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 Introduction .4 Literature review Brand community Value co-creation practices and brand relationship quality .8 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 & Gyrd-Jones, 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 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 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 49 Covariances: (Group number - Default model) Impression_Management Impression_Management Impression_Management Brand_Use Brand_Use Social_Network Correlations: (Group number - Default model) Impression_Management Impression_Management Impression_Management Brand_Use Brand_Use Social_Network Variances: (Group number - Default model) Impression_Management Brand_Use Social_Network Community_Engagement e26 e27 e28 e1 e2 e3 e4 e5 e6 e7 e8 e9 e10 e11 e12 e13 50 e14 e15 e16 e17 e18 e19 e20 e21 e22 e23 e24 e25 51 References Adjei, M., Noble, S., & Noble, C (2010) The influence of C2C communications in onlinebrand communities on customer purchase behavior Journal of the Academy ofMarketing Science, 38(5), 634–653 Algesheimer, R., Dholakia, U M., & Herrmann, A (2005) The social influence of brand community: evidence from European car clubs Journal of Marketing, 69(3), 19-34 Andersen, P H (2005) Relationship marketing and brand involvement of professionals through web-enhanced brand communities: The case of Coloplast.Industrial Marketing Management, 34(1), 39–51 Bentler, P M (1990) Comparative fit indexes in structural models Psychological Bulletin, 107(2), 238-246 Bowlby, J., 1977 The making and breaking of affectional bonds I Aetiology and psychopathology in the light of attachment theory An expanded version of the Fiftieth Maudsley Lecture, delivered before the Royal College of Psychiatrists, 19 November Bretherton, I., 1985 Attachment theory: retrospect and prospect Monogr Soc Res Child Dev 3–35.1976 Br J Psychiatry 130, 201–210 Breivik, E and Thorbjornsen, H (2008), "Consumer brand relationships: an investigation of two alternative models", Journal of the Academy of Marketing Science, 36 (4), pp 443-472 52 Chang, H.H., Chen, S.W., 2009 Consumer perception of interface quality, security, and loyalty in electronic commerce Inf Manag 46, 411–417 Chang, H H., & Chuang, S S (2011) Social capital and individual motivations on knowledge sharing: Participant involvement as a moderator Information & Management, 48(1), 9–18 Cronbach, L J (1970) Essentials of psychological testing New York: Harper and Row Davis, R A (2001) A cognitivebehavioral model of pathological Internet use Computers in Human Behavior, 17(2), 187e195 Denegri‐Knott, J., 2006 Consumers behaving badly: deviation or innovation? 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