NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGES DEPARTMENT OF BUSINESS ENGLISH FACTORS AFFECTING THE BRAND EQUITY OF VCCORP IN PROVIDING INTEGRATED MARKETING COMMUNICATION SERVICE FOR BUSINESSES Hanoi, April 2023 NATIONAL ECONOMICS UNIVERSITY FACULTY OF FOREIGN LANGUAGE DEPARTMENT OF BUSINESS ENGLISH HOANG THI QUYNH THOM FACTORS AFFECTING THE BRAND EQUITY OF VCCORP IN PROVIDING INTEGRATED MARKETING COMMUNICATION SERVICE FOR BUSINESSES Supervior: Nguyén Thi Hong Hanh, PhD Hanoi, April 2023 Hoàng Thị Quynh Thơm — 11194931 — Business English EXECUTIVE SUMMARY The research on “Factors affecting the brand equity of VCCorp in providing Integrated Marketing Communication service for businesses” was carried out from December 2022 to March 2023. The author uses the background theory of brand equity as the theoretical basis for the research. The research method used is quantitative methods. The author used a simple random sampling method, received 35 samples.
Initially, the author built a conceptual framework including 4 factors (brand loyalty, brand awareness, brand association, perceived quality) affecting the brand equity of Integrated Marketing Communication (IMC) service owned by VCCorp. The results show that the Perceived Quality factor has the strongest influence on the Brand equity of the IMC service, followed by the Brand Association and Brand Awareness, and finally the Brand Loyalty factor. The research results are the basis for making recommendations and governance implications to contribute to improving the brand value of VCCorp. Hoàng Thị Quynh Thơm — 11194931 — Business English ACKNOWLEDGEMENT This bachelor thesis has been written during the researcher's last semester on the Business English major at National Economics University.
The research have investigated what affects brand equity for IMC service which previously was an unexplored area. During the implementation process, I received a lot of love and help from everyone. This is to acknowledge all those without whom this research would not have been possible. First and foremost, I would like to express my gratitude to Faculty of Foreign Language — National Economics University for the companion and support for the graduation of students.
My sincere gratitude goes to board of directors and employees of Vietnam Communication Corporation for their training and supporting throughout my internship. I would like to pay my special regards to my supervisor whose guidance is the important driving force behind our project completion. She gave me invaluable methodology throughout her enthusiasm, sincere, scientific experience to carry out and present the research works step by step. Her feedback remedies for my mistakes.
Lastly, I want to show my gratitude towards all of the 35 respondents that participated in my questionnaire. il Hoàng Thị Quynh Thơm — 11194931 — Business English TABLE OF CONTENTS EXECUTIVE SUMMA RYY.o- << <5 HH HH HH n0 000 ii TABLE OF CONTENTS1. ccssssscsscssscecccscecsscssscssssessessecsecsecsesssscssesssseesesseeses iii LIST OF ABBREYVIA THON.- << cọ Họ HH. 000090 vi LIST OF TABLES.
co 5 55-5 << < 0 01004 010059005009086 vii LIST OF EIGU RE. Reseach aim and 0 jj€CẨÏV€S. Research QU€SfÏOIAS. Research methods, research object and scope of research .cccceccccsccccssccesseseneessceeeseeseseseaeesseeseseeseaeesesseusaeenaeenseeesas 4 2 AY20161RY] 2)[161 ce 5 5.
SG HH Hệ 5 5. N@SẴ€ATCH SÍTHCÍHTÔ. SG HH Hiệp 5 CHAPTER 1: INTRODUCTION OF THE COMPANY. General information of Vietnam Communications Corporation (VCCOF)),.
History of establisment and development. Functions and mission of department .- 5< << 5 5< « sse< ssss se 8 1. Major Business ACÏVÏ(ÏS. Company achiÏ€V€ITI€IIÉS.
Business Performance from 2020 to 2022. Situation of brand strategy. Brand identity SYStem nốeee.cty 12 iii Hoàng Thị Quynh Thơm — 11194931 — Business English 1. Branding activities for IMC S€TVC.
Brand equity of VCCorp in providing IMC service. 14 CHAPTER 2: LITERATURE REVIỀ. Definition of Brand FQHÏÍV. Definition of Customer-based Brand Equity (CBBE).
Service Drand €QHÏẨV.- HH HH HH HH kh 18 2. Factors affecting Brand FQHÏfy. Theoretical FraIm€WOFFÌK. 1n 000000000906 27 CHAPTER 3: RESEARCH METHODOLOGY.
Data collection method. ch TH nen 30 3. SG HH ng, 30 3. Piloting QH€SÍÏOHHI(ÌT.Ặ Gv tk Hy 34 3.
Data Analysis IM€fÏOÏ. cv HH ngư 34 KE. LH HH ng nh ng nh nh 34 3. 35 CHAPTER 4: FINDINGS AND DISCUSSION.- se SSeSSe<see 36 4.
Exploratory factor aIIAÌÏYSÌS. HH g0 00004 06 41 IV Hoàng Thị Quynh Thơm — 11194931 — Business English 4. Regression analysis and model f€S(ÏnE. Hypotheses testing results ú.
Sàn HT TH TH HH HH key 45 4. Discussion Of the Study. nan he ằa. 009600966990 49 CHAPTER 5: CONCLUSION AND RECOMMENDA TIONS.
Practical IHDÏCG@fÏOT-S. Strengthening brand loyalty .-- -- «+ es kh nre 52 5. Increasing brand awareness. Enhancing positive brand association.
Promoting and improving perceived quality. 0 5 cọ HH HH HH H000 .9004000 406090096 Hoàng Thị Quynh Thơm — 11194931 — Business English LIST OF ABBREVIATIONS No. Symbols Mean 1 VCCorp Vietnam Communication Corporation 2 IMC Integrated Marketing Communication 3 BE Brand Equity 4 BL Brand Loyalty 5 BAW Brand Awareness 6 BAS Brand Association 7 PQ Perceived Quality 8 EFA Exploratory Factor Analysis 9 KMO Kaiser - Meyer - Olkin 10 SPSS Statistical Package For The Social Sciences vi Hoàng Thị Quynh Thơm — 11194931 — Business English LIST OF TABLES Table 1. Business perfomance of VCCorp from 2020 to 2022.
Definition and Concept of Brand Equity. Factors affecting brand equity in previouS SÍMdieS. Measurement Ïf€THLS. sả G0 HH HH ng kh 31 Table 5.
Average of Brand Equity fACtOM. Average of Brand Loyalty fACtOT. Average of Brand AWAreneSS Í((CÍOT. Average of Brand ASSOCIAtION CÍOF.
Average of Perceived Quality fACtOM. Reliability of VATiÏ€(S. cv tk kg ệt 41 Table 11. Rotated component matrix of independent variables.
Component matrix of dependent varidÌ€. Result of regression ANALYSIS. Hypothesis 1 testing T€SHÏHS. SH Hit 44 Table 15.
Hypothesis 2 testing results. SH kg 44 Table 16. Hypothesis 3 testing results. Hypothesis 4 testing results .Ă Ăn HH kệ, 45 Table 18.
Hypothesis testing results. SH rrệt 46 Vil Hoàng Thị Quynh Thơm — 11194931 — Business English LIST OF FIGURES Figure 1, Organizational SÍTHCÍHIT. SH HH net 7 Figure 2. COMPANY DFOCÌHCES.
G1111 kh kg ng kg kết 10 Figure 3. Conceptual ƒTIHI€WOĂ. cv kg ng ng vết 28 [7271. Research background Over the past 40 years, the service sector has grown significantly, and the economy has shifted from being more product-driven to being more service-driven (Morrar, 2014; Stafford, et al.
A service is a provided activity, benefit, or satisfaction that is intangible and does not acquire ownership of the customer (Armstrong et al. As a result, the brand is crucial for service businesses to help customers envision what the offer might provide for them (De Chernatony & Segal-Horn, 2003; Kim, et al. Customers who have favorable or distinctive associations with a particular brand lead to the apprearance of a strong brand. An effective method to measure the strength of a brand is use the concept brand equity (Keller, 1993).
Businesses make substantial investments in implementing strategies that enable them to create and manage powerful brands. Recognizing brand equity's underlying sources and their effects is crucial for it to provide strategic inputs and assist marketing decisions (Keller, 1998). Understanding the origins of brand equity can give managers important insights into how the brands add value to the company and to consumers. The brand knowledge framework is essential to this brand equity management.
The available literature has identified a number of brand knowledge factors that affect brand equity. Yet, not many studies have examined factors influencing on brand equity of service such as Integrated Marketing Communication (IMC) service. For continuous services like IMC, where customers use the services for an extended period, their current service experience and performance determines their future service usage levels (Bolton and Lemon, 1999). In order to create and maintain strong brands in such services, it is essential for businesses to examine factors influencing their brand equity in providing services.
Research rationale Branding has been used for centuries to distinguish one producer's goods from those of another. The word brand is derived from the Old Norse word brand, which means to burn, as brands were used by livestock owners to identify their animals. A brand is defined by the American Marketing Association as "a name, term, sign, symbol, or design, or a combination of them, intended to identify and Hoàng Thị Quynh Thơm — 11194931 — Business English differentiate the goods or services of one seller or group of sellers from those of competitors" (Kotler, 2003:241). A brand may form an emotional bond with its customers, transforming the brand into an icon.
In their most developed form, brands represent not only the products or services a company offers, but the company itself; the brand is the company, and brands become synonymous with the company's policy (Goodyear, 1996; de Chernatony and McDonald, 2003). Brand equity is an intangible asset to companies and if successfully leveraged, the company can differentiate their services or products and create superior value in the consumer's mind (Kim, et al. Berry (2000) states that for a service it is important with a strong brand equity since it can help the customer to better understand what the service might provide and hence reduce the perceived risk. Strong brand equity can also result in higher willingness to pay, customer recommending the brand and create entry barriers for potential competitors (Biedenbach, et al.
In order to create and preserve great brand equity, businesses invest an enormous amount of resources on branding strategies (Balaji, 2011). Understanding the fundamental elements driving brand equity is crucial for developing great brand equity (Balaji, 2011). As it provides insight into consumer behavior, brand equity knowledge can be used to develop branding strategies (Christodoulides et al. Extensive research regarding service brand equity has previously been conducted (Pinar, et al.
There are however different on what factors that affect service brand equity (He & Li, 2011). Under recent years, IMC service is increasingly gaining popularity due to the development of the internet that offers new media for marketing (Hashmicro, 2022). In order to keep up with this tendency in marketing industry and meet the customer needs, Vietnam Communication Corporation (VCCorp) has researched and developed the IMC service packages since 2018. Although VCCorp has achieved certain successes in providing IMC service for businesses, the brand equity of IMC service seems to be not strongly positive as expected.
Particularly, IMC service brand owned by VCCorp has only been recognized by people in the particular industries but has not really been widely covered by all potential customers. Moreover, the strong development of 2 Hoàng Thị Quynh Thơm — 11194931 — Business English competitors such as: Orion Media, Redder Media, Ogilvy & Mather.also makes the competition in the market more fierce, thereby lowering the brand awareness of VCCorp in providing IMC service. Additionally, the customers repurchase rate is quite low, showing that brand loyalty is not high. If these situations persist for a long time, there will be a reduction in IMC service brand equity.
Therefore, to maintain a strong position in the market and gain a positive brand equity, the company has to identify the main factors affecting its brand equity in order to enhance its brand value. From the above arguments, it is essential for VCCorp to start discover the factors influencing brand equity in providing IMC service to enhance brand equity among their clients. Accordingly, this has set light to the necessity of investigating factors that can impact on the brand equity in context of providing marketing services. Therefore, this study investigated Factors affecting the Brand Equity of VCCorp in providing Integrated Marketing Communication service for businesses.
Reseach aim and objectives Considering the importance of this topic, the paper aims at improving and reinforcing the current knowledge of brand equity. This study also has three main objectives. Firstly, it investigates the current situation of the brand equity of VCCorp in providing IMC service for businesses. Secondly, it analyzes the influence of these factors on the brand equity of VCCorp when providing IMC service.