VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT Building Brand Loyalty through Green Marketing: The Influence of Green Knowledge and Brand Image in Cosmetics NGUYEN BICH NGOC Hanoi – Year 2025 1 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT Building Brand Loyalty through Green Marketing: The Influence of Green Knowledge and Brand Image in Cosmetics SUPERVISOR: MSc. NGUYEN THI HUONG LY (Academic title, academic degree, full name) STUDENT: NGUYEN BICH NGOC STUDENT ID: E2300065 - 21070850 SUBJECT CODE: MGT400 SUBJECT CODE BY CLASS: COHORT: MKT2021A MAJOR: MARKETING Hanoi - Year 2025 2 ACKNOWLEDGEMENT First and foremost, I would like to express my deepest gratitude to the International School - Vietnam National University and HELP University, for providing me with the opportunity to study and conduct research during this period. I am sincerely thankful to all the lecturers who have enriched my knowledge and experience throughout this journey. In particular, I extend my heartfelt appreciation to my supervisor, MSc.
Nguyen Thi Huong Ly, for her dedicated guidance, valuable insights, and unwavering support. With her expertise and encouragement, I was able to complete this project within the given timeframe. I truly hope to have the opportunity to collaborate with her again in the future. This report would not have been successfully completed without her exceptional mentorship.
I would also like to thank my friends and colleagues for their companionship and support. Their shared insights and experiences have greatly contributed to my understanding of both theoretical concepts and practical life lessons. Finally, I owe my most sincere thanks to my family, who have been my pillar of strength. Their constant emotional support and encouragement have played an invaluable role in helping me accomplish this work.
Best regards, Nguyen Bich Ngoc 3 BUSINESS DEPARTMENT BACHELOR OF BUSINESS MGT400 GRADUATION PROJECT DECLARATION FORM Name: Nguyen Bich Ngoc Student ID: E2300065 – 21070850 Programme of Studies: Marketing Title of Project/Dissertation: Building Brand Loyalty through Green Marketing: The Influence of Green Knowledge and Brand Image in Cosmetics Name of Supervisor(s): MSc. Nguyen Thi Huong Ly Declaration: In accordance with the appropriate regulations, I hereby submit the above Graduation Project forexamination and I declare that: (i) I have read and understood the sections on Plagiarism found in the University’s “GeneralInformation to Students” Handbook and certify that the Graduation Project embodies the results of my own work. (ii) I have adhered to the ‘Harvard system of referencing’ or a system acceptable as per “The Referencing Guide” for referencing, quotations and citations in my Graduation Project. Eachcontribution to, and quotation in my Graduation Project from the work of other people has been attributed, and has been cited and referenced.
(iii) I have not allowed and will not allow, anyone to copy my work with the intention of passingit off as his or her own work. (iv) I am aware that I may have to forfeit the degree in the event that plagiarism has beendetected after the award. (vi) I am aware that my Graduation Project may be used by my supervisor(s) and/or HELPUniversity for further research or any collaborative work, and under no circumstances whatsoever would claim any rights to the said work. Signature: Date: 4 ABBREVIATION Theory of Planned Behavior TPB Exploratory Factor Analysis EFA Confirmatory Factor Analysis CFA Structural Equation Modeling SEM Green Knowledge GK Green Marketing GM Brand Image BI Brand Loyalty BL Common Method Variance CMV Principal Component Analysis PCA Common Method Bias CMB Variance Inflation Factor VIF Statistical Package for the Social Sciences SPSS Average Variance Extracted AVE 5 LIST OF TABLES Table 1: Respondent gender.
29 Table 2: Respondent age group. 30 Table 3: Occupation Distribution. 32 Table 4: Normality Test Results. 39 Table 5: Harman’s Single Factor.
40 Table 6: KMO and Barlett’s Test. 43 Table 8: Factor Analysis Results. 45 Table 9: Reliability and Validity Analysis. 47 Table 10: Discriminant Validity.
49 Table 11: Variance Inflation Factor (VIF). 51 Table 12: Summary of Hypothesis Testing. 53 Table 13: R Square Results. 58 6 LIST OF FIGURES Figure 1: Revenue of the cosmetics retail market in Vietnam in the period 2018 - 2027 (expected).
10 Figure 2: Basic Framework of Signalling Theory (Adapted from general representations of Signalling Theory (Connelly et al. 21 Figure 3: Framework of Theory of Planned Behavior (TPB). 22 Figure 4:The proposed conceptual framework. 23 Figure 5: Respondent gender.
29 Figure 6: Respondent age group. 30 Figure 7: Occupation Distribution. 32 Figure 8: Social Media Usage Frequency. 33 Figure 9: Cosmetic Purchasing Frequency.
34 Figure 10: Consumer Interest in Green Cosmetics. 35 Figure 11: Consumer Attention to Brand Image in Cosmetic Purchases. 37 Figure 12: Outer model. 48 7 Table of Contents I.
Current Status of the Research Problem. Green Knowledge and Green Marketing. Green Marketing and Brand Image. Brand Image and Brand Loyalty.
Green Marketing and Brand Loyalty. Data Collection Method. Data Analysis and Results. Characteristic of Respondents.
Exploratory Factor Analysis (EFA). Reliability and Validity Analysis. Common Method Bias (CMB). Structural Model Assessment: Hypotheses Testing.
Coefficient of Determination (R² Value). Contribution and Implications of the Study. Limitations of the Study and Future Research. 72 8 ABTRACT Purpose/Aim: This study investigates the impact of green marketing on brand loyalty in Vietnam’s cosmetics industry, focusing on how green knowledge and brand image mediate this relationship.
It aims to uncover how eco-friendly marketing strategies can enhance consumer loyalty among young Vietnamese consumers, providing actionable insights for cosmetics brands to strengthen their sustainability-driven branding efforts in an emerging market. Design/Methodology/Approach: A structured online survey was conducted with 200 Vietnamese consumers aged 18-35, using a 5-point Likert scale to measure green knowledge, green marketing, brand image, and brand loyalty. Data were collected from December 2024 to January 2025 and analyzed using Partial Least Squares Structural Equation Modeling (PLS- SEM) via SmartPLS 4, assessing the sequential relationships among the constructs. Scales were adapted from established frameworks, with reliability and validity confirmed through statistical tests.
Findings: The study’s findings show that people’s understanding of eco-friendly practices shapes green marketing efforts, which enhance brand image and encourage loyalty. Brand image and green marketing stand out as key drivers of consumer commitment. Implications: These findings help understand what shapes brand loyalty in Vietnam’s cosmetics market. They offer brands practical ways to use green strategies to strengthen consumer trust and retention.
Keywords: Green Marketing, Brand Image, Brand Loyalty, Green Knowledge, Cosmetics Industry. Introduction The cosmetics industry in Vietnam has experienced significant growth in recent years, emerging as one of the most dynamic sectors in the country’s retail landscape. Driven by a rapidly expanding middle-class population and increasing disposable incomes, Vietnamese consumers are showing a growing appetite for beauty products, particularly those that align with their evolving values and preferences. According to Statista (2023), the revenue of Vietnam’s retail cosmetics market reached 2.2 billion USD in 2022, with projections to grow to 2.69 billion USD by 2027.
This growth is underpinned by an impressive annual growth rate of 30% in recent years, signaling substantial opportunities for businesses to tap into the expanding demand for beauty products (Statista, 2023). Figure 1: Revenue of the cosmetics retail market in Vietnam in the period 2018 - 2027 (expected). The rising demand for natural cosmetics in Vietnam reflects a broader global shift toward sustainability and eco-friendly beauty products. This shift is driven by heightened environmental awareness, growing concerns for personal wellness, and a preference for supporting local businesses that prioritize sustainable practices (Vietdata, 2023).
Vietnamese consumers, much like their global counterparts, are increasingly willing to pay a premium for sustainable products, 10 creating a fertile ground for cosmetics brands to leverage green marketing strategies to engage and persuade this expanding customer base. Globally, the beauty industry is witnessing a paradigm shift in consumer preferences, with an increasing emphasis on sustainability and environmental responsibility. Consumers are becoming more aware of the importance of environmental protection and are willing to invest in eco-friendly products, a trend that is reshaping purchasing decisions across markets, including Vietnam. During this shift, the concept of green marketing has gained prominence as a strategic approach for cosmetics brands to align with these evolving consumer expectations.
Green marketing transcends traditional promotional activities, it serves as a powerful mechanism for businesses to demonstrate their commitment to social responsibility and environmental protection. By promoting eco-friendly practices such as using sustainable packaging, natural ingredients, and ethical sourcing cosmetics brands can position themselves as leaders in sustainability, appealing to the growing segment of environmentally conscious consumers. Vietnamese consumers, much like their global counterparts, are increasingly willing to pay a premium for sustainable products, creating a fertile ground for cosmetics brands to leverage green marketing strategies to engage and persuade this expanding customer base. In this context, green marketing plays a pivotal role in shaping the brand image of cosmetics companies.
A positive brand image, built on environmental responsibility and sustainability, can enhance brand loyalty by aligning with consumer values and preferences (Chen et al. Research by Peattie (2010) indicates that sustainability-oriented marketing campaigns can attract a larger market share and directly influence consumers’ green consumption attitudes. Similarly, Jeong et al. (2014) found that consumer perceptions of green marketing positively affect both brand image and brand loyalty, highlighting the interconnectedness of these constructs.
Brand image is considered a critical component in fostering competitive advantage, as it creates a favorable perception of the product, ultimately resulting in stronger customer loyalty to the brand. Sun and Kim (2013) further emphasize that customer loyalty is crucial to company management due to its significant impact on overall business performance, particularly in competitive industries like cosmetics. However, the effectiveness of green marketing in building brand image and fostering loyalty may be influenced by consumers’ green knowledge. Green knowledge, defined as consumers’ understanding of environmental issues and sustainable practices, affects how they interpret green marketing signals (Lin & Chen, 2017).
Consumers with higher green knowledge are better 11 equipped to evaluate the authenticity of green marketing efforts, leading to stronger perceptions of brand image (Jalu et al. A stronger brand image, in turn, fosters brand loyalty, as consumers develop trust and emotional attachment to brands that align with their environmental values, a dynamic particularly relevant in the cosmetics industry, where concerns about greenwashing misleading claims about environmental benefits are prevalent, and authenticity is crucial for building consumer confidence (Chen & Chang, 2012). Research by Nguyen et al. (2018) supports this sequential relationship, indicating that consumers with greater green knowledge are more likely to trust brands that demonstrate genuine sustainability, which not only encourages brands to adopt robust green marketing strategies but also enhances the brand’s image as a socially responsible entity, ultimately reinforcing loyalty among eco-conscious consumers.
Thus, green knowledge acts as a foundational driver in this model, initiating a chain of effects that shapes green marketing strategies, enhances brand image, and fosters brand loyalty in the cosmetics industry, highlighting the importance of consumer environmental awareness in the success of sustainability driven branding efforts. Therefore, this study aims to explore how green marketing influences brand loyalty by shaping the brand image of cosmetics companies, while also examining the role of green knowledge as a key driver of sustainable marketing practices. By understanding these relationships, cosmetics brands can develop more effective green marketing strategies to engage environmentally conscious consumers in a rapidly evolving market. This research seeks to provide valuable insights into the effectiveness of sustainability-focused marketing approaches, analyze how a strong brand image enhances brand loyalty, and highlight the importance of green knowledge in influencing firms' commitment to sustainability.
Ultimately, the findings will offer actionable guidance for cosmetics brands operating in Vietnam’s dynamic market, helping them align with the increasing consumer demand for ethical and eco-friendly products.