Factors influencing quality of life, a study of brand communities in viet nam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business LE THI MUI FACTORS INFLUENCING QUALITY OF LIFE: A STUDY OF BRAND COMMUNITIES IN VIET NAM MASTER OF BUSINESS (HONOURS) Ho Chi Minh City – 2018 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business LE THI MUI FACTORS INFLUENCING QUALITY OF LIFE: A STUDY OF BRAND COMMUNITIES IN VIET NAM MASTER OF BUSINESS (HONOURS) SUPERVISOR: Assoc Prof Nguyen Thi Mai Trang Ho Chi Minh City - 2018 LIST OF CONTENTS List of tables List of figures .3 Introduction Literature review Brand community Value co-creation practices and brand relationship quality Brand relationship quality and consumer hope 12 Consumer hope and quality of life 14 Methodology 16 Design and Sample 16 Measurement .18 Data analysis and results 18 Testing the measurement model 18 Testing the hypothesis model 24 Discuss and implications 25 Limitations and direction for future research 29 Conclusion 30 Appendix 31 References 52 List of tables Table 1: The profile of respondents in the study Table 2: Cronbach’s Alpha for all constructs Table 3: Pattern Matrix in EFA analysis Table 4: Standardized CFA loadings of items Table 5: Correlations of items Table 6: Regression Weights in SEM analysis Table 7: A again qualitative survey report List of figures Figure 1: Proposed research Model Abstract This research investigates the impact of value co-creation practices in online brand community on quality of life by the mediating of brand relationship quality and consumer hope The research was designed for the sample size about 250 respondents in online brand communities such as Apple brand community for Iphone fans, Channel brand community for perfume fans, 38 Degree flowers brand community for flower fans and SamSung brand community for the fans of Galaxy lines The results indicate that it can be said that the existence of relationship between two elements of value co-creation practices in online brand community including impression management, brand use and brand relationship quality as well as the presence of the relationship in series from brand relationship quality to consumer hope and then quality of life Finally, some implications are discussed to gain point of view objectively about research results Introduction The fourth industrial revolution has had a dramatically booming stage in recent years and seems breaking most of traditional industries in every country because the fact that the remarkable number of global online retail sales was to increase from US$236 billion to US$521 billion over five years, from 2007 to 2012, was estimated to reach $1248.7 billion in 2017 (Verma et al., 2016) Consumer have had awareness of benefits of this channel such as great price and flexible time by the significant increase in e-commerce platforms global (Denegri‐Knott, 2006; Nedergaard & GyrdJones, 2013) The fact that it has changed significant marketing industry, leading to a creatively online marketing stage thanks to the unique aspect of social media and its huge spread for revolutionizing marketing process (Hanna, Rohm, &Crittenden, 2011) and consumer behavior from absorbing information for making purchase online (Mangold & Faulds, 2009; Powers, Advincula, Austin, & Graiko, 2012) Otherwise, compared with the online ones, the other benefits of social media based brand communities are the lower cost of initiating these communities, higher reward, and the number of greater reach because of normally using free the platforms (LaPointe,2012) Accordingly, the rapidly popularizing of social networking technologies has generated ideal circumstance including a new platform and opportunities to retain existing members and attract new customers for brand community (Kietzmann, Hermkens, McCarthy, & Silvestre, 2011) Specifically, the concept of brand community is taken into as one of main considerations in marketing field recently (Muniz & O’Guinn, 2001) When researchers study initial about brand communities, online brand communities are deemed as tools in order to build relationships between consumers and brands thanks to corresponding internet condition (Schultz& Bailey, 2000) The brands and consumers are provided many values such as sharing knowledge and engaging supportive consumers by brand communities (Andersen, 2005), making strong impression to customers on the brand features and stimulating their loyalty (Andersen, 2005; McAlexander et al., 2002), gaining valuable market data for development and research (Von Hippel, 2005), and co-creating benefits with consumers (Schau, Muñiz, & Arnould, 2009) Moreover, the brand community on social media help new customers stimulate purchase intention by joining and participating in brand clubs and associates (Algesheimer et al., 2005; McAlexander & Schouten, 1998) In conclusion, it may be argued that brand community helps value co-creation practices to be more convenient and efficient Customer- brand relationship that customers can create an active relationship with brand is like building relationship with friends, which means brands are considered as customer’s partners (Hudson et al., 2015) A study of individual relationships in social psychology as well as personality presents the metaphor of brand relationship (Breivik & Thorbjornsen, 2008; Smit et al., 2007) Customers participate in brand relationships because of benefits from the meanings they gain into their life, not only possessing well good brand with its function and utilitarianism but also more psychological and emotional (Fournier, 1998) Thus, it possibly be claimed that brand relationship quality interrelated obviously to brand community Although many previous researches point out that value co-creation practices have an important influence on enhancing brand loyal (McAlexander et al., 2002; Muniz & O’Guinn, 2001; Muniz & Schau, 2005; Habibi, Laroche, & Richard 2016), and demonstrate how value co-creation practices influence brand relationships quality in brand communities (Luo et al, 2015) However, individual quality of life concept have not been mentioned while the previous studies present value co-creation practices in brand community concept, moreover, those have not demonstrated the influence of value co-creation practices on quality of life with the mediating of consumer hope Therefore, it may be extremely virtual to address the gap recognizing the worth of consumer hope for mediating role because of providing insights into customer’s perceptions as well as feeling in an online brand communities context (Raggio, Walz, Godbole, & Folse, 2014) The purpose of this paper is to examine the impact of value co-creation practices in online brand community on quality of life by the mediating of consumer hope and then it is suggested suitable recommendations The paper is organized with the next section is literature review based on foundation of previous research models tested in the research and followed by the right methodology, next sections, the data analysis and results, and discussion and implications will be indicated Finally, the paper rounds off with limitation and direction for future research and conclusions Literature review Brand community Brand community is defined as a “specialized, non-geographically bound community and based on a structured set of social relations among admirers of a brand” (Muniz & O’Guinn, 2001, p 412), covering a huge community entire from virtual (Adjei, Noble,& Noble, 2010) to undersized brand communities (Schouten,McAlexander, & Koenig, 2007) In addition, brand communities are conducive to sharing of benefits including information and experience; enhancing the band values (Muniz& O’Guinn, 2001), resulting in “co-creation and negotiation of meaning” (McAlexander et al., 2002) That valuable knowledge make individual connect feeling insights among members intje brand community (Kuo & Feng, 2013) On the other hand, shared features are representative of communication that maintain meanings and cultural norms, finally, obligations to society are a felt sense of responsibilities for the member in community (Kuo & Feng, 2013) Value co-creation practices and brand relationship quality The co-creation of member benefits and community potential by variety activities within a brand community is considered as value co-creation practices while members in brand community create worthy thing for the brand or others in the community (Schau et al., 2009) Furthermore, value co-creation practices is supported favorably to implement by the platform of social network and make members and other elements of a brand community obtain a high-context interaction, leading to reinforce Impression_Management Quality_Of_Life Quality_Of_Life Quality_Of_Life Quality_Of_Life Quality_Of_Life Consumer_Hope Consumer_Hope Consumer_Hope Consumer_Hope Brand_Use Brand_Use Brand_Use Brand_Relationship_Quality Brand_Relationship_Quality Social_Network < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > < > Community_Engagement Consumer_Hope Brand_Use Brand_Relationship_Quality Social_Network Community_Engagement Brand_Use Brand_Relationship_Quality Social_Network Community_Engagement Brand_Relationship_Quality Social_Network Community_Engagement Social_Network Community_Engagement Community_Engagement Variances: (Group number - Default model) Estimate Impression_Management 533 Quality_Of_Life 727 Consumer_Hope 556 Brand_Use 471 Brand_Relationship_Quality 338 Social_Network 588 Community_Engagement 414 e1 585 e2 717 e3 738 e4 543 e5 619 e6 697 e7 166 e8 358 e9 418 e10 217 e11 508 e12 406 e13 730 e14 551 e15 548 e16 762 e17 205 e18 377 S.E .096 088 084 101 057 115 096 067 080 077 061 064 071 038 049 048 053 065 045 084 072 061 083 039 046 C.R 5.566 8.305 6.643 4.673 5.915 5.091 4.325 8.787 8.992 9.599 8.868 9.736 9.785 4.398 7.334 8.724 4.133 7.851 9.086 8.724 7.662 8.931 9.212 5.295 8.203 P *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** Estimate 444 376 097 157 201 085 214 373 126 113 482 380 487 345 336 546 Label 45 Estimate 400 525 551 1.337 606 605 539 e19 e20 e21 e22 e23 e24 e25 S.E .045 087 081 139 081 064 082 C.R 8.948 6.043 6.809 9.599 7.463 9.521 6.608 P *** *** *** *** *** *** *** Label Testing the structural model SEM CMIN Model Default model Saturated model Independence model NPAR 62 325 25 RMR, GFI Model Default model Saturated model Independence model RMR 061 000 214 Baseline Comparisons Model NFI Del ta1 Default model Saturated model Independence model 824 1.000 000 RMSEA Model Default model Independence model RMSEA 038 155 CMIN 352.215 000 2005.862 GFI 897 1.000 455 RFI rh o 800 000 DF 263 300 P 000 CMIN/DF 1.339 000 6.686 AGFI 873 PGFI 726 410 420 IFI Del ta2 949 1.000 000 LO 90 027 148 HI 90 048 161 TLI rh o 940 000 CFI 948 1.000 000 PCLOSE 981 000 46 47 Regression Weights: (Group number - Default model) Brand_Relationship _Quality Brand_Relationship _Quality Brand_Relationship _Quality Brand_Relationship _Quality Consumer_Hope Quality_of_Life IM3 IM6 IM4 IM5 IM2 IM1 QOL1 QOL2 QOL3 CH2 CH3 CH1 BU5 BU4 BU2 BU7 BRQ2 BRQ1 BRQ3 SN2 SN3 SN4 CE1 CE2 CE4 Estim ate S.E C.R P < - Impression_Management 181 086 2.097 036 < - Brand_Use 249 102 2.452 014 < - Social_Network 104 084 1.229 219 < - Community_Engagement 015 114 129 897 < < < < < < < < < < < < < < < < < < < < < < < < < < < - Brand_Relationship_Quality Consumer_Hope Impression_Management Impression_Management Impression_Management Impression_Management Impression_Management Impression_Management Quality_of_Life Quality_of_Life Quality_of_Life Consumer_Hope Consumer_Hope Consumer_Hope Brand_Use Brand_Use Brand_Use Brand_Use Brand_Relationship_Quality Brand_Relationship_Quality Brand_Relationship_Quality Social_Network Social_Network Social_Network Community_Engagement Community_Engagement Community_Engagement 494 436 1.000 1.053 886 946 761 800 1.000 1.019 892 1.000 946 684 1.000 1.057 830 898 1.000 910 816 1.000 922 864 1.000 656 1.064 108 089 4.562 4.918 *** *** 120 111 106 099 104 8.790 7.995 8.914 7.685 7.666 *** *** *** *** *** 071 068 14.364 13.171 *** *** 105 082 9.028 8.377 *** *** 139 118 133 7.625 7.054 6.763 *** *** *** 114 108 7.964 7.549 *** *** 132 145 6.998 5.964 *** *** 123 169 5.351 6.313 *** *** Label 48 Standardized Regression Weights: (Group number - Default model) Brand_Relationship_Quality Brand_Relationship_Quality Brand_Relationship_Quality Brand_Relationship_Quality Consumer_Hope Quality_of_Life IM3 IM6 IM4 IM5 IM2 IM1 QOL1 QOL2 QOL3 CH2 CH3 CH1 BU5 BU4 BU2 BU7 BRQ2 BRQ1 BRQ3 SN2 SN3 SN4 CE1 CE2 CE4 < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < < - Impression_Management Brand_Use Social_Network Community_Engagement Brand_Relationship_Quality Consumer_Hope Impression_Management Impression_Management Impression_Management Impression_Management Impression_Management Impression_Management Quality_of_Life Quality_of_Life Quality_of_Life Consumer_Hope Consumer_Hope Consumer_Hope Brand_Use Brand_Use Brand_Use Brand_Use Brand_Relationship_Quality Brand_Relationship_Quality Brand_Relationship_Quality Social_Network Social_Network Social_Network Community_Engagement Community_Engagement Community_Engagement Estimate 228 294 137 016 387 380 691 673 602 684 576 574 903 825 760 845 702 625 626 699 611 576 789 651 600 727 688 499 634 476 680 49 Covariances: (Group number - Default model) Impression_Management Impression_Management Impression_Management Brand_Use Brand_Use Social_Network < > < > < > < > < > < > Brand_Use Social_Network Community_Engagement Social_Network Community_Engagement Community_Engagement Estimate 290 222 209 200 214 268 S.E .056 055 050 054 051 059 C.R 5.144 4.051 4.151 3.689 4.167 4.541 P *** *** *** *** *** *** Label Correlations: (Group number - Default model) Impression_Management Impression_Management Impression_Management Brand_Use Brand_Use Social_Network < > < > < > < > < > < > Brand_Use Social_Network Community_Engagement Social_Network Community_Engagement Community_Engagement Variances: (Group number - Default model) Estimate Impression_Management 534 Brand_Use 471 Social_Network 588 Community_Engagement 410 e26 236 e27 470 e28 623 e1 584 e2 717 e3 737 e4 542 e5 624 e6 694 e7 165 e8 354 e9 425 e10 221 e11 508 e12 404 e13 730 S.E .096 101 116 095 045 075 079 067 080 077 061 064 071 038 049 048 052 065 045 084 C.R 5.560 4.669 5.064 4.301 5.300 6.252 7.914 8.754 8.963 9.575 8.833 9.747 9.757 4.287 7.193 8.772 4.226 7.860 9.071 8.718 Estimate 579 396 445 379 488 545 P *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** Label 50 e14 e15 e16 e17 e18 e19 e20 e21 e22 e23 e24 e25 Estimate 551 544 766 205 380 401 525 558 1.325 610 602 539 S.E .072 061 083 038 046 045 088 081 139 081 063 082 C.R 7.653 8.887 9.239 5.367 8.294 8.975 5.974 6.852 9.527 7.501 9.489 6.588 P *** *** *** *** *** *** *** *** *** *** *** *** Label 51 References Adjei, M., Noble, S., & 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