The effect of perceived brand globalness on brand value and purchase intention

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Dinh Thi Mai Trang THE EFFECT OF PERCEIVED BRAND GLOBALNESS ON BRAND VALUE AND PURCHASE INTENTION MASTER OF BUSINESS (Honours) Ho Chi Minh City- Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business Dinh Thi Mai Trang THE EFFECT OF PERCEIVED BRAND GLOBALNESS ON BRAND VALUE AND PURCHASE INTENTION ID: 22120077 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr LE NHAT HANH Ho Chi Minh City- Year 2014 ACKNOWLEDGEMENTS First of all, I would like to express my deepest appreciation to Dr Le Nhat Hanh for her professional guidance from the very first day of research till the finishing Her helpful advices and encouragement during my research preparation are grateful Without her help, it would have been impossible for me to complete this research I would like to send my appreciation to ISB- UEH professors for their expertise and encouragement during the master course Also thanks for their valuable time for the proposal examination committee Their comments and suggestions are significant for my research's complement I am also grateful to my MBUS classmates for their knowledge sharing, expertise and spending great moments together Besides, I want to say thanks for the participants who filled my questionnaires out The participants donated their precious time to finish the questionnaires and helped me to acquire the data soon Last but not least, I would like to express my gratitude to my parents, family members, colleagues and friends for their support and understanding throughout my post graduate study Their unconditional love, sympathy and encouragement have made this research and my MBA course possible ABSTRACT In recent year, together with globalization of the world market, it is important to understand the competition between local and global brands, and whether customers prefer global brands This study aims to investigate the effects of perceived brand globalness on brand value, which in turns affect customer purchase intention Brand value is manifested via brand credibility, brand prestige, and brand quality The conceptual model is tested by using structural equation modeling 309 consumers who live in from Ho Chi Minh City were recruited as respondents for this research From statistical analysis, we find that Perceived brand globalness is positive related to both perceived brand quality and perceived brand prestige, which then significantly increase consumer purchase intention It also shows the critical role of brand credibility in leading to perceived of the quality of any brand This research provides important implications for developing global brand in Vietnam market and also for local brand Key words: Purchase intention, brand globalness, consumer behaviors, brand quality, brand prestige TABLE OF CONTENTS ACKNOWLEDGEMENTS ABSTRACT TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Research gap 1.3 Research objective 1.4 Research scope 1.5 Research contribution 1.6 Research structure CHAPTER 2: LITERATURE REVIEW 2.1 Theory of Plan Behavior (TPB) 2.2 Purchase intention (PI) 2.3 Perceived brand globalness (PBG) 2.4 Brand credibility (BrC) 11 2.5 Perceive brand prestige (PBP) 12 2.6 Perceived brand quality (PBQ) 13 CHAPTER 3: RESEARCH METHODOLOGY 17 3.1 Research procedure 17 3.2 Sample 18 3.3 Data collection and procedure 19 3.4 Scale and measurement: 20 3.5 Questionnaire design 21 3.6 Data analysis method 23 CHAPTER 4: DATA ANALYSIS 24 4.1 Sample characteristic 24 4.2 Confirmatory Factor Analysis (CFA) 26 4.3 Structural equation modeling (SEM) 31 CHAPTER 5: CONCLUSION, IMPLICATIONS AND LIMITATIONS 38 5.1 Conclusion 38 5.2 Managerial implication 39 5.3 Limitations and future research 41 REFERENCES 42 APPENDICES 52 Appendix A: Questionaire (English) 52 Appendix B: Questionaire (Vietnamese) 54 LIST OF FIGURES Figure 2.1 Conceptual model Figure 3.1 Research p Figure 4.1 Standardiz Figure 4.2 Structural Figure 4.3 Mediator a LIST OF TABLES Table 3.1 Source of measurement scale & Questionnaire Table 4.1 Respondents’ characteristic Table 4.2 Response frequency of brands Table 4.3 Fit statistics of Confirmatory Factor Analysis Table 4.4 Standardized Regression Weights Table 4.5 Scale accuracy analysis Table 4.6 Correlation ma Table 4.7 Fit statistics of Table 4.8 Hypothesis test Table 4.9 Summary of hy CHAPTER 1: INTRODUCTION 1.1 Research background In a globalizing world, many international firms have moved from a multilocal to a global branding strategy (Ozsomer & Altaras, 2008; Steenkamp et al., 2003) Due to Ozsomer et al (2012), global branding is understood as firms market their products on a global basis with only limited adaptation to local markets It standardizes aspects of its brand communication program like name, logo, image, packaging, positioning and consumers in multiple countries consider to be global (Akaka and Alden, 2010) In contrast, local brand is defined as brand that exists only in one country or in a limited geography area (Wolfe, 1991) Many multinational corporations today are altering their brand portfolios in favor of global brands (Steenkamp, Batra and Alden, 2003) which are brands that consumers can find under the same name in multiple countries with generally similar and centrally coordinated marketing strategies (Yip, 1995; Branch, 2001) Globalness is perceived in mind of consumers and is called perceived brand globalness (Steenkamp, Batra and Alden, 2003) Perceived brand globalness has been researched mostly in the fast-moving consumer goods sections in highly developed countries, whereas the effect on retailer brand equity in emerging countries remains unclear In Vietnamese context, many global brands are very successful compare to other local brands It began from late 1980s when Vietnam opened its market and welcomed foreign investment and trading Until now, besides agricultural products, food processing products, textile… which are our domestic strengths products, almost other global productions have greater market share compare to the same local brand productions The research of International Business Publication (2013, p.130) showed that foreign brand have proliferate in Vietnam over the past decade Vietnamese consumers also remarkably familiar with foreign products even though they are not available in Vietnam due to internet access and contact to their foreign relative living abroad Vietnamese consumers, especially young people seem to prefer global brand An assessment of a big fast- food brand in the world McDonald’s stated that “Vietnam has been at the top of McDonald's list of the next market to open for a very long time” (Maresca, 2014) Another example is the recent event of Starbucks store in Ho Chi Minh City On the opening day, it attracted a lot of young customers who were willing to stand in long queues and wait for a long time for their chance to sample the ‘new’ coffee (The Saigon Times, 2013) This also is a value example for the readiness of Vietnamese customer toward foreign product Actually, there is the challenge for local brands to get their market share and compete with other global brand within local market But building our local brand value has just been taken care recently And it seems that Perceived brand globalness is really a new concept that very few Vietnamese brands have been successful in building an image as a global brand It is the fact that few Vietnamese corporate reaches the level of multinational company Moreover, to expand their business to an emerging market, retailers need to build the differentiation to distinguish themselves from local competitors in target market Some reasons for moving toward global brands are yield economies of scale and scope in Research and Development, manufacturing and marketing (Yip, 1995); 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International Journal of Advertising, 10, 49-58 Wong, A., & Zhou, L (2005) Consumers’ motivations for consumption of foreign products: An empirical test in the People’s Republic of China Retrieved July 21, 2007, from: http://www.u21global.com/PartnerAdmin/ViewContent?moduleDOCUMENTLI BRARY&oid%2014097 51 Yip, G.S (1995) Total Global Strategy: Managing for World- wide Competitive Advantage Prentice- Hall: Englewood Cliffs, NJ Zeithaml, V.A (1988) Consumer perceptions of price, quality, and value: a means- end model and synthesis of evidence Journal of Marketing, 52 (3), 2-22 52 APPENDICES Appendix A: Questionaire (English) Dear respondent, I am Mai Trang, Master program intake of ISB- UEH I am doing a research “The Effect of Perceived Brand Globalness on Brand Value and Purchase Intention” Would you please help me answer this survey Every precious respond build a value of the research Participation in this survey is voluntary and no individual data will be reported The information is used for academic purpose only and strictly confidential So I would like to thank you in advance for your indispensable cooperation If it has any concerned, please feel free to contact me at dinhmaitrang@gmail.com or HP 0936 437 837 Please indicate the extent of your disagreement or agreement with each statement by choosing a number from to 7) 1= totally disagree, 2= slightly disagree, 3= Disagree, 4= Neutral, 5= Agree, 6= slightly agree, 7= totally agree I Screening question: Please answer below question when you see these pictures: This brand is very familiar to me Everybody here has heard of this brand I am very knowledgeable about this brand I have seen many advertisement for it in magazines, radio or TV If your answers are above 4, please move to next questions If they are from less than 3, please contact us to get another questionnaire Thank you very much 53 II Main questions: Continue with above brands, please state you respond with below questions: STT 10 11 To me, this is a global brand I think consumers overseas buy this brand This brand is sold all over the world This brand delivers what it promises You can believe what the ads said about this brand Overtime, my experiences with this brand let me to expect it to keep it promises Overtime, my experiences with this brand let me to expect it to keep it promises This brand is very high on overall quality This is a brand of superior quality This is a very well made brand This is a very prestigious brand 12 This brand has high status 13 14 This brand is very upscale I would buy this brand I would seriously consider 15 16 17 purchasing this brand How likely would you be to purchase this brand? I will definitely recommend that friend buy this brand 54 BI Personal information: Please let us know some of your information: Gender: 2.Age: Education: Occupation: Average income: □ Less than 7Mil VND □ From 7Mil to 12Mil VND Thank you very much for your contribution Appendix B: Questionaire (Vietnamese) Kính chào anh/ chị, Tôi Mai Trang, học viên cao học Viện Đào Tạo Quốc Tế (ISB) – Trường Đại Học Kinh Tế Tp.HCM Tôi thực đề tài nghiên cứu Tác động nhận thức thương hiệu toàn cầu đến giá trị thương hiệu ý định mua hàng Rất mong anh/ chị dành thời gian thực bảng khảo sát bên Mỗi câu trả lời quý báu anh chị đóng góp phần khơng nhỏ vào thành cơng đề tài nghiên cứu Tất thông tin cá nhân anh/ chị giữ bí mật, có thơng tin tổng hợp báo cáo cơng bố Trong trình thực phiếu khảo sát này, Anh/ Chị có thắc mắc nào, xin vui lịng liên lạc với tơi qua địa email: dinhmaitrang@gmail.com điện thoại 0936 437 837 Chân thành cảm ơn hỗ trợ anh/ chị Với câu trả lời sau, anh/ chị vui lòng đọc nhận định cho biết mức độ đồng ý với nhận định đưa theo mức độ sau: 55 1= Hồn tồn khơng đồng ý, 2= Rất khơng đồng ý, 3= Khơng đồng ý, 4= Bình thường,5= Đồng ý, 6= Rất đồng ý, 7= Hoàn toàn đồng ý I Câu hỏi thăm dò: Anh/ chị vui lòng xem hình trả lời câu hỏi bên dưới: Tôi thấy nhãn hiệu quen thuộc Mọi người nghe nhãn hiệu Tôi am hiểu nhãn hiệu Tôi xem quảng cáo báo hay TV Nếu câu trả lời anh/ chị từ trở lên, xin thực tiếp câu lại Nếu câu trả lời từ trở xuống, anh/ chị vui lịng liên hệ chúng tơi Cảm ơn anh/ chị II Câu hỏi chính: Tiếp tục với nhãn hiệu trên, anh/ chị cho biết mức độ đồng ý ý kiến sau: STT Tôi nghĩ nhãn hiệu tồn cầu Tơi nghĩ khách hàng nước ngồi mua Nhãn hiệu bán toàn giới Nhãn hiệu mang đến cam kết Bạn tin tưởng quảng cáo Qua thời gian, trải nghiệm mình, tơi mong đợi 56 10 nhãn hiệu thực điều hứa Bạn tin tưởng nhãn hiệu Nhãn hiệu có chất lượng tốt Đây nhãn hiệu chất lượng vượt trội Những sản phẩm nhãn hiệu làm tốt 11 Đây nhãn hiệu danh giá 12 Nhãn hiệu thể đẳng cấp Nhãn hiệu nhãn hiệu cao 13 14 15 16 17 cấp Tôi mua nhãn hiệu Trong tương lai gần, có dịp, tơi suy nghĩ nghiêm túc để mua nhãn hiệu Tơi chắn mua sản phẩm có hội Chắc chắn giới thiệu bạn sử dụng nhãn hiệu III Thông tin sơ bộ: Anh chị vui lịng cho biết số thơng tin cá nhân sau đây: Giới tính: 2.Độ tuổi anh/chị: Trình độ văn hóa anh/ chị: Nghề nghiệp anh/chị: Thu nhập bình quân anh/ chị: □ Dưới triệu VNĐ/ tháng □ Từ triệu- 12 triệuVNĐ/tháng Kết thúc khảo sát Chân thành cảm ơn giúp đỡ nhiệt tình anh/ chị ... - The effect of Perceived brand globalness on brand value which are perceived brand quality, perceived brand prestige, brand credibility - The effect of Perceived brand globalness on Brand purchase. .. investigate the effects of perceived brand globalness on brand value, which in turns affect customer purchase intention Brand value is manifested via brand credibility, brand prestige, and brand quality... Therefore the conceptual model of this study is showed the effect of perceived brand globalness to brand values which includes brand credibility, perceived brand quality, perceived brand prestige, and