Measuring financial and customer based perspectives brand equity for services empirical study on the lpg market in hcmc vietnam

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7 TES | MANAGEMENT

UNOCHIMINN Ci77 OPEN UNIVERSITY

Project

Measuring Financial and Customer based

Perspectives Brand Equity for Services:

Empirical study on the LPG Market in HCMC Vietnam

Submitted in partial fulfilment of the requirement for the degree of master in industrial business management TRUONG DAI HOC MO TP.HCH THU VIEN PHAM TRUNG TRUC 2011

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MED Dissertation of Master of Industry Business Management

GEMENT Reported by Pham Trung Truc

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ABSTRACT

Brand equity is a concept born in 1980s It has aroused intense interest among business strategists from a wide variety of industries Besides, successful brands provide competitive advantages that are critical to the success of companies That is reason which enterprises are not only care effective finance but also step by step take care quality of services to support customer This paper will study financial and customer-based perspectives of brand

equity The objectives of this study is measuring financial and customer- based perspectives of brand equity for services And the hypotheses in study have posited to test by Statistic

Package for Social Science The results indicate that is answer for a significant positive direct effect on brand equity for services

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Dissertation of Master of Industry Business Management

Reported by Pham Trung Truc TABLE OF CONTENTS Chapter I: Introduction ` Xí

1.1 Project learning objectives page 7

1.2 Personal learning objectives

1,3 Research question .c.sscssesseceseecseeesseeeesees

I9 60 i0 0u lccaaadaaaaỤỤ

1.5 Implication Study : cv SH vn cra

1.6 Outline of chapt€F - các ST 1v 9 51111 1c rg

Chapter II: Literature reVieW s35 se «s2 — „page 12

2 1 Brand equity and measure CrifTÍA - -s + + 55s s s22 sexy page 12 2.2 Brand equity research in services

2.2.1 Brand awareness

2.2.2 Perceived quality

2.2.3 Brand associatiOn: «c7 “

2.2.4 Brand loyaÏty: .- cu HH HH HS nh keaesee seo page 16

2.3 Measuring financial reports based on brand equity .D4Ø@ 7 2.4.1 Building hypothesis ác HH nh vn cesses ane

2.4.1 Brand awareness and brand equity - + ++-ssxcc+ss< xe x>sssz

2.4.2 Perceived quality and brand equity 2.4.3 Brand association and brand equity 2.4.4 Brand loyalty and brand equity

2.4.5 Financial reports and Brand equity 2.5 Summary Chapter TII Research Methodologyy 5< << ss se ss££<sseesrseseee page 21 kh ‹c 0 44 page 21

3.2 QualitatÏve research cc TT H ng HT ngư ướt page 21

3.2.1 Design Qualitative Research sec S232 server page 21

3.2.2 Qualitative research Result 3.3 Quantitative Research 3.3.1 Construction scale

3.3.2 Reliability and value of the effective scale

3.3.3 Translation, Proposal research model and collective methodology page 26 -page 25

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Dissertation of Master of Industry Business Management Reported by Pham Trung Truc 3.4 Summary Chapter IV: Result Findings page 29

TH gen re chư page 30

4.1 General information research Sample page 30

4.2 Assessment of measurement scale page 31

4.3 Factor analysis (EFA) 4 age 33

4.4 Correlations analysis

4.5 Testing relationship between four dimensions

based brand equity and overall brand equity

4.5.1 Multiple linear regression models -;

4.5.2 Consider assumed multi-collinearity of variables in models page 37 4.5.3 Research hypotheses test about dimensions based brand equity , page 37

4.5.3.1 Hypothesis 1 (H1): brand awareness and brand equity

4.5.3.2 Hypothesis 2 (H2): Perceived quality and brand equit

4.5.3.3 Hypothesis 3 (H3): brand association and brand equity “

4.5.3.4 Hypothesis 4 (H4): brand loyalty anid, brand equity 4.6 Correlation Test between brand equity and financial report

4.6.1 Correlation between brand equity and financial report

4.6.2 Difference in awareness about brand equity for two groups of

LPG business brand :scessseseeceseeeceeceeceececeecceeceecseeeeeensees page 40 4.7 Summary page 43 Chapter V: Conclusion and significant contribution page 46 5.1 Conclusions 7c page 46 page 47

5.2.1 The results contribute to research hypothesis- - DØe 47 5.2.2 The result contribute to practical management - + +©-ec page 48

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Reported by Pham Trung Truc

LIST OF TABLES |

Table 3.1 Quota Sampling c c1 xxx vn nh Ty vvy Table 4.1 Sample characteristÏCS - + x9 xxx cxz

Table 4.2 Cronbach’s alpha reliability Coefficients for research concepts Table 43 Exploration Factor Analysis of Brand equity

Table 4.4 Exploration Factor Analysis of Brand equity

Table 4.5 Correlations between research concepts -‹ - ‹ ‹- -s- Table 4.6 Multi-collinearity*: evaluation Tolerance and VIE Table 4.7 Multi-collinearity*: evaluation Eigen Value

and Condition Index c + + cv

Table 4.8 Result predict Regression Model

Table 4.9 Relationship between brand equity and financial results page 40

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CHAPTER | INTRODUCTION

Brand equity is an important concept in business practices as well-as in academic research because Firms can achieve competitive advantage through a successful brand Although brand equity can be defined from many different aspects, the two concepts accepted generally: brand value for customers and brand value for businesses The first concept was considered in the context of marketing decisions

In marketing theory, the concept of brand equity based on consumers was divided into two

groups: consumer awareness (brand awareness, brand associations, perceived quality), and behaviour consumer (brand loyalty, the willingness to pay high prices) The second concept

refers financial aspects Brand value considered assets of the enterprise to shown by cash

flow of firms in the present and future by brand name A previous researcher showed that the brand value of the product a positive impact on revenues-and future profits (Srivastava and

Shocker, 1991), Many firms are looking for development opportunities were interested in

profiting from the existing brand name, so that, brand management is been creating a component of strategy business Clearly the importance of the concept of brand equity on the rise as a tool to measure the customer based brand equity and financial reports are lacking currently Especially in developing markets like Vietnam, the concept of brand equity is still

unknown and many executives are still puzzled as to find a reliable tool to measuring brand

equity Because the source of brand equity is customer perception who should be helpful if managers can measure and monitoring at different levels of customers The previous research

on brand equity in product markets of favour, even though the concept of brand equity has

the same importance in the market for service We believe that differences exist between

market products and services to the differences in marketing applications in practice Therefore, the purpose of this research is Measuring Financial and Customer-based perspectives of Brand Equity for services: Empirical study on the LPG Market in HCMC Vietnam

1.1 Project learning objectives

Service mark different brand goods, characteristics with intangible and tangible products are

different and service for brands depend attitude and actions of employees who perform services This difference was seen and based on the belief that some services have unique

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oT = a =} Dissertation of Master of Industry Business Management

ti EMENT Reported by Pham Trung Truc

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of quality and perishability (Mackay, 2001a) Application in the service sector, LPG industry

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to share any particular characteristics mentioned above A brand with a higher value will

interest to buy easily and more powerful Therefore, branding is one of the prominent trends

of the global LPG section because of the strong brand will increase the confidence of clients invisible, the customer can visualize and understand the intangible and reduce customer anxiety about the financial risks, and social security Brand equity for LPG industry can be

defined as favourable or not attitudes are formed and the favourable impact to a customer

when choosing a brand to use the LPG business and transactions A trading company LPG will have strong brand equity when a customer perceived and it willing attitude to the brand

of the company's LPG business In other words, the satisfied customers as they would like more and more brands to pay more, so companies doing business more profitable than LPG

The above characteristics of LPG service combined with outstanding marketing services for the importance of brand equity as an urgent need to increase understanding and brand

management Therefore, research is Measuring Financial and Customer-based perspectives

of Brand Equity for services: Empirical study on the LPG Market in HCMC Vietnam and brand management This study has the following specific objectives:

1, Identify the components that making brand equity perspectives of customers for services

2 Developing measurement’s customer based brand equity for services

3 Explore the relationship between financial and customer - based brand equity for LPG business companies

4, Implications of the brand management related assets to enhance service brand LPG

1.2 Personal learning objectives

In completing the Dissertation’s project, the student:

- Independently applies theory to the relevant socio-academic field

- Independently conducts research/generates a solution to a practical problem

- Acquires more in-depth knowledge and applies it to his field of study (i.e the

Master’s programme or track the student is completing)

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- Reflects on his own work

- Finishes the assignment (i.e conducts research/generates a design solution) within the

time permitted

To this end, the student independently develops and implements a research-oriented or

design oriented project He completes the project within the time permitted; justifies the

models, theories, methodology and techniques used, as well as the research/design process as a whole; analyses the work completed; and makes both an oral and written report of his work,

1.3 Research question

Main research question: : (

“How are relationship between four dimension of brand equity affect perceptions of Customer based Brand equity on LPG field services in HCMC Vietnam and How are financial report performance?”

1.4 Limit and Methodology

This research, LPG business sector for services represents brand equity analysis LPG business sector for services have two components: enterprises and clients (personal

customer) Research project is retail services based customer demand, so that personal

customer is objective investigation

In Vietnam, it has different LPG companies such as: State companies, joint stock companies,

private corporation company and a foreign company The research project analyse customer based brand equity and financial perspectives, hence the choice of LPG business companies

have supported financial information very importance Almost state company, private corporation companies and foreign companies are restrain financial report to launch in market place, the joint stock companies are launch public financial report in website for

shareholder To collect information research are convenient, research has chosen LPG

companies (joint stock company) in HCMC Vietnam are objective research

Main perspective of Brand equity were focused research as Customer based Brand equity Financial value of Brand for enterprises was present to increase profitability income from Trandition’s LPG business for services in latest two years (2009-2010) The research project

did not focus all factor analysis that give up profitability or income LPG business companies

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Dissertation of Master of Industry Business Management' Reported by Pham Trung Truc

Research qualitative and quantitative is carried out to confirm concept measuring customer

based brand equity for LPG services (joint stock companies) Research qualitative was present tool which is focus group to discuss goal developing measuring of brand equity and confirm list LPG brand name after survey questionnaires Tool is used research qualitative by focus group, For this purpose to explore, drivers and add the variable observations represent the components of brand equity and overall brand equity The discussion groups help to

survey customers variables view used to measure the components of brand equity and

determine the list of LPG brand should be included in the study

The research project prepared questionnaires contained 26 statements were measured five

point Likert’s scale Data in this pre test study were collected through self-administered

questionnaires in HCMC Vietnam distributed to four LPG business enterprises with responds

were interviewed by personal customers The sample plan contained 160 personal customer following Quota sampling which was method for selecting survey about 40 person in each

LPG business company

Coefficient of Cronbach’s alpha Tools and factor analysis, exploratory factor analysis (EFA)

is used degree the research concepts in the study Computes Statistic Package for Social

Science (SPSS) version 11.5 will be used as the main tools for analysis of the quantitative

data Test Statistics as multiple linear regression are used hypothesis test Nonparametric correlations analysis and T-test statistics have been used hypothesis test Its means to find a

relationship between four components of brand equity to assets overall brand equity of the

LPG business companies The analysis of nonparametric correlation was used to explore the relationship between customer based Brand equity and the financial results of the enterprises T-test statistics have been used to explore differences in perceptions of customers about LPG business enterprises different groups of financial results for the components of brand equity

by hypothesis test

1.5 Implication study

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has brought to knowledge dept about brand equity for LPG sector and implication in reality

for marketing management with LPG service

1.6 Outline of chapters

ˆ

The Research Project Final Reports document has divided in five chapter Chapter I: introduces overview of research projects

Chapter II: presents literature review about brand equity, the major dimensions of: brand

awareness, brand associations, perceived quality and brand loyalty effect on brand equity and the financial perspectives based brand equity, and it was building research hypotheses

Chapter III: presents research methods (methodology) was designed to test the above-

hypothesised relationships in LPG market for services To emphasize view point research qualitative and quantitative are carry out to define concepts

Chapter IV: analyzes the results of research project to conclude the research hypothesis on

brand equity, the relationship between firiancial reports and customer based brand equity and analyzing the differences between another LPG firms and four dimensions create brand

equity Structural equation models was employed for confirmatory factor analysis

Chapter V: summarizes the results of research project, research target of marketing managers

for LPG service, and presents the limitations of the study and directions for further research future

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CHAPTER II LITERATURE REVIEW

Chapter II has present general about research project Chapter II will present literature review

to relate subject which base on building research This chapter has two components The

first, summary literature review about definition four dimensions customer and finance- based perspective brand equity as brand awareness, perceived quality, brand association, brand loyalty and financial report The hypothesis study will suggest base on literature

review

2.1 Brand equity and measure criteria

Brand equity considers a multidimensional concept: the added value endowed by the brand

name, such as: brand loyalty, brand awareness, perceived quality, brand association and other proprietary brand assets (Aaker,1991)

The meaning of term customer based brand equity has been debated in number of different

way and for a number of different purposes were correlative brand marketing activities (Keller, 1993); added benefits (Simon and Sullivan, 1993); comprehensive benefits (Swait & CTG, 1993); Brand love of different levels in generally and brand love based on different

attribute in (Park va Srinivasan, 1994); overall quality and choice intention (Agarwal and Rao, 1996) All these definitions are implying that brand equity is the value added benefits from a product / services because of the brand name (Srivastava and Shocker, 1991) There are three principal and distinct perspectives that have been taken by academics to study brand equity on brand equity to be considered: (1) Customer based brand equity, (2) Financial reports, and (3) Combined perspective

Customer perspective have been divided into two groups of multi- concept: brand value and

brand meaning (Blackston, 1995) This brand meaning is the highlight of the brand name, the

brand associations and brand knowledge, while the value of the brand as a result of the efficient utilization of brand meaning Aaker (1991) defines brand equity as “a set of brand

assets and liabilities linked to brand, its name and symbol, that add or subtract from the value

provided by a product or service provided to a firm and that firm’s customer” The approach

to brand equity is viewed as a managerial and corporate strategy perspective The assets and

liabilities linked to a brand’s name or symbol to support brand equity, they must be linked to

the name or symbol of the brand If the brand’s name or symbol should change, some or all

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of the assets or liabilities could be affected and even lost However, some might be shifted to

a new name and symbol we can generate brand equity by strengthening those dimensions According to Keller (1993) are two approaches, there are direct and indirect measures of brand equity in customer awareness Indirect approach focuses on the identification of the potential sources of brand equity and it requires measuring brand awareness and brand characteristic, and relationships with the brand image The brand awareness can be assessed , by a performance measure may help to remember and recognize the brand Brand image can

be measured using quantitative techniques such as: type of exercise associated with the customer to lead a process that describes, what the brand means, such as technology that led to complete question, explain a picture, describe unique characteristics of a brand In the direct approach to testing requirements in which a group of customers in response for a factor

of marketing programs for brands and a group of customers responding to the elements, but it provided for a session where wasn’t brand name or a fictitious name and the product /

service, an attempt is made to assess the, value added by the brand to product

Financial perspective presents financial value -based techniques extract the brand equity

value from the value of the firm’s other assets (Kim, Kim, and An 2003) Simon and Sullivan

(1993) define brand equity as “the incremental cash flows which accrue to branded products

over and above the cash flows which’ would result from the sale of unbranded products”

These authors estimate a firm’s brand equity by deriving financial market estimates from brand-related profits Taking the financial market value of a firm as a base, they extract the firm’s brand equity from the value of the firm’s other tangible and intangible assets, which

results in an estimate based on the firm’s future cash flows In other words, brands function

as an important driver of cash flow

The last, combined perspective such as customer based brand equity and financial perspective based brand equity This combined perspective have borned because it is shy of different levels when application one of them (Dyson & Ctg, 1996) have suggested it should

get program of survey research to link financial results based brand equity with value brand based on customer Therefore, this study which we suggested evaluation of brand equity for two perspective marketing and financial by finding relationship between financial and

customer based perspective brand equity.,

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A

2.2 Brand equity research in services

There are many characteristics used to distinguish between goods and services (Wolak &

CTG, 1998) Such as:

- Intangibility : services is unlike préducts, it is an experience they can not be touched, tasted, felt the way that product can Bottom of Form

- Inseparability : consumption and production,‘services happen simultaneously However, the first product to be manufactured, sold out, then use

- Heterogeneity : in service performance, ‘quality of service is difficult to standardize more than product results

- Perishability: services is unlike products, it cannot be stored for using later This difference indicates that the assessnient of customer brand service can be quite different from the evaluation of brand products Although this difference is the research and the

application of widely accepted, studies on the brand always shift significantly toward the

product This scenario is especially true for brand equity, the fact there is little empirical

- research refers to the brand equity of services (Smith, 1991; O'Cass and Grace, 2004) So ,the question that researchers will be asking" measuring brand equity in services same measuring brand equity product? or the difference between products and services implies that the measurement of brand equity must be ‘also different ? This study is starting point to answer

these questions in the context of LPG market in HCMC Vietnam In Vietnam, the concept of brand equity is still not familiar, and the measurement of brand equity as way to service more

than new According to some previous studies in other countries, the measures of brand

equity have been proposed and tested FMCG products to restaurants, hotels (Prasad and Dev,

2000; Low and Lamb, 2000; Yoo and Donthu, 2001; Kim & CTG, 2003)

Branding a service can help consumers by helping to assure them of a uniform level of

service quality and also aids the service provider by elevating the service above the commodity level to differentiate the service relative to competing brands These studies are based on the components of brand equity in the customer perception of Aaker (1991, 1996)

and Keller (1993), including:

- Brand awareness - Perceived quality

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- Brand image

- Brand loyalty

The concepts for four dimension of brand equity:

2.2.1 Brand awareness: there is understanding the existence of a brand

The concept show powerful a brand which are presence in customer’s mind Brand

awareness is a key determinant identified in almost all brand equity models (Keller, 1992)

(Keller, 2003) defines awareness as “ the customers’ ability to recall and recognize the brand as reflected by their ability to identify the brand under different conditions and to link the brand name, logo, symbol, and so forth to certain associations in memory” Example when a product category or demand will be satisfied by standard products which have mentioned Therefore, when customers want to use one label of LPG, then people will think Petro

Vietnam LPG of brand, the others remembered Petrolimex LPG Because brand awareness is seen as the first step in the sales, the first goal of a marketing strategy is simply to make the market realizes, there is a brand which is available on the market Normally, these efforts will

help to sell products, Hence this study recognize the concept of brand includes two

* components ability to recall and recognize the brand 2.2.2 Perceived quality:

Brand awareness are the opinions of consumers about the possibility of product or services brand which are satisfy expectations Quality can be awareness with little or not contribution into the excellent product and quality based on current brand image in the public’s mind Based on the experience of consumers with different products of Firm and it has affected consumption evaluation by opinions of customer The experts have affected in public Perceived quality is not quite the real quality of the product or service that is a subjective

assessment of consumer products or services Perceived quality bring value to customers by

creating the reasons that they buy products and the distinguished brand competitors

2.2.3 Brand association:

A brand association is the most accepted aspect of brand equity (Aaker 1992) Brand

associations consist of all brand-related thoughts, feelings, perceptions, images, experiences,

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Dissertation of Master of Industry Business Management Reported by Pham Trung Truc

give expression to consumers who hold association of a strong brand, and special favour from the other brands of the same type products or services Since production and

consumption are often occur simultaneously in the service, service experience have created a positive building meanings related to, behaviour, thoughts and emotions occur during service

affects brand image that consumers are aware is (Padgett and Allen, 1997) Brand image also shows social image Assembly, it is the added value for social reputation explains why people buy or use the trademark (Lassar & CTG, 1995) Perceived Value appeared in several brand

equity models (Feldwick 1996, Martin and Brown 1991, Lassar et al.1995) Lassar et al (1995) define perceived value as the perceived brand utility relative to its costs, assessed by the consumer and based on simultaneous considerations of what is received and what is given up to receive it Consumer choice of a brand depends on a perceived balance between the price of a product and all its utilities (Lassar et al 1995) A consumer is willing to pay premium prices due to the higher brand equity

2.2.4 Brand loyalty: ‘

Loyalty is a core dimension of brand’equity Aaker (1991, p 39) defines brand loyalty as the

attachment that a customer has to a brand Oliver (1997) to define brand loyalty as a deeply committed and sustained It will buy a product or return service preferred in the future, although the influence and impact the market ability change behaviour abnormitly Brand

loyalty includes undertake consumer will re-purchase and it can be present to buy a product

or service or other positive behaviours such as propagate as good product or service Oliver's definition emphasizes behavioural aspects of loyalty brand, whereas Rossister and Percy

(1987) argue that loyalty is characterized by a sympathetic attitude to a brand and purchase of commercial performance over time Brand loyalty was conceptualized based on a positive attitude toward the brand and then manifested by acts repeat purchase In terms of customer

attitudes, brand loyalty addition to four brand equity components mentioned above, this study also used scale using the concept of brand equity in general commodity market Quick use of

_ Yoo and Donthu (1997, 2001) to develop commercial scale property effect in the banking

sector This concept embraces the absolute sense of just choose a referred service brand in comparison with the commercial effective competition It expressed the determination of the

consumer to choose preferred brand awareness through the process, quality experience, the

important images stored in the customers mind and plan to buy their future

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2.3 Measuring financial reports based on brand cquity

Researcher by Kim & CTG (2003) examined Customer based brand equity and their impact

on business results of enterprises in the field of hotel services The results show that strong

brand equity will create a significant increase in profitability and the lack of brand equity may damage cash flow potential for firms Some investigators were using sales to indicate

brand equity with the assumption that revenue affects profit A brand of high value business will enjoy greater revenues and ultimately profits (Mackay, 2001b) In the LPG sector, the service activities have diversified from the services tradition such as sale services, bottle LPG business, technical services, transport services Besides LPG business companies also use

funds to invest real estate and investment shareholder in other enterprise This research

project is customer personal consumption, the turnover concepts in this study can be

understood income from traditional services of LPG

2.4 Building hypothesis

The concepts customer-based brand equity based on the four dimensions, and presentation of financial results, the main hypothesis was developed and built research framework in this

research

2.4.1 Brand awareness and brand equity

The different brands of the power and value brand get in the market There are brand which have almost people know and the brand have very little people know Aaker (1991) defines

brand awareness as "the ability of potential buyer to recognize and recall that a brand is a

division structure of a certain product."Based brand equity based on the customer happens when consumers have a high level of awareness and familiarity with the production and keeping association of a strong brand, convenient and especially in memory Brand

awareness can be a sign of quality and commitment, letting consumers become familiar with a brand and helping them consider it at the point of purchase Thus, the following hypothesis

is posited:

1: Brand awareness has a significant positive direct effect on brand equity

2.4.2 Perceived quality and brand equity

Perceived quality Perceived quality is not the real quality of the product but the customer’s

perception of the overall quality or superiority of the product (or service) with respect to its

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LL! MANKEteur mm Repored by Pham Trung Tr

satisfaction and value for customers by supporting customer needs, and love of quality Kotler (2000) have emphasized relationship between the quality of products or services, the satisfaction and profitability of the enterprise Therefore, perceived quality created to indulge for customer based brand equity Based on the above definition and the suggested

relationship of perceived quality and brand equity in the literature, the following hypothesis

is formulated:

H2: Perceived quality has a significant positive direct effect on brand equity

2.4.3 Brand association and brand equity

Brand associations Brand association is anything "linked" in memory to a brand It is

believed to contain the meaning of the brand for consumers Brand associations create value

for the firm and its customers by helping to process/retrieve information, differentiate the brand, create positive attitudes or feeling, provide a reason to buy, and provide a basis for

extensions (Aaker, 1991) Customer-based brand equity occurs when consumers have a high

level of awareness and hold some strong, favourable, and unique brand associations in their

memories, Rio & CTG (2001) suggested that brand image is a major factor in the formation “and management of brand equity Greater brand equity implies that consumers have a

positive association with the brand expression respectfully Based on this, then, the following hypothesis is posited:

3: Brand association has a significant positive direct effect on brand equity 2.4.4 Brand loyalty and brand equity

Javalgi and Moberg (1997) defines brand loyalty as the behavioural perspective which is

defined as the degree to which a buying unit such as a household, concentrates it purchases overtime on a particular brand within LPG bottle category in market and the second by an attitudinal perspective which is defined as the tendency to be loyal to a focus brand as demonstrated by the intention to buy it attitudinal perspective combined attractive force and orientation preference of consumers based brands The last, primary choice perspective have focusing on the reason for purchasing and other factors affecting the choice of buying a brand

Brand loyalty is tremendous value to the business: customers will pay more for the brand,

business reduce cost for services and it brings many new customers for businesses For

example, if a customer loyalty to a brand name is Petro Vietnam LPG, he or she will

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purchase LPG from the service of the Petro Vietnam LPG of brands Although MT LPG of brands with cheaper rates and better service Brand loyalty is challenging researchers to identify and measure based on loyalty to the brand equity

Hence, the following hypothesis of the relationship, between brand loyalty and brand equity is proposed:

#4: Brand loyalty has a significant positive direct effect on brand equity

Four dimensions are summarized and demonstrated in research model (Figure 2.1) This model shows the relationship between the components and overall brand equity should be

tested in the context of LPG sector Brand awareness - - H2 HI Perceived Quality pm H3 Brand Association mm” H4 Brand equity Brand loyalty

Figure 2.1 Module research brand equity

2.4.5 Financial reports and Brand equity i

Siverman & CTG (1999) explored the relationship between the measuring financial and customer based brand equity for products This research suggests that the measuring customer based brand that is results accurately to reflect the brand's product on the market With that strength, brand equity is based on force control client business results of enterprises

(Lassa & CTG, 1995) In other words, if customer accepts this brand better than other brands,

customers will buy this brand This leads to increased sales of the brand and ultimately increases profits So, the next hypothesis is proposed:

Ha Financial report has a significant positive direct effect on brand equity for service

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H5b Customer's perception based brand equity is different between another LPG Firm for another financial report

Good brand equity can bring about financial results well and good financial results reflect brand equity well

2.5 Summary

This chapter presents literature review about brand equity for service Definition about four

dimensions based brand equity have been present as brand awareness, perceived quality,

brand association and brand loyalty Three iheasuring perspective based brand equity as

customer perspective, financial perspective and combined perspective The study will only

base on combined perspective It means financial and customer- based perspective of brand

equity Base on literature review, researcli model with six hypotheses have suggested correlation between brand awareness and brand equity, perceived quality and brand equity,

brand association and brand equity, brand loyalty and brand equity And last, correlation customer based brand equity and financial report The next chapter has present methodology of research quantitative and qualitative ™

?

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CHAPTER III

RESEARCH METHODOLOGY

Chapter III presents research methods That will describe the process research, the study

emphasizes content of quantitative and quantitative, and it describes the sampling research

methodology

3.1 Research Process

Research process was presented detail in research steps This process is beginning with the research question and the last to present of research results in particular, it has two main

approaches in the process include: (1) qualitative research has explored and developed scale measuring brand equity, (2) quantitative research for test scale and conclusions about the

hypotheses posed

Research steps

Step 1: Problem and target research’

Step 2: Literature review : Step 3: Building hypothesis and building scale

Step 4: Research qualitative n=10 : ẻ

“Step 5: Developing scales :

Step 6: Research quantitative n=160 Step 7: Testing scale and result hypothesis

Step 8: Process and data analysis ‘

Step 9: Report results 3.2 Qualitative research

Qualitative research has explored, adapt and additional Variable View represent the components of brand equity and overall brand equity Qualitative research was conducted

through focus group techniques The group discussions took place to survey customers about Variable View used to measuring four dimension based brand equity To confirm list of LPG business companies should be taken part in this study

3.2.1 Design Qualitative Research

Based on Literature review in Chapter II about four dimensions based brand equity applied consumption customer such as food and drink and services sector such as hotels and

restaurants of researchers Aaker (1991, 1996), Keller (1993), Lassar & CTG (1995), Yoo and Donthu (1997, 2001), Kim & CTG (2003), Pappu & CTG (2005), Kayaman and Arasli

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(2007), Variable View used to measure four dimensions based brand equity in the field of business LPG for service which have been established

However, the variable view are based on the literature review and it should be adjusted the

new context — LPG business for services in HGMC Vietnam Hence the focus group have

contain about ten people they take apart in focus group such as: personal customer, Male and Female who were visually estimated to be 18 to 60 years old They are using LPG bottle for cooks or something in HCMC Vietnam at least five months Their careers were officer, workers, merchant and teachers To confirm variables view measuring four dimension of

brand equity This variables view have present at chief discussion General discussion about brand awareness The people were asked and answer list of four brand’s LPG business companies which they knew in market (the! information did not support) After that, the researcher take list of six brand’s LPG business companies which asking group to exclude

the brand name they did not know (the information were been supported by his researcher twenty six variables view measured four dimension based brand equity and overall brand

equity have launched by his researcher based on literature review Within five dimension as: -four variables for brand awareness, eight variables for perceived quality, eight variables for brand associations, five variables for brand loyalty and three variables for the overall brand equity All invitee in group who will to review and revise the meaning survey questionnaire

if they want to fix

3.2.2 Qualitative research Result

Based on the qualitative research result, a list of four brand’s LPG business companies

selected into the quantitative research as: Petrolimex Gas Joint Stock Company (Petrolimex Gas), PetroVietnam Southern Gas joint Stock Company (Petro Vietnam Gas), An Pha Petrol Joint Stock Company ( Gia Dinh Gas) and MT Gas Joint Stock Company (MT Gas)

Twenty six variables view measured four dimension based brand equity and overall brand

equity which have been excluded and they were remained twenty five variables Within five

dimension as: four variables for brand awareness, seven variables for —_ perceived quality, eight variables for brand associations, five variables for brand loyalty and three variables for

the overall brand equity After discussion , many statements in the scale which were fixed the

words, sentence to understand easily for the customer

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3.3 Quantitative Research

The first, quantitative research was defining the concept of scale in this study based on focus

group results The survey questionnaire was building to include this measurement (see

Appendix 1, page) Plan has chosen sample which was building, collective process has gone on And then , the processing data analysis with SPSS software were presented to conclude the research hypotheses Finally, the results from SPSS will be analyzed, explained and

presented in the research report

3.3.1 Construction scale

The collective variable view (26 statements) were measured five point Likert scale anchored from 1 = Strongly Disagree to 5 = Strongly Agree The statement

represent four dimension based brand equity as: `

Measuring Brand awareness (BAW)

Measuring brand awareness includes four variables view were asking customer about brand awareness LPG Business Company through familiar, recognize as logo and characteristic colour of brands such as:

‘BAWI I am aware of this X brand

BAW2 I can recognize X among other brand competition

BAW3 Some characteristic of X come to my mind quickly BAW4 I am familiar with X brand

Measuring Perceived Quality :

Measuring perceived quality showed subjective perception of the client with quality of

services which was provided by LPG business companies The factors based quality services

to emphasize the facilities, people and process services such as behaviour, Uniform, hours convenient, LPG bottle has been providéd prompt service on time and quality services The statement particular to measure perceived quality include:

PQI X staff gives customers individual attention

PQ2 Appearance of staff members are clean, neat, appropriately Uniform PQ3 X service has operating hours convenient to all their customers

PQ4 The staff provides prompt product on times

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PQS The staff handles customers’ complaints effectively

PQ6 The staff is always willing to customers PQ7 I trust the quality of services from X Measuring Brand Associations

Measuring brand associations showed the association customers LPG brand which they are using The associations was applied as price of product was accept by customer, prompt supply in time, supply chain cover many regions throughout the country, LPG business

company have many event, promotions and service after sale in year; unique brand image,

trust LPG brand which they are using and customer ‘believed quality product when person who wear uniform of ‘LPG company Particular have eight statements to measure brand associations as:

BAI The price of X brand is agree by customer

BA2 Service is prompt supply in time ;

BA3 Supply chain ofX is convenient everywhere °

BA4 There are many event or promotions in year

BAS X has very unique brand image, compared to competing brands BAG I respect and admire people who wear X

BAT I like the brand image of X

BA8 I like and trust the company, which makes X products Measuring Brand Loyalty :

Measuring Brand loyalty was described still willing to use this LPG brand which it gives expression in heart and mind Customer will glorify this brand with friends Scales have five statements as:

BL1 I consider myself to be loyal to X

BL2 When buying LPG (Gas), X would be my first choice

BL3 I will keep on buying X as long as it provides me satisfied services

BL4 I am still willing to buy X even if its price is a little higher than that of its

competitors

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BLS I would love to recommend X to my friends

Measuring Overall Brand Equity

Measuring overall brand equity showed rational selection and experience of customer for the

brands It also explains the emphasis extensive brand equity as a result of the marketing efforts of enterprises to build awareness and positive behaviors of consumers for a brand and intangible value explains why consumers choose to buy this brand and not from other brands The scale consists of three Variable Views:

OBE] Even if another brand has the same features as X, I would prefer to buy X

OBE2 If another brand is not different from X in any way,.it seems smarter to purchase

OBE3 X is more than a product to me

Measuring financial reflection of brand equity

There are many tools that can be measuring the financial perspective of enterprises The tools is measuring profitability that is return on equity (ROE), return on sales (ROS), they are

linked ability to manage business rather than income directly from the customer or

“buyer

Therefore, this study uses only income from operations of LPG business companies, hence measurement financial result of enterprises to check chief effective of the customers using

the brand Income have been used to analysis in the LPG sector that is cost of service activities which have diversified from the services tradition such as sale services, bottle LPG business, technical services, transport services Besides LPG business company also use funds to invest real estate and investment shareholder in other enterprise that have

profitability for enterprises but they did not related the LPG business for service which could not chosen in this study This research project is tumover concepts in this study can be understood income from traditional services of LPG Information about income from LPG

business activities in the last two years (2009-2010) was collected from financial report of four LPG business companies at December 31/ year The financial report was posted on website of each enterprise (see References, website addresses section, page 61)

3.3.2 Reliability and value of the effective scale

Data on demography has excluded for consumer, it is measured nominal scale, each variable view employed analysis of this study is measuring internal scale with five point scale The most important conditions are measuring scale that is appropriate value effective It means

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that the scale which must measure what it is measure is designed Another important thing that the scales measurement should be Homogeneity, that means when statement are repeat results, it will lead to the same result This Homogencity is reliability Before experimental study carry out, reliability and value effective of scale should be assessment to ensure that variable view used the model is appropriate

Factor analysis and reliability are used to evaluate internal consistency of each research

concepts studied, First, factor analysis of each concept study as brand awareness, perceived

quality, brand associations, brand loyalty and overall brand equity were been examined to support exhibit of convergent validity and discriminant validity scale Discriminant validity describes the degree to which the measurement (variable view) is not similar to diverge from

other variable view that is theoretically should not be similar to Discriminant validity

described evaluation which examined correlation matrix between independent variable and dependent variable and variables were chosen, so correlation Coefficient will be low between them The absolute value of correlation Coefficient exceed 0.85 showed Multi-collineariety which was identic research concepts together and they were measuring one thing Hence

correlation Coefficient of research concepts study should be below 0.85 to attain the ‘requirements about discriminant validity The appropriate degree of internal correlation among variable view in research concepts which have present by Kaiser- Myer- Olkin (KMO) measuring the appropriate for sample significance Barlett’s test factor extraction represent by variable view were present chief application for factor analysis with varimax rotation The component with Eigen value exceed and total variance explained equal and exceed 0.5 were considered Factor score represent variables secondary, internal scales

represent research concepts in this study which were evaluated the tradition of method (

using median and standard deviation in descriptive statistics) Internal consistency method used Coefficient of Cronbach’s alpha present reliability scale when Coefficient of alpha exceed 0.7 If all factor loading exceed 0.5 that research concept attain convergent validity All of Cronbach’s alpha’s coefficient in this study if it is exceed 0.7, the reliability of construct is acceptable The factor score do not attain Cronbach’s alpha condition, factor loading below 0.5 and items to total correlations below 0.3 which’is reject with fax analysis

3.3.3 Translation, Proposal research model and collective methodology

The quantitative survey has been carried out in HCMC Vietnam This subject surveyed

customers who were housework and person must understood about LPG sector among four

LPG business companies in HCMC Vietnam Purpose the data requirement satisfy

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quantitative analysis Variables of questionnaire have employed five point Likert scale, the questionnaire contained 25 items The total survey questionnaire collected at least 120 person Therefore, this study greatly appreciate results in overall view The sample plan contained 160 personal customer following Quota sampling which was method for selecting

survey about 40 person in each LPG business company (Figure 3.1) Table 3.1 Quota Sampling

LPG Company Respondents Respondents

(brand name) , suggested (person) received (person)

1 Petrolimex Gas 40 40

2 Petro Vietnam Gas 40 40

3 Gia Dinh Gas 40 40

4 MT Gas 40 40

Total 160 160

After sub-coneret number of questionnaire for each LPG business company The work was

carried out The interviews used LPG bottles which are housework, study, small business,

expert of LPG sector and employees are working in State companies or Foreign companies in

HCMC Vietnam

A pilot study is undertaken to test’the relevance and clarity of the questions and to refine them as needed to avoid misunderstand A small sample of 20 personal customer were randomly selected, who are not included in the sample, received the questionnaire Pilot test result found that questionnaires need to modified or new developed to avoid confuse by customers who have low education level And after that carry out main survey

Place survey were the course at University, respondents were the serious student and teacher

In other words, respondents were staff of companies who have been interviewed must understand LPG sector when respondents have interviewed researcher must be allowed by

managers that companies The last, respondents were housework who directed cook at private house All respondents could be guider to fill in the questionnaire If respondents have problems in filling in the questionnaires, they can directly ask us It takes ten to fifteen

minute to complete the formal questionnaire It takes one month to complete collective samples survey proceed interviews attained ratio of 100 percent respondents

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Dissertation of Master of Industry Business Management Reported by Pham Trung Truc 3.3.4 Statistical methodology Based on Literature review has been building in chapter II, they have six research concepts scales: 1 Brand awareness 2 Perceived quality 3 Brand associations 4, Brand loyalty

5 Overall brand equity

6 _ Financial report of Brands

First, five concept measured person customer based five a point Likert scale Last concepts

was financial report which was measuring receipts of LPG‘trade in latest two years (2009- 2010) Conclusive hypothesis H1, H2, H3, H4 in regression Model, independent variables

were four dimensions based brand equity and dependent variable was concept based overall brand equity In other words, H5a and H5b hypotheses, four dimensions based brand equity

and financial report in LPG business companies were variables take into correspondence

Statistics test

Computes Statistic Package for Social Science (SPSS) version 11.5 will be used as the main tools for analysis of the quantitative data Test Statistics as multiple linear regression using Hi, H2, H3, H4 hypothesis test Nonparametric correlations analysis and T-test statistics have been used H5a and H5b hypothesis test

while explanation about regression equation, research has cared multi-collinearity Variables

have high multi-collinearity which could distort results and it took results that do not stable and it is not generally Problems could appear if this was serious multi-collinearity that have

an existence

There were two ways measuring influence’s Test of multi-collinearity as - - A tolerance of less than 0.20 or 0.10 and/or a VIF of 5 or 10 and above indicates a multi-collinearity problem

- Condition Number Test were the standard measure of ill-conditioning in a matrix is

the condition index It will indicate that the inversion of the matrix is numerically unstable

with finite-precision numbers (standard computer floats and doubles ) This indicates the potential sensitivity of the computed inverse to small changes in the original matrix The Condition Number is computed by finding the square root of (the maximum Eigen value

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divided by the minimum Eigen value) If the Condition Number is above 30, the regression is said to have significant multi-collinearity

This study have suggested a formal detection-tolerance or the variance inflation factor (VIF)

for multi-collinearity that could not present this study which variance inflation factor (VIF) must below 10 and the condition number was below 30

3.4 Summary

Chapter III present the methodology and the result of research qualitative to measure four dimensions based brand equity and overall brand equity From twenty seven variable reviews are been building on the basis of literature review Results of research qualitative have helped

clarify and adjust the remaining twenty five variable reviews Research quantitative is also

present in this study The construction of scale and questionnaire with data processing

method applied SPSS 11.5 software Reliability condition, validity of the scale and multi-

collinearity of regression model have present The note about statistic suggested Cronbach’s

alpha of concepts study must more 0.7; Eigen value above 1; extraction variance must more 50%; factor loading must more 0.5; VIF in regression model must less 10; and conditions

number must less 30 have been accepted in this study Total sample size n = 160 and

‘sampling method combined the convenience which used in this study The next chapter

present the result of research project as characterized sample, result of testing scale and result of testing hypotheses for this study

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M Dissertation of Master of Industry Business Management ED GEMENT Reported by Pham Trung Truc CHAPTER IV RESULT FINDINGS

Chapter IV presents sample characteristic, the assessment and refinement of measurement

scale based on the data of set 160 cases The results from exploratory factor analysis (EFA)

and Cronbach’s alpha, results from testing models and research hypotheses have found a relationship between four dimensions based brand equity and overall brand - equity,

relationship between customer based brand equity and financial results of LPG business

companies

4.1 General information research Sample

Table 4.1 showed that the sample of 160 customer consisted of 40.6 % respondents are male and 50.4 % respondents are female Their age 18 to over 50 years old, most age of

respondents were from 18 to 30 years There are 12.5 % over 50 years of age, 18.8 % in the

range of 41 to 50 years of age, 18.8 % in the range of 31 to 41 years of age and 50 % in the range of 18 to 30 years of age A half of all samples have evaluated wages passably as 48.8%

from 2 to 5 million VND per month, 18.1% from 5 to 8 million VND per month Maximum salary is 6.3% above 8 million per month Minimum salary is 26.9% below 2’million per month The greatest part respondents have got education level as college — university (39.4%), high school (38.1%), respondents below secondary school (20.6) and respondents

have got master degree (1.9%) About 22.5 respondents who are working in State companies and the greatest part respondents are housework who are directed cooks at house as 32.5 % It is only 19.4 respondents who are own business And 25.6% have apart analysis of worker are working in manufactory, teacher (1.9%), person are working in foreign companies (8.1%)

and other (5.6%)

Although, job, age, education level or wages are difference, almost respondents are customer

or clients of four LPG business companies which have respondents in HCMC Vietnam It take about time distance have been usually by customer, loyalty of customer are using LPG

service to evaluate by research such as: time (mean) is 2.8 years, time (mode) is 10 years,

minimum time is 1 year and maximum time is 20 years

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Table 4.1 Sample characteristics n=160 Personal characteristic Frequency Percent Gender Male 65 40.6 Female 95 59.4 Age 18-30 80 50.0 31-40 30 18.8 41-50 30 18.8 Over 50 20 12.5

Salary below 2 million VND 43 26.9 above 2 and below § million VND 78 48.8 above 5 and below 8 million VND 29 18.1 above 8 million 10 6.3 Educational Level secondary school 33 20.6 high school 61 38.1 College 63 39.4 Master 3 1.9

Job Staff of state companies 36 225

Staff of foreign companies 13 8.1 Teacher 3° 19 Business 31 19.4 Worker 16 10.0 Housework 52 32.5 Other 9 5.6 Year of LPG consumption Mean Mode Minimum Maximum 5.775 year 10 year 1 year 20 year

4.2 Assessment of measurement scale

To assess internal consistency for research concepts exploitation factor analysis (see

Appendix 2, page 81) and coefficient reliability “ Cronbach’s alpha” have presented

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Assessment of measurement scale by Cronbach’s alpha:

Results have calculated Cronbach’s alpha of measuring four dimension have gotten distinct

brand equity and overall brand equity have presented in table 4.2

Scale showed 22 variable views The scales has got coefficient reliability Cronbach’s alpha to accept particular , Cronbach’s alpha based brand awareness is 0.7664; perceived quality is 0.7761; brand association is 0.8912; brand loyalty is 0.736 and overall brand equity is 0.8562

and moreover corrected item total correlation are high Almost corrected item total correlation are exceed 0.4 more than standard corrected item total correlation is 0.3, so they

accept and variable measurement research concepts are used in exploitation factor analysis after that

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Table 4.2 Cronbach’s alpha reliability Coefficients for research concepts

Variable Scale Scales Corrected

review Mean Variance Item- Squared Alpha

if Item if Item Total Multiple if Item

Deleted Deleted Correlation Correlations Deleted Brand awareness (BAW), alpha = 0.7664 BAW1 12.3813 3.7720 +4892 +2757 -7497 BAW2 12.6000 3.2478 +5921 +3521 -6970 BAW3 12.4813 3.4588 - 6370 „4138 +6823 BAW4 12.9750 2.7667 +5904 3875 7107 Perceived Quality (PQ), alpha = 0.7761 PỌ1 15.2750 6.2509 „4116 -1763 -7423 PQ2 15.5812 5.3644 +4948 -2855 „7200 Po3 15.5312 5.7349 5857 -3443 6837 Po4 15.0125 5.7483 -4921 2940 -7160 PQS 15.3000 5.6579 +6273 4032 +6701 Brand Associations (BA), alpha = 0.8912 BAL 24.8312 32.6946 -6049 -3953 +8835 BA2 25.0563 29.7264 +7452 „6121 +8697 BA3 25.0563 29.8773 -6919 „5249 8751 BA4 25.0062 30.3962 - 6600 -4744 -8783 BAS 25.1688 31.9651 +5328 „3374 8906 BA6 25.1437 31.4195 6185 „4016 8821 BAT 25.0062 30.7107 -7392 „5980 „8712 BA8 25.0625 29.1910 -7567 -5911 8683 Brand Loyalty (BL), alpha = 0.7361 BL1 7.5500 1.7333 6157 -4625 „5824 BL2 7.3938 1.9509 6494 4755 5617 BL3 7.4688 2.0116 +4403 +1959 -7965 Overall Brand equity (OBE), alpha = 0.8562 OBE1 7.8500 2.2038 «7478 „5593 -7809 OBE2 7.7375 2.1068 -7263 5295 8033 OBE3 7.8250 2.3340 -7160 „5147 8114 4.3 Factor analysis EFA

Results factor analysis EFA measuring dimensions based brand equity have four extraction

factors at Eigen value is 1.398 and extraction variance is 57.919% Therefore, extraction variance has accepted But it is only one variable perceived quality (PQ1) which factor

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MANAGEMENT Reported by Pham Trung Truc

loading in this variable (PQ1= 0.196) lower than standard 0.5, after this extraction item, 22

variables have gone on exploitation factor analysis again, we saw this results of four

extraction factor at Eigen value = 1.36 and extraction variance is 58.184% but factor loading

have still lower than standard 0.5, therefore, we have continued extraction variable PQ2 And

after that we are get results as: total 21 variable reviews were factor analysis EFA which have

four extraction factors at Eigen is 1.359 and extraction variance is 59.369% scale have

variables extractions by factor analysis (EFA), coefficient Cronbach’s alpha of perceived quality were been calculated again which is 0.751 (see table 4.3)

Table 4.3 Exploration Factor Analysis of Brand equity Component Variable Review 1 2 3 4 BAW1 0.706 BAW2 0.744 BAW3 0.798 BAW4 0.725 PQ1 0.508 PQ2 0.595 PQ3 0.813 PQ4 0.723 PQS 0.736 BA1 0.701 BA2 0.817 BA3 0.778 BA4 0.741 BAS 0.628 BAG 0.708 BAT 0.820 BA8 0.830 BL1 0.838 BL2 0.769 0.650 BL3 Eigen value 4.711 4.129 1.674 1.359 Extraction variance 23.556 20.646 8.370 6.797 Cronbach's alpha 0.7664 0.7510 0.8912 0.7366

Concept of overall brand equity was been assessed concept of one way Three variable

reviews have used measurement of overall brand equity Table 4.4 has present results of

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factor analysis for this concept Coefficient Cronbach’s alpha was been calculated 0.8562;

Eigen value 2.333; extraction variance is 7.759% All of factor loading are exceed 0.8 Table 4.4 Exploration Factor Analysis of Brand equity

variable Factor Eigen Extraction Cronbach view loading value variance alpha

‘Overall brand equity

OBE1 0.892

OBE2 0.880 2.333 77.759 0.8562

„ OBE3 0.874

With all results of factor analysis, we can conclusion that measurement overall brand equity

and four dimensions based brand equity have attain convergence value In other words all variable reviews have representation of concepts in this study

4.4 Correlations analysis

The methodology assessed independency value is correlation matrix test for independency

and dependency variables Results of coefficient correlations lower that 0.85 show that

independency value can exist two variables (John and Benet-Marinez, 2000) Table 4.5

summary statistic correlation Spearman’s Rho among variables explained All coefficient correlation absolutely from 0.332 to 0.682 mean that it is not exceed coefficient condition 0.85, that mean independency value has attained In other words, research study have

measured different concepts

Table 4.5 Correlations between research concepts

Brand Brand Brand Perceived Overall

awareness loyalty association quality brand equity

Brand awareness || 1.000 543” 4397 AB" 591 Brand loyalty 543" 1,000 430” 456” 682” Brand association 439" 430” 1.000 332" 501" Perceived quality 478" 456" 332” 1.000 630”° Overall brand “ “ s ; 591 682 501 630 1,000 equity

**, Correlation is significant at the 0.01 level (2-tailed)

Correlation matrix in table 4.5 showed that four dimensions based brand equity have related together Brand awareness variable has gotten positive correlation with brand loyalty (r¥ = 478; p< 0.01) If awareness level of customer based Petrolimex brand was increasing much better than, that brand loyalty with Petrolimex brand was increasing too, and contrast

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(Ệ Í_ Í MANAGEMENT Reported by Pham Trung Truc

Perceived quality variable have related significantly with brand loyalty (r = 0.456; p<0.01) Customer has perceived quality of Petro VN Gas, this person will loyal Petro VN Gas of

Brand and contrast Brand association variable has related significantly with perceived quality (r = 0.332; p<0.01) Customer is associated goodwill of MT Gas Brand that they are

increasing ability perceived quality of this brand and contrast Brand association variable

have related significantly with brand awareness (r = 0.439; p<0.01), association about image

brand in this study were defined ability client remind brand of LPG enterprises as a part of product Brand association assessed higher while they are brand awareness come to mind quickly and exactly, and contrast Perceived quality variable are related significantly with

overall brand equity (r = 0.630; p<0.01) Customers are perceived quality of product or service then they are always chooses product or service of LPG brand that have supported

4.5 Testing relationship between four dimensions based brand equity and overall brand

equity

Multiple linear regression was used Test and causal theory of explanation (Cooper and Schindler, 2003) It is not only descriptive tools but also using as conclusion tool for hypotheses test and predict value general study (Ducan, 1996) Thus, Multiple linear

regression in this study is suitable methodology for research hypotheses test 4.5.1 Multiple linear regression models

Four hypotheses Tests H1, H2, H3 and H4 multiple linear regression were developed as:

OBE = Bo + Bi*BAW + B2*BL + B3*BA + B„*PQ + cị

Note: B, is coefficients linear equation and ¢; residuals

Basis on results of factor analysis, overall band equity such as: brand awareness (BAW),

brand loyalty (BL), brand association (BA) and perceived quality (PQ) Four dimensions are

independency variables and overall brand equity (OBE) is dependency variables in linear

models above `

Linear regression command in SPSS which run multiple linear regression software Multiple

R value show module relationship between independency and dependency R square measure ratios total variation of dependency were explained independency variables in model R squared value are high, thus, ability model are more bigger and predicted dependency

variable are more exactly Analysis of variance Test (ANOVA) carried out F value have

considerable significant (p<0.001), homogeneous hypotheses have not correlative linear

reject Coefficients beta (B) is coefficient standardized regression allow compare directly

among coefficients and it was saw dependency variable Module of coefficient beta are big

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therefore importance relative of them in predicted dependency variable are higher Partical R measure power relationship between dependency variables and independency variables when

predicted influence independency variables in regression models has kept (Hair & ctg, 2006)

Conclusion, coefficient exactly, F value, coefficient beta and apart linear regression are been

used assessment relevance of models and research hypotheses test

4.5.2 Consider assumed multi-collinearity of variables in models

Tolerance value, VIF value, Eigen value and condition Index are used multi-collinearity test

in regression models As show in table 4.6 almost tolerance value exceed 0.575, VIF value

from 1.399 to 1.739 which show multi-collinearity are lower Table 4.6 Multi-collinearity*: evaluation Tolerance and VIF Dimensions Tolerance VIF Brand awareness 0.575 1.739 Brand loyalty 0.632 1.583 Brand association 0.715 1.399 Perceived quality 0.657 1,522 note:* dependent variable: overall brand equity

In other words, evidence in table 4.7 with condition value from 1.00 to 21.714 show us multi- collinearity are not serious among variables in research regression models

Table 4.7 Multi-collinearity*: evaluation Eigen Value and Condition Index Condition Eigen value Index 1 4.941 1.000 2 0.021 15.418 3 0.015 17.927 4 0.013 19.749 5 0.010 21.714 note: * dependent variable: overall brand equity

4.5.3 Research hypotheses test about dimensions based brand equity

Table 4.8 present predicted results of multiple linear regression models (see appendix 2, page 77) Independency models are brand awareness, perceived quality, brand association and brand loyalty, one dependency variable is overall brand equity Significant statistic models

p< 0.000, F value and significant statistics of them show that regression models is built

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it ii MANAGEMENT Reported by Pham Trung Truc

iu ng

appropriation with collective data R square change of model is 65% variability dependency of overall brand equity have explained independency variables as: brand awareness (BAW),

perceived quality (PQ), brand association (BA) and brand loyalty (BL) Coefficient Beta

from 0.131 to 0.419 with p< 0.05 All four dimensions are predicted good overall brand

equity Therefore, multiple regression models present brand equity based research questionnaire results:

OBE=BAW*0.181+BL*0.379+BA*0.131+PQ*0.419

Regression equation show that perceived quality and brand association are most important

significance first, the second create overall brand equity which are band awareness and brand loyalty Table 4.8 Result predict Regression Model Coefficients* Independent Dependent Coefficients Partial t value variable variable (B) Sig Brand awareness 181 221 2.824 005

Overall brand || Brand loyalty 379 430 5.933 000

equity (OBE) || Brand association 131 194 2.461 015

Perceived quality 419 432 5.959 000

a Dependent Variable: Overall brand equity

b R Square change = 0.650 F change = 72.111** Sig F = 0.000

Note: “**” significant p< 0.001; “*” significant p<0.05

4.5.3.1 Hypothesis 1 (H1): brand awareness and brand equity

The hypothesis posted “Brand awareness has a significant positive direct effect on brand

equity” Following this regression results that brand awareness is predicted significance of

overall brand equity (§ = 0.181; partial R = 0.221; p< 0.05) In other words, brand awareness is positive component direct effect on brand equity Hypothesis 1 (H1) is accept

4.5.3.2 Hypothesis 2 (H2): Perceived quality and brand equity

The hypothesis posted “Perceived quality has a significant positive direct effect on brand equity” Following this regression results in table 4.8 that perceived quality is predicted

strongly significance of overall brand equity (B = 0.419; partial R = 0.432; p< 0.001) In

other words, perceived quality based customer is important component direct effect on brand

equity Hypothesis 2 (H2) is accept

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mM EUROMED Dissertation of Master of Industry Business Management

- Ly MANAGEMENT ˆ Reported by Pham Trung Truc

4.5.3.3 Hypothesis 3 (H3): brand association and brand equity

The hypothesis posted “Brand association has a significant positive direct effect on brand equity” Following this multiple regression test results that brand association is predicted significance of overall brand equity (B = 0.131; partial R = 0.194; p< 0.05) In other words,

brand association is positive component direct effect on brand equity Hypothesis 3 (H3) is

accept `

4.5.3.4 Hypothesis 4 (H4): brand loyalty and brand equity

The hypothesis posted “Brand loyalty has a significant positive direct effect on brand equity” Following this regression results in table 4.8 that brand loyalty is predicted positive significance of overall brand equity (B = 0.379; partial R = 0.430; p< 0.001) In other words, perceived quality based customer is important component direct effect on brand equity

Hypothesis 4 (H4) is accept

4.6 Correlation Test between brand equity and financial report

Correlation between brand equity for service and financial report of LPG business companies which have presented two perspectives The first, financial report has a significant positive direct effect on brand equity for service The last, customer’s perception based brand equity is difference between another LPG enterprises for another financial report

4.6.1 Correlation between brand equity and financial report

Correlation Test between brand equity and financial report, non-parametric analysis are used (appendix 2, page 84) It is only little sample as four LPG business companies take into

survey questionnaire and it does not accurate to allocate sampling regularization, thus

correlation Kendall’s tau_b test have been applied in this study Brand equity is variable measurement complete and financial report of LPG business companies are give expression

by collection from service activity to attain different variable And then, testing correlation

four dimensions based brand equity and financial results of enterprises, non-parametric correlation analysis have been exploited

The results of non-parametric correlation analysis show in table 4.9 present brand association has a significant positive direct effect on financial report of LPG business (Kendall’s tau_b = 0.168) The results show that brand awareness, brand loyalty, perceived quality and overall brand equity have not effective financial results Therefore, this result is only accept one dimension of hypothesis HSa: financial report has a significant positive direct effect on brand equity for service

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Reported by Pham Trung Truc Table 4.9 Relationship between brand equity and financial results Correlations index

Revenue Kendall's tau_b

Overall brand equity -0.023 Brand awareness 0.051 Brand loyalty -0.001 Brand association 0.168** Perceived quality -0.043 **, Correlation is significant at the 0.01 level (2-tailed)

4.6.2 Difference in awareness about brand equity for two groups of LPG business brands

The results of LPG business companies present collective index from activity LPG business companies in two latest years (2009 and 2010) The group of LPG business companies have results mean revenue higher have been focused one group and other group have results mean revenue lower have been focus other group Therefore, we are create two group companies

‘with different finance value which have show in table 4.10, The first group is high financial report as PetroVietnam Southern Gas Joint Stock Company (Petro VN Gas) and Petrolimex

Gas Joint Stock Company (Petrolimex Gas) with collective revenue added as sale services,

bottle LPG business technical service, transport service for personal customer and enterprises

are mean revenue in two years (2009 to 2010) from 64,264,068,507 VND to 172,599,473,923 VND, The last group is low financial report as An Pha Petrol Joint Stock Company (Gia Dinh Gas) and MT Gas Joint Stock Company (MT Gas) with collective revenue added as sale services, bottle LPG business technical service, transport service for personal customer and enterprises are mean revenue in two years (2009 to 2010) from 6,726,538,315 VND to 39,975,060,161 VND

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UROMED Dissertation of Master of Industry Business Management

EI Reported by Pham Trung Truc

Table 4.10 Different LPG companies based financial report in years (2009-2010)

N Brand name Revenue 2009 Revenue 2010 Mean Revenue High Finance n=80 1 Petro VN Gas 46,659,893,065 298,539,054,781 172,599,473,923 2 PetrolimexGas 73,636,477,851 54,891,659,162 64,264,068,507 Low Finance n= 80 3 Gia Dinh Gas 65,817,813,660 14,132,306,661 39,975,060,161 4 MT Gas 11,871,489,717 1,581,586,912 6,726,538,315

Note source: www.cafef.vn

General financial report do business activity latest of LPG business companies in website for shareholder in 2011

4.6.3 Different means of brand equity components

T-test is exploited to confirm customers among two LPG business companies have financial

report high and low are different significance yet about four dimensions based brand equity: brand awareness, perceived quality, brand association and brand loyalty (see appendix 2,

page 82)

Table 4.11 Difference mean between two group LPG business companies

High revenue Low revenue N=80 N=80 Variables t value Std Std Mean Deviation Mean Deviation Brand awareness

Tam aware of this X brand 4.39 -755 4.48 551 -0.838

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