Deteminants of brand loyalty in the vietnamese neer industry

NIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGO HOANG THI QUYNH OANH DETEMINANTS OF BRAND LOYALTY IN THE VIETNAMESE BEER INDUSTRY MASTER OF BUSINESS (BY HONOUR) Ho Chi Minh City – Year 2012 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGO HOANG THI QUYNH OANH DETEMINANTS OF BRAND LOYALTY IN THE VIETNAMESE BEER INDUSTRY STUDENT ID: 60340102 MASTER OF BUSINESS BY HONOUR SUPERVISOR: DR PHAM NGOC THUY Ho Chi Minh City - Year 2012 ACKNOWLEDGEMENTS I would like to express my sincere gratitude to Dr Pham Ngoc Thuy who has supported me a lot with the thesis preparation and motivated me throughout the journey of the thesis I strongly believe that I could have not completed this thesis without the assistance from all of my friends who helped me to guide the customers to the survey and chased for data submission I would like to thank Sabmiller staffs for there is kind support to provide me with necessary information and materials And finally my special thanks to my husband who was always with me to show his empathy and encourages me to complete this thesis December 8, 2012 Ho Chi Minh City, Viet Nam Ngo Hoang Thi Quynh Oanh ABSTRACT In recent years the amount of beer consumption increased significantly The beer companies increasingly expand the market and increase the retailer to take the company's image and products to market The purpose of attracting customers to used the company's products more and more This research is to identify the determinants affecting customer loyalty through beer products It also requires investors in times of abundant commodities, constant competition and especially during storms today This study was aimed to explore these factors affect brand loyalty in Ho Chi Minh City is done through quantitative methods Formal quantitative research through interviews using a questionnaire with a sample collected in a convenient method of 200 consumers in Ho Chi Minh City Data are used to assess the scale and test hypotheses Cronbach Alpha coefficients analysis, explore factor analysis (EFA) and regression analysis used in this section Test results obtained show that the hypothesis consistent with the original theoretical model According to which only some components of the factors affecting consumer loyalty for beer products, including value factors have the strongest impact The research results contribute to the theoretical basis of research by understanding the meaning of the factors that affect consumer loyalty with beer Thereby, the results also provide managers with a basis for decision-making, investment options to develop new products in line with objectives and current strategic Key words: Perceived value, Brand Image, Brand Awareness, Brand Loyalty TABLES OF CONTENTS CHAPTER 1: INTRODUCTION 1.1 BACKGROUND 1.2 PROBLEM STATEMENT 1.3 RESEARCH OBJECTIVES 1.4 SCOPE OF STUDY: 1.5 SIGNIFICANCE 1.6 STRUCTURE OF THE THESIS STATEMENTS CHAPTER 2: LITERATURE REVIEW & THEORETICAL MODEL 2.1 BRAND 2.1.1 Traditional viewpoint of Brand: 2.1.2 Synthetic viewpoint of Brand: 2.2 BRAND EQUITY 2.3 CUSTOMER-BASED PERSPECTIVE OF BRAND EQUITY 2.3.1 Brand Image 12 2.3.2 Brand Awareness 13 2.3.3 Perceived Value 14 2.3.4 Brand Loyalty 15 2.4 RESEARCH MODEL, HYPOTHESIS 17 2.4.1 Research Model and hypothesis 17 CHAPTER 3: RESEARCH METHODS 20 3.1 RESEARCH PROCESS 20 3.2 MEASUREMENT SCALES 24 3.2.1 Measurement Scales 24 3.3 SAMPLING METHOD 27 3.3.1 Target population and sampling method 27 3.4 MAIN SURVEY AND DATA COLLECTION 28 3.5 DATA ANALYSIS METHODS 28 3.5.1 Exploratory Factor Analysis (EFA) 28 3.5.2 Reliability Analysis 29 3.5.3 Multiple Regression Analysis 29 CHAPTER 4: DATA ANALYSIS 31 4.1 DESCRIPTIVE DATA ANALYSIS 31 4.1.2 Descriptive analysis of the variables studies 32 4.2 MEASUREMENT SCALE ASSESSMENT 33 4.2.1 Cronbach Alpha Reliability Analysis 33 4.2.2 Exploratory Factor Analysis 35 4.2.2.1 EFA analysis results for measurement scales of independent factors (Brand awareness, Perceived Value, Brand Image) 35 4.2.2.2 EFA analysis results for measurement scales of dependent factor (Brand loyalty) 37 4.2.2.3 Testing relationship of independent factors and dependent factor 38 4.3 HYPOTHESES TESTING 40 4.3.1 Testing Assumption of multiple Regressions 40 4.3.2 Evaluate and test the relevance of the model 41 4.3.3 Testing hypotheses on the impact of Independent factors on Brand Loyalty 42 4.4 DISCUCSIONS 45 4.4.1 Regression analysis results Regression standardized regression coefficient Beta: 45 4.4.2 Brand Awareness 45 4.4.3 Brand Image 46 4.4.4 Perceived Value 46 4.5 SUMMARY 46 CHAPTER 5: CONCLUSIONS AND IMPLICATIONS 48 5.1 RESEARCH OVERVIEW 48 5.2 KEY FINDINGS 49 5.3 MANAGERIAL IMPLICATIONS 49 5.4 CONTRIBUTIONS OF THE STUDY 50 5.4.1 Contributions of theory 50 5.4.2 Contribute to practical 51 5.5 LIMITATIONS OF TOPICS AND NEXT RESEARCH PLANS 51 REFERENCES LIST APPENDIX APPENDIX APPENDIX LIST OF TABLES Table 4.1: Descriptive Statistics of Sample 32 Table 4.2: Reliability analysis results 34 Table 4.3 EFA analysis results for the independent variables after handling 356 Table 4.4 EFA analysis results for dependent – Brand Loyalty 37 Table 4.5: Multiple Regressions results of Brand Loyalty to independent 39 Table: 4.6 Result of hypotheses testing between Independent Factors and Brand Loyalty 42 B ng 4.7: Hypotheses Testing Results 453 B ng 4.8: Summary results of the hypotheses 45 LIST OF FIGURES Figures – Prpoposed Research Model 17 Figure - Research Process 22 Figures - Research model after testing by EFA 40 Figures – Multiples Regression Result 44 CHAPTER 1: INTRODUCTION This chapter introduces the context of the study, including a short introduction of beer industry in Viet Nam the purpose of this study and the other contents such as the rationale of the research, problem statement and research methodology 1.1 BACKGROUND Vietnam has a young population and is a potential market for the beer industry With a growth market with two figures and capita consumption of beer in just 21lit/person (VBA, report 2009) is still low compared to world average of results strongly attractive for any business Present on the Vietnamese market are over 30 types of beer exist stretches from North to South These products are well-known consumer must mention Heineken known, Sai Gon blue, Castbreg, 333 And most recently of Sapporo of Japan and Gambrinus of Czechoslovakia have penetrated the market more "lucrative" is These products are primarily levied on customers with high income and geographic distribution mainly in the central districts of the city, or the neighboring provinces, where many tourists visit According to the VBA, report 2010 "In VBA, in recent years, Vietnam's beer has made great progress Ended in 2009, the industry reached 2.5 billion liters in volume Most businesses produce wine, beer and soft drinks in VBA with an average growth rate of 15% compared with 2008 Currently, Vietnam has about 350 beer production facility, which has 20 factories with a capacity of 20 million liters/year Every year, the sector to create jobs for thousands of workers and pay tens of billion budgets" 1.2 PROBLEM STATEMENT As Amy et.al (1999) stated: “In order to achieve competitive advantage and efficiency, businesses have to seek profitable ways to differentiate themselves The only to survive and maintain customer revisits is to understand what customers need and their expectation Customer satisfaction is considered a prerequisite for customer retention and loyalty, and obviously helps in realizing economic goals like profitability (Sureshchandaret al., 2002) We outline some beer company information is currently available in Vietnam market and these beers have the same level premium as follow Vietnam Brewery Company Limited (VBL), beer production units Tiger, Heineken in Vietnam, is a joint venture established on 09/12/1991, between Saigon Trade Corporation (SATRA) and Asia Pacific Breweries Ltd group (APBL), head quartered in Singapore Having been in Vietnam for nearly 20 years, the world's leading beer brand Heineken conquered by consumer premium quality no one can match with beer For Heineken, the promotional gentle, subtle make consumers feel secure when using the product Messages for promotions is very simple "old Heineken beer is about to leave and was replaced by 5% premium Heineken."These elements are conveyed through PR with the message" Heineken has changed "vividly expressed through a campaign with the help of top photographer Rankin He has photographed celebrities 7th most UK and changes each face with each other to express the main message of the campaign In addition to strengthening the Heineken brand has also launched a campaign based on the idea of "Heineken has been tested on the streets all over the world and make sure that Heineken is the best choice for you" It is expressed through many pictures to show people that Heineken beer is interested in worldwide (vblgroup.vn) On the other hand the scale of the research done in the development environment, this study was adjusted, testing the scale in the Vietnamese environment through experimental data in Ho Chi Minh City, should additional data will contribute to the repository scale theory contribute to the academic and applied research to better understand the Vietnamese market 5.4.2 Contribute to practical Through the identification of factors affecting brand loyalty, the study provides managers with a more specific look at the views of consumers on brand loyalty especially beer products At the same time, managers can refer to the recommendations of the study to enhance the competitiveness of the products of the same industry in attracting consumer loyalty to their products 5.5 LIMITATIONS As with any study, this research can not avoid some limitations Firstly, only studies conducted in Ho Chi Minh City and with convenient sampling method to collect data analysis Despite choose different groups to be interviewed but not yet collected the opinions of all groups in society The ability to generalize research results will be higher than if done on a wider market range, such as the expansion of a number of other provinces In addition to the sampling method more highly represented as probability sampling method and the respondents will be able to be representative of all parts of society Secondly, the is only considering the overall impact of the entire sample collection and analysis unrealized differences between different objects on the characteristics of the users of beer The result of data analysis showed that there is high correlation between Brand Awareness, Brand Image, Perceived Value and Brand loyalty It could be understood that measurement scales which measure Brand loyalty of consumer are similar In addition, research is not going to analyze the impact of the factors affecting each individual beer brands or compare with other brands of beer at the same level with each other Therefore further research is 51 interested in the difference between brands of beer to each group of customers, while expanding research into the impact of the factors affecting brand loyalty of consumers for specific brands 52 REFERENCES LIST Lasar,W., Mittal, B and Sharma, A (1995) Measuring consumer-based Brand Equity Journal of consumer Marketing, V 12, No Low, GS and Lam, C W Jr (2000) The measurement and dimensionality of brand associations Journal of product and Brand Management, V 9, No Simon, C.J and Sullivan, M W (1993) The measurement and determinants of Brand Equity: a financial approach Marketing science, V 12, No Srivastava, R K and Shocker, A D (1991) Brand Equity: A perpective on its meaning and measurement Marketing science institute report Cambridge, M.A, No 91-12 Andreassen Tor Wallin and Lindestad Bodil (1998) International Journal of Service Industry Management, Vol 9, Issue Yoo, B N Donthu and S Lee (2000) An Examination of selected Marketing Mix Elements and Brand Euity Journal of the Academy of Marketing Science, 28, 2,195-211 Blankson and Kalafatis (1999) Issues and challenges in the positioning of service brand: A review Journal of product and Brand Management Research Paper, V8, Issue Dobni, D and Zinkhan, G M (1990) Insearch of brand image: A foundation analysis in Goldberg, M E., Gorn, G and Pollay R W.(Ed) Advances in consumer research Association for consumer Research Provo, UT, 110-19 Dyson, P., Farr, A and Hollis, N.S (1996) Understanding measure and using brand equity Journal of Advertising Research, Vol 36, 9-21 Davis Scott (2002) Brand Asset Management: How business can profit from a power of Brand Journal of Consumer Marketing General reviews V 19, Issue 2002 Farquhar, P H (1989) Managing Brand Equity Marketing Research, V 1, 24-33 Hair, J F., Anderson, R.E., Tatham, R.L and Black, W.C (1998) Multivariate Data Analysis, 5th edition Prentice-Hall New Jersey Kim, Hong-Bumm., Kim Woo Gon and An Jeong A (2003) The effect of consumerbased Brand Equity o firm’s financial performance Journal of consumer marketing, V 20, No 4, MCB UP limited 53 Bloemer Josee, Dekker David (2007) Effects of personal values on customer satisfaction: An empirical test of the value disparity model and the value disconfirmation model International Journal of Bank Marketing, 25(5), 276-291 Ambler T & C Styles (1996) Brand Development versus New Product Development Towards a Process Model of Extension Marketing Intelligence & Planning, 14,7, 10-19 Bennett, P.D (ed) (1995) Dictionary of Marketing terms, Chicago, American Marketing Association Chaudhuri, A (1999) Does Brand Loyalty Mediate Brand Equity Outcomes: Journal of Marketing Theory and Practices, Spring 99,136-146 Churchill, Jr G.A (1995) Marketing Research Methodological Foundations, 6th, ed, The Dryden Press Churchill, Jr G.A (1995) A Paradigm fro Developing Better Measures of Marketing Constructs Journal of Marketing Research, 26(I), 64-73 Keller, K.L (1993) Conceptualizing, Measuring, and Managing Customer-Based Brand Equity Journal of Marketing Keller, K.L (1998) Strategic Brand Management, New Jersey Prentice Hall Lassar W.B Mittal & A Sharma (1995) Measuring Customer-Based Brand Equity: Journal of Consumer Marketing, 12(4) Michael, W Peng., (2000) Business Strategies in Transition Economies, Sale Publication Inc Willi, Zimmermann (2006) Research Methodology Ruchan Kayaman and Huseyin Arasali (2007) Customer-Based Brand Equity: Evidence from the hotel industry, Managing Service Quality, Emerald Group Publishing Ltd, V 17, No.1, 92-109 Nguyen, TD., & Nguyen, TMT, (2002) The components of brand value and measure them in the consumer goods market in Vietnam Economics University HCMC – Vietnam Yoo, B.N.Donthu & S.Lee (2000) An Examination of Selected Marketing Mix Elements and Brand Equity Journal of the Academy of Marketing Science, 28, 2,195-211 Le Nguyen Hau – Nguyen Thi Hai Minh – Nguyen Van Tuan – Ta Hung Anh “National Identity, perceived value and wine consumption: A study of Dalat wine 54 in Vietnam” – SPISE 2012 International Symposium – HCMC – Vietnam (7/2012) Information above Sabmiller company: (http://kiemviec.com/vi/nha-tuyen- dung/cong-ty-tnhh-sabmiller-viet-nam.35A53FDC.html) access on July 13 2012 Information above VBL Company http://vblgroup.com, access Oct 10 2012 Aaker, D.A (1191) Managing Brand Equity, New York, the Free Press Aaker, D.A (1996) Building Strong Brand, New York, the Free Press Ajzen I&M Fishbein (1980), Understanding Attitudes and Predicting Social Behavior New Yersey Prentice Hal Bo Enquist, Bo Edvardsson, Samuel Petros Sebhatu (2007) Values-based service quality for sustainable business Managing Service Quality, 17(4), 385-403 55 APPENDICES APPENDIX QUESTIONAIRE ON “DETEMINANTS OF BRAND LOYALTY IN THE BEER INDUSTRY ON VIET NAM” Dear Ladies and Gentlemen My name Ngo Hoang Thi Quynh Oanh, a student of MBA program at ISB Institution – Economics University of Ho Chi Minh City I am studying about customer loyalty for beer brands We wish Ladies/ Gentlemen for taking the time to answer this survey Note, there is no right or wrong answer All reviews of Ladies / Gentlemen are valuable for this study Sincere thanks to the support of Ladies and Gentlemen PART 1: GENERAL INFORMATION He / She used to drink beer several times / week? times – times - times > times Work Others(detail) _ He / She used to drink beer to Relax He / She usually to drink beer with one? Customer Friend Colleagues Other( detail) _ The average cost for one-time beer is: (million dong) < 0,5 m 0,5 – 0,8 m > 0,8 – m >1m Beer brand which He / She used to drink: Heneiken Sai Gon special Tiger Gambrinus Other) _ Call (X) is beer label which He/ She mentioned above Strongly disagree Disagree Fairly disagree Neutral Fairly agree Agree Strongly Agree Please indicate the level of agreement of the He/ She for the following statement I know clearly X’ beer brand I like When talking about beer industry, I will remember X’ beer brand I like by ticking (√) in the box corresponding to : Box 1: Complete disagree Box 7: Complete agree As for the other levels in the box number 2, 3, 4, 5, respectively 56 immediately I can recognize X’ beer brand I like among other brand beer I can distinguish X’ beer brand I like beer from other brand beer I can now describe the X’ beer brand when interrogated I am always feel interesting when say above X’ beer brand with friends 7 X Beer brand has a clear image to me I think the X’ beer brand is the customer's position in society The X’ beer brand is a lot of high-income people choose to drink 10 I feel X’ beer brand is very familiar to me 11 I feel X ‘beer brand have special styles than any other beer brand 12 X ‘beer brand is the kind of beer that I so often enjoy 13 I always feel relaxed when drinking X’ beer brand 14 X’ beer brand always gives me a sense of fun to drink 15 I use X’ beer brand I like beer very often 16 I have an intention to X’ beer brand I like again 17 I usually use X’ beer brand as preferred choice 18 I will recommend X’ beer brand I like to other people 19 I feel close attached X’ beer brand I like PART 3: OTHERS INFORMATION He / She tell us the following information to serve the classification and presentation of statistical data: Gender: Age Career: Male : Female 18 - 30 old Business 30 - 45 old Staff Worker > 45 old Other Income / month: – 10 m Thank you so much for your kind support 57 > 10 m PHI U KH O SÁT Kính chào Anh/Ch , tơi tên Ngơ Hồng Th Qu nh Oanh, h c viên cao h c c a Vi n Qu c T (ISB) – Tr khách hàng T o ng H Kinh T TP HCM Tôi ang nghiên c u v Lòng trung thành c a i v i th ng hi u bia R t mong Anh/Ch dành th i gian tr l i Phi u kh o sát L u ý, khơng có câu tr l i úng hay sai T t c ý ki n c a Anh/Ch u có giá tr cho nghiên c u Chân thành cám n s h tr c a Anh/Ch ! PH N 1: THÔNG TIN T NG QUÁT Anh/Chị thường uống bia trung bình lần/tuần? lần – lần - lần > lần Vì cơng việc Khác (xin ghi rõ) _ Anh/Chị thường uống bia: Để thư giãn Anh/Chị thường uống bia với ai? Khách hàng Đồng nghiệp Bạn bè Khác (xin ghi rõ) _ Chi phí trung bình cho lần uống bia là: (triệu đồng) < 0,5 tr 0,5 – 0,8 tr > 0,8 – tr > tr Nhãn bia Anh/Chị thường uống là: Heneiken Sài Gòn special Tiger Gambrinus Khác Trung dung ng ý ng ý Khơng H i R t Hồn tồn Tơi nghĩ biết rõ nhãn bia X Khi nói loại bia, nhớ đến nhãn bia X Tôi nhận nhãn bia X nhãn bia khác biểu sau cách đánh dấu (√) vào ô tương ứng, với: Ơ s 1: Hồn tồn khơng Ơ s 7: Hồn tồn ng ý ng ý Cịn mức độ khác đánh vào ô số 2, 3, 4, 5, tương ứng 58 Khơng Hồn tồn khơng Xin cho biết mức độ đồng ý Anh/Chị phát ng ý c p ng ý l m ang ng ý G i (X) nhãn bia Anh/Ch ng ý PH N 2: N I DUNG ÁNH GIÁ Tơi phân biệt nhãn bia X nhãn bia khác Tơi mơ tả nhãn bia X có người hỏi 7 7 7 7 10 11 12 Tôi cảm thấy thú vị nói nhãn bia X với bạn bè Nhãn hiệu bia X cho tơi hình tượng rõ ràng chất lượng Tôi nghĩ nhãn bia X nhãn bia khách hàng có vị trí xã hội Bia nhãn X nhiều người có thu nhập cao chọn uống Tơi cảm thấy nhãn bia X quen thuộc với Tơi cảm thấy nhãn bia X có phong cách đặc biệt nhãn bia khác Bia nhãn X loại bia mà nên thường xuyên thưởng thức 13 Tôi cảm thấy thư giãn uống bia nhãn X 14 Bia nhãn X tạo cho cảm giác thú vị uống 15 Tôi sử dụng bia nhãn X cách thường xuyên 16 Tôi có y định sử dụng nhãn bia X lâu dài 17 Chọn sử dụng nhãn bia X lựa chọn đắn 7 18 19 Tôi giới thiệu nhãn bia X cho người khác họ có nhu cầu uống bia Tôi cảm nhãn bia X quen thuộc với PH N 3: THƠNG TIN KHÁC Xin Anh/Chị cho biết số thông tin sau để phục vụ cho việc phân loại trình bày liệu thống kê: Giới tính: Nam Nữ Nhóm tuổi: 18 - 30 tuổi 30 - 45 tuổi Nghề nghiệp: Doanh nhân/ Nhà quản lý Nhân viên VP > 45 tuổi Công nhân Khác Mức thu nhập/tháng: < triệu đồng – triệu đồng > – 10 triệu đồng 59 > 10 triệu đồng APPENDIX EXPLORATORY FACTOR ANALYSES AND MULTIPLES REGRESSION RESULT Table 2.1 KMO and Barlett’s Test KMO 0.798 Approx Bartlett's Chi- of Square Test Sphericity 779.294 df 45 Sig Table 2.2 Exploratory Factor Analyses analysis results for the independent variables Extraction Sums of Squared Initial Eigenvalues Loadings Factor Total % of Cumulative Variance % Total % of Variance Cumulative % 4.193 41.929 41.929 3.792 37.916 37.916 1.759 17.595 59.524 1.397 13.972 51.888 1.075 10.75 70.274 0.742 7.419 59.307 0.7 77.277 0.599 5.99 83.268 0.443 4.429 87.697 0.396 3.96 91.656 0.336 3.365 95.021 0.286 2.865 97.886 10 0.211 2.114 100 7.003 60 Table 2.3 KMO and Barlett’s Test KMO 0.85 Approx Bartlett's Test Chi- of Square Sphericity 589.255 df 10 Sig Table 2.4 Exploratory Factor Analyses result of dependent – Brand Loyalty Initial Eigenvalues Component Total % of Cumulative Variance % 3.595 71.908 71.908 636 12.721 84.629 322 6.449 91.077 250 4.996 96.074 196 3.926 100.000 Extraction Method: Principal Component Analysis 61 Extraction Sums of Squared Loadings Total 3.595 % of Cumulative Variance % 71.908 71.908 Model Dimension Eigenvalu Condition e Index Variance Proportions (Constant) Baware Bimage Pervalue 3.912 1.000 00 00 00 00 039 9.999 16 23 17 39 030 11.452 00 04 78 59 019 14.411 84 74 05 01 a Dependent Variable: Bloyal 62 APPENDIX HISTOGRAM, NORMAL PROBABILITY PLOT Residuals Statisticsa Minimu Maximu m m Predicted Value 1.3645 6.7286 Residual Std Predicted Value Std Residual a Mean Std N Deviation 4.6254 89380 181 -2.12952 2.78297 00000 75146 181 -3.648 2.353 000 1.000 181 -2.810 3.672 000 992 181 Dependent Variable: Bloyal 63 Figure 3.1: Brand Loyalty (Bloya) – Histogram, normal probability Plot 64 65 ... customer – based brand equity For sustaining and increasing the loyalty of the current customers, beer industry should know where they are standing in the heart of the customer by measuring the relations... research on the basis of the theory of brand loyalty through understanding the meaning of the factors that affect consumer loyalty to the brand Thereby, the results also provide for investor how... perceptions of brand associations will “stored” in his mind In addition, building and sustaining a positive brand image is one of the first steps in maintaining customer brand loyalty, according to