, QT3, and QT4) are good scale, correlated closely to measure "involvement" of consumers Similarly, we have: — Three variables CN1, CN2, and CN3 measure “functional value” — Two variables XH1 and XH2 measure “social value” — Two variables GC1 and GC2 measure “price worthiness” — Three variables TC1, TC2, and TC3 measure “brand trust” — Three variables CK1, CK2 and CK4 measure “brand trust” — Five variables TT1, TT2, TT3, TT4, TT5 measure “attitudinal loyalty” — Four variables TT6, TT7, TT10 and TT11 measure “complaining behavior” — Three variables TT12, TT13 and TT14 measur “propensity to be loyal” — Three variables TT15, TT16 and TT19 measure the behaviour of “resistance to competing offers” 3.5.3.3.2 Analysis of cronbach alpha with shampoo product In this section, the author presents the content of analysis of cronbach alpha with shampoo product 15 16 independent variables that is not much and the variables in the model are accepted 3.5.4 Testing the research model 3.5.4.1 Correlative regression analysis a Regression analysis of bottled water product Table 3.9 shows the value of adjusted R2 coefficient is 0.581 This suggests that the model’s compatibility with the observed variables is reasonable and the dependent variable of "attitudinal loyalty" is explained quite well by independent variables in the model Durbin-Watson coefficient = 1.83 shows that the model does not violate when using multiple regression methods and allows us to accept the hypothesis that doest not have linear relation in the model Thus, the multiple regression model satisfies the conditions to evaluate and test the suitability for drawing results Table 3.9: Result of multiple linear regression analysis – attitudinal loyalty Model R R2 Adjusted R2 Se Durbin-Watson 768a 589 581 80030656 1.830 Analysing coefficient R2 similar to "complaining behavior", "propensity to be loyal", and action of "resistnace to competing offers” of consumers shows that the compatibility of the model with the independent variables is reasonable and the dependent variable of "complaining behavior", "propensity to be loyal", and action of "resistance to competing offers” of consumers is explained quite well by independent variables in the model Table 3.10 shows the value F = 45.530, value sig = 0.000 that means this relationship ensures the reliability with acceptable level of 5% Thus, we can conclude that the independent variables affecting "attitudinal loyalty" of consumers and multiple linear regression models are suitable with data sets and can be used Table 3.10: Analysis of variance ANOVAa - attitudinal loyalty Model Regression Remainder Total Total square 233.291 398.385 631.676 df Average F Sig 33.327 45.530 000b 622 640 629 Magnification coefficient of variance (VIF) of the independent variables in the model are < (table 3.11) that demonstrate the multicollinearity of the Table 3.11: Coefficient of sample regression model - attitudinal loyalty Not Standardized Collinear standardized coefficient statistics coefficient Model t Sig Standard B Beta Acceptance VIF error (Constant) 001 032 1.833 057 Involvement 055 038 054 2.031 031 705 1.417 Social value 071 036 070 2.374 015 774 1.291 Functional value 197 039 196 4.703 000 696 1.437 Satisfaction 212 037 211 6.068 000 727 1.375 Brand commitment 241 035 241 7.186 000 841 1.189 Price worthiness 126 033 126 2.735 007 893 1.120 Brand trust 273 034 273 10.225 000 891 1.123 With similar analysis, we have value F of "complaining behavior", "propensity to be loyal”, and "resistance to competing offers", and have the multicollinearity of the independent variables that are not significant and the variables the model are accepted Thus, multiple linear regression models fit data sets and can be used b Regression analysis of shampoo product In this article, the author conducts similar analysis with shampoo product 3.5.4.2 Test the parameters in the model by t test a Test the parameters in the model of bottled water product Results of regression analysis shows that the independent variables are affecting the "attitudinal loyalty" of consumers However, the sig value of the constant is 0.057 (> 0.05), the author decides to remove the constant from the regression equation The relationship between the dependent variable "attitudinal loyalty" with independent variables are presented in the following equation : Y1 = 0.055 X1 + 0.197 X2 + 0.071 X3 + 0.126 X4 + 0.212 X6 + 0.273 X7 + 0.241 X8 17 18 (Note: Y1: attitudinal loyalty; X1: involvement; X2: functional value; X3: social value; X5: price worthiness; X6: satisfaction; X7: brand trust; X8: brand commitment) Sig value of the independent variables are less than 0.05 so the author decided to retain this variable in the regression equation The regression equation shows that the standardized beta coefficients are > or independent variables positively impact to the "attitudinal loyalty" This result confirms the hypothesis H1, H5, H13, H17, H21, H25, and H29 in research model are accepted and tested accordingly Similarly we have the following results: The author describes the result of the research sample by gender, age, occupation Y2 = 0.046 X1 - 0.266 X2 - 0.075 X3 - 0.128 X5 0.285 X6 - 0.121 X7 - 0.179 X8 (Note: Y2: Complaining behaviour) This result confirms the hypothesis H2, H6, H14, H18, H22, H26, and H30 in research model are accepted and tested accordingly Y3 = 0.045 X1 + 0.198 X2 + 0.062 X3 + 0.086 X5 + 0.219 X6 + 0.225 X7 + 0.236 X8 (Note: Y3: Propensity to be loyal) This result confirms the hypothesis H3, H7, H15, H19, H23, H27, and H31 in research model are accepted and tested accordingly Y4 = 0.043 X1 + 0.197 X2 + 0.066 X 3+ 0.141 X5 + 0.214 X6 + 0.218 X7 + 0.227 X8 (Note: Y4: Resistance to competing offers) This result confirms the hypothesis H4, H8, H16, H20, H24, H28, and H32 in research model are accepted and tested accordingly b Test the parameters in the model of shampoo product In this section, the author presents the process of testing the parameters in the model of shampoo product CHAPTER IV: RESEARCH RESULT 4.1 The result describes the brand loyalty 4.1.1 Research sample results 4.1.2 The brand loyalty of Vietnam consumers for bottled water products Calculation results are presented in Table 4.4 as follows: Table 4.4: Loyalty to the brand of bottled water products Attitudinal Complaining Propensity Resistance to loyalty behaviour to be loyal competing offers N Valid 734 749 756 731 Lack 24 27 Average 3.8295 2.2150 3.2591 2.9321 Standard deviation 45101 58386 63266 61636 Skewness 263 247 -.194 118 Standard deviation 096 091 091 096 Skewness Kurtosis 766 -.229 -.407 029 Standard deviation 191 183 182 192 Kurtosis Attitudinal loyalty Vietnamese consumer’s attitudinal loyalty with brand of bottled water products is quite high In addition, the data element in terms of overall look has high similarity Complaining behavior Vietnamese consumers have the level of implementation of complaining behavior about brand of bottled water is quite low The answering choices of consumer are focused Propensity to be loyal Vietnamese consumers have the level of propensity to be loyal to brand of bottled water is medium The answering choices of consumers are quite dispersed Resistance to competing offers Vietnamese consumers have level of rejection of competitive product with bottled water product is average The answering choices of consume are quite dispersed 4.1.3 The brand loyalty of Vietnam consumers for shampoo product In this section, the author presents the result of the brand loyalty of Vietnam consumer with shampoo product 19 20 4.1.4 Comparing the level of brand loyalty of Vietnam consumer between bottled water and shampoo Analysis coefficient R2, F test, and VIF result shows the compatibility of the research model Vietnam consumer has the level of attitudinal loyalty with the brand of shampoo product category that is higher than the brand of bottled water product category Similarly, the ability of Vietnam consumer implements complaining behavior about the brand of bottled water product is lower than shampoo product In addition, the propensity to be loyal with the brand of shampoo is higher than bottled water brands Consumer has stronger response to refuse the competitive products for shampoo product 4.2.3.2 The level of influence of each factor to the brand loyalty a Bottled water product 4.2 Scale result, EFA and regression analysis 4.2.1 Scale result 4.2.1.1 Scale with bottled water product The scales are presented in Section 3.6.2.1 that are valid for measuring the dependent and independent variables in the model 4.2.1.2 Scale with shampoo product The scales are presented in Section 3.6.2.2 that are valid for measuring the dependent and independent variables in the model 4.2.2 EFA result 4.2.2.1 EFA result of bottled water product There are seven factors that affect Vietnam consumer’s loyalty for brand of bottled water product 4.2.2.2 EFA result of shampoo product There are eight factors that affect Vietnam consumer’s loyalty for brand of shampoo product 4.2.3 Result of regression analysis 4.2.3.1 The suits of model a Bottled water product Analysis coefficient R2, F test, and VIF result shows the compatibility of the research model b Shampoo product — Attitudinal loyalty affects the most from the factor brand trust, followed by brand commitment, satisfaction, functional value; price worthiness; social value; and finally the involvement; — Complaining behavior is influenced the most from satisfaction, followed by the functional value; brand commitment; price worthiness; brand trust; social value, and finally the involvment — Propensity to be loyal is affected the most from brand commitment; followed by the brand trust; satisfaction; functional value; price worthiness; social value; and finally the involvement — Resistance to competing offer is affected the most from brand commitment; followed by the brand trust; satisfaction; functional value; price worthiness; social value; and finally the involvement b Shampoo product In this section the author presents the result of the impact of each factor to the brand loyalty of shampoo product 4.2.3.3 Comparing the impact of each factor to the brand loyalty between bottled water and shampoo product a Attitudinal loyalty Result of regression analysis indicates that the independent variables have a strong impact on "attitudinal loyalty" of Vietnam consumer for two types of products that are bottled water and shampoo Specifically, these factors include: brand trust, brand commitment, satisfaction, and functional value However, there are differences in the level of impact of each factor on the brand loyalty of each item b Complaining behavior The result shows that these factors have a strong impact on “complaining behavior” of Vietnam consumer for bottled water and shampoo product These include: satisfaction, functional value, brand commitment, price worthiness, and brand trust Similarly, the level of impact of each factor to the brand loyalty of each item is different 21 22 c Propensity to be loyal The order of level of impact from high to low to the propensity to be loyal is not the same for the two types of product Meanwhile, for bottled water product, the factor of brand commitment has the biggest impact, followed by the factors such as brand trust, satisfaction, and functional value For shampoo product, brand trust has the biggest impact, followed by the factor such as satisfaction, functional value, and brand commitment d Resistance to competing offers We also find that differences in the impact level of factors to behavior of resistance to competing offers of this two types of product For bottled water, the factor of brand commitment has the most impact, followed by the factors such as brand trust, satisfaction, functional value, and price worthiness For shampoo product, the factor of brand trust has the most impact, followed by satisfaction, functional value, brand commitment, and involvement reflects the client's interest for the use of the product Or it can be said that the functional quality of the product will be necessary condition for the consumer forming their loyalty to brand in two product categoriess CHAPTER V: CONCLUSIONS AND RECOMMENDATIONS 5.1 Conclusions Different impact level of each factor to the brand loyalty of Vietnam consumers for two types of products as bottled water and shampoo suggested for enterprises an priority order in investing resources on various issues Specifically, the investment to ensure satisfaction, building and maintaining the brand trust as well as brand commitment; ensuring functional value will have much influence on the brand loyalty of Vietnam consumer On the other hand, the investment to raise the level of caring, the social value of the brand, and emotional value (for bottled water) are less likely to affect the brand loyalty of Vietnam consumers The difference in scale system between products of bottled water and shampoo reflect a different concept and response of Vietnam consumers for two products The functional value has important influence on the brand loyalty of Vietnam consumers for both products of bottled water and shampoo This result The small degree of affecting of social value that consumers perceive to the brand loyalty for two types of products of bottled water and shampoo showing that the demand of self-expression is not high when using two types of products This is quite reasonable when bottled water is popular product that is widely used at low prices Shampoo is used primarily in family Consumers can pay attention to social value of shampoo in case they use shampooing service at the baber shops or spa Satisfaction, brand trust, and brand commitment have strong influence on brand loyalty It will be three important factors that enterprises need to care The functional value of the product may play a key role that brings satisfaction to consumers using these two types of products This suggests that enterprises should ensure to provide good products However, besides that they should not neglect other aspects such as the convenience of shopping or emotional value (with shampoo) because they also contribute to the overall satisfaction of consumers with brand/product 5.2 Recommendations To build the brand loyalty of Vietnam consumers for bottled water products, enterprises need to pay attention to the factors that influence such as the functional value, satisfaction, brand commitment, brand trust, price worthiness, social values, and involvement To build trust of consumer, the prerequisite is that quality of product and service must be good In addition, businesses need to be honest and transparent with their consumers Honesty and transparency can be formed from the prestige of the business, consistency in words and actions, listening, respecting psychology, preferences and interests of the consumers Besides, businesses can use the form of promotions, discounts, or free trial products for the consumers know the brand and products and thereby building trust with them To ensure consumer’s satisfaction with products and brands, businesses need to create convenient communication channels for consumers For example, 23 using social networking tools or creating multiple points for interacting with consumers (free gifts in cinemas, trade centers, and thereby receiving feedback from consumers) Additionally, businesses can conduct periodic surveys to detect issues that need to improve, change or emerging requirements of their consumers The patron programs or loyal consumer will increase consumer’s engagement with the brand more [...]... satisfaction, building and maintaining the brand trust as well as brand commitment; ensuring functional value will have much influence on the brand loyalty of Vietnam consumer On the other hand, the investment to raise the level of caring, the social value of the brand, and emotional value (for bottled water) are less likely to affect the brand loyalty of Vietnam consumers The difference in scale system... for the consumers know the brand and products and thereby building trust with them To ensure consumer s satisfaction with products and brands, businesses need to create convenient communication channels for consumers For example, 23 using social networking tools or creating multiple points for interacting with consumers (free gifts in cinemas, trade centers, and thereby receiving feedback from consumers)... used primarily in family Consumers can pay attention to social value of shampoo in case they use shampooing service at the baber shops or spa Satisfaction, brand trust, and brand commitment have strong influence on brand loyalty It will be three important factors that enterprises need to care The functional value of the product may play a key role that brings satisfaction to consumers using these two... condition for the consumer forming their loyalty to brand in two product categoriess CHAPTER V: CONCLUSIONS AND RECOMMENDATIONS 5.1 Conclusions Different impact level of each factor to the brand loyalty of Vietnam consumers for two types of products as bottled water and shampoo suggested for enterprises an priority order in investing resources on various issues Specifically, the investment to ensure... shopping or emotional value (with shampoo) because they also contribute to the overall satisfaction of consumers with brand/ product 5.2 Recommendations To build the brand loyalty of Vietnam consumers for bottled water products, enterprises need to pay attention to the factors that influence such as the functional value, satisfaction, brand commitment, brand trust, price worthiness, social values, and involvement... involvement To build trust of consumer, the prerequisite is that quality of product and service must be good In addition, businesses need to be honest and transparent with their consumers Honesty and transparency can be formed from the prestige of the business, consistency in words and actions, listening, respecting psychology, preferences and interests of the consumers Besides, businesses can use the form... of Vietnam consumers for two products The functional value has important influence on the brand loyalty of Vietnam consumers for both products of bottled water and shampoo This result The small degree of affecting of social value that consumers perceive to the brand loyalty for two types of products of bottled water and shampoo showing that the demand of self-expression is not high when using two types... factor of brand commitment has the biggest impact, followed by the factors such as brand trust, satisfaction, and functional value For shampoo product, brand trust has the biggest impact, followed by the factor such as satisfaction, functional value, and brand commitment d Resistance to competing offers We also find that differences in the impact level of factors to behavior of resistance to competing offers... types of product For bottled water, the factor of brand commitment has the most impact, followed by the factors such as brand trust, satisfaction, functional value, and price worthiness For shampoo product, the factor of brand trust has the most impact, followed by satisfaction, functional value, brand commitment, and involvement reflects the client's interest for the use of the product Or it can be... gifts in cinemas, trade centers, and thereby receiving feedback from consumers) Additionally, businesses can conduct periodic surveys to detect issues that need to improve, change or emerging requirements of their consumers The patron programs or loyal consumer will increase consumer s engagement with the brand more