Disssertation build strong customer based brand equity in international market

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Disssertation build strong customer based brand equity in international market

  1. 1. Develop Brand Meaning to Build Strong Customer- Based Brand Equity in International Market --- The case of Trung Nguyen Coffee in Japanese Market--- Tables of Contents Acknowledgements............................................................................Error! Bookmark not defined. Abstracts .................................................................................................................................... iii Tables of Contents ................................................................................................................................i List of Figures .....................................................................................................................................iv List of Tables ......................................................................................................................................v Chapter 1. Introduction..................................................................................................................1 1.1 Research Background ..................................................................................................1 1.2 Organization Background ............................................................................................2 1.3 Research Aim and Objectives......................................................................................6 1.4 Research Approach ......................................................................................................6 1.5 Research Implementations.........................................Error! Bookmark not defined. 1.6 Research Structure .......................................................................................................8 Chapter 2. Literature Review.........................................................................................................9 2.1 Brand and Products ......................................................................................................9 2.2 Brand Equity ..............................................................................................................10 2.3 Customer based brand equity (CBBE).......................................................................10 2.4 Study model ...............................................................................................................10
  2. 2. ii 2.5 Hypothesis Development ...........................................................................................14 2.6 Summary....................................................................................................................14 Chapter 3. Methodology..............................................................................................................15 3.1 Research process........................................................................................................15 3.1.1 Preliminary research ....................................................................................................15 3.1.2 Official research...........................................................................................................15 3.2 Scale measurement.....................................................................................................15 3.2.1 Measuring brand awareness.........................................................................................15 3.2.2 Measuring brand impression........................................................................................16 3.2.3 Measuring the perceived quality..................................................................................16 3.2.4 Measuring the brand loyalty ........................................................................................17 3.3 Data analysis ..............................................................................................................17 3.4 Summary....................................................................................................................17 Chapter 4. Results and Discussion...............................................................................................18 4.1 Data Description ........................................................................................................18 4.2 Testing the scale.........................................................................................................19 4.2.1 Testing by Cronbach Alpha .........................................................................................22 4.2.2 Testing the scale through exploratory factor analysis EFA .........................................24 4.3 Multiple linear regression analysis ............................................................................26 4.3.1 Considering the correlation matrix among variables in the model ..............................26 4.3.2 Assessing and testing the appropriateness of the model..............................................26 4.3.3 Meaning of regression coefficients in the model.........................................................27 4.4 Differences in evaluating components of brand equity .............................................27 4.5 Summary....................................................................................................................28 Chapter 5. Conclusions and Recommendation............................................................................30 5.1 Conclusion .................................................................................................................30 5.2 Recommendation .......................................................................................................33 5.2.1 Building the brand: It is necessary to occupy consumer’s trust...................................33 5.2.2 Brand Maintenance ......................................................................................................33 References Error! Bookmark not defined. Appendix 1 Error! Bookmark not defined. Appendix 2 Error! Bookmark not defined.
  3. 3. Abstracts In recent years, building a brand is not just drawing people’s awareness and customer’s demand to its company, it is also the establishment a system including combination of commitment and imagery in their awareness together with transmission and implementing of the commitment. In the competitive environment, one of the most important goals is to become customer’s favourite. That is the reason why a good brand strategy plays the role of orienting the company to plan to achieve the most competitive advantages – in the eyes of consumers. In the situation of Vietnam joining the world economy, Trung Nguyen has stood out as a typical phenomenon in building brand for agricultural product as well as for the world coffee. However, Trung Nguyen coffee with the process of building and realizing the brand strategy has been through ups and downs, drawn a strong brand meaning. This dissertation provides the insight-view of the brand meaning of Trung Nguyen Coffee in purpose of building its strong customer-based brand equity in international market. In order to achieve the study purpose, an exclusive literature review is presented. Moreover, the quantitative and qualitative researches are selected and data collected are analyzed using factor analysis and linear regression equation with supports of SPSS Software. The results of this study enables Trung Nguyen Coffee to perceive the necessity of building their brand and proper investing in brand equity. On the other hand, through the survey, Trung Nguyen Coffee can know how international customers, Japanese people in this case, feel about its coffee products. As well, it helps the other coffee producers perceive the international market towards coffee products regarding customer based brand equity.
  4. 4. iv List of Figures Figure 2-1 Relationship between brand and product ......................................................................9 Figure 2-2 CBBE model................................................................................................................10 Figure 2-3 Measurement components of brand equity (CBBE) ...................................................11 Figure 2-4 Aaker’s model .............................................................................................................12 Figure 2-4 CBBE pyramid ............................................................................................................13
  5. 5. List of Tables Table 3-1 Brand awareness measurement.....................................................................................15 Table 3-2 Brand impression measurement....................................................................................16 Table 3-3 Measuring the perceived quality...................................................................................16 Table 3-4 Measuring brand loyalty...............................................................................................17 Table 4-1 Gender inventory of the sample....................................................................................18 Table 4-2 Age inventory of the sample.........................................................................................18 Table 4-3 Quantity of customer inventory according to market ...................................................19 Table 4-4 EFA results of scale measurement in case of brand awareness....................................19 Table 4-5 EFA results of scale measurement in case of perceived quality...................................20 Table 4-6 EFA results of scale measurement in case of brand loyalty .........................................20 Table 4-7 EFA results of scale measurement in case of brand impression before eliminated......21 Table 4-8 EFA results of scale measurement in case of brand impression after eliminated.........21 Table 4-5 Cronbach Alpha results of measuring brand awareness ...............................................22 Table 4-6 Cronbach alpha results of brand impression measurement ..........................................23 Table 4-7 Cronbach Alpha results of perceived quality measurement .........................................23 Table 4-8 Cronbach alpha results of brand loyalty measurement.................................................24 Table 4-9 EFA results in brand equity measurement....................................................................24 Table 4-10 The correlation matrix among BA, BI, PQ and BL....................................................26
  6. 6. vi Table 4-11 Criteria for evaluating the suitability of the model.....................................................26 Table 4-12 Testing the suitability of the model ............................................................................27 Table 4-13 Statistics of each variable in the equation...................................................................27 Table 4-14 Statistical results according to market ........................................................................27 Table 4-15 Test of average of two overall ....................................................................................28
  7. 7. Chapter 1. Introduction 1.1 Research Background Building and developing the brand is the vital issue of all companies (Brian et al., 2011). Many Vietnamese companies have tried so hard and have gained customer’s trust; however, many others have got trouble building their own brands (Nguyen and Nguyen, 2011). One of the problems that they have got in this issue is they do not recognize the role of brand equity, components to measure brand equity, as well as the role of promotion tools such as advertising, promotion sales, public relations(Rosenbaum and Wong, 2009). During the process of building the brand for a company, promotion tools are often used by marketers. But how these tools affect the customer-based brand equity in building the brand is not fairly cared in Vietnam. Brand equity plays an important role in building and developing the brand. A famous brand in the market means that consumers perceive the value from that brand. There have been researchers in marketing in the world studying about the customer based brand equity in early 1990s, in literature (Aaker, 1991; 1997; Keller, 1993; 2001; Yoo and Donthu, 2000; Boo et al., 2009; and Kim, 2012). Based on these researches, for consumer goods this matter has also been studied in Vietnam. Nguyen et al. (2003) proposed a model of components of brand equity, and the effect of attitude to promotion in general (advertising and promotion sales) to components of brand equity. From which measurement scales for components of brand equity and attitude scales for promotion are built.Rosenbaum and Wong (2009) explored how the return-on-marketing framework and its customer equity drivers (value, brand, and relationship) can be combined with service quality (SERVQUAL) measures to help managers develop strategies for high- and low-ethnocentric Vietnamese customers.Le
  8. 8. 2 (2009) captured customer-based brand equity from four aspects: brand awareness, brand associations, perceived quality, and brand loyalty. This study provides insight view to understand the relationships among these four aspects of customer-based brand equity, and examine how they impact on brand equity itself in the Vietnamese laptop industry. Although brand equity has been received more and more attention,its development by Vietnamese companies is still remain as a new issue. Therefore in this research, measurement model on brand equity is used to measure the brand equity of Trung Nguyen Coffee in international market. 1.2 Organization Background Brand vision of Trung Nguyen Coffee Corporation is as following: Brand vision:To become a major force in boosting the Vietnamese economy; to uphold stability of the national economy; to partake in the establishment of a Great Vietnam, with hopes of discovering and conquering new ideals. Brand mission:Creating the leading brand is carried out by bringing to everyone drinking coffee a source of creative inspiration and pride of Trung Nguyen style that is rich in Vietnamese culture. Target customer: All people that have coffee demand and passion in the world Main product:Diversified category products Market:All over the world Purpose:Connecting and developing people love and have coffee passion in the world
  9. 9. Goal: Leading coffee company in Vietnam and conquering the world market Target: Moving from width to depth; investment in field and system development to give domestic and international franchise 1.2.1 Determine the competitive environment Determination of the competitive situation on the market: general competition between brands in the same industry can be said to be very strong it is a vital element of a brand. Trung Nguyen Coffee is no exception to this situation, in the face of challenges from local competitors as Vinacafe or Nestle etc and international brands such as Food Empire Holadings or Star bucks etc somewhat secondary raw also encountered certain difficulties. However, Trung Nguyen has always maintained a certain position on the market, or in other words, in the hearts of consumers called Trung Nguyen Coffee with the value that it brings in other words it is "brand of Vietnam”. An advantage that helps Trung Nguyen Coffee to stand on is the quality of the product market. It has confirmed its instant coffee quality and consumer-tested. With coffee made from beans, its products are well suited with people who enjoy the Vietnamese coffee, and quickly grasp customer needs and made many coffee products with many different flavours, bold flavour Vietnam. Describe the customer's product selection: Trung Nguyen Coffee with a variety of different products in accordance with the preferences of each consumer objects such as: Is the G7 instant coffee 3 in 1, Coffee G7 Hoa Tan Black, G7 Coffee Cappuccino, Coffee G7 2 in 1, ground coffee powder, coffee dissolved Passiona, Coffee 777, etc. In addition secondary raw product depending on the purpose for, such as soft drinks, anti sleepy etc or it is possible to takeover every time and still enjoy the coffee taste familiar. Determine the value of the brand to bring to the market. When it comes to Trung Nguyen Coffee, it is originally referred to a neutral flavour of raw coffee product with motion, G7
  10. 10. 4 instant coffee, the café's central to what it brings in her weaving a significant difference in the hearts of consumers. With what high raw confirmed both in terms of quality as well as its reputation in the domestic market and markets of 53 countries where the resources provided Middle raw always have a strong position in the hearts of consumers used, even in the country Japan a cultural basis of tea "tea ceremony". 1.2.2 Target customers It has products, which fit most each consumer and always aim to serve all consumers both at home and abroad. For instance, instant coffee is a product consumers do not need high-tech format, which was purchased for use for usability. So, if the price of quality to convince consumers those emotional factors will contribute to the purchase decision. Particularly in the battle between the G7 and the NesCafé, by familiar, cultural understanding of Indigenous consumers, thereby actively implement "the game" and forcing the opponent to "play" their way. National spirit and cultural factors is a "powerful" great marketing. Trung Nguyen Coffee has a wide distribution channel systems: determine the soluble coffee product is a highly useful item. There is an advantage to help the Trung Nguyen Coffee to stand on is the quality of the product market. It is possible to note that localizing the global universal values, Trung Nguyen are serving to pursue in order to create an image of Trung Nguyen, which is both familiar local global to bring Vietnamese brand to users in the world. Moreover, Trung Nguyen Coffee always have to pay attention and set a goal of customer service and satisfaction to date a strong position in the market and in the hearts of consumers. It is not only in serving quality coffee beans, for the delicious coffee as "top" the world needs more technology, but also serving more music, machinery and equipment (including display coffee processing machinery and modern payment cards). It is also attached extra programs to
  11. 11. encourage the use of coffee (as a reward, bonus, prize draw, etc.) blends bit text, more participation of the people who drink coffee to enjoy, create, disseminate the values of culture and human spirit introduced to the world. 1.2.3 The core of the brand The core values are essential and long-term is the belief of an organization. Core value system is the main driving force to promote any affiliate members working across the enterprise together, business links with customers, partners, and society at large. Trung Nguyen's core values are as following: 1. From innovative sources: this is evident through the Trung Nguyen Coffee with its slogan of “from creative sources”. Trung Nguyen Coffee that is inspired and influenced invents from the idea and offshore resources for success. 2. Develop and brand protection: Trung Nguyen Coffee pays great attention to the construction, development and brand protection during their activities to reach a Vietnamese coffee brand globally. 3. For consumer-based brand equity: For the company, demands and tastes of the customer has always been the principle of all action strategies. Trung Nguyen Coffee quickly grasps the needs of the customers, so that gives them the flavor. It is the source of innovative ideas and success. 4. Causing a successful partnership: During operation, the Trung Nguyen Coffee is always interested in building sustainable relationships with partners based on reputation and harmony of interests. 5. Development of human resources powerful: With large human resources, Trung Nguyen Coffee always pays attention to the development of human resources to be able to create new resources towards the overall success of the company.
  12. 12. 6 6. Take effective foundation: not only focus on the completion of the proposed strategy, Trung Nguyen Coffee always gets effective platform in all its business activities from which to help companies achieve competitive advantage online. 7. To contribute to community building: Trung Nguyen Coffee benefits not only the interests of consumers and partners, but also the society. Building the strong brand of coffee not only benefit farmers, Dak Lak coffee growing region and also contribute to the branding of agricultural products in Vietnam. 1.3 Research Aim and Objectives The main objectives are as followings: 1. To build the measurement scale with components of brand equity of Trung Nguyen Coffee in international market 2. To evaluate the relations between perceived quality and other components of brand equity of Trung Nguyen Coffee in international market 3. To differentiate the evaluation of customers and owners in regards of brand equity in international market comparing to domestic market 1.4 Research Approach The subject of research focuses on the Trung Nguyen Coffee brand. Product used for the subject are those quite famous one in the international market and used widely by consumers. The research is carried out as follows:
  13. 13. The research carried out in Japan through two steps: preliminary qualitative research (only for measurement of components of brand equity) and the official quantitative research. The preliminary research is realized by group discussion among Trung Nguyen Coffee users. The quantitative research is realized by interviewing directly the users in the market. Objects of the research are 3 groups of customers and restaurant owners, below 30, from 30 to 50 and above 50 year old living in Japan. Cronbach’s Alpha coefficient of reliability method and exploratory factor analysis are used through SPSS to check the scales and the multiple regression analysis to check the model and hypothesis of the research. In order to recognize the differences between customer’s evaluations of brand equity in international market comparing to the domestic market, the research carried out in Vietnam as well. 1.5 Research Significances The subject provides practical meanings to Trung Nguyen Coffee manufactures, promotion and advertising companies that are relevant to coffee products, consumer goods, as well as to people who care about this matter. Specific meanings are as follows: First of all, this research is to affirm again the scales available for brand equity of consumer goods in international markets. This helps these scales to be applied in consumer goods manufactures, promotion and advertising companies to do market research on brand equity of fast moving consumer goods. From which the market research and advertising, promotion are built with higher effectiveness to make the brand equity increased. Secondly results of the research help strategic product developer to recognize the components of brand equity and thus, it is useful for decision making to strengthen the brand meanings to build strong customer-based brand equity in international market.Thirdly this research can be reference for people who care about the differences in consumer’s perspectives in regards of
  14. 14. 8 brand equity between international and domestic markets to promotion a suitable strategy for building brand equity abroad. 1.6 Research Structure There are five chapters in the thesis. Chapter 1:introduces about the overview of the subject. Chapter 2: presents the theory foundations on brand and brand equity, customer based brand equity as well as building the theory model, Chapter 3: presents the methods to check the scales and theoretical model together with proposed hypothesis. Chapter 4: exhibits the information analysis methods and the results of the research. Chapter 5:summarizes the main results of the research, contribution theoretically and in practical managing as well as proposes the recommendation for to develop strong brand meaning in international market.
  15. 15. Chapter 2. Literature Review An overview of the thesis is given in chapter 1. Chapter 2 presents brand theories and brand equity which has been developed in the world and in Vietnam as well as theoretical model used in this study. 2.1 Brand in the flat world 2.2 Global Branding 2.2.1 Experiences 2.2.2 Develop Vietnamese brands to be global 2.3 Brand and Products Figure 2-1 Relationship between brand and product
  16. 16. 10 2.4 Brand Equity 2.5 Customer based brand equity (CBBE) 2.6 Study model Figure 2-2CBBE model Brand knowledge (1) Awareness (2) Image Response and brand relations (3) Response (4) Relations Customer based brand equity (CBBE)
  17. 17. Figure 2-3 Measurement components of brand equity (CBBE) Brand Image - Efficiency - Image Brand awareness - Awareness - Reminiscence Response to the brand: -Assessment -Emotion BRAND EQUITY CBBE Results : - Higher price - The resilient of price - Market share - Extension of brand - Cost - Revenue Relationship with brand (Brand resonance): - Behaviour loyalty - Attitude adherence - Community consciousness -dynamic commitmnets
  18. 18. 12 Figure 2-4 Aaker’s model BRAND EQUITY Brand awareness Perceived quality Brand association s Loyalty to the brand Other brand equity Bring value to the company -Enhanced effectiveness and efficiency of marketing programs -Loyalty to the brand -Price/Revenue -Extension of the brand -Commercial lever -Competitive advantage Bring value to customers: - Increased innovation/ processed information. - Increased trust in the decision of buying - Increased satisfaction when using.
  19. 19. Figure 2-5 CBBE pyramid Resonance Judgments Feelings Performance Imagery Salience Cheerfulness, excitement, safety, society accepted and self-esteem Features of user profiles, buying and usage situations Resonance Judgments Feelings Performance Imagery Salience Relationship Relationship between customer and brand? Response Customer’s response? Meaning What is the brand? Identity Who is the brand? Minor and primary characteristics, trustworthiness of products, effectiveness of service, and sympathy in design and price Quality, trustworthiness, catering andtranscendence Behavioural loyalty, attitudinal attachment, sense of community and active engagement Identified products and demands
  20. 20. 14 2.7 Hypothesis Development 2.8 Summary
  21. 21. Chapter 3. Methodology Theoretic foundations are given to us in Chapter 2 and research model is proposed. In chapter 3 research methods are introduced to adjust the scales, check research model and proposed hypotheses. There are two main parts in this chapter: first of all the research design is presented, secondly scales for definitions of research and how to adjust them are shown. 3.1 Research strategy 3.2 Research paradigm and design 3.2.1 Qualitative research 3.2.2 Quantitative research design 3.3 Research process Research is realized through 2 steps: preliminary and official research 3.3.1 Preliminary research 3.3.2 Official research 3.4 Scale measurement 3.4.1 Measuring brand awareness Table 3-1Brand awareness measurement Variable Question BA_1 I know Trung Nguyen Coffee BA_2 I can easily differentiate Trung Nguyen Coffee from others BA_3 I can easily recognize Trung Nguyen Coffee among others
  22. 22. 16 BA_4 Characteristics of Trung Nguyen Coffee can come quickly to me BA_5 I can quickly remember and recognize logo of Trung Nguyen BA_6 In general, when talking about Trung Nguyen Coffee, I can easily imagine it. 3.4.2 Measuring brand impression Table 3-2 Brand impression measurement Variable Question BI_1 There are many product diversities of Trung Nguyen Coffee BI_2 Trung Nguyen Coffee always released the new product BI_3 Trung Nguyen Coffee has good distribution channel BI_4 The Trung Nguyen Coffee staffs have service style very professionally BI_5 The product package is very beautiful BI_6 The Trung Nguyen Coffee store/cafeteria is clean BI_7 The Trung Nguyen Coffee store/cafeteria is convenient BI_8 The price of Trung Nguyen Coffee product is appropriate 3.4.3 Measuring the perceived quality Table 3-3 Measuring the perceived quality Variable Question PQ_1 Trung Nguyen Coffee is bold and intense in flavour PQ_2 Trung Nguyen Coffee is long lasting aromas PQ_3 Trung Nguyen Coffee is high quality of preservation PQ_4 In absolutely believe in quality of Trung Nguyen Coffee brand
  23. 23. PQ_5 Customers are satisfied with the product quality of Trung Nguyen Coffee PQ_6 Customers are satisfied with the services of Trung Nguyen Coffee PQ_7 Guarantees of the product quality of Trung Nguyen Cofee are realized PQ_8 Response to customer’s demands of Trung Nguyen Coffee are closely implemented 3.4.4 Measuring the brand loyalty Table 3-4Measuring brand loyalty Variable Question BL_1 I consider myself as the loyal customer of Trung Nguyen Coffee BL_2 I will buy products of Trung Nguyen Coffee brand if they give me satisfaction BL_3 Trung Nguyen Coffee will be my first choice BL_4 I will wait for Trung Nguyen Coffee if it is not available BL_5 I am loyal to Trung Nguyen Coffee brand 3.5 Data analysis 3.6 Ethical Issues 3.7 Summary
  24. 24. 18 Chapter 4. Results and Discussion In this chapter content as follows will be presented: sample information, assessment of Cronbach Alpha reliability of scale and EFA, testing of the theoretical model, the relationship between brand loyalty and other factors in the model, analysis of importance of factors that create the brand, and finally the analysis and assessment on differences of the importance. SPSS 11.5 for Windows is used as a main tool for analysis. 4.1 Data Description Table 4-1Gender inventory of the sample Gender Frequency Percent Valid percent Cumulative percent Female 161 60.8 60.8 60.8 Male 104 39.2 39.2 100 Total 265 100 100 Table 4-2Age inventory of the sample Age Frequency Percent Valid percent Cumulative percent Below 30 129 48.7 48.7 48.7 30-50 113 42.6 42.6 91.3
  25. 25. Above 50 23 8.7 8.7 100 Total 265 100 100 Table 4-3Quantity of customer inventory according to market Market Frequency Percent Valid percent Cumulative percent In Vietnam 127 47.9 47.9 47.9 In Japan 138 52.1 52.1 100 Total 265 100 100 4.2 Preliminary evaluation of the scale Table 4-4 EFA results of scale measurement in case of brand awareness Variable Factor 1 BA_1 0.777 BA_2 0.758 BA_3 0.774 BA_4 0.762 BA_5 0.78 BA_6 0.838 Variance extracted 61.15% Eigenvalue 3.669 Cronbach alpha 0.871
  26. 26. 20 Table 4-5 EFA results of scale measurement in case of perceived quality Variable Factor 1 PQ_1 0.505 PQ _2 0.618 PQ _3 0.851 PQ _4 0.862 PQ _5 0.631 PQ _6 0.807 PQ _7 0.679 PQ _8 0.875 Variance extracted 59.22% Eigenvalue 3.707 Cronbach alpha 0.833 Table 4-6 EFA results of scale measurement in case of brand loyalty Variable Factor 1 BL_1 0.877 BL_2 0.807 BL_3 0.586 BL_4 0.831 BL_5 0.821 Variance extracted 65.12% Eigenvalue 2.256
  27. 27. Cronbach alpha 0.653 Analyzing the results impressive brand: Table 4-7 EFA results of scale measurement in case of brand impression before eliminated Variable Factor 1 BI_1 0.567 BI_2 0.727 BI_3 0.781 BI_4 0.569 BI_5 0.409 BI_6 0.652 BI_7 0.564 BI_8 0.546 Variance extracted 55.71% Eigenvalue 1.159 Cronbach alpha 0.4198 Table 4-8 EFA results of scale measurement in case of brand impression after eliminated Variable Factor 1 BI_1 0.539 BI_2 0.731 BI_3 0.797
  28. 28. 22 BI_4 0.575 BI_6 0.728 BI_7 0.588 BI_8 0.552 Variance extracted 61.43% Eigenvalue 1.943 Cronbach alpha 0.534 4.3 Testing the scale 4.3.1 Testing by Cronbach Alpha A. Measuring brand awareness (BA) Table 4-9Cronbach Alpha results of measuring brand awareness Scale BA:Alpha= .796 Observed variables Medium scale if eliminating variables Variance if eliminating variables Item – total correlation Cronbach’s alpha if eliminating variables BA_1 18.02 10.76 0.49 0.78 BA_2 18.20 10.41 0.52 0.77 BA_3 17.97 10.55 0.58 0.76 BA_4 18.15 10.32 0.57 0.76 BA_5 17.95 10.57 0.53 0.77 BA_6 17.89 10.33 0.63 0.75
  29. 29. B. Brand impression measurement(BI) Table 4-10Cronbachalpharesults of brand impression measurement Scale BI: Alpha= .818 Observed variables Medium scale if eliminating variables Variance if eliminating variables Item – total correlation Cronbach’s alpha if eliminating variables BI_1 18.02 21.17 0.56 0.79 BI_2 17.43 19.66 0.59 0.79 BI_3 18.09 20.98 0.54 0.80 BI_4 18.26 22.53 0.55 0.80 BI_6 17.03 20.84 0.59 0.79 BI_7 17.07 21.37 0.59 0.79 C. Perceived quality measurement (PQ) Table 4-11Cronbach Alpha results of perceived quality measurement Scale PQ: Alpha= .8765 Observed variables Medium scale if eliminating variables Variance if eliminating variables Item – total correlation Cronbach’s alpha if eliminating variables PQ_1 23.09 40.75 0.47 0.88 PQ_2 22.72 38.56 0.61 0.86 PQ_3 23.28 36.74 0.64 0.86 PQ_4 23.20 37.79 0.64 0.86 PQ_5 23.41 35.93 0.67 0.86 PQ_6 23.32 36.23 0.70 0.85 PQ_8 23.49 36.88 0.65 0.86
  30. 30. 24 D. Brand loyalty measurement (BL) Table 4-12Cronbachalpha results of brand loyalty measurement Scale BL: Alpha= .725 Observed variables Medium scale if eliminating variables Variance if eliminating variables Item – total correlation Cronbach’s alpha if eliminating variables BL_1 14.54 6.22 0.49 0.68 BL_2 14.90 6.14 0.51 0.67 BL_3 14.53 6.46 0.45 0.69 BL_4 14.64 6.62 0.50 0.67 BL_6 14.98 6.73 0.48 0.68 4.3.2 Testing the scale through exploratory factor analysis EFA Table 4-13EFA results in brand equity measurement Observed variables Factor (1)PQ (2)BI (3)BA (4)BL BA_1 0.26 0.11 0.59 (0.15) BA_2 0.19 (0.00) 0.64 0.04 BA_3 0.04 0.02 0.73 0.14 BA_4 0.01 0.02 0.74 (0.10)
  31. 31. BA_5 0.07 0.02 0.69 0.10 BA_6 0.12 0.14 0.75 0.02 BI_1 0.12 0.72 0.03 (0.06) BI_2 0.51 0.53 (0.03) (0.06) BI_3 0.34 0.55 0.08 (0.03) BI_4 0.10 0.73 0.14 (0.02) BI_6 0.20 0.70 0.10 (0.03) BI_7 0.21 0.69 (0.04) (0.01) BI_8 0.32 0.54 0.02 (0.15) PQ_1 0.56 0.05 0.13 (0.02) PQ_2 0.62 0.27 0.18 0.01 PQ_3 0.66 0.23 0.19 0.05 PQ_4 0.74 0.08 0.13 (0.01) PQ_5 0.76
  32. 32. 26 0.17 0.06 0.01 PQ_6 0.75 0.19 0.11 0.00 4.4 Multiple linear regression analysis 4.4.1 Considering the correlation matrix among variables in the model Table 4-14The correlation matrix among BA, BI, PQ and BL BA BI BL PQ BA Pearson correlation 1.000 0.004 0.310 0.350 Coefficient Sig (2-tailed) - 0.944 0.000 0.000 BI Pearson correlation 0.004 1.000 0.078 0.472 Coefficient Sig (2-tailed) 0.944 - 0.208 0.000 BL Pearson Correlation 0.310 0.078 1.000 0.655 Coefficient Sig (2-tailed) 0.000 0.208 - 0.000 PQ Pearson correlation 0.350 0.472 0.655 1.000 Coefficient Sig (2-tailed) 0.000 0.000 0.000 - 4.4.2 Assessing and testing the appropriateness of the model Table 4-15Criteria for evaluating the suitability of the model Model R R2 Adjusted R2 Estimated standard error 1 0.80 (a) 0.63 0.63 0.44
  33. 33. Table 4-16Testing the suitability of the model Model Sum of squares df Mean square Testing F Sig. Regression 87 3 29 151 .000(a)Balance 50 261 0.192 Total 137 264 4.4.3 Meaning of regression coefficients in the model Table 4-17Statistics of each variable in the equation Variable Non-standardized regression coefficient Standardized regression coefficient Value Meaning of t B Std. Error Beta t Sig.(P) Regression constant 0.23 0.22 1.05 0.30 BA 0.20 0.05 0.17 4.35 0.000 BI 0.43 0.04 0.43 11.36 0.000 BL 0.47 0.03 0.57 14.40 0.000 4.5 Differences in evaluating components of brand equity Table 4-18Statistical results according to market Components of BE Market Sample Average Standard deviation BA In Vietnam 127.00 3.69 0.65 In Japan 138.00 3.53 0.62 BI In Vietnam 127.00 3.93 0.64
  34. 34. 28 In Japan 138.00 3.77 0.76 PQ In Vietnam 127.00 3.62 0.76 In Japan 138.00 3.04 0.86 BL In Vietnam 127.00 3.84 0.65 In Japan 138.00 3.61 0.76 Table 4-19Test of average of two overall Component L- Test t test F Sig. t Sig.(2tailed) BA Equal assumed variances 0.38 0.54 2.10 0.04 Unequal assumed variances 2.09 0.04 BI Equal assumed variances 1.59 0.21 1.83 0.07 Unequal assumed variances 1.84 0.07 PQ Equal assumed variances. 4.64 0.03 5.75 0.00 Unequal assumed variances 5.78 0.00 BL Equal assumed variances 4.43 0.04 2.64 0.01 Unequal assumed variances 2.66 0.01 4.6 Summary Hypothesis Statement Test results H1 Brand equity for Trung Nguyen Coffee has 4 components: brand awareness, brand impression, perceived quality and brand loyalty Accepted
  35. 35. H2 The higher the brand awareness, the greater quality perceived customers have Accepted H3 The more positive the brand impression, the greater the perceived quality customers have Accepted H4 The higher the brand loyalty, the greater the quality perceived customers have H5 H5a There are differences in evaluating components of brand equity of Trung Nguyen Coffee in international market. Accepted H5b There are differences in evaluating brand impression from customers and owners of international market Not accepted H5c There are significant differences in evaluating perceived quality of customers and owner in international market Accepted H5d There are differences in evaluation of perceived quality of customers and owners in international market Accepted
  36. 36. 30 Chapter 5. Conclusions and Recommendation 5.1 Conclusion Trung Nguyen Coffee is a magical success in building brand in Vietnam. Within 5 years, from a small factory in Buon Ma Thuot, Trung Nguyen has been available in everywhere in the country and reached out to developed countries nowadays. In the situation of Vietnam joining the world economy, Trung Nguyen has stood out as a typical phenomenon in building brand for agricultural product as well as for the world coffee. Dang Le Nguyen Vu, a young businessman, has used humane philosophy and mankind’s knowledge for social, economic, technical, geographic, cultural conditions of Vietnam to build the soul of a brand which is considered a physical phenomenon reflecting in people’s mind, the Trung Nguyen soul. However in today situation, when the brand is developed quickly and widely, an important part in the company’s survival, maintain and developing the brand has so much to do, old problems which Trung Nguyen may not recognize their existence needs to be solved, otherwise people only talk about Trung Nguyen’s past. According to the results of the research, perceived quality, brand awareness, and brand loyalty affect directly and positively to the whole customer based brand equity. Among them, effects of perceived quality and brand loyalty are quite strong. Consequently managing staff need to focus resources of the company to enhance the quality of products and create customer’s loyalty in building the brand equity. In the coffee market with lots of competition, the key to success is to create a brand with high quality and the unique brand image. These are the reasons that make customers buy the brand; next is the efforts to build the loyalty to the brand, which leads to the purchase of the products. The results of the research deny the
  37. 37. direct and positive relationship between the brand awareness and the brand equity, indicating that a purely coffee brand is the one that is easy to be remembered or recognized. That does not guarantee the success for the brand in the Japan coffee market. However among brand awareness with perceived quality, brand impression and brand loyalty there is a direct relationship, which is in the same direction with the factors. Therefore brand awareness may affect the whole brand equity through perceived quality, brand impression and brand loyalty. The results indicate that components that create the brand equity have the organic relations with each other. One or more factors may not affect directly the brand equity but they may affect indirectly to the process of building the brand equity through effects of other factors. Therefore in the process of building the coffee brand in Japan, though lots of resources are focused to build the quality, loyalty and brand impression, brand awareness should not be underestimated or eliminated. The results of this studywill enable Trung Nguyen Corporation to perceive the necessity of building their brand and proper investing in brand equity.On the other hand, through the survey, Trung Nguyen Corporation can know how international customers, Japanese people in this case, feel about its coffee products. As well, it helps the other coffee producers perceive the international market towards coffee products regarding customer based brand equity. Consumers are usually interested in perceived quality when they decide to purchase goods or services especially when they buy food and drink products. Quality must be priority. Quality of instant coffee is complicated because it depends on coffee drinking habit of consumers. This involves well understanding the target customer’s needs and wants about Trung Nguyen coffee. Offering a wide variety of choices with high quality that matches the consumer’s preference will enable Trung Nguyen Corporation to gain advantages over its competitors.Improving the quality of goods will increase customer satisfaction and loyalty since quality is a major driver of customer satisfaction and loyalty. Constantly satisfying
  38. 38. 32 customers is the best way to retain existing customers and attract more potential customers. However, consumer’s preference can be changed over time, it is necessary for Trung Nguyen Corporation to regularly conduct surveys in order to predict the possible changes and problems with low customer satisfaction. The difference opinions of Trung Nguyen coffee product quality shows that satisfying coffee drinkers is not an easy task. Customer’s preference of drink products is not concrete like consumer goods. Trung Nguyen Corporation needs to perceive more the target customers’ need and want. Producing high quality product is not enough, especially in a market where customers have many choices. Trung Nguyen Corporation must make sure that their customers comprehend their coffee product benefits through marketing efforts. Customers must be known which kind of Trung Nguyen coffee product meets their preference. On the other hand, as Keller (1998) asserted that quality must be perceived by customers. The last thing that the study wants to mention is the power of brand awareness. Brand awareness has been referred to in different approaches, but there are not studies focusing on the impact of brand awareness on the relationship of perceived quality and customer satisfaction of instant coffee in international market. The result of this study consolidated the impact of brand awareness on this relationship. It means that consumers might take brand awareness into consideration when buying instant coffee. Even though when the perceived quality is not equal customer expectation, customers may buy the product because of their awareness of the brand. In this case, apparently it is the brand of the company. Trung Nguyen Corporation is one of the Vietnamese famous brands, which has had good impression on international customers as the first Vietnamese company competing directly against a large
  39. 39. international competitor.This is a key strength of Trung Nguyen Corporation to gain advantages over competitors. 5.2 Recommendation 5.2.1 Building the brand: It is necessary to occupy consumer’s trust According to the General Director of Trung Nguyen Coffee Corporation, Dang Le Nguyen Vu, right from being born, it has been set a great goal by Trung Nguyen, which is to conquer the global market. To make a global brand, the key matter is the quality of the product which is able to satisfy the rigorous requirements of consumers. However creating a mark in customer for a brand takes more than just the quality. When consumers make decision of purchasing a product, they not only expect their practical request to that product to be satisfied, but also want themselves to be more comfortable, more luxurious, happier and at higher level. The additional part is called the personal value of consumers when using an identified product. Because of the difference of a brand compared to a normal product, many people decide to spend a large amount of money to own the famous branding fashion product with the hope of having their individual foothold in the community. Thus within the process of building and developing the brand, the product quality is not purely seen as the production quality, not just the practical quality, more importantly it is the quality that is perceived by consumer. Therefore Vietnamese brands in large and Trung Nguyen Coffee in particular want to get trust and affection of international consumer, international enterprises must seek for the differences, excellence in the product quality, especially the additional value and what is perceived through product quality. 5.2.2 Brand Maintenance In recent years, there have been many Vietnamese brands acquired by the overseas corporation and they have to change their names and owners for instance the trade affair in
  40. 40. 34 which Highlands Coffee bought 100 % of share of Pho 24 and then 50% total amount of share was sold to Joillibee (Philippines); Lotte Corporation (Korea) has become the largest shareholder of Bibica Bakery corporation with the ownership over 38% of shares etc. Through those examples, it can be seen that creating a brand that is able to leave a good impression in consumer’s mind is very difficult, keeping the brand to be sustainable and develop over time is even more difficult. What makes Vietnam not yet possible to build a global brand though Vietnam has joined integrated, had competitive advantages and lots of ambition? Thanh Nien newspaper had a talk with Mr. Dang Le Nguyen Vu, Chairman of Trung Nguyen corporation, who has said that coffee has every element to become the global trademark, but until now, Vietnamese coffee in general and Trung Nguyen in particular have not made the dream come true, have not carried the country’s image to the world by their trademark. There is a very special characteristic in coffee, which is the global connection that not many industries have. Coffee is the “old” regeneration, the more we do, the more spirals there are, not to mention it is connected to tourism, processing industry etc. It is now the No. 2 in the world on coffee production. This is the capacity and also the advantage. If it was determined, the exporting value of 10 -20 billion USD for coffee is not a great deal. Or among thousands of cities in the world, if it had a coffee city, it would be very unique, attracting and very beneficial. Buon Ma Thuot has every element to be able to do it. There are a billion of people who consume coffee. If the “holy land” coffee city could be done it, marketing would be reasonably realized, immediately it would be positioned all over the globe. Then coffee industry, coffee planner, people who live around, exporting or in general the whole economy would benefit from it. In reality, there is rarely the internal and
  41. 41. international connection which has never been done like the coffee city ideal as above. Reality shows that many people, many countries have been successful from an interesting idea and pursuing after it. Why would not be Vietnam? This document is provided by: VU Thuy Dung (Ms.) Manager Center for Online Writing Resources Facebook : https://www.facebook.com/vu.thuydung.5076 Email : assignmentsource@gmail.com Blogger : http://assignmentsource.blogspot.com/ Website : http://assignmentsource.com/

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