A study on customer behaviors in chain coffee shops in Vietnam

1. VIETNAM NATIONAL UNIVERSITY, HANOI
VIETNAM JAPAN UNIVERSITY
---------***--------
NGUYEN HUU CUONG
A STUDY ON CUSTOMER BEHAVIORS IN
CHAIN COFFEE SHOPS IN VIETNAM
MASTER'S THESIS
Hanoi, 2020

2. VIETNAM NATIONAL UNIVERSITY, HANOI
VIETNAM JAPAN UNIVERSITY
---------***--------
NGUYEN HUU CUONG
A STUDY ON CUSTOMER BEHAVIORS IN
CHAIN COFFEE SHOPS IN VIETNAM
MAJOR: BUSINESS ADMINISTRATION
CODE: 8340101.01
RESEARCH SUPERVISORS:
Prof. Dr. PEIJUN GUO
Associate Prof. Dr. NGUYEN VIET KHOI
Ha Noi, 2020

3. ABSTRACT
This research aims to investigate and understand the relationship between
price, customer-based brand equity, customer satisfaction, and brand loyalty in the
Vietnam’s chain coffee shops. The chain coffee shops are earning big money and
growing fast in Vietnam so that it is necessary to appreciate the importance of
customer behaviors to manage this type of business. To do that, we set brand loyalty
and customer satisfaction as dependent variables and set price, congruence, and
quality as independent variables then describe the difference of those relationships in
two empirical cases in Hanoi and Ho Chi Minh City.
We use the quantitative approach on a sample of 427 respondents in Highlands
Coffee and The Coffee House, which are two major Vietnamese coffee shop brands.
We utilize the structural equation modeling (SEM) method by SPSS software.
Descriptive analyses and path analyses of the multivariate regression model support
the validity of the proposed model.
The findings in this study are that significant positive effects from price,
quality, and congruence on customer satisfaction and satisfaction on brand loyalty in
Hanoi and Ho Chi Minh City chain coffee shops. The analyses also indicate that
among three antecedents of customer satisfaction, quality has the most substantial
influence, follow by congruence and price. Moreover, the analyses tell that in Ho Chi
Minh City, customer satisfaction has much higher impact on brand loyalty than in
Hanoi. Several implications might be withdrawn to coffee shop brands as a
consequence of these results.
Keywords: Price; Food and Service Quality; Customer Satisfaction; Brand Loyalty;
Martketing; Branding; Chain Coffee Shop; Vietnam

4. ACKNOWLEDGMENT
After two years of studying and researching at Vietnam Japan University, it is
my privilege to be able to write this dissertation. From the first interview session for
university entrance, I have been keeping the research orientation on the subject, which
I am interested in, customer behavior in the coffee shops industry. The study included
not only academic but also practical aspects with implications for understanding the
customer. The subjects and knowledge I gained through coursework sessions also
play an essential role in supporting my research activities. I hope that my research
can contribute to researches on the customer behavior in the coffee shop industry.
First of all, I would like express my gratitude to my advisors, Professor Peijun
Guo and Professor Nguyen Viet Khoi, for their guidance and comments. Especially
the time when I was in Yokohama, Japan, my advisors gave me valuable advice about
how I should proceed with the researching process. Without their prompt and patient
instructions, I cannot finish the thesis. I want to say thanks to all of my friends,
respondents of the questionnaires for their support and encouragement. Finally,
thanks to my family for emotional and financial support that motivate me for making
effort to complete the research. Remarkably, thanks to my mother, despite her leg
injury recovering period, she has always encouraged and supported me so that I can
focus on the study.

5. TABLE OF CONTENTS
ABSTRACT
ACKNOWLEDGMENT
LIST OF ABBREVIATIONS
LIST OF TABLES
LIST OF FIGURES
CHAPTER 1: INTRODUCTION............................................................................1
1.1 Background of the research............................................................................1
1.2 Problem statement...........................................................................................5
1.3 Research objectives..........................................................................................6
1.4 Scope of the research.......................................................................................6
1.5 Significance of the research ............................................................................7
1.6 Thesis structure................................................................................................7
CHAPTER 2: LITERATURE REVIEW................................................................8
2.1 Brand equity.....................................................................................................8
2.2 Customer satisfaction ....................................................................................10
2.3 Brand loyalty..................................................................................................10
2.4 Price.................................................................................................................11
2.5 Relationship between brand equity, price, customer satisfaction and
brand loyalty ........................................................................................................12
2.5.1 Brand equity and customer satisfaction ..................................................12
2.5.2 Price and customer satisfaction...............................................................14
2.5.3 Customer satisfaction and brand loyalty .................................................15
2.6 Research model ..............................................................................................17
CHAPTER 3: METHODOLOGY.........................................................................19
3.1 Research design..............................................................................................19
3.2 Data collection instruments ..........................................................................20
3.3 Data analysis...................................................................................................22
CHAPTER 4: FINDINGS ......................................................................................23
4.1 General results ...............................................................................................23
4.1.1 Demographic information........................................................................23
4.1.2 Demographic customer behavior.............................................................23
4.2 Descriptive analysis .......................................................................................25

6. 4.3 Analytical results ...........................................................................................27
4.3.1 Statistical results in Hanoi.......................................................................27
4.3.2 Statistical results in Ho Chi Minh City....................................................31
CHAPTER 5: DISCUSSION AND CONCLUSION............................................38
5.1 Discussion .......................................................................................................38
5.2 Practical implications ....................................................................................39
5.3 Limitations and future research recommendations ...................................41
REFERENCES........................................................................................................43
APPENDIX ..............................................................................................................50

7. LIST OF ABBREVIATIONS
ASV Average Shared Variance”
AVE “Average Variance Extracted
CBBE Customer-Based Brand Equity
CFA Confirmatory Factor Analysis”
CFI “Comparative Fit Index
CR Composite Reliability
DF Degrees of Freedom
EFA Exploratory Factor Analysis
GFI Goodness of Fit Index
HCM Ho Chi Minh
KMO Kaiser-Meyer-Olkin
MSV Maximum Shared Variance
RMSEA Root Mean Square Error of Approximation”
SEM “Strutural Equation Modeling
TCH The Coffee House
TLI Tucker-Lewis Index

8. LIST OF TABLES
Table 1.1. Leading coffee shops brand in Vietnam in 2019 ......................................3
Table 3.1. Questionnaire scale and construct...........................................................21
Table 4.1. Profile of respondents…………………………………………………..23
Table 4.2. Demographic customer behavior ............................................................24
Table 4.3. Descriptive analysis.................................................................................26
Table 4.4. Reliability test in Hanoi...........................................................................27
Table 4.5. KMO and Bartlett's Test in Hanoi...........................................................28
Table 4.6. Pattern Matrix in Hanoi...........................................................................28
Table 4.7. Results of GOF tests of CFA factor analysis in Hanoi ...........................29
Table 4.8. Convergent and discriminant validity in Hanoi ......................................30
Table 4.9. Results of SEM analysis in Hanoi...........................................................31
Table 4.10. Reliability test in HCM City .................................................................31
Table 4.11. Pattern Matrix in HCM City..................................................................32
Table 4.12. KMO and Bartlett's Test in HCM City .................................................33
Table 4.13. Results of GOF tests of CFA factor analysis in HCM City ..................33
Table 4.14. Convergent and discriminant validity in HCM City.............................34
Table 4.15. Results of SEM analysis in HCM City..................................................36
LIST OF FIGURES
Figure 1.1. Total domestic coffee consumption in Vietnam from 2010 to 2018.......2
Figure 2.1. Research model………………………………………………… …….17
Figure 4.1. CFA path analysis in Hanoi ................................................................29
Figure 4.2. SEM path analysis in Hanoi ..................................................................30
Figure 4.3. CFA path analysis in HCM City............................................................34
Figure 4.4. SEM path analysis in HCM City ...........................................................35

9. 1
CHAPTER 1: INTRODUCTION
1.1 Background of the research
As a developing country, Vietnam has a massive capacity of agricultural land
accounts for 39% in the total area with the contribution to GDP at 15% in 2017
(Statista, 2020). The report by Statista also indicated that the primary labor force of
Vietnam is in the agriculture sector, with 40% of employment amounted to
approximately 20 million people in 2018. In this sector, the coffee industry is vital
for both domestic and foreign markets as Vietnam has been maintaining the position
as the world’s second-largest coffee exporter in consecutive years.
In the early twentieth century, coffee was first introduced into Vietnam in the
time of colonization by France, coffee production then increased rapidly and became
one of the most crucial agricultural products. The first instant coffee plant with a
manufacturing capacity of 80 tons per year, was established in Dong Nai Province,
in 1969. The two main kinds of coffee beans in Vietnam are Robusta and Arabica,
containing 1.6 to 2.7% caffeine and 1 to 1.5% caffeine, respectively, making the taste
of coffee here bitter and healthier than the coffee drinks in the world.
According to Tran (2019), in the marketing year of 2018/2019, domestic
consumption of coffee is at 3 million bags, and the experts forecast this number will
drastically increase due to the fierce competition of both international and local coffee
brands in Vietnam. The domestic consumption of coffee casts for approximately 10%
of total coffee production, much lower than the exported amount of coffee, which
means the local coffee shops still can grow. From Table 1.1, we know the upward
trend in consuming coffee of Vietnamese consumers from 2010 to 2018, and this
upward trend signifies the continuing increase in domestic coffee consumption in the
future.

10. 2
Figure 1.1. Total domestic coffee consumption in Vietnam from 2010 to 2018
(Unit: 1000 sixty-kg bags) (Source: statista.com)
There are many newly-built coffee chains in recent years in Vietnam.
According to Le (2018), coffee chains have competitive advantages in quickly
detecting target customers and creating a standardized management system. Also,
coffee chains have more competency in attracting consumers when they become
professional brands. Additionally, it is difficult to have a precise number of coffee
shops in Vietnam for the fact that the independent coffee shops locate sparsely and
have a short life cycle. However, the coffee chains have been the trend for business
in coffee shops in Vietnam, along with the evolution of e-commerce and delivery
service. There are leading brands in the coffee chain market in Vietnam that prevails
in the number of stores and revenue, namely Highland Coffee, Starbucks, The Coffee
House, and Trung Nguyen Coffee.
American giant coffee shops brand Starbucks, which entered Vietnam in 2013,
now runs 60 shops, mostly in Hanoi and HCM City. However, Starbucks offers a
higher price than local chains like The Coffee House or Highland though they are in
the same premium segment. Domestic coffee chains in Vietnam manage a wide
variety of products, from drinks to foods as well as secure Wi-Fi connection and
tranquil space, especially sensitive in market trends and taste of the customer.
Nowadays, fast-pace economic development in Vietnam encourages
competition in various business and service sectors. Many big firms try to invest
substantial financial sources to gain market share and revenue despite losing profit,
especially in creating chain businesses. Other than the growth of convenient store
0
500
1,000
1,500
2,000
2,500
3,000
2010 2011 2012 2013 2014 2015 2016 2017 2018

11. 3
markets, supermarkets, and food chains, the coffee chain market is among the fastest-
growing sector in terms of the number of stores and revenue.
In 2019, Euromonitor evaluated Vietnam’s chain coffee shop industry has a
business volume at above one billion US$ for the improvement in living standards
and urbanization. This data shows that the coffee chain sector is essential. In
comparison, according to Statista, the revenue in the hot drinks market in Vietnam
amounts to 8.817 billion US$ in 2020. In this hot drinks market, the most prominent
industry is coffee, which has a business volume of 5.682 billion US$. According to a
report by BMI Research, Vietnam’s coffee consumption increased remarkably from
0.42 kilograms per person per year in 2005 to 1.39 kilograms per person per year in
2015. Therefore, domestic coffee chains play a crucial part in the coffee market.
However, Euromonitor also reported in 2019 that the five leading brands in
the coffee chain market account for 15.3% of market share, with Highlands holding
7.2%. Among the leading chains, Highlands Coffee, The Coffee House, and
Starbucks are the biggest in earning revenue. Table 1.1 shows the revenue and
number of stores from leading coffee shop brands in Vietnam in 2019.
Table 1.1. Leading coffee shops brand in Vietnam in 2019
Highlands Coffee The Coffee House Starbucks
Revenue
(Unit: billion dong)
1628 669 593
Number of stores 240 138 49
(Source: VIRAC)
Highlands Coffee and The Coffee House are brands that originated from
Vietnam, while Starbucks is a foreign competitor. However, Highlands and The
Coffee House consider their targeted customer is the middle class with a pricing
segment of 30000 to 60000 VND. This study then chooses these two Vietnamese
brands to be objects for collecting empirical data. The conclusions from the research
might be useful findings for Vietnamese brands, especially Highlands Coffee and The
Coffee House, to understand the behavior of their customers.
Besides, the phenomenon to research on the coffee chain market is the scenario
approach. There is a big difference between the number of stores between the two
cities of Vietnam, Hanoi and HCM City. Currently, the Coffee House has 32 stores

12. 4
in Hanoi and 88 in HCM City. Also, Highlands Coffee maintains 81 and 111 stores
in Hanoi and HCM correspondingly. This data incurs curiosity if there is a difference
in customer behavior between two cities.
Highlands Coffee is the number one coffee chain in Vietnam. The founder of
Highlands, CEO David Thai, started the business in 1998 and opened the first store
in 2002, but it gained much brand awareness and investment after 2012. From that
time, Highlands continually expands its business, from 50 stores in 2012 to 300 stores
in 2019. The strengths of Highlands are its attractive location in bustling districts,
comfortable space, and high-quality products. Moreover, Highlands has the ambition
to bring Vietnamese coffee to the global; recently, they opened their first outlet in the
Philippines. As a leading coffee shop in Vietnam in a long time, Highlands has
continuously been improving brand awareness and quality, especially on the delivery
system or corporate social responsibility campaign. Moreover, Highlands is prevalent
not only on in-shop foods and drinks but also on roasted&ground coffee, instant
coffee, and ready-to-drink coffee, which are its signature products. Highlands
connects with food reviewing website Now.vn or Foody.vn for delivery service in
addition to traditional telephone booking or its website.
The Coffee House (TCH) is a young and unique brand starting from 2014,
currently holds second place in the Vietnamese market of the coffee chain. CEO
Nguyen Hai Ninh shared three strengths of TCH for attracting customers are the
socializing space, staff behavior, and convenience. TCH also identified that its
strategic competitor is Highlands Coffee in the same segment. TCH is also
continuously adapting its menus with the current trend, and especially, they had the
acquisition with the Ten Ren brand to compete with milk tea shops. Gradually, TCH
sets up the foundation for long-term growth from the raw materials to customer
service. Besides, TCH also serves the customer with roasted coffee beans or
subscription combos in diversifying menus. They concentrate much on convenient
delivery service experience, especially on developing the TCH app on smartphones,
even on Momo, an e-wallet app that generates many users in Vietnam recently.
People are coming to coffee shops these days for a variety of purposes, not
only for having a drink but a place to gather, socialize with friends and acquaintances.
Therefore, it is necessary to study the significance of customer satisfaction and

13. 5
loyalty. Both Highlands Coffee and TCH share the same idea about the difference in
the Hanoi and HCM market in Vietnam. Despite success in HCM City, many coffee
shop brands are skeptical about expanding business in Hanoi. CEO of TCH
appreciated that customers in Hanoi prefer the attractive open space. However, not
many brands can provide though the potential of doing business in this city is very
high. Therefore, this research hopes to study customer behavior in Hanoi and HCM
City and contribute findings to the coffee shop brands.
1.2 Problem statement
From academic perspectives, brand equity, customer satisfaction, and brand
loyalty are vital for promoting sustainable development to the companies. A satisfied
and loyal customer does not only repeat their purchasing behavior but also but
showing a willingness to spend extra money on their favored brand (Hoyer and
MacInnis, 2008). Nowadays, loyalty also transforms into sharing positive comments
on the brand, referring the brand to networks and family members. These advantages
from customer behavior bring word-of-mouth effect and brand image, which
contribute to the sustainable growth of a brand.
For service industry as coffee chains in Vietnam, the price is high in relation
to the customer expenditure. Therefore, it is vital to focus on CBBE and brand loyalty
while the demand is still growing. Coffee shops nowadays is a premium service which
customer are willing to pay big money and become a regular customer. Given the
example of fast-food chains in Vietnam like the KFC or Golden Gate, despite
charging a much higher price than a local restaurant, they still have a large number
of patronages. However, food chains or coffee chains face many difficulties in
competing with competitors. Thus, it is of great value for them to focus on educating
loyal customers and gaining customer satisfaction, which helps to keep customer stay.
Kelleri (1993)i conceptualizedi thei modeli ofi CBBE,i andi Nami eti al.i (2011)i
employedi thisi concepti toi studyi thei effecti ofi brandi equityi oni customeri satisfactioni
andi brandi loyaltyi fromi empiricali datai ini thei UK.i Besides,i Tui eti al.i (2012)i alsoi
researchedi oni satisfactioni andi loyaltyi ofi customersi ini Starbucksi Coffeei ini Taiwani
byi structurali equationi modelingi (SEM)i method.i However,i therei isi noi ori littlei
researchi toi investigatei thei relationshipi betweeni brandi equity,i price,i customeri
satisfaction,i andi brandi loyaltyi ini thei Vietnamesei market.i Withi thei existingi

14. 6
literaturei ini thei fieldi ofi Vietnami coffeei chains,i thisi researchi aimsi toi helpi ini
understandingi thei customeri behaviori ofi Vietnamesei customersi byi makingi ani
investigationi oni factorsi affectingi brandi loyalty.i Ini ai morei commoni sense,i iti willi
helpi toi learni whetheri Westerni modelsi ofi brandi equity,i customeri satisfaction,i andi
loyaltyi arei significanti fori explainingi thei Vietnamesei customeri behaviori towardi
brands.i i i i i i i i
Thei theoreticali contributioni ofi thisi researchi isi that:i thei researcheri addsi ai newi
factori pricei oni thei existingi modeli toi investigatei thei impacti ofi pricei oni customeri
satisfaction.i Wei examinei howi thei pricei contributesi toi customeri satisfaction,i brandi
loyalty,i andi brandi equity.i i
Thei practicali contributioni ofi thisi researchi isi thati wei bringi insightsi fori brandi
managementi ini chaini coffeei shops,i especiallyi spottingi thei differencei ini customeri
behaviori ini twoi scenarios.i Iti isi alsoi helpfuli fori thei personi aimingi toi seti upi ai coffeei
shopi ini Vietnami ini thei futurei becausei ofi thei vitali rolei ofi investigatingi customeri
behavior,i namelyi customeri satisfactioni andi loyalty.
This paper offers an understanding of the importance of factors affecting brand
loyalty and customer satisfaction from an empirical study in Vietnam. Future research
can further test with more factors or in other markets in Vietnam to gain knowledge
about customer behavior.
1.3 Research objectives
Thisi studyi hasi threei objectivesi asi follows:i
 Toi investigatei thei effecti ofi price,i congruencei andi qualityi oni customeri
satisfactioni ini chaini coffeei shopsi ini Vietnami
 Toi investigatei thei effecti ofi customeri satisfactioni oni brandi loyaltyi ini chaini
coffeei shopsi ini Vietnami
 i Toi describei thei customeri behaviori fromi analysisi resultsi ini twoi scenariosi ofi
coffeei chainsi ini Hanoii andi HCMi City
1.4 Scope of the research
This study focuses on three objectives, as mentioned above. Therefore, the
research samples concentrated on the customer of Highlands Coffee and The Coffee
House in Hanoi and HCM City. The quantitative questionnaire was employed to
study the phenomenon and examine the hypotheses stated in the next chapter.

15. 7
1.5 Significance of the research
This research aims to examine the relationship between price, CBBE, and
customer satisfaction in the coffee chain sector in Vietnam. The data collection tool
is questionnaire surveys with a sample of 400 respondents in two coffee chains in
Hanoi and HCM City. This quantitative approach enables this research to analyze the
data across the sample and test the theories.
The chain coffee shops sector is imperative and contributes to the growth of
the coffee industry or service industry simultaneously. This study then provides new
data that can support brands to understand customer preferences. It also recommends
implications on branding which benefit coffee chains as well as other markets in
Vietnam.
From the literature reviews, the researcher found little or no academic paper
directly studies the effect of price, congruence, quality on customer satisfaction, and
brand loyalty in the case of Vietnamese coffee chains. Because of this scarcity in
research about the customer of coffee shops in Vietnam, scholars should also consider
this research useful and information regarding the measurement of variables. The
results of this paper reveal knowledge about Vietnamese customer behavior in this
market, and they are also useful to future research orientation in a related market.
1.6 Thesis structure
This paper consists of five chapters starting with the chapter of the research
background to overview andcentralize thescope of theresearch. Inchapter2, theliterature
reviews are given to describe the theoretical relevance of previous researches and to
develop the model as well as hypotheses for further examination. In chapter 3, we show
the methodology, data collection, and data analyzing technique. The fourth chapter shows
the findings of the research, which represent descriptive analyse and analytical results. In
the final chapter, we discuss the results, make conclusions about the research, answer the
research objectives correspondingly, recommendations to subjects, and future researches.

16. 8
CHAPTER 2: LITERATURE REVIEW
2.1 Brand equity
Brandi equity,i fromi thei 1980s,i hasi becomei onei ofi thei essentiali conceptsi ofi
marketingi andi branding,i hasi beeni describedi andi researchedi ini variousi ways.i
Previousi studiesi discussedi thei ideai ofi brandi equityi ini threei primaryi prospects,i
includingi ai customer-basedi perspectivei (Aaker,i 1991),i financiali perspectivei (Simoni
andi Sullivan,i 1993)i andi thei combinedi viewi ofi thesei twoi (Anderson,i 2007).i
Accordingi toi Aakeri (1991),i brandi equityi refersi toi thei arrayi ofi differenti liabilitiesi andi
brandi assets,i associatedi withi thei brandi fori instancei includingi symbol,i name,i andi
others,i addingi andi subtractingi fromi thei valuei providedi byi servicesi andi productsi toi
thei firmi asi welli asi toi firm’si consumersi andi customers.
Correspondingly,i Kelleri (1993)i definedi CBBEi asi thei differentiali effecti ofi
brandi knowledgei uponi consumeri responsei toi thei marketingi ofi thei brand.i Therefore,i
thisi perspectivei relatesi toi threei criticali concepts,i includingi brandi knowledge,i
differentiali impact,i andi consumeri responsei toi marketing.i Brandi knowledgei
designatesi thei combinationi ofi brandi imagei andi brandi awarenessi andi itsi ideasi ini
consonancei withi thei relationshipsi andi characteristicsi ofi brandi associationi depictedi
earlier.
Likewise,i comparingi customeri responsei toi thei marketingi ofi ai brandi withi thei
reactioni toi similari marketingi fromi ai fictitiouslyi namedi ori ani unnamedi versioni ofi thei
producti ori servicei decidesi thei differentiali effecti ofi brandi equity.i Thei definitioni ofi
customeri responsei toi marketingi isi followingi customeri perceptions,i preferences,i andi
behaviori arisingi fromi marketing-mixi activities;i fori example,i iti involvesi reactionsi toi
couponi promotions,i perceptioni ofi copyi pointsi fromi ani ad,i ori evaluationsi ofi ai
proposedi brandi extensioni andi others.
Oni thei otheri hand,i brandi equityi isi thei enhancementi ini perceivedi utilityi andi
desirabilityi thati ai brandi namei confersi ini productsi ori servicesi (Lassar,i Mittal,i andi
Sharma,i 1995).i Besides,i Christodoulidesi (2010)i representsi brandi equityi asi ai seti ofi
attitudes,i perceptions,i behaviors,i andi knowledgei oni thei parti ofi consumers,i resultingi
ini thei enhancedi utilityi ofi productsi andi services,i whichi facilitatesi thei brandsi toi
generatei morei significanti revenuesi andi marginsi thani that,i withouti thei brand.

17. 9
Aakeri (1991)i offeredi thei measurementi ofi brandi equityi conformingi toi
differenti elements,i aspects,i andi dimensions.i Thei authori relatesi thei brandi equityi toi
multiplei issues,i includingi brandi association,i brandi awareness,i perceivedi quality,i
brandi loyalty,i andi otheri proprietaryi assetsi ofi brands.i Fromi thisi part,i CBBEi isi thei
typei ofi brandi equityi thati thei authori wantsi toi focusi oni andi researchi ini thisi study.i
Asi explainedi byi Washburni andi Planki (2002),i fouri concepts,i includingi brandi
awareness,i perceivedi quality,i brandi association,i andi brandi loyalty,i arei fundamentali
dimensionsi toi measurei CBBE.i Thei authorsi alsoi notedi thati thei perspectivei ofi otheri
proprietaryi assetsi ofi brandsi isi irrelevanti ini consumer-basedi brandi equityi
measurement.i Besides,i Yooi andi Donthui (2001)i reportedi thati consumer-basedi brandi
equityi ati thei individuali leveli ofi customeri breaksi intoi behaviorali andi cognitivei
perspectives;i therefore,i conductingi consumeri surveysi isi ai validi measurement.i i i i i i
Additionally,i consumer-basedi brandi equityi isi thei synthesisi ofi physicali
quality,i staffi behavior,i brandi identification,i lifestyle-congruence,i andi ideali self-
congruencei (Nami eti al.,i 2011).i Consequently,i thisi paperi exploresi thei impactsi ofi
thosei characteristicsi ofi consumer-basedi brandi equityi oni brandi loyalty,i ini
considerationi ofi customeri satisfactioni asi ai medium.i Koi andi Chiui (2006)i viewedi thei
coffeei shopi industryi asi ai parti ofi thei servicei industry,i notablyi thei foodi andi servicei
industry,i consequently,i reflectingi andi reutilizingi thei itemsi fromi thei measurementi ofi
CBBEi ini thei studyi ofi Nami eti al.i (2011)i isi viable.i Furthermore,i O’Louhglini andi
Szmigini (2006)i portrayedi thati developingi andi designingi thei relationshipi ofi brandi
associationi andi fivei dimensionsi ofi consumer-basedi brandi equityi helpedi toi meeti
functionali needsi asi welli asi thei symbolici needsi ofi customers.i
Besides,i fori thei resemblancei ini thei researchi matteri asi ani areai ofi thei servicei
industry,i thisi studyi appliesi consumer-basedi brandi equityi byi incorporatingi fouri
dimensionsi illustratedi byi Nami eti al.i (2011).i Thei authorsi formulatedi ai modeli withi ai
measurementi ofi fouri dimensionsi ofi consumer-basedi brandi equityi withi aimingi toi
researchi thei casei ofi hotelsi andi restauranti industryi ini thei UK.i Thus,i fori similarityi toi
thei casei ofi hotelsi andi restaurantsi industry,i thisi paperi employsi thei physicali foodi andi
servicei qualityi dimensionsi asi welli asi thei symbolici dimensions,i includingi lifestyle-
congruence,i andi ideali self-congruence,i toi measurei consumer-basedi brandi equityi ini
thei coffeei shopsi industry.

18. 10
2.2 Customer satisfaction
Manyi typesi ofi research,i especiallyi ini thei marketingi field,i recognizedi
customeri satisfactioni asi ai criticali factori fori thei long-termi successi ofi ai brandi (Pappui
andi Quester,i 2006).i Accordingly,i ai largei numberi ofi scholarsi employedi customeri
satisfactioni asi ai dominanti factori toi explorei thei post-purchasei behaviori ofi thei
customer,i fori example,i attitudinali loyaltyi andi behaviorali loyalty.i Nematii eti al.i
(2011)i describedi customeri satisfactioni asi thei leveli ai producti ori servicei servesi thei
customeri andi satisfiesi hisi ori heri expectations.i
Customeri satisfactioni hasi bothi cognitivei andi affectivei aspects.i Thei cognitivei
aspectsi relatedi toi thoughtsi andi judgmentsi abouti thei producti ori servicei andi thei brandi
whilei thei affectivei perspectivesi encompassi ai subjectivei feelingi thati thei overalli
experiencei ini dealingi withi thei firmi isi positivei (Tui eti al.,i 2012).i Baigi andi Khani
(2010)i believedi thati retainingi customersi isi certainlyi worthwhilei financiallyi ini
correlationi toi thei costi ofi gainingi newi customers,i whichi isi fari morei expensive.i
Consequently,i customeri satisfactioni isi ai vitali factori wheni doingi businessi ini suchi
profoundlyi competingi markets,i mainlyi thei hoteli andi restauranti industryi ori coffeei
shopsi industry.
Among two forms of customer satisfaction, including cumulative satisfaction
and transaction-specific satisfaction, researchers concentrate more to study related to
cumulative types, which refer to the extent of post-purchase satisfaction of the
customer. Tu et al. (2012) evaluated the overall satisfaction of the latest consumptions
of products and services along with the rendezvous with the brand or their employees.
2.3 Brand loyalty
Previousi studiesi havei definedi andi developedi thei concepti ofi brandi loyaltyi asi
ani importanti factori ini brandingi andi marketing.i Brandi loyaltyi isi thei repeatedi
purchasingi productsi andi services,i asi welli asi supporti thei brandsi resultingi fromi thei
positivei attitudei towardsi thei brandi fromi customersi (Hoyeri andi McInnis,i 2008).i
Accordingi toi Jacobyi andi Chestnuti (1978),i brandi loyaltyi refersi toi thei perspectivei
whichi isi biasedi behaviorali responsei conveyingi overi ai periodi madei byi decisionsi ofi
consumersi concerningi thei purchasei ofi ai particulari brandi ori multiplei brands,i consideri
asi ai processi ofi psychologicali thinkingi ofi customers.i Thei authorsi alsoi highlightedi thei
importancei ofi brandi loyaltyi withi thei rolei ofi simplifyingi thei purchasingi decision,i fori

19. 11
example,i thati withi existedi positivei experiencesi withi thei brand,i thei customeri tendsi toi
keepi buyingi asi ai signali ofi loyalty.i Therefore,i throughi brandi loyaltyi concentration,i ai
firmi ori ai brandi cani buildi upi theiri regulari customeri ori customeri base,i whichi isi moralei
fori expandingi businessi scalei andi growth.i i i i
Becausei brandi loyaltyi isi ai psychologicali concepti definedi byi manyi scholars,i iti
isi difficulti toi measurei iti objectively.i Onei method,i includingi pricei sensitivityi andi
purchasingi behaviors,i isi widespreadi andi mentionedi ini variousi studies.i Moreover,i
brandi loyaltyi isi informativelyi measuredi byi inspectingi customersi toi assessi theiri
commitmenti toi thei brandi basedi oni criticali itemsi suchi asi thei attitudei towardi thei
producti andi theiri consistenti opinionsi overtimei (Mohammad,i 2012).i Previousi studiesi
suggesti twoi perspectivesi toi viewi brandi loyalty.i Attitudinali loyaltyi attributesi toi thei
positivei feelingi ori opinioni oni thei brandi itselfi ori thei productsi providedi byi thei brandi
(Gremleri andi Brown,i 1996).i Therei arei multiplei waysi toi measurei attitudinali loyalty,i
fori example:i “intentioni ofi wordi ofi mouth”i (Bouldingi eti al.,i 1993)i ori “willingnessi toi
payi ai premiumi price”i (Narayandas,i 1996).i Oni thei otheri hand,i behaviorali loyaltyi
regardsi asi thei purchasingi behaviori ori repeatedi thei frequencyi ofi purchasei productsi ofi
thei samei brandi overi timei (Chaudhurii &i Holbrook,i 2001).i Bandyopadhyayi andi
Martelli (2007)i consideredi thei causei andi effecti relationshipi betweeni attitudinali andi
behaviorali loyalty;i fori instance,i ifi ai customeri holdsi ai pleasanti experiencei withi thei
brand,i consequently,i hei ori shei favorsi becomingi ai repeatedi consumer.
Choi et al. (2011) developed a set of brand loyalty items that were useful for
further researches. This measurement of brand loyalty helped in mitigating the risk
of other factors affecting behavioral brand loyalty, such as convenience or habit.
Besides, Nam et al. (2011) also described a set of items to assess brand loyalty. This
research then employs items from previous papers to study the correlation between
brand loyalty and other variables.
2.4 Price
A price refers to the amount of payment or compensation given by one party
to another in exchange for one unit of goods or services (Schindler, 2012). Price is
also an element of marketing mix together with product, place, and promotion.
Besides, from the business viewpoint, marketing mix is a critical tool for firm and
organization to achieve marketing target as well as increase the sale and financial

20. 12
performance (Bay, Petrizzi and Gill, 2008). In the service industry, the price has the
intangible nature of service, then in case other information is missing, price becomes
a pivotal quality degree (Olander, 1970; Zeithaml, 1981). Moreover, it is imperative
that the firm also confronts with setting price competitively, for example, a customer
considers price as a basis to choose the brand in situation among several competing
service organizations (Yelkur, 2000).
According to Olson (1977), the objective or actual price has been defined
distinctively from perceived price, and whether the price is low or expensive is
understood by the actual price by the customer. Moreover, Yoo et al. (2000)
represented that price is subjectively perceived by the consumer; it is possible to
measure it by collecting the opinion of the consumer. Using items of Smith and Park
(1992), the authors also developed eight items related to price measurement; for
instance, “the price of this brand is high.” This paper, therefore, will adapt and employ
this method of price assessment as a part of the scale for measuring the research
variable.
2.5 Relationship between brand equity, price, customer satisfaction and brand
loyalty
2.5.1 Brand equity and customer satisfaction
Servicei qualityi isi ai fundamentali parti ofi marketingi andi helpsi ini sustainingi andi
succeedi ini businessi (Fitzsimmonsi eti al.,i 2001).i Previousi studiesi alreadyi researchedi
servicei quality,i andi thisi paperi utilizesi twoi perspectivesi ofi servicei qualityi comprisingi
staffi behaviori andi physicali qualityi toi investigatei ini thei fieldi ofi coffeei shopsi industry.i
Thei staffi behaviori reflectsi thei competence,i friendliness,i andi helpfulnessi ofi staffi
membersi ini thei servicei industry,i whilei thei physicali qualityi dimensioni refersi toi thei
physicali facilitiesi ofi thei brandi (Bloemeri andi Kaspe,i 1995).
Thei physicali facilitiesi accommodatei firmsi toi givei thei customeri ai pleasanti
experience,i whichi mayi incuri noti onlyi repeatedi purchasingi behaviori buti alsoi word-
of-mouthi effect.i Consequently,i ai goodi andi pleasanti experiencei alsoi provokesi
customersi ini termsi ofi stronglyi affectingi theiri leveli ofi satisfactioni andi loyaltyi
(Bloemeri andi Kaspe,i 1995;i Ryui andi Jang,i 2008).
Oni thei otheri hand,i thei staffi behaviori hasi ani impacti oni customeri satisfactioni
becausei duringi servicei providingi processi customeri hasi ai particulari experience,i iti cani

21. 13
bei positivei ori negative.i Thei staffi andi employeesi ofi ani organizationi playi ani importanti
rolei ini creatingi customeri satisfactioni asi theyi havei ultimatei responsibilityi ini
contactingi andi providingi servicei toi customers,i meetingi theiri expectationsi (Zeithamli
eti al.,i 1986).i Pasti researchesi havei describedi thati low-skilledi staffi mighti inducei thei
negativei emotionali experiencei ofi thei customeri becausei thosei staffi mighti bei reluctanti
toi copei withi thati emotioni ofi thei customeri properlyi whilei theyi arei thei representativei
ofi thei firmi (Bloemeri &i Kaspei 1995;i Lemminki andi Mattsson,i 2002).i Additionally,i
Hani eti al.i (2015)i believedi thati thei behaviori ofi employeesi hasi ai significanti effecti oni
overalli customeri satisfaction.i Besides,i Bhattacharyai andi Seni (2003)i researchedi thei
expliciti servicei attributei andi reportedi thati thei politenessi andi attentivenessi ofi staffi
alsoi havei ani impacti oni customeri satisfaction.
Also,i therei arei numerousi scholarsi identifiedi andi employedi thei relationshipi
amongi customeri satisfaction,i physicali qualityi andi staffi behaviori ini differenti sectorsi
ofi thei servicei industryi fori theiri studies,i namelyi Parasuramani eti al.i (1988);i Bergamii
&i Bagoiii (2000);i Bradyi &i Cronini (2001);i Ryui &i Jangi (2008).
The lifestyle of people refers to how they purchase products or choose a brand,
for example, luxury goods or services. Brands and brand settings are expressions of
lifestyles (Solomon, 2002). Peter and Olson (2008) defined lifestyles as the specific
manner that people conduct their lives. Also, Solomon et al. (2006) described lifestyle
as a way to differentiate people belong to a group or not. According to Casswell and
Maxwell (2005), interpretation desired experiences and lifestyles when the customer
uses a product or service facilities to build a brand. Similarly, the authors believed
that the suitability of the brand and personal lifestyle of consumers stimulates the
right attitude of the customer with the brand. Lifestyle-congruence describes the
degree to which brand consumption supports consumers’ unique pattern of living as
expressed by their activities, interests, and opinions (Nam et al., 2011).
Sarkii eti al.i (2012)i portrayedi purchasingi behaviori asi relatesi toi emotioni morei
thani rationale.i Thisi researchi alsoi mentionedi thati encouragingi customersi toi buyi
productsi ori servicesi ofi ai brandi isi influencedi byi manyi externali factorsi suchi asi culturei
andi lifestyle.
Solomoni (2002)i alsoi identifiedi thei mechanismi fori thei marketingi ofi lifestyle,i
whichi aimsi toi gaini customeri satisfactioni isi harmonizingi thei specifici lifestylei ofi thei

22. 14
customeri toi brandi strategy.i Researchesi abouti thei effecti ofi lifestylei oni thei leveli ofi
satisfactioni ofi customeri towardsi ai brandi confirmi thati therei isi ai positivei relationshipi
betweeni customeri satisfactioni andi lifestylei (Kyungnam,i 2011;i Awani andi Rehman,i
2014).i Ai furtheri studyi conductedi byi Nami eti al.i (2011)i alsoi confirmedi thati thei
congruencei betweeni thei lifestylei ofi consumeri andi ai brandi stronglyi reinforcei
customeri satisfaction.
The construct of congruence relates the personality of brands to the self-
concept of consumers (Nienstedt et al., 2012). Accordingi toi Baumeisteri (1999),i self-
concepti refersi toi thei sumi ofi thoughtsi andi feelingsi ofi ai personi abouti himselfi ori
herself,i includingi thei comprehensioni ofi thati personi abouti whoi andi whati thei selfi is.i
Carli Rogersi (1959)i alsoi identifiedi threei perspectivesi ofi self-concept,i includingi self-
image,i self-esteem,i andi ideali self.i Ini thesei threei concepts,i thisi paperi employsi thei usei
ofi ideal-self,i whichi meansi whati individualsi wishi theyi werei becoming.
Sirgyi eti al.i (2000)i developedi self-congruencei theoryi andi definedi self-
congruencei asi thei extenti toi whichi actuali andi ideali self-congruencei matchesi withi thei
brandi image;i thisi leveli theni partiallyi influencei customeri behavior.i Ambleri eti al.i
(2002)i alsoi sharei thei samei opinioni oni self-congruence;i thei individuali ownsi ori buysi
brandsi toi enhancei theiri self-esteem.
Hei andi Mukherjeei (2007)i consideredi self-congruityi asi ai cruciali factori ini
researchingi variousi aspectsi ofi customeri behavior,i andi iti isi ofi greati importancei ini
beingi antecedenti toi impacti customeri satisfaction.i i Previousi studiesi byi Andreasseni
(1994),i Bakeri (1987),i andi Grewali &i Mangleburgi (2000)i alsoi supportedi thati therei isi
ai positivei correlationi betweeni customeri satisfactioni andi ideali self–congruencei ini thei
servicei industry.i Ini thei studyi abouti thei effecti ofi brandi self-congruencei oni thei
behaviori ofi thei customer,i brandi self-congruencei hasi morei impacti oni satisfactioni thani
attitudei andi preference.i
Thisi studyi theni combinesi thei physicali quality,i staffi behavior,i lifestylei
congruence,i andi ideal-selfi congruencei dimensionsi ofi CBBEi intoi qualityi andi
congruencei dimensionsi toi explorei theiri impactsi oni customeri satisfaction.
2.5.2 Price and customer satisfaction
According to Peng and Wang (2006), the customer has to pay the price as the
financial cost they purchase products or services, then the customers consider price

23. 15
as a crucial thing to decide between buying a product or service. There is a close
relationship between the fairness of price and customer satisfaction (Al-Msallam,
2015). The authors found that price fairness is one of the critical determinants for
customer satisfaction because the customers often switch to any other brand which
offers a reasonable price. This idea means that as long as a brand offers a fair price,
the customer will stick to them for a longer-term.
Most of the customers view price with the service quality; when there is a
match, the result is customer satisfaction and vice versa (Oliver, 1997). This idea
means the customers have a tendency to pay for the product or service if they feel the
deal given by the service provider is reasonable. There are two perspectives in
calculating the price perception (Cheng et al., 2008). The first one is the
reasonableness of price, which refers the customer’s perception of the differentiation
between one brand and the others. The other aspect is how the customers consider the
relative position of a brand; then, they perceive the fairness of price concerning the
value of money. Ordinarily, the products or services with low quality are often cost
lower than those with high quality (Chitty et al., 2007).
Many studies proclaimed that there is a positive correlation between price
perception and customer satisfaction (Oliver, 1997; Cheng et al., 2008). The leading
cause of customers changes service providers stays in price problems; for example,
the lack of fairness or reliability in pricing policies of the firms (Peng and Wang,
2006). Consequently, a brand, in order to gain customer satisfaction, should consider
the fairness of pricing under maintaining and improving the service quality.
2.5.3 Customer satisfaction and brand loyalty
Accordingi toi Oliveri (1999),i ati thei affectivei stagei ofi customeri satisfaction,i
consumersi wouldi nurturei ai positivei attitudei towardsi thei service-provideri ori thei
brandi patronagei resultingi fromi satisfactoryi repetitivei purchasingi actioni overi time.i
Thisi brandi experiencei theni makesi customeri satisfactioni ai criticali factori ini embracingi
brandi loyalty.i Numerousi studiesi havei focusedi oni thei explorationi ofi thisi loyalty-
satisfactioni relationshipi (e.g.,i Szymanskii andi Henard,i 2001;i Choii eti al.,i 2011;i Songi
eti al.,i 2012)i andi thati customeri satisfactioni isi thei predecessori ofi brandi loyaltyi
(Kapferer,i 2008;i Martisiutei eti al.,i 2010;i Nami eti al.,i 2011).i i

24. 16
Besides,i Bennetti andi Rundle-Thielei (2004)i believedi thati ifi customersi arei
satisfiedi withi thei producti andi servicei ofi ai brand,i theyi havei highi tendenciesi toi keepi
usingi thei brand,i encouragei othersi toi usei thisi brand,i andi theyi arei lessi likelyi toi switchi
toi otheri brands.i Moreover,i thei relationshipi betweeni satisfactioni andi loyaltyi isi
significanti ini bothi thei short-runi andi long-run;i theyi arei likei twoi uniquei conceptsi ori
stepsi relatingi toi thei attitudei ofi customersi towardsi brandi ori brandi seti (Mittali andi
Kamakura,i 2001).i Ini otheri words,i brandi loyaltyi isi thei finali stagei thati resultedi fromi
thei responsesi ofi thei customeri toi thei offeringsi ofi thei brand,i whichi followi fromi thei
initiali satisfactioni stage.
Brakusi eti al.i (2009)i conductedi ai studyi ini thei USi marketi toi investigatei thei
relationshipi betweeni brandi loyaltyi andi customeri satisfactioni andi foundi outi thati
satisfactioni withi brandi experiencei isi ani influentiali mediatori affectingi brandi loyalty.i
Researchesi ini manyi sectorsi andi thei empiricali studiesi demonstratedi ai positivei
correlationi betweeni loyaltyi andi satisfaction:i Backi andi Parksi (2003)i ini thei servicei
industry;i Rusti andi Zahoriki (1993)i ini retaili banksi andi hoteli industry;i McDougalli andi
Levesquei (1994)i ini multiplei sectors.
Nami eti al.i (2011)i presentedi ai modeli ini whichi customeri satisfactioni playedi thei
rolei ofi mediatori ofi brandi loyaltyi andi consumer-basedi brandi equity.i Thei authorsi
conductedi empiricali researchi ini thei hoteli andi restauranti industryi ini thei UK,i andi thei
resulti isi unsurprised,i therei isi ai positivei effecti ofi brandi equityi oni brandi loyaltyi
throughi customeri satisfaction.i Lateri ini 2012,i Tui eti al.i alsoi investigatedi thisi
correlationi ofi loyaltyi andi satisfactioni ini Starbucksi coffeei shopsi ini Taiwan,i whichi
supportedi similari results.i Thisi casei means,i asi ai parti ofi thei servicei industryi ori foodi
andi beveragei sector,i coffeei shopsi arei ai potentiali contexti toi conducti ai studyi toi explorei
thisi relationshipi ofi brandi loyaltyi andi customeri satisfaction.
Suh and Yi (2006) highly valued the strong effect of customer service on brand
loyalty with the direct connection rather than typical advertisements or brand image.
This view implies that focusing on customer satisfaction helps in strengthen brand
loyalty, especially for the product and service of the brand. The coffee shops offer
products in a service-based manner; therefore, the essence of customer satisfaction
must be higher in both tangible and intangible aspects (Morrison and Crane, 2007).

25. 17
On the other hand, studies by Zeithaml et al. (1996); Bloemer et al. (1999);
Cronin et al., (2001); Johnson et al. (2001) also supported that satisfied customers
exposed additional loyal behavior. In the situation in which the service has a vital role
along with brand experience, enhancing brand loyalty needs more than just having
tasty product offerings.
2.6 Research model
The above literature reviews are about CBBE, brand loyalty, price and
customer satisfaction, and their relationships. From these conceptual constructs, this
paper foresees the influences of price and brand-equity on customer satisfaction and
customer satisfaction on brand loyalty. Although different from the conceptual model
from Nam et al. (2011), we do not test the role of the brand identification dimension
in the model because the coffee chains market in Vietnam is still developing with
little awareness from the customer about brand identification. However, it is of the
great potential that there is a positive effect of the price on customer satisfaction,
which is a new dimension to the conceptual model. Moreover, from the phenomenon
about location, the hypotheses are developed and tested as two separate empirical
cases in Hanoi and HCM City. Therefore, the author developed the research model
with four hypotheses as follows:
Brand
Loyalty
Quality
Congruence
Customer
Satisfaction
H1
H2
H3
H4
Price
Figure 2.1: Research model

26. 18
 Hypothesis 1: Pricei hasi ai positivei effecti oni customeri satisfactioni ini chaini
coffeei shopsi ini Vietnam.i i i
 Hypothesisi 2:i Qualityi hasi ai positivei effecti oni customeri satisfactioni ini chaini
coffeei shopsi ini Vietnam.
 Hypothesisi 3:i Congruencei hasi ai positivei effecti oni customeri satisfactioni ini
chaini coffeei shopsi ini Vietnam.i
 Hypothesisi 4:i Customeri satisfactioni hasi ai positivei effecti oni brandi loyaltyi ini
chaini coffeei shopsi ini Vietnam.

27. 19
CHAPTER 3: METHODOLOGY
3.1 Research design
Thisi studyi aimsi toi identifyi andi investigatei thei relationshipi betweeni price,i
congruence,i quality,i customeri satisfaction,i andi brandi loyaltyi ini thei coffeei shopsi
industryi ini Vietnam.i Thei researcheri adoptsi deductivei reasoningi withi ai theoryi abouti
thei concernedi topici insteadi concentratesi oni formulatingi testablei hypothesesi byi
collectingi observationsi andi gatheringi datai thati concernsi thei confirmationi ofi thei
originali theory.
Besides,i thisi paperi usesi ai quantitativei researchi strategyi generatingi thei
numericali representationi ofi ai particulari phenomenoni throughi collectedi data.i Iti theni
employsi thei survey-stylei questionnaire,i whichi isi populari andi effectivei asi thei
previousi researchesi ini thei field.i Underi timei andi resourcei limitations,i thei authori
considersi thei deductivei approach,i quantitativei researchi strategy,i andi questionnairei
arei thei mosti suitablei designi toi conducti thisi paper.
First, this study utilized secondary data coming from journal articles,
textbooks, and media stories, which ensured the research motivation and literature
reviews. The process follows a pilot test for the validity purpose of the questionnaire
by the 47 offline surveys (27 in Hanoi; 20 in HCM City). These surveys reinforced
the meaning of research items and the translation of questionnaire items into the
Vietnamese language. The author then conducted surveys to collect primary data in
the one month between February and March 2020 in Vietnam under a common
sampling technique. Thisi paperi collectsi datai byi onlinei questionnairesi withi thei
purposivei samplingi followingi choseni criteria:i (1)i Thei respondenti arei customersi ofi
Highlandsi Coffeei ori Thei Coffeei Housei ini Hanoi,i andi HCMi City;i andi (2)i Thei
respondenti hasi purchasedi thei producti ori servicei ofi thesei brandsi ati leasti threei timesi
ini recenti threei months.
Asi ai structurali equationi modelingi (SEM)i research,i thisi studyi includesi thei
exploratoryi andi confirmatoryi factori analysis,i andi accordingi toi Gorsuchi (1983),i thosei
fairi samplesi requirei thei minimumi samplei ofi 200i observations.i Also,i accordingi toi
Hairi eti al.,i (2010),i thei leasti ratioi ofi observationsi overi ai questionnairei itemi isi 5:1,i andi
Klinei (2015)i believedi thati thei N:qi ratioi shouldi bei 20i toi 1i ori eachi parameteri ini thei
modeli requiresi 20i participants.i Therefore,i thisi studyi withi 24i itemsi andi fouri

28. 20
parametersi fromi thei researchi modeli needsi toi collecti ati leasti 120i respondents.i
Thei authori generatedi 450i questionnairesi equallyi distributedi ini Hanoii andi
HCMi City.i Afteri checki andi eliminationi ofi falsei ori incompletei responses,i therei werei
427i completedi andi validi answersi fori thei analyzationi stepsi (218i ini Hanoii andi 209i ini
HCMi City),i whichi indicatedi thei validi ratei ofi 94.9%.
In terms of analytical technique, this study utilized IBM SPSS Statistics 20
and AMOS 21, which is an added module of SPSS to conduct multivariate analyses
and test hypotheses. AMOS is a popular tool in SEM, and it also helps to graph and
to modify the relationship between variables.
3.2 Data collection instruments
This paper studies the relationship between five variables, including price,
quality, congruence, customer satisfaction, and brand loyalty. The scale using for the
research has been used in previous researches to apply to the case of the coffee shops
industry in Vietnam. In specific, the price variable consists of four items dropped
from Yoo et al., (2000). The congruence variable comprises of six items of ideal-self
congruence and lifestyle congruence adopted from Nam et al., (2011). The product
and service quality variable was evaluated with six items from Nam et al., (2011).
Customer satisfaction and brand loyalty measured by four items respectively, were
adopted from Choi et al. (2011).
Apart from demographic questions, surveys of this study also employed a five-
point Likert scale for all those variables to assess the answers of respondents ranging
from strong disagreement to strong agreement. The table below then summarizes the
scale and construct of the questionnaire:
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29. 21
Table 3.1. Questionnaire scale and construct
Variable
Item
Code
Item
Price
PR1 The price of this brand is higher than other brands
PR2 The price of this brand is lower than other brands
PR3
The price of this brand is more affordable than other
brands
PR4
The price of this brand is more expensive than other
brands
Quality
QL1 Quality of foods and drinks
QL2 Staff behavior
QL3 Physical quality
QL4 Staff behavior
QL5 Quality of atmostphere and space
QL6 Attitude of staff
Congruence
CON1 Self-congruence from other personal view
CON2 Lifelstyle support
CON3 Self congruence from other people’s view
CON4 Lifestyle congruence
CON5 Ideal self expectation
CON6 Personal lifestyle
Customer
Satisfaction
CS1 Foods and drinks satisfaction
CS2 Staff behavior satisfaction
CS3 Good experience in this coffee chain brand
CS4 Choosing this brand is a right choice
Brand
Loyalty
BL1 Sharing good comments about the brand
BL2 Continue purchasing and using the brand in future
BL3 Prefer this brand to others
BL4 Recommend this brand to someone who ask

30. 22
3.3 Data analysis
Structural equation modeling (SEM) has advantages in running multiple
regression models simultaneously, while one variable might be both independent and
dependent. This study follows the typical steps in an (SEM) research to investigate
the relationship in literature. Firstly, each latent variable will go through the reliability
check based on the Cronbach’s alpha indices. If the observed variables meet the
required threshold, the remained indicators proceed to the explanatory factor analysis
(EFA) for testing if they belong to the same variables. The critical result is the
principal axis factoring with the convergence of criteria into iterations. The CFA
analysis step follows to examine the reliability of the measurement items as a whole
with the goodness-of-fit and statistical indices. The last step is to run the SEM
analysis, where the path loading of the proposed model will be tested. In this study,
the objects are the coffee chain market in Hanoi and HCM City; therefore, we will
run the model twice for checking the hypotheses and comparing the results of two
cases.
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31. 23
CHAPTER 4: FINDINGS
4.1 General results
4.1.1 Demographic information
The first part of the questionnaire focused on the profile of respondents. There
were a total of 450 surveys given in which 427 responses are valid to continue to the
next step. In these valid responses, the majority were male in both cases of Hanoi and
HCM City. In terms of age, this research has a relatively equal distribution of three
groups; each of them accounted for 30% of the total sample. Highlands Coffee and
The Coffee House are the objects of the study because they are competitors, serve the
targeted customer in the same price range. Please see Table 4.1 for the presentation
of the demographic background of the sample.
Table 4.1. Profile of respondents
Characteristics
Hanoi HCM City
Frequency
(n = 218)
Percent
Frequency
(n=209)
Percent
Gender
Male 119 54.6% 122 58.4%
Female 99 45.4% 87 41.6%
Age
Under 22 67 30.7% 55 26.3%
From 22 to 32 71 32.6% 80 38.3%
Over 32 80 36.7% 74 35.4%
Brand
Highlands Coffee 117 53.7% 117 56.0%
The Coffee House 101 46.3% 92 44.0%
4.1.2 Demographic customer behavior
The next few questions in the surveys explored the behavior of respondents
when purchasing products or services of chain coffee shops. This study concentrated
on the customers who used the service of coffee houses at least three times in the last
three months, and the most highest frequency is the group of four times. Also, it is
surprising that in recent three months, more than 10% of the respondents buy products
6796371