Summary of dissertation in business administration research on factors affecting the brand loyalty of vietnamese consumers towards garment products of garment 10 corporation

VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES DAO THI HA ANH RESEARCH ON FACTORS AFFECTING THE BRAND LOYALTY OF VIETNAMESE CONSUMERS TOWARDS GARMENT PRODUCTS OF GARMENT 10 CORPORATION Major: Business administration Code: 9.34.01.01 Summary of dissertation in business administration HANOI - 2021 THE DISSERTATION WAS COMPLETED AT THE GRADUATE ACADEMY OF SOCIAL SCIENCES Science instructor 1: Assoc Prof PhD Tran Thi Minh Chau 2: PhD Ha Van Tuan Reviewer 1: Assoc Prof PhD Tran Huu Cuong Reviewer 2: Assoc Prof PhD Vu Huy Thong Reviewer 3: Assoc Prof PhD Tran Minh Tuan The dissertation will be defended in front of the Academy level Dissertation Evaluation Committee hold at the Graduate Academy of Social Sciences - Vietnam Academy of Social Sciences At:… o’clock date …… month …… 202 The dissertation can be found at: - National Library of Vietnam - The library of the Graduate Academy of Social Sciences INTRODUCTION Urgency of the subject: Changes in the business environment in the context of globalization and fierce competition coupled with the rapid development of information technology have enhanced customer awareness and power over enterprises Therefore, businesses that want long-term success must not only perfect and improve their marketing activities, but also maintain and strengthen consumer confidence and satisfaction and retain existing customers, find new customers by clearly identifying and controlling the factors that affect consumer loyalty to the business Since the more loyal customers to the brand, the less businesses will have to pay for marketing costs The garment industry plays an important role in the country's industrial development strategy, especially when it helps create jobs for many workers To adapt to the intellectualization trend that leads to higher product requirements and bigger market competition, Vietnamese garment enterprises need to strengthen customer loyalty as a weapon to compete with foreign brands such as: Camel, Lacoste, Luis Vuiton, Yyes Sant Laurien especially when the Covid-19 epidemic is still happening quite complicatedly in the world, the investment in building loyalty for domestic customers is an urgent content Garment 10 is one of the leading garment brands in Vietnam and is present in many parts of the world with a history of more than 70 years In recent years, the Corporation has focused on investing in these factors in order to strengthen and develop consumers' brand loyalty, investing in quality, product design, and distribution channels, applying many promotion policies,… and achieved certain results in terms of growth in revenue, profit, frequency of second and third repurchases increased, domestic brand reputation also increased However, objectively, the number of loyal customers Garment 10 brand is not commensurate with its potentials and strengths Therefore, it is necessary to have in-depth studies to properly assess the importance and impact level of the factors affecting Garment 10’s brand loyalty of consumers, thereby proposing solutions to consolidate and develop the brand loyalty of consumers to Garment 10's garment products in the coming time For the above reasons, the graduate student has chosen the topic "Research on factors affecting the brand loyalty of Vietnamese consumers towards garment products of Garment 10 Corporation" as research subject in this dissertation Research objective and tasks: 2.1 Research objective: The objective of the research is to identify and evaluate the impact level of factors affecting the brand loyalty of Vietnamese consumers to garment products of Garment 10 Corporation, thereby proposing solutions to consolidate, maintain and enhance the brand loyalty of Vietnamese consumers towards Garment 10’s garment products 2.2 Research tasks: - Systematize research works focusing on the factors affecting brand loyalty of consumers - Interview and discuss with groups of experts, sellers, and customers to identify the factors affecting the brand loyalty (STTTH) of consumers for Garment 10’s products - Perform preliminary investigation of issues related to factors affecting Garment 10’s consumer loyalty to provide appropriate results for a formal investigation of factors affecting consumer loyalty of consumers towards Garment 10 products - Study the general brand loyalty rating system - Take survey and assess the current situation of consumer loyalty to May 10 branded products - Propose solutions to consolidate and enhance Garment 10’s brand loyalty Subject and scope of research 3.1 Main subject of the topic: The research subject in this dissertation are: factors affecting the brand loyalty of consumers towards garment products of Garment 10 and the solution to reinforce and enhance brand loyalty for this unit 3.2 Scope of reserach - In space: Study in Hanoi, Ho Chi Minh City, Quang Ninh, Hai Duong, Hai Phong - In time: For secondary data: The author collects data from 2015 to 2019, and then proposes solutions and recommendations to strengthen and develop consumer brand loyalty to 2025, with a vision to 2035 For primary data: The author collects data through consumer interview between March and July 2019 - In content: The dissertation focuses on the factors affecting the brand loyalty of Vietnamese consumers to the garment products of Garment Corporation 10 under two approaches: Loyalty determined by internal factors and loyalty determined by customer factors Target customers are those who have purchased and used Garment 10 garments more than twice Research methods In the process of studying the topic, the graduate student has used a combination of many research methods, both qualitative and quantitative, including the following methods: (i) Statistical and descriptive methods; (ii) Methods of synthesis, analysis, comparison; (iii) In-depth interview and group discussion method; (iv) Method of observation at fashion stores and questionnaire investigation; (v) Data processing methods: Data encrypt; Scale test, discovering factor analysis, confirmatory factor analysis, SEM structure model New contributions to the science of the thesis Theroretically: - The dissertation contributes to clarify the relationship between the level of trust, consumer satisfaction on policies of products, prices, store environment, promotion programs (marketing-mix activities) of enterprises and consumers’ brand loyalty - The dissertation has built a research model to evaluate the factors affecting the consumers’ brand loyalty exclusively for the garment sector, namely, garment products at Garment 10 Corporation - The dissertation applies criteria for factors affecting the consumers’ brand loyalty based on inheritance from a number of domestic and international studies; however, the author has some necessary adjustments to suit the research context at Garment 10 Corporation In terms of practice: - The dissertation analyzes and shows the experience of consolidating and enhancing the brand loyalty of some major garment brands in the country and all over the world, thereby drawing lessons on research issues for Garment 10 Corporation, general garment brands - The dissertation adds a number of research documents on the factors affecting the consumers’ brand loyalty for researchers, especially domestic researchers, who are interested in factors with Vietnamese nature and in-depth researches in the garment sector in Vietnam - Proposing a method to solve problems in a relatively new trend to maintain and develop the consumer loyalty to garment products of Garment 10 Corporation - Identifying factors that affect consumer trust, satisfaction and brand loyalty to products of Garment 10 Corporation, thus helping managers thoroughly understand that which factors form internal factors of enterprises and factors relating to consumers From that, they have a more general perspective as well as goals and decisions on business strategy for the long-term stability and development of enterprises Scientific and practical significance of the dissertation 6.1 Scientific significance The dissertation contributes to modifying the model of factors affecting the brand loyalty of Vietnamese consumers for garment products through qualitative and quantitative analysis 6.2 Practical significance - The dissertation adds one more research document studying on factors affecting the brand loyalty of consumers for researchers, especially domestic researchers who are interested in the affecting factors related to Vietnamese nature, in-depth research works in the garment industry in Vietnam - The research results of the dissertation are valuable references for practical agencies in the implementation of policies to support the development of a key economic sector like the garment industry in Vietnam or develop policies to promote development of garment businesses, including policies to support businesses in developing their brands - The dissertation suggests and plans strategic direction, marketing solutions suitable for Garment 10 Corporation in particular, and garment companies in general in the consolidation and development of brand loyalty of Vietnamese consumers towards Garment 10 products Structure of the dissertation The dissertation consists of chapters as follows: Chapter 1: Overview of researchs related to factors affecting the brand loyalty Chapter 2: Theoretical basis of factors affecting the brand loyalty of consumers for garment products Chapter 3: Research model and research methods Chapter 4: Research results Chapter 5: Solutions to consolidate and develop the brand loyalty of the consumers towards Garment 10 in particular and garment enterprises in general Chapter OVERVIEW OF RESEARCHES RELATED TO THE TOPIC 1.1 Results of research on factors affecting garment brand loyalty Researching customer loyalty to garment products is a topic that many researchers are interested in because of the reason that this is an area related to taste for a product that is fashionable and has a wide coverage for everyone In addition, it also has an important position and role in the retail market, even in the economy In general, in terms of nature, factors affecting garment brand loyalty can be divided into two research groups on factors including: (i) factors having direct impact, namely: the research work of Alice Nthenya Mutuku (2010); Joshi Gaurav, Anwariya Anurag (2015); Rahil Khoei (2014) These works focus on research, analysis and evaluation of factors that directly affect brand loyalty (ii) factors having indirect impact through intermediate variables, namely: the research works of Pham Van Tuan (2014); Pham Lan Huong (2015); Irem Erdogmusá Isál Buădeyri-Turan (2012); group of authors Ruzica Brecic, Maja Stracenski Kalauz, Alica Grilec Kauric (2016); Jitka Novotova (2018); Yasir Ali Soomro (2019); Ice cream Z.K Zhang; Sasa Wang; Sesia J Zhao (2015) 1.2 The research results on the relationship between internal factors of the business and brand trust, satisfaction and consumer loyalty (i) The relationship between internal factors of the business and brand trust and brand loyalty of consumers by Pan-Jin Kim (2017); Javad Golzari, Farshid Movaghar (2015) (ii) The relationship between internal factors of the business and Chapter THEORETICAL AND PRACTICAL BASIS OF FACTORS AFFECTING BRAND LOYALTY OF THE CONSUMER TOWARDS GARMENT PRODUCTS 2.1 Overview of brand loyalty 2.1.1 Concept of brand loyalty 2.1.2 Classification of brand loyalty 2.1.3 The stages to develop brand loyalty 2.2 Brand loyalty to garment products 2.2.1 Garment products 2.2.2 Brand loyalty to garment products 2.2.3 Evaluating garment brand loyalty 2.2.4 Impact of brand loyalty on enterprise’s activities 2.3 Factors affecting garment brand loyalty 2.3.1 The concept of factors influencing consumers' brand loyalty towards garment products 2.3.2 Factors affecting garment brand loyalty The dissertation presents the factors affecting garment brand loyalty, including factors within the business (products, prices, store environment and promotion) and typical factors belonging to customers such as their beliefs and satisfaction At the same time, the dissertation also shows the relationship between internal factors and factors belonging to customers 2.4 Experiences in strengthening and developing brand loyalty of garment enterprises 2.4.1 Experiences of a number of domestic garment enterprises 2.4.2 Experience of a number of foreign garment enterprises 2.4.3 Some lessons learned for Garment 10 Corporation 11 Firstly, Garment 10 needs to properly identify the factors that affect consumers' brand loyalty with consideration of their degree of influence and evaluation Secondly, for each influencing factor, it is necessary to effectively strengthen and develop consumer loyalty Thirdly, focusing on exploiting the strengths of a domestic business to maintain and develop consumer loyalty Fourthly, identifying the shortcomings to have development plans suitable to current conditions as well as plan for future development, facing the great competition from large garment enterprises with very strong financial potential to strengthen and develop domestic consumer loyalty Fifthly, it is necessary to focus on integrating factors affecting consumer loyalty Chapter MODEL AND METHOD OF RESEARCH 3.1 Proposed research model The dissertation presents the practical situation in Garment 10 and the theoretical basis for the proposed research model 3.2 Research method 3.2.1 Research process The dissertation is performed by steps: scale adjustment, preliminary research and official quantitative research 3.2.2 Questionnaire building 3.2.3 Research method Preliminary research: It is done through two methods: qualitative and quantitative Official research: It is done through quantitative research method 12 Table 3.2 Table of sampling rates by area No Total Survey locations Corresponding Sample Element Number (NTD) Rate % Hanoi Ho Chi Minh Quang Ninh Hai Phong Hai Duong 572 448 31,78 24,89 Number of valid sample elements obtained (NTD) 398 246 369 20,5 201 265 14,72 110 146 8,11 82 1800 100 1037 Source: Research results of the author 3.3 Research concepts measurement 3.4 Preliminary assessment of the scale 3.4.1 Cronbach’s Alpha Reliability coefficient 3.4.2 Analysis of factors exploring EFA 3.5 Official introduction of resarch Chapter RESEARCH RESULTS 4.1 General introduction about Garment Corporation 10 4.1.1 Construction and development of May 10 logo 4.1.2 Market size 4.1.3 Domestic consumption of garment products 4.1.4 Business results of Garment 10 Corporation 4.2 Assessment of May 10 Brand 4.2.1 Assessment of May 10 Brand under a corporate perspective 4.2.2 Assessment of May 10 Brand under a consumer perspective 13 4.3 Actual results of factors affecting Garment 10 brand loyalty of consumers 4.3.1 Descriptive statistical analysis 4.3.2 Quantitative analysis - Testing the reliability of internal corporate factors, trust, satisfaction and brand loyalty - Testing the reliability and validity of the scale through EFA and CFA analysis - Testing research model on factors affecting brand loyalty of consumers through SEM model Figure 4.14 SEM results of theoretical models (standardized) Source: Research results of the author 14 4.4 Research results discussion Research results from the evaluation of experts, from qualitative and quantitative research showed that consumers rated the brand loyalty of Vietnamese consumers towards garment products of Garment 10 Corporation is at a fair average impacting components (product, price, store environment, promotion, trust, and consumer satisfaction) explain 62.5% of such brand loyalty of Vietnamese consumers With a fair average level of loyalty, women tend to be more loyal than men, the higher the income, the more loyalty increases, and the more classically and luxurious office customers tend to be more loyal (author compiled from survey results) Consumers rate the highest level of customers' confidence in May 10's brand name products and promotions, while the satisfaction with the store environment and promotions of May 10 is not high According to the results of research on how consumers feel about internal factors (price policy, product, store environment and promotion) is improved, consumers will feel will feel more confident and satisfied Accordingly, consumers tend to want to continue using the product, want to buy again and again, and are willing to introduce others to the brand's products Table 4.19 The degree of influence between factors within the business (independent variable) on brand loyalty (the dependent variable) through trust and satisfaction intermediate variable Relationship Directly Indirectly Total impact impact Satisfied