The effect of perceived brand globalness on brand value and purchase intention

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Dinh Thi Mai Trang THE EFFECT OF PERCEIVED BRAND GLOBALNESS ON BRAND VALUE AND PURCHASE INTENTION MASTER OF BUSINESS (Honours) Ho Chi Minh City- Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Dinh Thi Mai Trang THE EFFECT OF PERCEIVED BRAND GLOBALNESS ON BRAND VALUE AND PURCHASE INTENTION ID: 22120077 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr LE NHAT HANH Ho Chi Minh City- Year 2014 ACKNOWLEDGEMENTS First of all, I would like to express my deepest appreciation to Dr Le Nhat Hanh for her professional guidance from the very first day of research till the finishing Her helpful advices and encouragement during my research preparation are grateful Without her help, it would have been impossible for me to complete this research I would like to send my appreciation to ISB- UEH professors for their expertise and encouragement during the master course Also thanks for their valuable time for the proposal examination committee Their comments and suggestions are significant for my research's complement I am also grateful to my MBUS classmates for their knowledge sharing, expertise and spending great moments together Besides, I want to say thanks for the participants who filled my questionnaires out The participants donated their precious time to finish the questionnaires and helped me to acquire the data soon Last but not least, I would like to express my gratitude to my parents, family members, colleagues and friends for their support and understanding throughout my post graduate study Their unconditional love, sympathy and encouragement have made this research and my MBA course possible ABSTRACT In recent year, together with globalization of the world market, it is important to understand the competition between local and global brands, and whether customers prefer global brands This study aims to investigate the effects of perceived brand globalness on brand value, which in turns affect customer purchase intention Brand value is manifested via brand credibility, brand prestige, and brand quality The conceptual model is tested by using structural equation modeling 309 consumers who live in from Ho Chi Minh City were recruited as respondents for this research From statistical analysis, we find that Perceived brand globalness is positive related to both perceived brand quality and perceived brand prestige, which then significantly increase consumer purchase intention It also shows the critical role of brand credibility in leading to perceived of the quality of any brand This research provides important implications for developing global brand in Vietnam market and also for local brand Key words: Purchase intention, brand globalness, consumer behaviors, brand quality, brand prestige TABLE OF CONTENTS ACKNOWLEDGEMENTS ABSTRACT TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Research gap 1.3 Research objective 1.4 Research scope 1.5 Research contribution 1.6 Research structure CHAPTER 2: LITERATURE REVIEW 2.1 Theory of Plan Behavior (TPB) 2.2 Purchase intention (PI) 2.3 Perceived brand globalness (PBG) 2.4 Brand credibility (BrC) 11 2.5 Perceive brand prestige (PBP) 12 2.6 Perceived brand quality (PBQ) 13 CHAPTER 3: RESEARCH METHODOLOGY 17 3.1 Research procedure 17 3.2 Sample 18 3.3 Data collection and procedure 19 3.4 Scale and measurement: 20 3.5 Questionnaire design 21 3.6 Data analysis method 23 CHAPTER 4: DATA ANALYSIS 24 4.1 Sample characteristic 24 4.2 Confirmatory Factor Analysis (CFA) 26 4.3 Structural equation modeling (SEM) 31 CHAPTER 5: CONCLUSION, IMPLICATIONS AND LIMITATIONS 38 5.1 Conclusion 38 5.2 Managerial implication 39 5.3 Limitations and future research 41 REFERENCES 42 APPENDICES 52 Appendix A: Questionaire (English) 52 Appendix B: Questionaire (Vietnamese) 54 LIST OF FIGURES Figure 2.1 Conceptual model 16 Figure 3.1 Research procedure 18 Figure 4.1 Standardized CFA model in AMOS 29 Figure 4.2 Structural Equation Modeling result 32 Figure 4.3 Mediator analysis 35 LIST OF TABLES Table 3.1 Source of measurement scale & Questionnaire 22 Table 4.1 Respondents’ characteristic 25 Table 4.2 Response frequency of brands 26 Table 4.3 Fit statistics of Confirmatory Factor Analysis 27 Table 4.4 Standardized Regression Weights 28 Table 4.5 Scale accuracy analysis 30 Table 4.6 Correlation matrix of research constructs 31 Table 4.7 Fit statistics of SEM 32 Table 4.8 Hypothesis testing result 33 Table 4.9 Summary of hypotheses testing result 37 CHAPTER 1: INTRODUCTION 1.1 Research background In a globalizing world, many international firms have moved from a multilocal to a global branding strategy (Ozsomer & Altaras, 2008; Steenkamp et al., 2003) Due to Ozsomer et al (2012), global branding is understood as firms market their products on a global basis with only limited adaptation to local markets It standardizes aspects of its brand communication program like name, logo, image, packaging, positioning and consumers in multiple countries consider to be global (Akaka and Alden, 2010) In contrast, local brand is defined as brand that exists only in one country or in a limited geography area (Wolfe, 1991) Many multinational corporations today are altering their brand portfolios in favor of global brands (Steenkamp, Batra and Alden, 2003) which are brands that consumers can find under the same name in multiple countries with generally similar and centrally coordinated marketing strategies (Yip, 1995; Branch, 2001) Globalness is perceived in mind of consumers and is called perceived brand globalness (Steenkamp, Batra and Alden, 2003) Perceived brand globalness has been researched mostly in the fast-moving consumer goods sections in highly developed countries, whereas the effect on retailer brand equity in emerging countries remains unclear In Vietnamese context, many global brands are very successful compare to other local brands It began from late 1980s when Vietnam opened its market and welcomed foreign investment and trading Until now, besides agricultural products, food processing products, textile… which are our domestic strengths products, almost other global productions have greater market share compare to the same local brand productions The research of International Business Publication (2013, p.130) showed that foreign brand have proliferate in Vietnam over the past decade Vietnamese consumers also remarkably familiar with foreign products even though they are not available in Vietnam due to internet access and contact to their foreign relative living abroad Vietnamese consumers, especially young people seem to prefer global brand An assessment of a big fast- food brand in the world McDonald’s stated that “Vietnam has been at the top of McDonald's list of the next market to open for a very long time” (Maresca, 2014) Another example is the recent event of Starbucks store in Ho Chi Minh City On the opening day, it attracted a lot of young customers who were willing to stand in long queues and wait for a long time for their chance to sample the ‘new’ coffee (The Saigon Times, 2013) This also is a value example for the readiness of Vietnamese customer toward foreign product Actually, there is the challenge for local brands to get their market share and compete with other global brand within local market But building our local brand value has just been taken care recently And it seems that Perceived brand globalness is really a new concept that very few Vietnamese brands have been successful in building an image as a global brand It is the fact that few Vietnamese corporate reaches the level of multinational company Moreover, to expand their business to an emerging market, retailers need to build the differentiation to distinguish themselves from local competitors in target market Some reasons for moving toward global brands are yield economies of scale and scope in Research and Development, manufacturing and marketing (Yip, 1995); increases meaningful segments of consumers around the world develop similar needs and tastes (Hassan and Katsanis, 1994); speed up time to market by reducing time-consuming local modifications (Neff, 1999) Almost Vietnamese businessman should find the way to develop their products and increase sales by exporting This research will investigate the ways that global brand and perceived brand globalness affects purchase intention, whether the globalness of a brand play a vital role 42 REFERENCES Aaker, J L (1999) The Malleable Self: The Role of Self-Expression in Persuasion Journal of Marketing Research, 36 (1), 45-57 Aaker, D A (1991) Managing brand equity: Capitalizing on the value of a brand name New York: Free Press Ajzen I (1991) The theory of planned behaviour Organizational behaviour and human decision processes, 50, 179-211 Akaka, M.A & Alden, D.L (2010) Global brand positioning and perceptions: International advertising and global consumer culture International Journal of Advertising, 29 (1), 37-56 Akram, A, Merunka, D & Akram (2011) Perceived brand globalness in emerging markets and the moderating role of consumer ethnocentrism International Journal of Emerging Markets, (4), 291-303 Alden, D.L., Steenkamp, J.B.E.M & Batra, R (1999) Brand positioning through advertising in Asia, North America, and Europe: the role of global consumer culture Journal of Marketing, 63 (1), 75-87 Alden, D.L., Steenkamp, J.B.E.M & Batra, R (2006) Consumer attitudes toward marketplace globalization: Structure, Antecedents and Consequences International Journal of Research in Marketing, 23 (3), 227-239 Anderson, N H (1974) Cognitive algebra: Integration theory applied to social attribution In L Berkowitz (Ed.,) Advances in experimental social psychology, 7, 1-101, New York: Academic Press 43 Armitage C.J, Conner M (2001) Efficacy of the Theory of Planned Behavior: A metaanalytic review British Journal of Social Psycology, 40, 471- 499 Arbuckle, J.L and Wothke, W (1999) Amos 4.0 User's Guide Chicago, IL: SPSS Inc and SmallWaters Corporation Baldauf, A., Cravens, K S., & Binder, G (2003) Performance consequences of brand equity management: evidence form organizations in the value chain Journal of Product & Brand Management, 12 (4), 220-236 Bartikowski, B., Kamei, K & Chandon, J.L (2010) A verbal rating scale to measure Japanese consumers’ perceptions of product quality Asia Pacific Journal of Marketing and Logistics, 22 (2), 179-195 Batra, R., Ramaswamy, V., Alden, D.L., Steenkamp, J.E.M & Ramachander, S (2000) Effects of brand local and nonlocal origin on consumer attitudes in developing countries Journal of Consumer Psychology, 9, 83-95 Bearden, W O., & Etzel, M J (1982) Reference group influence on product and brand purchase decisions Journal of Consumer Research, 9, 183-194 Bhardwaj,V., Kumar, A & Kim,Y (2010) Brand analyses of US global and local brands in India: the case of Levi’s Journal of Global Marketing, 23(1), 80 Bhat, S & Reddy, S (1998) Symbolic and functional positioning of brands Journal of Consumer Marketing, 15(1), 32-43 Boulding, W & Kirman, A (1993) A consumer-side experimental examination of signaling theory: Do consumers perceive warranties as signals of quality? 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I will definitely recommend that friend buy this brand 7 7 7 7 11 15 16 17 54 III Personal information: Please let us know some of your information: Gender: □ Male □ Female Age: □ 18-25 □ 31- 40 □ 26 - 30 □ Above 41 Education: □ High school □ Post graduated □ College - University Occupation: □ Student □ Businessman □ Officer □ Others………………… Average income: □ Less than 7Mil VND □ From 7Mil to 12Mil VND □ From 12Mil to 20Mil VND □ More than 20Mil VND Thank you very much for your contribution Appendix B: Questionaire (Vietnamese) Kính chào anh/ chị, Tôi Mai Trang, học viên cao học Viện Đào Tạo Quốc Tế (ISB) – Trường Đại Học Kinh Tế Tp.HCM Tôi thực đề tài nghiên cứu Tác động nhận thức thương hiệu toàn cầu đến giá trị thương hiệu ý định mua hàng Rất mong anh/ chị dành thời gian thực bảng khảo sát bên Mỗi câu trả lời quý báu anh chị đóng góp phần không nhỏ vào thành công đề tài nghiên cứu Tất thông tin cá nhân anh/ chị giữ bí mật, có thơng tin tổng hợp báo cáo công bố Trong trình thực phiếu khảo sát này, Anh/ Chị có thắc mắc nào, xin vui lịng liên lạc với qua địa email: dinhmaitrang@gmail.com điện thoại 0936 437 837 Chân thành cảm ơn hỗ trợ anh/ chị Với câu trả lời sau, anh/ chị vui lòng đọc nhận định cho biết mức độ đồng ý với nhận định đưa theo mức độ sau: 55 1= Hồn tồn khơng đồng ý, 2= Rất khơng đồng ý, 3= Khơng đồng ý, 4= Bình thường,5= Đồng ý, 6= Rất đồng ý, 7= Hoàn toàn đồng ý I Câu hỏi thăm dị: Anh/ chị vui lịng xem hình trả lời câu hỏi bên dưới: Tôi thấy nhãn hiệu quen thuộc Mọi người nghe nhãn hiệu Tôi am hiểu nhãn hiệu 7 7 7 Tôi xem quảng cáo báo hay TV 7 Nếu câu trả lời anh/ chị từ trở lên, xin thực tiếp câu lại Nếu câu trả lời từ trở xuống, anh/ chị vui lòng liên hệ Cảm ơn anh/ chị II Câu hỏi chính: Tiếp tục với nhãn hiệu trên, anh/ chị cho biết mức độ đồng ý ý kiến sau: STT Tơi nghĩ nhãn hiệu tồn cầu Tơi nghĩ khách hàng nước ngồi mua Nhãn hiệu bán toàn giới Nhãn hiệu mang đến cam kết Bạn tin tưởng quảng cáo Qua thời gian, trải nghiệm mình, tơi mong đợi 7 7 7 7 7 7 56 10 nhãn hiệu thực điều hứa Bạn tin tưởng nhãn hiệu Nhãn hiệu có chất lượng tốt Đây nhãn hiệu chất lượng vượt trội Những sản phẩm nhãn hiệu làm tốt 7 7 7 7 11 Đây nhãn hiệu danh giá 7 12 Nhãn hiệu thể đẳng cấp Nhãn hiệu nhãn hiệu cao cấp 7 7 Tôi mua nhãn hiệu Trong tương lai gần, có dịp, tơi suy nghĩ nghiêm túc để mua nhãn hiệu Tơi chắn mua sản phẩm có hội Chắc chắn giới thiệu bạn sử dụng nhãn hiệu 7 7 7 7 13 14 15 16 17 III Thông tin sơ bộ: Anh chị vui lịng cho biết số thơng tin cá nhân sau đây: Giới tính: □ Nam □ Nữ Độ tuổi anh/chị: □ 18-25 □ 31- 40 □ 26 - 30 □ Trên 41 Trình độ văn hóa anh/ chị: □ THPT □ Trên đại học □ Cao đẳng - Đại học Nghề nghiệp anh/chị: □ Sinh viên □ Kinh doanh □ Nhân viên vp □ Khác………………… Thu nhập bình quân anh/ chị: □ Dưới triệu VNĐ/ tháng □ Từ triệu- 12 triệuVNĐ/tháng □ Từ 12 triệu – 20 triệu VNĐ/tháng □ Từ 20 triệu VNĐ/tháng trở lên Kết thúc khảo sát Chân thành cảm ơn giúp đỡ nhiệt tình anh/ chị