The effect of country of origin on brand equity, an empirical study of chicken eggs

MINISTRY OF EDUCATION AND TRANNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY - NGUYỄN VĂN THANH THE EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY: AN EMPIRICAL STUDY OF CHICKEN EGGS MASTER THESIS OF BUSINESS ADMINISTRATION HO CHI MINH CITY - 2012 MINISTRY OF EDUCATION AND TRANNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY - NGUYỄN VĂN THANH THE EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY: AN EMPIRICAL STUDY OF CHICKEN EGGS Subject: Master of Business Administration Code: 60.34.01.02 MASTER THESIS OF BUSINESS ADMINISTRATION SUPERVISOR: Assoc Prof Dr NGUYỄN ĐÌNH THỌ HO CHI MINH CITY - 2012 I ACKNOWLEDGEMENT To complete this thesis, a lot of efforts have been put in during the whole MBA course for three years Therefore, I would like to give my warmest thanks to: Respectful lecturers of University of Economics Ho Chi Minh City, who are enthusiastic in every minute in the class to provide me a huge useful knowledge which helps me understanding better about economy, especially Dr Nguyễn Đình Thọ, who has consulted and instructed me the main contents like research model, hypotheses and other relevant matters of this thesis Friendly classmates of eMBA course 19, University of Economics Ho Chi Minh City for helping, coordinating with me during the course, especially for always making class in relaxible and funny atmosphere to absorb new knowledge from the lectures The most special classmate – Mrs Phạm Võ Thanh Điệp who has married with me and given many useful discussion and advices during implementing this thesis Lastly, the author acknowledges that nothing is perfect so the mistakes and errors could not be avoided although the author already tried the best Therefore, the author is looking forward to any constructive comments and advices from respectful lectures and friends in order to amend the thesis Nguyễn Văn Thanh th Ho Chi Minh, 16 October, 2012 II COMMITMENT I would like to commit that this thesis, “The effect of country of origin on brand equity: an empirical study of chicken eggs”, was completed based on my independent and serious effort and scientific researches The data was collected in reality Nguyễn Văn Thanh III LIST OF CONTENTS ACKNOWLEDGEMENT I COMMITMENT II LIST OF CONTENTS III LIST OF ABRREVIATION VI LIST OF TABLE VII LIST OF FIGURE VIII ABSTRACT CHAPTER 1: INTRODUCTION 1.1 Introduction 1.2 Research background 1.2.1 General background 1.2.2 Vietnamese background 1.3 Problem statement 1.4 Research questions 1.5 Research objective 1.6 Scope and Methodology of the study 1.6.1 Scope of the study 1.6.2 Methodology of the study 1.7 Structure of the study CHAPTER 2: LITERATURE REVIEW 2.1 Introduction 2.2 Country of Origin 2.2.1 Definitions 2.2.2 The effect of country of origin on buyer evaluations to products 2.3 Brand, brand equity and its components 11 2.3.1 Brand 11 2.3.2 Brand equity and its dimensions 12 2.4 Research model, hypothesis and statements 15 IV 2.4.1 Research model 2.4.2 Hypotheses 2.5 Summary CHAPTER METHODOLOGY 3.1 Introduction 3.2 Research Design 3.2.1 Qualitative Research 3.2.2 Pilot test 3.2.3 Official quantitative Research 3.3 Sample Design 3.4 Methods of data analysis 3.4.1 Frequency 3.4.2 Cronbach’s Alpha 3.4.3 Exploratory Factor Analysis (EFA) 3.4.4 Linear Correlation Analysis 3.4.5 Simple Linear Regression (SLR) 3.5 Measurements 3.5.1 Measurements of country of origin (C 3.5.2 Measurements of brand distinctivene 3.5.3 Measurements of brand equity (BE) 3.6 Research Process 3.7 Summary CHAPTER DATA ANALYSIS AND FINDINGS 4.1 Introduction 4.2 Descriptions of sample 4.3 Assessment of scales 4.3.1 Reliability testing 4.3.2 Exploratory Factor Analysis (EFA) 4.4 Simple Regression Analysis V 4.4.1 Testing the correlations of constructs 36 4.4.2 Evaluating the fitness of the linear regression model with the sample data 37 4.4.3 Testing the fitness of the linear regression model with population 38 4.4.4 Testing the regression coefficient 40 4.5 Summary 43 CHAPTER CONCLUSIONS AND IMPLICATIONS 45 5.1 Introductions 45 5.2 Conclusions of the study 45 5.3 Implications of study 46 5.4 Limitations and recommendations 46 REFERECES 48 APPENDIX 1: CRONBACH’S ALPHA 52 APPENDIX 2: EFA RESULT 58 APPENDIX 3: TESTING THE ASSUMPTION OF REGRESSION 62 Appendix 3.1: Testing the assumption of regression for CI – BE 62 Appendix 3.2: Testing the assumption of regression for CI – BD 64 Appendix 3.3: Testing the assumption of regression for BD – BE 66 APPENDIX 4: REGRESSION ANALYSIS RESULT 68 Appendix 4.1: Dependent Variable CI and Independent Variable BE 68 Appendix 4.2: Dependent Variable CI and Independent Variable BD 69 Appendix 4.3: Dependent Variable BD and Independent Variable BE 70 APPENDIX 5: PEARSON COEFFICIENT 71 APPENDIX 6: QUESTIONNAIRE IN ENGLISH 72 APPENDIX 7: QUESTIONNAIRE IN VIETNAMESE 74 VI LIST OF ABRREVIATION BD: Brand distinctiveness BE: Brand equity CI: Country of origin EFA: Exploratory factor analysis SLR: Simple linear regression VII LIST OF TABLE Table 3.1: Measurements of country of origin 25 Table 3.2: Measurements of brand distinctiveness 25 Table 3.3: Measurements of brand equity 26 Table 4.1: Sample descriptions 30 Table 4.2: Cronbach’s Alpha of reliability testing 32 Table 4.3: EFA results 35 Table 4.4: Person Correlations 37 Table 4.5: Model Summary 38 Table 4.6a: ANOVA (CI – BE) 39 Table 4.6b: ANOVA (CI - BD) 39 Table 4.6c: ANOVA (BD - BE) 39 Table 4.7: Regression coefficients (CI-BE) 40 Table 4.8: Regression coefficients (CI-BD) 41 Table 4.9: Regression coefficients (BD-BE) 41 Table 4.10: Results of testing the hypotheses 42 VIII LIST OF FIGURE Figure 2.1 The Aaker’s brand equity model 13 Figure 2.2 Elements of brand awareness 14 Figure 2.3 The main types of brand associations 15 Figure 2.4 Research model s 16 Figure 3.1 Research process 27 Figure 4.1: The research model with detail of impacts 43 63 Scatterplot Dependent Variable: BE Regression Standardized Residual -1 -2 -3 -4 -4 -3 -2 -1 Regression Standardized Predicted Value 64 Appendix 3.2: Testing the assumption of regression for CI – BD Histogram Frequency Dependent Variable: BD 75 Regression Standardized Residual 65 Scatterplot Dependent Variable: BD Regression Standardized Residual -1 -2 -3 -4 -4 -3 -2 -1 Regression Standardized Predicted Value 66 Appendix 3.3: Testing the assumption of regression for BD – BE Histogram Frequency Dependent Variable: BE 25 75 25 75 25 Regression Standardized Residual 67 Scatterplot Dependent Variable: BE Regression Standardized Residual -1 -2 -3 -4 -4 -3 -2 -1 Regression Standardized Predicted Value 68 APPENDIX 4: REGRESSION ANALYSIS RESULT Appendix 4.1: Dependent Variable CI and Independent Variable BE Variables Entered/Removed(b) Model a All requested variables entered b Dependent Variable: BE Model Summary Model a Predictors: (C ANOVA(b) Model Regression Residual Total a Predictors: (Constant), CI b Dependent Variable: BE Coefficients(a) Model a (Constant) CI Dependent Variable: 69 Appendix 4.2: Dependent Variable CI and Independent Variable BD Variables Entered/Removed(b) Model a All requested variables entered b Dependent Variable: BD Model Summary Model a Predictors: (C Model Regression Residual Total a Predictors: (Constant), CI b Dependent Variable: BD Coefficients(a) Model a (Constant) CI Dependent Variable: 70 Appendix 4.3: Dependent Variable BD and Independent Variable BE Variables Entered/Removed(b) Model a All requested variables entered b Dependent Variable: BE Model Summary Model a Predictors: (C Model Regression Residual Total a Predictors: (Constant), BD b Dependent Variable: BE Coefficients(a) Model a (Constant) BD Dependent Variable: 71 APPENDIX 5: PEARSON COEFFICIENT Correlations CI BD BE * Correlation is significant at the 0.01 level (2-tailed) * Correlation is significant at the 0.05 level (2-tailed) 72 APPENDIX 6: QUESTIONNAIRE IN ENGLISH The state for Country of origin The country from which brand X originates is a country that is innovative in manufacturing The country from which brand X originates is a country that has high level of technological advance The country from which brand X originates is a country that is good in designing The country from which brand X originates is a country that is creative in its workmanship The country from which brand X originates is a country that has high quality in its workmanship The country from which brand X originates is a county that is prestigious X originates from a country that has an image of advanced country The state for Brand Distinctiveness: I associate X with dynamism I associate X with high technology I associate X with innovativeness I associate X with sophistication I associate X with distinctiveness I associate X with excellence I associate X with prestige The state for Brand Equity: Even if another brand has same features as X, I would prefer to buy X If I have to choose among brands of chicken eggs, X is definitely my choice If I have to buy chicken eggs, I plan to buy X even though there are other brands as good as X 73 Even if another brand has the same price as X, I would still buy X If there is another brand as good as X, I prefer to buy X If another brand is not different from X in any way, it seems smarter to purchase X It makes sense to buy X instead of any other brands, even if they are the same 74 APPENDIX 7: QUESTIONNAIRE IN VIETNAMESE KHẢO SÁT CHO LUẬN VĂN TỐT NGHIỆP Kính chào Anh/Chị, Tôi học viên cao học chuyên ngành Quản Trị Kinh Doanh trường Đại học Kinh Tế Tp Hồ Chí Minh Tơi thực đề tài nghiên cứu nguồn gốc quốc gia ảnh hưởng đến tài sản thương hiệu, phục vụ cho luận văn tốt nghiệp Mong Anh/Chị dành chút thời gian trả lời bảng câu hỏi sau Mọi ý kiến anh/chị có giá trị lớn cho luận văn Xin chân thành cảm ơn! Anh/Chị thường tiêu dùng thương hiệu trứng gà nào? (Gọi X thương hiệu trứng gà mà Anh/Chị chọn) CP QL Ba Huân Vĩnh Thành Đạt (Vfood) Trang trại Việt (Vietfarm) Coopmart Mục khác: Anh/Chị có biết thương hiệu X có xuất xứ từ quốc gia khơng? Có biết (Tiếp tục vấn) Khơng biết (Phỏng vấn kết thúc) Anh/Chị vui lòng cho biết X thương hiệu trứng gà có nguồn gốc từ quốc gia nào? Thái Lan Việt Nam Malaysia Mục khác: 75 A Vui lòng cho biết mức độ đồng ý Anh/Chị phát biểu đây, theo thang đo từ đến Qui ước sau: 1: Hoàn toàn không đồng ý 2: Rất không đồng ý 3: Không đồng ý 4: Phân vân 5: Đồng ý 6: Rất đồng ý 7: Hoàn toàn đồng ý STT 10 11 12 13 14 15 16 17 Phát biểu Quốc gia tạo thương hiệu X quốc gia đổi sản xuất Quốc gia tạo thương hiệu X quốc gia trình độ kỹ thuật cao Quốc gia tạo thương hiệu X quốc gia thiết kế tốt Quốc gia tạo thương hiệu X quốc gia sáng tạo tay nghề Quốc gia tạo thương hiệu X quốc gia chất lượng tay nghề cao Quốc gia tạo thương hiệu X quốc gia Thương hiệu X có nguồn gốc từ quốc hình ảnh đất nước tiên tiến Thương hiệu X gắn liền với động Thương hiệu X gắn liền với kỹ thuật cao Thương hiệu X gắn liền với đổi Thương hiệu X gắn liền với tinh vi Thương hiệu X gắn liền với khác biệt Thương hiệu X tuyệt vời Thương hiệu X gắn liền với uy tín Tơi thích mua X dù có thương hiệu khác c tính tương đương Nếu phải chọn thươn trứng gà, tất nhiên chọn X Nếu phải mua trứng gà, mua X d thương hiệu khác tốt tương đương với 18 19 Tôi mua X dù có thương hiệu khác tương đương với X Nếu có thương hiệu khác tốt X, thích mua X 76 20 21 Nếu có thương hiệu khác giống X, tơi mua X Tơi mua X thay thương hiệu khác dù ch giống CÂU HỎI CÁ NHÂN Sau câu hỏi mang tính chất tham khảo, thông tin Anh/Chị cung cấp tuyệt đối bảo mật Giới tính: * Nam Nữ Độ tuổi * 18 - 25 tuổi 26 - 35 tuổi 36 - 50 tuổi Trên 50 tuổi Trình độ học vấn * Phổ thông Trung cấp, Cao đẳng Đại học Trên đại học Thu nhập bình quân tháng Anh/Chị * Dưới triệu Từ đến 10 triệu Từ 10 đến 15 triệu Từ 15 đến 20 triệu Từ 20 triệu trở lên ... the impact (direct and indirect) of country of origin to brand equity, specifically: The impact of country of origin to brand equity The mediating role of brand distinctiveness on the relationship... Based on the study of Yasin et al (2007) to measure the effects of country of origin to brand equity, the country of origin does not only affect the brand equity directly 16 but also affects the brand. .. Methodology of the study 1.6.1 Scope of the study The study focuses on how consumers evaluate a chicken eggs brand name basing on the country of origin and brand distinctiveness To ensure the collected