The influence of brand equity on customer purchase decision a case study of co opmart

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY TRAN THI HONG DAO THE INFLUENCE OF BRAND EQUITY ON CUSTOMER PURCHASE DECISION: A CASE STUDY OF CO.OPMART BACHELOR THESIS FACULTY OF BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR: PH.D NGUYEN VAN THUY HCMC, September 2021 MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY TRAN THI HONG DAO THE INFLUENCE OF BRAND EQUITY ON CUSTOMER PURCHASE DECISION: A CASE STUDY OF CO.OPMART BACHELOR THESIS FACULTY OF BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR: PH.D NGUYEN VAN THUY HCMC, September 2021 DECLARATION I hereby declare that this study entitled “The influence of brand equity on customer purchase decision: A case study of Co.opmart” is my original work prepared under the guidance of my advisor Nguyen Van Thuy (Ph.D) I would like also to confirm that all the sources of materials used in this study are duly acknowledged I am responsible for my study Signature Trần Thị Hồng Đào ACKNOWLEDGE First of all, I would like to thank my advisor Ph.D Nguyen Van Thuy for his valuable guidance and motivation throughout the process of completing my thesis His encouragement and comments had significantly enriched and improved my thesis It would be no exaggeration to say that this research would not have been completed today without his rock steady guidance and moral support Secondly, I sincerely thank my family for allowing and supporting me to spend my free time on this project work and thus have helped me in completing the project work successfully Finally, I would like to thank my friends who always support me during the time I study in university TABLE OF CONTENTS CHAPTER : OVERALL OF THESIS 1.1 Research problem 1.2 Objectives of the study 1.3 Subject and scope of the study 1.4 Research methodology 1.5 Organization of the study 1.6 Summary CHAPTER : LITERATURE REVIEW 2.1 The basic of concepts 2.1.1 The concept of brand equity .6 2.1.2 Brand equity theory 2.1.3 The concept of customer behavior .9 2.1.4 The concept of purchase decision 2.2 Previous studies .12 2.3 Research model and hypothesis 28 2.3.1 Research model 28 2.3.2 Hypothesis 29 2.4 Summary 34 CHAPTER : RESEARCH METHODOLOGY 35 3.1 Research design .35 3.1.1 Research process 35 3.1.2 Focus group 36 3.1.3 Formal research 38 3.2 Modified the scale of factors influencing customer purchase decision at Co.opmart 39 3.2.1 The scale of brand awareness 39 3.2.2 The scale of brand association 40 3.2.3 The scale of brand loyalty 41 3.2.4 The scale of perceived quality 42 3.2.5 The scale of pricing policy .43 3.2.6 The scale of customer purchase decision 44 3.3 Statistical analysis 45 3.3.1 Test validity by Cronbach’s Alpha 45 3.3.2 EFA (Exploratory factor analysis) 46 3.3.3 Regression analysis and hypothesis testing .47 3.4 Summary 47 CHAPTER : RESULTS AND DISCUSSION 48 4.1 Sample descriptions 48 4.1.1 Retail brands are chosen during the Covid - 19 pandemic 48 4.1.2 The way of shopping during the Covid - 19 pandemic 49 4.1.3 Gender 50 4.1.4 Age 50 4.1.5 Occupation .51 4.1.6 Frequency visiting Co.opmart 51 4.1.7 Spending at Co.opmart .52 4.1.8 Product purchase 53 4.2 Cronbach’s Alpha 54 4.2.1 Evaluating brand awareness scale 54 4.2.2 Evaluating brand association scale 54 4.2.3 Evaluating brand loyalty scale 55 4.2.4 Evaluating perceived quality scale 56 4.2.5 Evaluating pricing policy scale 57 4.2.6 Evaluating purchase decision scale 57 4.3 Result of exploratory factor analysis (EFA) 59 4.3.1 Factor analysis for independent variable 59 4.3.2 Factor analysis for dependent variables 61 4.4 Correlation analysis 62 4.5 Test of regression analysis 63 4.6 Purchase decision based on demographic profile 66 4.6.1 Purchase decision based on gender 66 4.6.2 Purchase decision based on age .67 4.6.3 Purchase decision based on occupation 68 4.6.4 Purchase decision based on frequency visiting Co.opmart 69 4.6.5 Purchase decision based on spending 69 4.7 Summary 70 CHAPTER : CONCLUSION AND RECOMMENDATION 71 5.1 Conclusion .71 5.2 Recommendation 72 5.2.1 Co.opmart should focus on perceived quality to attract customers 72 5.2.2 Co.opmart should focus on pricing policy to attract customers .73 5.2.3 Co.opmart should focus on brand awareness to attract customers 73 5.2.4 Co.opmart should focus on brand association to attract customers 74 5.3 Contribution of the study 74 5.4 Limitations and directions for future researches .75 5.5 Summary 76 REPERENCES 77 APPENDIX 84 LIST OF FIGURES Figure 2.1: Brand equity model (Aaker, 1991) Figure 2.2: Customer buying decision process (Phillip Kotler, 2003) .11 Figure 2.3: A model of purchase decision, Beyene & Feyisa (2021) .13 Figure 2.4: A model of consumer purchase decision, Syed, Kazi, Zohir, Ishtiak & Nurul (2020) 14 Figure 2.5: A model of purchase intention, Rungsrisawat & Sirinapatpokin (2019) 14 Figure 2.6: A model of purchase behavior, Muhammad & Arshia (2019) .15 Figure 2.7: A model of purchase decision, Rocky Simon Hia (2017) 16 Figure 2.8: A model of purchase decision, Maulik & Ashish (2017) .17 Figure 2.9: A model of consumer purchase decision, Muhammad & Sameen (2016) 18 Figure 2.10: A model of consumer purchase decision, Naeem, Qurat-ul-ain, Umer, Amna & Muniba (2016) 19 Figure 2.11: A model of customer purchase decision, Ulas & Javad (2016) 19 Figure 2.12: A model of purchase intention, Ren - Fang Chao & Ping - Chu Liao (2016) 20 Figure 2.13: A model of purchase intention, Cristina, Valentín-Alejandro, Oscar & Jean-Pierre (2015) .21 Figure 2.14: A model of consumer behavior, Nguyen Truong Son (2008) 22 Figure 2.15: Research model 28 Figure 3.1: Research process 36 LIST OF TABLES Table 2.1: Previous studies summary .22 Table 2.2: Factors identified in the literature that impact of branding on customer purchase decision 26 Table 2.3: Synthesize the hypotheses of the current study .33 Table 3.1: Statistics of participants in the focus group .37 Table 3.2: Encode the brand awareness scale 40 Table 3.3: Encode the brand association scale 41 Table 3.4: Encode the brand loyalty scale 42 Table 3.5: Encode the perceived quality scale 43 Table 3.6: Encode the pricing policy scale .44 Table 3.7: Encode the purchase decision scale 44 Table 4.1: Respondents who choosing retail brands 48 Table 4.2: The way of shopping 49 Table 4.3: Distribution of respondents by gender .50 Table 4.4: Distribution of respondents by age 50 Table 4.5: Distribution of respondents by occupation 51 Table 4.6: Frequency visiting Co.opmart 51 Table 4.7: Distribution of respondents by spending at Co.opmart 52 Table 4.8: Distribution of respondents by product purchase 53 Table 4.9: Result of the reliability assessment of brand awareness 54 Table 4.10: Result of the reliability assessment of brand association 54 Table 4.11: Result of the reliability assessment of brand loyalty .55 Table 4.12: Result of the reliability assessment of brand loyalty after removing BL4 55 Table 4.13: Result of the reliability assessment of perceived quality .56 Table 4.14: Result of the reliability assessment of pricing policy 57 Table 4.15: Result of the reliability assessment of purchase decision 57 presented some practical implications and recommendations in order to formulate strategies that meet the target groups more effectively as well as enhance Co.opmart brand In addition, this study contributes to the literature on conceptualizations and quantifications of brand equity impact on customer purchase decision Both practitioners and academic researchers in the marketing business who are interested in brand equity may find the proposed set of factors in this study It is worthy to disclose that while previous researches have offered results on brand equity and purchase decision, the majority of them come from various industries and regions around the world This is the first study to examine the influence of brand equity on customer buying decision at Co.opmart in Ho Chi Minh city In general, the conducted discussions can contribute to the improvement of understanding the components of brand equity that affect customer purchase decision at Co.opmart It becomes a key in improving Co.opmart’s brand and formulating effective strategies that can be applied by Co.opmart with the aims to attract customers to buy more products Finally, this study discovered answers to describe the profile of respondents in terms of gender, age, occupation, frequency visiting Co.opmart and spending to compare and find out differences in the customer purchase decision 5.4 Limitations and directions for future researches As with any study, there are several limitations in this study The first limitation is the time and location of the survey, which means that many consumers who bought products at Co.opmart in Ho Chi Minh city could not be surveyed Secondly, this study focused on five components of brand equity, namely brand awareness, brand association, brand loyalty, perceived quality and pricing policy, ignoring important elements of brand equity such as advertising, reputation, commercial image,… The third limitation is the sampling method used in this study 75 for the reason that convenience sampling is a non - probability sampling, which is not representative of the entire population in Ho Chi Minh City Finally, this study only used a sample size of 251 respondents, which is only guaranteed by the theory of sample selection If the sample size is bigger, the study's value will be higher Given the promising results that were achieved as well as the limitations of the study stated above, there are numerous potential avenues for further research that might be explored Among these future researches should increase the sample size by conducting more surveys of consumers who bought products at Co.opmart and consider other components of brand equity such as advertising, reputation, commercial image,… that can impact purchase decision of customers at Co.opmart 5.5 Summary Chapter showed general conclusions about the results of this study and presented new findings of this study, some limitations as well as directions for future researches In addition, this chapter also offered some implications to improve the brand equity of Co.opmart and attract customers to buy more products 76 REPERENCES Vietnamese sources Saigon Co.op strives to remain leading retailer in Vietnam (2021) Retrieved from https://en.vietnamplus.vn/saigon-coop-strives-to-remain-leading-retailer-invietnam/197971.vnp Trang, Q (2021) Thị trường bán lẻ 2021: “Mỏ vàng” chờ khai thác Retrieved from https://thoibaonganhang.vn/thi-truong-ban-le-2021-mo-vang-cho-khaithac-112693.html English sources Aaker, D A (1991) Managing Brand Equity New York: The Free Press Aaker, D A (1991) Managing Brand Equity Capitalizing on the Value of Brand Name New York: The Free Press Aaker, D., & Joachimsthaler, E (1999) Brand Leadership London: London Free Press Ambler, T (2003) Marketing and the Bottom Line: Creating the Measures of Success London: Financial Times/Prentice Hall Amirkhizi, M (2005) Search for Ultimate Theory Anh, N T (2021) Impact of brand equity on customer purchase decision: A case study of Thegioididong Ashutosh , N., & Rajiv , K (2011) Impact of brand equity on customer purchase decisions: An empirical investigation with special reference to Hatchback car owners in central Haryana International Journal of Computational Engineering & Management 77 Assael, H (1998) Consumer Behavior and Marketing Action (6th ed) Ohio: South Western College Publishing Belch, G., & Belch, M (1998) Introduction to advertising and promotion: An integrated marketing communication perspective (3rd ed) Irwin, Chicago Bezayit, F M., & Daniel , B B (2021) The Effect of Brand Equity on Consumer Purchase Decision: The Case of Cell Phone in Ethiopia Journal of Marketing and Consumer Research Bhattacherjee, A (2012) Social Science Research: Principles, Methods, and Practices Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License Bhuian, S (1997) Marketing cues and perceived quality: perceptions of Saudi consumers toward products of the US, Japan, Germany, Italy, U.K and France Journal of Quality Management, 217-235 Blackwell, R., Miniard, P., & Engel, J (2001) Consumer behavior (9th ed) Fort Worth: Harcourt College Publishers Bove, R (2006) Estimation and Sample Size Determination for Finite Populations West Chester University of Pennsylvania Capron, L., & Hulland, J (1999) Redeployment of Brands, Sales Forces and General Marketing Expertise Following Horizontal Acquisitions: A Resource-Based View Journal of Marketing, 41-54 Chao, R.-F., & Liao, P.-C (2016) The Impact of Brand Image and Discounted Price on Purchase Intention in Outlet Mall: Consumer Attitude as Mediator The Journal of Global Business Management Comrey, A L (1973) A first course in factor analysis New York New York: Academic Press 78 Cooper, D., & Schindler, P (2006) Business Research Methods Irwin: McGrawHill Cristina , C.-P., Valentín-Alejandro , M.-F., Oscar , J.-B., & Jean-Pierre , L.-M (2015) Measuring the influence of customer-based store brand equity in the purchase intention 93-118 Dang, M V (2019) A Study of Determinants of Supermarket Service Quality - the Case of Coopmart Supermarket in Vietnam Advances in Economics and Business, 101-107 Davis, S (2000) Brand Asset Management Jossey Bass Dodds, W., Monroe, K., & Grewall, D (1991) Effects on Price, Brand and Store Information on Buyers’ Product Evaluations Journal of Marketing Research, 307-319 Falkenberg, A (1996) Marketing and the Wealth of Firms Journal of Macromarketing, 4-24 Farquhar, P H (1989) Managing brand equity Journal of Marketing Research, 2433 Flick, U (2009) An introduction to qualitative research Germany Gliem, J A., & Gliem, R R (2003) Calculating, interpreting, and reporting Cronbach’s alpha reliability coefficient for Likert-type scales Midwest Research-to-Practice Conference in Adult, Continuing, and Community Education Gómez, M C., & Giraldo , P W (2019) Brand equity as a determinant of product purchase and repurchase intention Revista ESPACIOS Gonul, F., & Srinivasan, K (1996) Estimating the impact of consumer expectations of coupons on purchase behavior: A dynamic structural model Marketing Science, 262-279 79 Grewal, D., & et al (1991) Effects of price, brand, and store information on buyers' product evaluations Hair, J F., Anderson, R E., & Tatham, R L (1998) Multivariate Data Analysis New Jersey: Prentice-Hall International Hair, J F., Black, W., Babin, B., & Anderson, R (1998) Multivariate Data Analysis Prentice Hall Hung, C C., Su, M J., & Zhuang, W L (2016) The Effect of Exhibitors‟ Brand Equity on Visitors‟ Purchase Decision: Moderating Role of Exhibition‟s Competitive Intensity Journal of Economics and Behavioral Studies, 8(3), 75-86 Hunt, S D., & Morgan, R M (1995) The Comparative Advantage Theory of Competition Journal of Marketing, 1-15 Keller, K (1993) Conceptualizing, Measuring and Managing Customer-Based Brand Journal of Marketing, 1-22 Keller, K (2003) Strategic Brand Management: Building, Measuring and Managing Brand Equity (2nd ed) Keller, K L (2002) Branding and Brand Equity London: Sage Publications Kotler, P., & Keller, K L (2008) Marketing Management (13th ed) Lehmann, D R., Keller, K L., & Farley, J U (2008) The Structure of SurveyBased Brand Metrics International Marketing Review, 29-56 Maulik C., P., & Ashish K , M (2017) Impact of brand equity on consumer purchase decision of dairy products International Journal of Business Quantitative Economics and Applied Management Research, 4(1) Mayers, L S., Gamst, G., & Guarino, A J (2000) Appiled Multivariate Research Sage Publications 80 Michael, J C (2000) Consumer behavior: A framework New Jersey: Prentice Hall Momani, D R (2015) The Impact of Brand Dimension on the Purchasing Decision Making of the Jordanian Consumer for Shopping Goods International Journal of Business and Social Science, 149-168 Muhammad , A S., & Arshia , A (2019) Analyze the Effect of Customer Based Brand Equity on Consumer’s Purchase Behavior: A Case of Branded Garments City Faisalabad Developing Country Studies Muhammad , A A., & Sameen , A N (2016) The impact of brand equity on consumer purchase decision of cell phones European Journal of Business and Innovation Research, 4, 60-133 Naeem , A., Qurat-ul-ain, Umer , S I., Amna , A., & Muniba , L (2016) Impact of a Brand Equity on Consumer Purchase Decision in L’Oreal Skincare Products International Review of Management and Business Research, 5(3) Nguyen, S T (2008) The influence of brand equity on consumer behavior on the Vietnam’s mobile phone market Tạp chí Khoa Học Cơng Nghệ, Đại học Đà Nẵng Nguyen, T (2019) Fierce competition in the retail industry Retrieved from https://english.haiquanonline.com.vn/fierce-competition-in-the-retailindustry-10245.html Njeru, I M (2017) Influence of pricing strategies on consumer purchase decision: a case of supermarkets in Nairobi County Strathmore University Nunnally, J C (1978) Psychometric Theory New York: McGraw-Hill Oliver, R (1997) Satisfaction: A Behavioral Perspective on the Consumer New York: McGraw-Hill 81 Prasad, R K., & Jha, M K (2014) Consumer Buying Decisions Models: A Descriptive Study Innovative Space of Scientific Research Journals, 6(3), 335-351 Punch, K F (2005) Introduction to Social Research–Quantitative & Qualitative Approaches London Raghubir, P., & Corfman, K (1999) When price promotions affect pretrial brand evaluations? Journal of Marketing Research, 36(3), 211-222 Ren-Fang , C., & Ping-Chu , L (2016) The Impact of Brand Image and Discounted Price on Purchase Intention in Outlet Mall: Consumer Attitude as Mediator The Journal of Global Business Management Rocky , H S (2017) The influence of brand equity toward consumer purchase decision: A study case of Samsung smartphone in Bekasi S, R., & S, S (2019) Impact of brand equity on consumer purchase intent 24 Sato, K (2015) Dynamic pricing with customer purchase postponement International Journal of Industrial Engineering, 159-170 Schiffman, L G., & Kanuk, L L (2007) Consumer Behavior (9th ed) PrenticeHall Srivastava, R., & Shocker, A D (1991) Brand equity: A perspective on its meaning and measurement Cambridge: Marketing Science Institute Syed, A M., Md, A K., Md , R Z., Ishtiak , I B., & Md., I N (2020) Impact of Brand Equity on Consumer’s Purchase Decision of Smart Phone-A Study on University Students in Chittagong, Bangladesh Global Journal of Management and Business Research: A Administration and Management, 20(6) 82 Ulas , A., & Javad, E (2016) The Impact of Brands on Consumer Buying Behavior: An Empirical Study on Smartphone Buyers Journal of Research in Business & Social Science Yee, A F., & Sidek, B (2008) Influence of brand loyalty on consumer sportswear International Journal of Economics and Management, 221-236 Yoo, B., Donthu, N., & Lee, S (2000) An examination of selected marketing mix elements and brand equity Journal of the Academy of Marketing Science, 195-211 Yoo, B., Donthu, N., & Lee, S (2000) An Examination of Selected Marketing Mix Elements and Brand Equity Journal of the Academy of Marketing Science, 195-211 Zeithaml, V (1988) Consumer perceptions of price, quality, and value: a meansend model and synthesis of evidence Journal of Marketing, 2-22 83 APPENDIX SURVEY QUESTIONAIRE The influence of brand equity on customer purchase decision: A case study of Co.opmart Hello, Currently, I am undertaking a research entitled “The influence of brand equity on customer purchase decision: A case study of Co.opmart” I hope that you will take your time to help me complete this survey All your responds play an important role in the success of this study Thus, it is fully for academic purpose and all the information submitted will be treated with maximum caution and confidentiality I thank you in advance, for your concern and time PART 1: PERSONAL INFORMATION Which retail brands you usually buy during the Covid - 19 pandemic? (can choose more than 1)  Co.opmart  BigC  Vinmart  Emart  AEON  Lotte Mart  Satramart  METRO  Other The way you shop during Covid - 19 pandemic is:  Online shopping  Offline shopping Do you live in Ho Chi Minh city?  Yes  No 84  Both Have you ever bought products at Co.opmart?  Yes, I have  No, I have not Products that you usually buy at Co.opmart (can choose more than 1):  Consumer goods  Cosmetics  Household products  Garment How often you visit Co.opmart?  Once a month  - times a month  - times a month  More than times a month How much you spend when you shop at Co.opmart?  Under 500.000 VND  500.000 VND - 1.000.000 VND  1.000.000 VND - 2.000.000 VND  2.000.000 VND - 3.000.000 VND  Above 3.000.000 VND What is your gender?  Male  Female Which of following age groups you belong to?  18 - 24 years old  25 - 34 years old  35 - 44 years old  45 - 55 years old  Above 55 years old 85  Other 10 What is your occupation?  Student  Employed  Unemployed PART 2: Please indicate the extent to which you agree with the following statement by ticking the appropriate answer using the scale below: = Strongly disagree = Disagree = Agree = Strongly agree = Neutral BRAND AWARENESS I am aware of Co.opmart’s brand I know what Co.opmart’s brand looks like 5 5 When I think about consumer goods such as frozen food, canned food, drink etc Co.opmart's brand is the brand that comes to my mind first I can recognize Co.opmart’s brand among other competing brands I am quite familiar with Co.opmart’s brand 86 BRAND ASSOCIATION Some characteristics of Co.opmart’s brand come to my 5 5 5 5 quickly I can quickly recall the symbol or logo of Co.opmart’s brand Co.opmart’s brand is different from its competing brands Co.opmart brand is interesting BRAND LOYALTY 10 My first purchase option is Co.opmart brand 11 I am loyal to Co.opmart’s brand 12 13 I recommended Co.opmart's brand to anyone who seeks my opinion I will not buy other brands if Co.opmart stores are available 87 PERCEIVED QUALITY 14 15 16 17 The products of Co.opmart's brand have a high quality The products of Co.opmart's brand are trustworthy I'm satisfied with the quality of Co.opmart’s brand Co.opmart’s brand lives up to its promises with customers 5 5 5 PRICING POLICY Pricing policies of Co.opmart are 18 always in line with customer preference In 19 comparison competitors’ with pricing the policies, pricing policies of Co.opmart are better When shopping at Co.opmart, good 20 price policy encourages me to buy more products 88 21 Co.opmart frequently offer good pricing policies 5 5 5 PURCHASE DECISION Even if another brand has the same 22 features as this brand, I would prefer to buy products of Co.opmart If another brand is not different 23 form this brand in any way, it seems smarter to purchase products at Co.opmart 24 25 26 I depend on the brand to make my purchase decision I feel satisfied when purchasing Co.opmart's brand I will continue paying for products of Co.opmart SINCERELY THANKS FOR YOUR COOPERATION 89 ... (2019) customer based brand The impact of equity on consumer’s brand equity on - Brand awareness purchase behavior: A customer case of Garments branded purchase City behavior Faisalabad 23 - Brand. .. equity on purchase - Brand awareness - Brand association intention at - Brand loyalty market places in - Perceived quality Malaysia Analyze the effect of Muhammad Salman Arshad & Arshia Ahmad (2019)... - Brand loyalty smartphone in Bekasi Maulik C.Prajapati & Ashish K Makwana Impact of - Brand association brand equity on consumer Brand purchase decision of model dairy products (2017) Muhammad