Summary of doctoral thesis business administration the impact of consumer perception toward corporate social marketing on multi dimensions of brand equity the case of milk products in vietnam

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY Nguyen Anh Tuan THE IMPACT OF CONSUMER PERCEPTION TOWARD CORPORATE SOCIAL MARKETING ON MULTI-DIMENSIONS OF BRAND EQUITY: THE CASE OF MILK PRODUCTS IN VIETNAM Major: Business Administration Code: 9340101 SUMMARY OF DOCTORAL THESIS Ho Chi Minh City – 2020 The thesis was completed in University of Economics Ho Chi Minh City Tutor: Asso Prof Ph.D Vo Thi Quy Reviewer : Reviewer : Reviewer : The thesis will be protected in front of the Council at: At …… Hour …… …… …… …… …… …… The thesis can be found at: CHAPTER OVERALL INTRODUCTION 1.1 Research Context and issue statement The trend towards green and/or sustainable consumption places a requirement for marketing (companies) to not only bring satisfaction to customers, maximize profits (Levitt, 1960), but also be proactive responsible for social causes / issues (Crane and Desmond, 2002; Maignan and Ferrell, 2001, 2004); marketing must contribute to the formation of sustainable social behavior (Gordon et al., 2011; Emery, 2012), actively support sustainable economic development and achieving sustainability in the marketplace (Hunt, 2011; Martin and Schouten, 2012) That is, companies must actively apply a sustainable marketing form such as corporate social marketing (CSM) (Gordon et al., 2011; Martin and Schouten, 2012; Emery, 2012) CSM is based on the economic, ethical, philanthropic responsibilities of both companies and marketers in implementing responsibility for social issues (Kotler and Lee 2005a; Kotler, 2009, 2011) CSM affects perceptions and behaviors of target audiences (communities, suppliers, consumers, ), thereby forming sustainable social behaviors, creating benefits not only for society but also for companies (Kotler et al, 2002; Kotler and Lee, 2005a, 2008; Gordon et al., 2011; Lefebvre, 2012; Emery, 2012) The dairy industry has made important contributions to the economy, sustainable economic development, and human nutrition and health (FAO) The achievements in consumption and production of the Vietnamese dairy industry have been achieved over the past time, showing the positive moves of consumers; the companies's investment and efforts in branding, asserting its position in the market (StoxPlus, 2018; VIRAC, 2019; VDA, 2019, 2020) To ensure success and effectiveness in branding, it is necessary to have a clear understanding of brand equity (Keller and Lehmann, 2006), how to measure and manage consumer-based brand equity ( CBBE) (Kapferer, 2008; Kartono and Rao, 2009a; Nguyen Dinh Tho and Nguyen Thi Mai Trang, 2011); how to evaluate sources (marketing) affecting on CBBE creation (Aaker, 1991, 1996; Keller, 1993, 2008; Hsieh, 2004; Anderson, 2011) Many authors have examined the relationship of marketing mix on CBBE dimensions (eg, Yoo et al., 2000; Ramos and Franco, 2005; Tong and Hawley, 2009b; Kim and Huyn, 2011; Nguyen et al, 2011; Buil et al., 2013; Shariq, 2018;…) However, in the dairy industry in Vietnam, there is still a lack of empericals about CBBE; about the relationships among marketing activities – especially CSM – impact on CBBE creation Case study of Hoeffler and Keller (2002) showed that CSM has a positive effect on brand equity On the other hand, CSM is characterized by influences on individual perception and behavior (Kotler and Lee, 2008; Lefebvre, 2012; Kotler et al, 2012); applied more and more popularly (Drumwright and Murphy, 2001; Andreasen, 2002; Truong and Hall, 2013, 2016); but CSM has not been investigated from a consumers’s perception (Bloom et al., 2006; Inoue and Kent, 2014; Deshpande, 2016) From the above premises, it is necessary to conduct empirical research to investigates the relationships between CSM impact on CBBE dimensions, on behavioural intention toward milk brand, based on consumers' response, in the case of milk products in Vietnam 1.2 Research Objectives The specific research objectives are as follow: The first, To Explore consumer perception of CSM, the case of milk products in Vietnam market The second, To Measure the relationship impact of CSM (perceived CSM) on CBBE dimensions, the case of milk products in the Vietnamese market The thesis also includes the added objective of measuring the dimensions of CBBE; and the inter-relationships among the dimensions of this CBBE The third, To Measure and evaluate the importance of CSM - compared to advertising and distribution intensity - in the impact relationships on CBBE dimensions, the case of milk products in the Vietnamese market The fourth, To test the factors (gender, location, income, age, types of milk, original of milk brands) on the relationships that affect CBBE dimensions From there, to evaluate the stability of the research model and propose managerial implications 1.3 Research subjects and scope The research subject is the consumers’s response (awareness, attitudes and behavioural intention) in the impact of marketing activities (CSM, advertising, and distribution intensity) on CBBE multi-dimensions Respondents: senior researchers, practical experts in the field of marketing or branding; Consumers are individuals (over 18 years old, who directly and regularly purchase/use powdered milk and/or fresh milk brands from dairy companies in Vietnam) This study focuses on surveying consumers who are living and working in two big cities in Vietnam (Ho Chi Minh and Hanoi), in the period of 2018 - 2019 The thesis will focus on the perspective of Cognitive Consumer Behavior to investigate the relationships between elements marketing impact on CBBE creation 1.4 Methods of studying The author will use the mixed method: combination of qualitative research (indepth-interviews with experts, focus group discussions with consumers), and preliminary and formal quantitative research (face to face interviews with respondents) Data were analyzed using structural equation modelling (SEM) to test the influences of different marketing activities on multi-dimensions of CBBE The multi-group analysis method was used to evaluate invariance and stability of the model 1.5 Contribution of research in theory and practical implications Explore and investigate the consumers’ perception of CSM The thesis has built a new scale of the Perceived CSM construct (4 items), and tested the Brand trust scale for the first time in the dairy industry in Vietnam market The remaining scales are adjusted to suit the market and context of the study Examning and investigating the relationship of positive effects of CSM (perceived CSM) on multi-dimensions of CBBE (the case of milk products in the Vietnamese market) This is also the first emperical study to focus on the relationships between CSM and CBBE dimensions Furthermore, the results also show that CBBE (milk products in the Vietnamese market) includes dimensions and there is a positive interrelationship among these CBBE dimensions The results contribute significantly to domestic and international researchers and practicers on CBBE and CSM, consumer behavior (in general) Confirming the role and importance of CSM (compared to other traditional marketing tools such as advertising and distribution intensity) in an transitional/emerging economy for building a milk brand CSM is an effective mean not only in CBBE creation but also in bringing benefits and values to society, towards sustainable development Previous studies on the impact of marketing on CBBE have only been based on Cognitive Psychology Perspective or Cognitive Approach The study is based on the perspective of Cognitive Consumer Behavior, namely applying the TPB model (Ajzen, 1985, 1991, 2019) The results show that marketing activities are both the source of CBBE, and also a positive factor to the perception, attitude and behavior of consumers towards the milk brands The thesis has enriched the literature of CSM (specifically, consumers’s perception toward CSM), brand equity or CBBE, and the method of measuring CBBE This study provides valuable applications to assist managers and marketers in measuring and managing CBBE, in strategic planning and building marketing programs/campaigns, that should be applied priority CSM for its efficency and relevance to green consumption and sustainable consumption trends In addition, advertising agencies, market research, marketing / branding consultants, and companies in consumer goods such as food and nutrition can also consider using the findings in this study depending on the purpose of usage CHAPTER LITERATURE REVIEW AND RESEARCH MODEL 2.1 Literature review Market/Customer Orientation and Sustainable Marketing are indications for authors to focus on consumer behavioral psychology, in a context in which green and/or sustainable consumption is a clear trend; companies aiming to adopt sustainable marketing activities such as CSM; and an important theme in marketing is branding, emerging as the concept of brand equity and CBBE 2.1.1 Prescriptive Cognitive Consumer Behavior models Theory Reasoned Action (TRA) The TRA Model (Fishbein and Ajzen, 1975) argues that the attitude towards the behaviour and the subjective norms are two basic groups of factors that forming individual behavioural intention and actual behaviour Subjective norms elements belong to individual perception and influenced by society; attitude towards the behaviour as elements belonging to the impact from the object (Bray, 2008) Theory Planned Behavior (TPB) In the TPB model (Ajzen (1985, 1991, 2019), behavioural intention is controlled by three groups of factors: attitude towards behavior, subjective norms and perceived behavioural control; Actual behavior, stems from behavioral intention, but is regulated to a certain extent by variables of perceived behavioural control (Ajzen, 1991, 2019) In an attempt to improve behavioral predictability in In specific contexts, the TPB model is continuously adjusted by Ajzen ( 2011, 2019), namely, cognitive variables that control behavior not only directly impacting intentions but also regulating attitudes and subjective norms Ajzen's TPB model (1985, 1991) is an extension of TRA (Bray, 2008); improving predictive behavior compared to TRA (Giles and Caims, 1995); TPB is applied in many situations, it is appropriate and popular in the field of behavior (Corner and Armitage, 2006; Solomon et al., 2006; Bary, 2008) 2.1.2 Corporate social marketing (CSM) The concept Social Marketing was first proposed by Kotler and Zaltman (1971) The main goal of the social marketing concept is “to achieve corporate success by balancing customers’ short-term personal needs and society’s long-term interests” (Kotler 1972, p54) CSM is an extension of the scope of social marketing to a corporate context (Drumwright and Murphy, 2001; Hoeffler and Keller, 2002; Bhattacharya et al., 2005; Bloom et al., 2006; Kotler et al., 2012) CSM was born in the context that companies are expected to take on more social responsibility (Kotler, 2011) CSM applies marketing principles to better shape the market, be more efficient and sustainable, and increase people’s well-being and social welfare (Phils et al., 2008); and CSM is constantly adjusted to the innovation of society (Lefebvre, 2012) CSM can be appoarched as a corporate that actively or voluntarily uses business resources of itself and/or its partners to develop, sponsor or conduct campaigns or programs to care for and improve education, public health, community well-being and/or social welfare; environmental protection, …; thereby aiming to change perceptions and behaviors voluntarily of the target audience (groups) (local communities, partners, customers / consumers, ), creating practical benefits for both society and the corporate (results from expert interviews; based on content, definitions of CSM from the authors) Applying CSM has is a clear trend because it connects the purpose of marketing of the corporate with the desired robustness of society (Andreasen, 1994, 2002; Kotler and Lee, 2005b; Kotler et al., 2012); and people trust on CSM programs by corporates themselves or co-design and/or implementation (Inoue and Kent, 2012, 2014; Truong and Hall, 2016) CSM aims to transform perception and voluntary behavior of target audiences, thereby forming sustainable social behaviors that benefit both society and business (Kotler et al et al, 2002, 2012; Kotler and Lee, 2005a, b, 2008; Gordon et al., 2011; Lefebvre, 2011, 2012; Emery, 2012) However, CSM has not been empirically studied from the perspective of consumers (Bloom et al., 2006; Inoue and Kent, 2014; Deshpande, 2016; Truong and Hall, 2013, 2016) 2.1.3 Theory and experiment of consumer-based brand equity (CBBE) Brand equity or CBBE is one of the common concepts that has been discussed by researchers for many years, but there is no general consensus on the concept, definition, or management of it (Keller, 1993, 2008; Yoo and Donthu, 2001; Vazquez et al., 2002; Davcick et al., 2015, Oliveira et al., 2015) The reason is that there is no consensus about the concept, the background theory when researching brand equity (Raggio and Leone, 2007; Anderson, 2007); and the diversity in the definition and the approach adopted to measure this concept comes from both financial and marketing aspects (Hsieh, 2004; Christodoulides and De Chernatony, 2010) The authors have implied that CBBE expressed selectively wills and emotions of consumers for the brand in a set of competing brands (in a type of prtoduct) available on the market (Davis and Doughlass, 1995; Keller and Lehmann, 2006; Kartono and Rao, 2009b) CBBE as results from marketing effords of companies to build possitive awareness, attitude, behavior of consumers towards a brand (Keller, 1993, 2008; Mackay et al., 1997; Netemeyer et al., 2004; Anderson, 2007; Bick, 2009; Kartono and Rao, 2009b); explain the intangible value why consumers choose to buy this brand without the other brands (Keller, 2008; Berry, 2000; Yoo et al., 2000; Ailawadi et al., 2003) In empirical research on CBBE, researchers based on Cognitive Perspective Psychologycal, that means are the collection of data about a consumer's interaction (relationship) to a brand (product), using the data to evaluate this person's perceptions (feelings, attitudes, behavioural intention) towards the brand, and the specific brand marketing activities (Lassar et al., 1995; Berry , 2000; Yoo and Donthu, 2001; Baker et al., 2005; Kartono and Rao, 2005, 2009a, 2009b) aimed to (i) define CBBE dimensions (and/or interrelationships of dimensions); or (ii) evaluate specific marketing activities affecting consumer perceptions – the source of CBBE Results of empirical studies have demonstrated the impact marketing activities have increased the CBBE dimensions But these research is limited to activities traditional marketing (marketing mix ), while CSM – a type of sustainable marketing, be seen as affecting an area of extreme to CBBE – but has not been measured and tested the theory by experimental studies, but only stop at case study (e.g Hoeffler and Keller, 2002); and CSM has also not been investigated based on consumers’s responses (Bloom et al., 2006; Inoue and Kent, 2014; Deshpande, 2016; Truong and Hall, 2016) 2.2 The official hypothesis and research model Initially, to determine the CBBE dimensions of milk products in the Vietnamese market, the author applied Aaker's CBBE model (1991, 1996) because this model is the most cited (Washburn and Plank, 2002; Pappu et al., 2005, 2006; Atilgan et al., 2005; Tong and Hawley, 2009a; Su and Tong, 2015; de Oliveira et al., 2017); consistent with empirical studies on CBBE (Quan, 2006; Buil et al., 2013) Qualitative research (expert interviews and group discussions) helps to adjust - build an official research model, case of milk products in the Vietnamese market: (i) identify dimensions of CBBE, including brand awareness, brand associations, perceived quality, brand loyalty, and an emerging dimension is brand trust; (ii) identify the two most popular marketing mix activities that are applied by companies in the dairy/milk industry, namely advertising and distribution intensity At the same time, the author also conducted experiments to determine the components of CBBE (milk products) and the impact relationship between these ingredients (the results are presented in Appendix 5) These results are the basis for building a research model to investigate the relationship of the impact of CSM, advertising and distribution intensity on CBBE multi-dimensions, the case of dairy products in the Vietnamese market A research model (Figure 2.5) with 20 proposed hypotheses will be researched to simultaneously test the relationship of marketing activities to CBBE components (15 hypotheses H1/H2/H3 – a, b, c, d, e – is the relationship that positively affects CSM, advertising and distribution intensity on brand awareness, brand associations, perceived quality, brand trust, brand loyalty), and the inter-relationship among these CBBE dimensions (5 hypotheses H4, 5, 6, 7, 8), the case of milk products in the Vietnamese market Thereby, also to evaluate the value and reliability of the scales; confirms the model's compatibility with market data The Proposed Research model is base on the perspective of Cognitive Consumer Behavior, namely, the TPB model of Ajzen (1985, 1991, 2019) The Conceptual framework describing consumer beliefs and attitudes about marketing activities (CSM, advertising, and distribution intensity) that will positively impact perception, attitude, intention, behaviour of consumers towards milk brands – means forming and increasing CBBE, with brand loyalty expressing consumer behavioural intention (Backman and Crompton, 1991; Oliver, 1999; Wood, 2000; Yoon and Uysal, 2005; Chaudhuri and Holbrook, 2001; Keller, 2008; Iordanova, 2016) that reflect the content of this concept Based on results of assessment of duplication, ambiguity, not related to conceptual content; 10 statements are retained for the next research step (statements are adjusted to make sentences, words easy to understand, describe in accordance with the content of CSM concepts, perceived CSM and suitable for the context research) A total of 58 observed variables (draft scale 1a) were used to measure research concepts (in the model) and coded and evaluated from experts (2nd time) Results of hand-to-hand discussion with experts (2nd time) formed 61 observed variables (draft scale 1b) used to measure research concepts, used in focus group discussions 3.2.3 Key findings from Focus Group Discussion Most of consumers participating in the discussion feel the purpose and meaning of CSM programs of dairy/milk enterprises; They expressed sympathy and appreciation for CSM programs sponsored by dairy enterprises - contributed or implemented in Vietnam in recent years The group discussion result is the formation of 51 observed variables (draft scale 2) used to measure 08 contructs: brand awareness, brand association, perceived quality, brand loyalty, brand trust, advertising, distribution intensity and CSM (perceptions) These are the scales used for quantitative research in the next section 3.3 Preliminary quantitative research results Preliminary quantitative research to adjust and redefine the scale structure to use for official research The author conducts direct interviews with 100 respondents (people over 18 years old, who often purchase directly and usage dairy products) at popular shopping points in Ho Chi Minh City Results: 51 observed variables used to measure 08 research concepts, after analyzing the reliability through Cronbach's Alpha coefficients, 16 items were rejected This total of 35 observed variables (the rest) satisfies the criteria in the EFA, so they are used in formal quantitative research 11 CHAPTER OFFICIAL QUANTITATIVE RESEARCH FINDINGS AND DISCUSSION 4.1 Descriptive statictic Formal quantitative research through interviews with 850 respondents using convenient sampling method; Direct interviews with consumers (individuals over 18 years old, who regularly and directly purchasing / usage dairy products) in Ho Chi Minh City (500) and Hanoi (350) with official questionnaires (Likert scale points, performing the adjustment of milk brand names to form 10 questionnaires associated with 10 popular milk brands selected for study) Out of the 850 responses collected, there are 780 valid Table 4.1: Descriptive statistical results Sample characteristic Sample characteristic Frequency 397 (50.90%) Female 265 (33.97%) Type of Fresh 515 (66.03%) milk Powdered HCM city 477 (61.15%) Vietnam 462 (59.23%) Hanoi city 303 (29.74%) Foreign 318 (40.77%) Income < mil (per – 12 mil month) > 12 mil 260 (33.33%) 18 – 29 Age 241 (30.90%) 30 – 39 (in years) 279 (35.77%) > 40 232 (29.74%) Gender Location Male Frequency Brand origin 383 (49.10%) 286 (36.67%) 262 (33.59%) 4.2 Official quantitative research results The results of the reliability test and Explorary Factor Analysis (EFA) A total of scales with 35 observed variables are evaluated respectively on their reliability The results showed that all variables have Cronbach’s Alpha coefficients greater than 0.6 (in the range: 0.815 - 0.897), and Corrected Item-Total Correlations are greater than 0.3 A total of 35 observed variables after EFA were extracted into 08 factors with the total variance extracted of 68,224% (> 50%) in Eigenvalue was 1,181 (> 1); KMO coefficient = 0.985 (cut-off: 0.5