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 Ho Chi Minh, 16th 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 15 2.4.2 Hypotheses 17 2.5 Summary 17 CHAPTER METHODOLOGY 18 3.1 Introduction 18 3.2 Research Design 18 3.2.1 Qualitative Research 18 3.2.2 Pilot test 19 3.2.3 Official quantitative Research 19 3.3 Sample Design 19 3.4 Methods of data analysis 21 3.4.1 Frequency 21 3.4.2 Cronbach’s Alpha 21 3.4.3 Exploratory Factor Analysis (EFA) 21 3.4.4 Linear Correlation Analysis 22 3.4.5 Simple Linear Regression (SLR) 22 3.5 Measurements 23 3.5.1 Measurements of country of origin (CI) 24 3.5.2 Measurements of brand distinctiveness (BD) 25 3.5.3 Measurements of brand equity (BE) 26 3.6 Research Process 27 3.7 Summary 28 CHAPTER DATA ANALYSIS AND FINDINGS 29 4.1 Introduction 29 4.2 Descriptions of sample 29 4.3 Assessment of scales 31 4.3.1 Reliability testing 31 4.3.2 Exploratory Factor Analysis (EFA) 33 4.4 Simple Regression Analysis 35 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 62 APPENDIX 3: TESTING THE ASSUMPTION OF REGRESSION Appendix 3.1: Testing the assumption of regression for CI – BE Histogram Dependent Variable: BE 40 30 Frequency 20 10 Std Dev = 1.00 Mean = 0.00 N = 240.00 50 00 50 00 50 00 00 0 - 0 -1 -1 0 -2 -2 0 -3 Regression Standardized Residual 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 Dependent Variable: BD 40 30 Frequency 20 10 Std Dev = 1.00 Mean = 0.00 N = 240.00 -3 1 2 3.2 2.7 2.2 1.7 1.2 75 25 25 75 25 75 25 75 5 5 5 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 Dependent Variable: BE 40 30 Frequency 20 10 Std Dev = 1.00 Mean = 0.00 N = 240.00 75 25 75 25 75 25 5 - -.7 -1 -1 -2 -2 -3 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 Variables Entered Variables Removed Method CI(a) Enter a All requested variables entered b Dependent Variable: BE Model Summary Model R 110(a) a Predictors: (Constant), CI Adjusted R Square 013 R Square 017 Std Error of the Estimate 80391 ANOVA(b) Sum of Model Squares Regression 2.647 Residual 153.812 Total 156.459 a Predictors: (Constant), CI b Dependent Variable: BE df 238 239 Mean Square 2.647 646 F 4.096 Sig .044(a) t 14.257 2.024 Sig .000 044 Coefficients(a) Unstandardized Standardized Coefficients Coefficients Model (Constant) CI a Dependent Variable: BE B Std Error 4.017 282 135 067 Beta 110 69 Appendix 4.2: Dependent Variable CI and Independent Variable BD Variables Entered/Removed(b) Model Variables Entered CI(a) a All requested variables entered b Dependent Variable: BD Model R 614(a) a Predictors: (Constant), CI Variables Removed Method Model Summary Adjusted R R Square Square 377 374 Enter Std Error of the Estimate 57701 ANOVA(b) Sum of Squares Regression 47.917 Residual 79.239 Total 127.156 a Predictors: (Constant), CI b Dependent Variable: BD Model df 238 239 Mean Square 47.917 333 F 143.923 Sig .000(a) t 9.345 11.997 Sig .000 000 Coefficients(a) Unstandardized Standardized Coefficients Coefficients Model (Constant) CI a Dependent Variable: BD B Std Error 1.890 202 576 048 Beta 614 70 Appendix 4.3: Dependent Variable BD and Independent Variable BE Variables Entered/Removed(b) Model Variables Entered Variables Removed BD(a) a All requested variables entered b Dependent Variable: BE Model R 367(a) a Predictors: (Constant), BD Method Enter Model Summary Adjusted R R Square Square 135 131 ANOVA(b) Sum of Model Squares df Regression 21.062 Residual 135.397 238 Total 156.459 239 a Predictors: (Constant), BD b Dependent Variable: BE Mean Square 21.062 569 Std Error of the Estimate 75425 F 37.024 Sig .000(a) t 9.784 6.085 Sig .000 000 Coefficients(a) Unstandardized Standardized Coefficients Coefficients Model (Constant) BD a Dependent Variable: BE B Std Error 2.838 290 407 067 Beta 367 71 APPENDIX 5: PEARSON COEFFICIENT Correlations CI BD CI Pearson Correlation 616(**) Sig (2-tailed) 000 N 240 240 BD Pearson Correlation 616(**) Sig (2-tailed) 000 N 240 240 BE Pearson Correlation 128(*) 367(**) Sig (2-tailed) 048 000 N 240 240 ** Correlation is significant at the 0.01 level (2-tailed) * Correlation is significant at the 0.05 level (2-tailed) BE 128(*) 048 240 367(**) 000 240 240 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, Tơi học viên cao học chuyên ngành Quản Trị Kinh Doanh trường Đại học Kinh Tế Tp Hồ Chí Minh Tôi 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) Không 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: Hồn tồn khơng 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 18 19 Phát biểu Quốc gia tạo thương hiệu X quốc gia có đổi sản xuất Quốc gia tạo thương hiệu X quốc gia có trình độ kỹ thuật cao Quốc gia tạo thương hiệu X quốc gia có thiết kế tốt Quốc gia tạo thương hiệu X quốc gia có sáng tạo tay nghề Quốc gia tạo thương hiệu X quốc gia có chất lượng tay nghề cao Quốc gia tạo thương hiệu X quốc gia uy tín Thương hiệu X có nguồn gốc từ quốc gia có 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 có đặc tính tương đương Nếu phải chọn thương hiệu trứng gà, tất nhiên chọn X Nếu phải mua trứng gà, tơi mua X dù có thương hiệu khác tốt tương đương với X Tôi mua X dù có thương hiệu khác có giá tương đương với X Nếu có thương hiệu khác tốt X, tơi thích mua X Mức độ 7 7 7 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 7 7 7 7 7 7 76 20 21 Nếu có thương hiệu khác giống X, tơi mua X Tơi mua X thay thương hiệu khác dù chúng giống 7 CÂU HỎI CÁ NHÂN Sau câu hỏi mang tính chất tham khảo, thơng 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 thơng 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