VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT PROJECT NAME: FACTORS INFLUENCING SMARTPHONE BRAND LOYALTY: A CASE STUDY OF APPLE IN VIETNAM NGUYỄN KHÁNH VY Hanoi - Year 2024 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNAIONAL SCHOOL GRADUATION PROJECT PROJECT NAME: Factors Influencing Smartphone Brand Loyalty: A Case Study of Apple in Vietnam SUPERVISOR: Dr. Trương Thị Huệ STUDENT NAME: Nguyễn Khánh Vy STUDENT ID: 20070387 COHORT: 2023 - 2024 SUBJECT CODE: INS4011 01 MAJOR: International Business Hanoi - Year 2024 2 LETTER OF DECLARATION I hereby declare that the Graduation Project "Factors Influencing Smartphone Brand Loyalty: A Case Study of Apple in Vietnam" is the product of my original research and has not been presented in any other academic work or published in any form. Throughout the research process, I have adhered to the highest ethical standards. All findings presented in this project are solely from my research and independent analysis.
References to the work of others have been meticulously documented and cited in accordance with established academic guidelines. I take full responsibility for the accuracy and integrity of the data, figures, and other content presented in this Graduation Project. I have conducted all research and analysis with honesty and diligence, and I am confident that the findings presented are reliable and valid. Hanoi, 30th of April 2024 Student Nguyen Khanh Vy 3 ACKNOWLEDGEMENTS In the whole progess of studying and researching for the ggraduate thesis “Factors Influencing Smartphone Brand Loyalty: A Case Study of Apple in Vietnam”, I have received a lot of enthuiastic help and valuable guidance from Training Department of International School – Vietnam National University, including my professional instructor and all related supporive individuals.
First of all, I want to express my gratitude to the Vietnam National University Training Department for their excellent help in providing a clear schedule and method for this subject. Their efforts helped me navigate the subject effectively. Second, I'm especially grateful to my advisor, Dr. Truong Thi Hue, for her expertise and dedication.
Despite her busy schedule, she provided me with invaluable guidance and support throughout my thesis project. Her passion for research created a positive and productive environment from the very beginning. I also extend my sincere appreciation to all the survey participants. Their willingness to share their time and insights was crucial to gathering the data needed for a thorough and reliable investigation.
Finally, I would like to express my huge thanks to my amazing family and friends for their unwavering support throughout this journey. They have been a source of constant motivation and strength, and I feel incredibly lucky to have them by my side. While I strived for excellence throughout this project, I acknowledge there may be limitations or imperfections. I welcome feedback and suggestions from the instructors and judges to further refine this research and future endeavors.
4 TABLE OF CONTENTS LETTER OF DECLARATION. 4 TABLE OF CONTENTS. 5 LIST OF TABLES. Background of the Study.
Research Question and Objectives of the Study. Objectives of the Study. Scope of Research. Extending the Theory of Planned Behavior (TPB).
Definition of brand loyalty. Theoretical perspectives on brand loyalty. Factors Influencing Brand Loyalty. Perceived Product Quality (PQ).
The Operational Definition and Measurement Design. Data Collection Procedure. Population, Sample size and Sampling Techniques. Data Collection Technique.
Data Analysis Technique. Descriptive Statistics Analysis. Reliability and Content Validity Analysis. Comparing Mean Test.
Structural Equation Model. Descriptive Analysis and Mean Comparison. Structural equation model. Contribution of the study.
Limitations and future research. 50 6 LIST OF TABLES Table 1: Dimensions and indicators of Brand Loyalty (BL) .24 Table 2: Dimensions and indicators of Brand Trust (BT) .25 Table 3: Dimensions and indicators of Perceived Product Quality (PQ).25 Table 4: Dimensions and indicators of Brand Image (BI) .26 Table 5: Dimensions and indicators of Customer Satisfaction (CS) .26 Table 6: Likert’s Five Points Rating Scale .28 Table 7: Demographic descriptive (n=242).32 Table 8: T-test results by genders .33 Table 9: Analysis of Variance between Purchase Intention and Profile .33 Table 11 Reliabilities among the variables .34 Table 12: Standardized factor loadings, CR and AVE of the model.35 Table 13: The latent variable correlation matrix: discriminant validity……………36 Table 14: Results for Structural equation model……………………………………36 Table 15: The Hypothesis Analysis Results .39 7 ABSTRACT Factors Influencing Smartphone Brand Loyalty: A Case Study of Apple in Vietnam The rapid development of the economy presents both opportunities and challenges for enterprises. For sustainable and long-term development, organizations must implement appropriate strategies to satisfy customer needs and wants, ensure profitability, and minimize negative environmental impacts. This study was designed to analyze the factors that influence smartphone brand loyalty, focusing on Apple in Vietnam.
This study integrated four potential factors: customer satisfaction, perceived quality, brand image, and brand trust. A sample of 242 respondents was used for the analysis. The research method was used is Partial Least Squares Structural Equation Modeling (PLS - SEM) with 2 softwares employed for data analysis : Statistical Package for Social Science (SPSS) version 26 and Partial Least Square (Smart PLS version 3. The findings indicate that such demographic variables as gender, age, education, and income are not statistically significant determinants of brand loyalty among Apple consumers in Vietnam.
From the analysis of primary data, the confirmed factors were identified as crucial circumstances influencing brand loyalty. This research provides both academic and practical contributions by addressing the limitations of past studies and offering reasonable recommendations for promoting sustainable consumption. Background of the Study In recent years, the global economy has witnessed considerable turbulence and change. After the recession brought about by the COVID-19 pandemic, different economies have moved at different speeds.
The International Monetary Fund (IMF) projects the growth of the global economy to moderate from an actual 3.2 percent in 2022 to 2.7 percent in 2023, as a result of ongoing inflation, geopolitical risks, and disruptions of global supply chains (IMF, 2022). Central banks in many countries have hiked interest rates to combat inflation, albeit with mixed success. In addition to these challenges, the world economy is beset by evolving trade policy stances in different countries and regional conflicts that threaten to further unravel supply chains. The conflict in Ukraine has, for example, exacerbated energy shortages in Europe and roiled global commodity markets.
Major powers, such as the United States and China, are confronting recurrent problems of their own—such as inflation and regulatory crackdowns of tech behemoths. None of these developments simplify the environment for multinational firms operating in a range of markets. The mobile industry is often discussed as one of the more exciting sectors in the world economy. GSMA Association projects that the number of unique mobile subscribers worldwide will reach 5.7 billion in 2025—or about 70 percent of the world population (GSMA, 2022).
This projection assumes increased smart phone penetration, the spread of 5G services, and growing appetite for mobile internet. The industry is additionally buoyed by the rise of digital services, as mobile operators increasingly offer financial services, as well as entertainment and enterprise solutions. Massive investments are made in 5G technology, with the promise of faster speeds and more secure networks. The industry is, however, also confronted with regulatory and national security constraints, as well as the need for huge investments in infrastructure., of Cupertino, California, stands among the world's most influential and valuable technology companies.
The company was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. Apple has since introduced paradigm shifting products, such as the iPhone, iPad, Mac computers, and Apple Watch, and runs the world's leading ecosystem of software, hardware, and services. In 2023, the company offers new features, designs, software, and services. Its model is defined by the integration of software and hardware, aiming at seamless user experience across its devices.
Its services segment includes services, such as the App Store, Apple Music, iCloud, and Apple Pay; the latter of these segments has expanded fast diversifying Apple's revenue. With a market capitalization exceeding $2 trillion, Apple remains central in the global technology industry, setting pace for quality, design, and user dedication (Apple Inc. Vietnam's economy has shown remarkable resilience and growth, even amidst global economic uncertainties. According to the World Bank, Vietnam's GDP grew by 8.5 percent in 2022, driven by strong manufacturing and export activities, as well as robust domestic consumption (World Bank, 2022).
The country has become an attractive destination for foreign direct investment (FDI), particularly in the electronics and manufacturing sectors. Vietnam's mobile industry is a critical component of its economic landscape. With a young and tech-savvy population, smartphone penetration has surged in recent years. According to Statista, the number of smartphone users in Vietnam is projected to reach 43.4 million by 2025, up from 36.
The proliferation of affordable smartphones and increasing internet access have facilitated this growth. Moreover, the government’s commitment to digital transformation, as outlined in its national strategy, aims to enhance the country’s digital infrastructure and boost economic development. Vietnamese consumers exhibit unique behaviors and preferences influenced by cultural, economic, and social factors. The population is relatively young, with a median age of around 32 years, and there is a strong inclination towards technology and digital services.
Consumers in Vietnam are increasingly internet-savvy, with a high engagement rate on social media platforms such as Facebook, Zalo, and 10 Instagram. This digital inclination significantly impacts their purchasing behavior, as they often rely on online reviews, social media influencers, and e-commerce platforms to make informed decisions (Ngo, 2023). When it comes to mobile phones, Vietnamese consumers prioritize factors such as brand reputation, product quality, price, and after-sales service. There is a noticeable trend towards premium and mid- range smartphones, reflecting the growing purchasing power and aspiration for high- quality products.
Brand loyalty plays a crucial role, with many consumers sticking to well-known brands that offer reliable user experience and consistent innovation. has a significant presence in Vietnam, which has become a critical market for its products, particularly iPhones. Apple’s strategy in Vietnam focuses on catering to the growing demand for premium smartphones and leveraging the country’s youthful and tech-savvy population. The company has established a robust distribution network through authorized resellers, online platforms, and Apple Premium Resellers.
Apple's products are highly sought after in Vietnam, with the iPhone being one of the most popular smartphones in the market. The company's marketing strategies emphasize the premium quality, innovative features, and ecosystem integration of its products, which resonate well with Vietnamese consumers. Apple also engages in localized marketing campaigns and promotions to strengthen its brand presence and connect with the local audience. Despite Apple’s strong market presence and the overall growth of the mobile industry in Vietnam, there is a need to understand the specific factors that influence brand loyalty among Vietnamese consumers towards Apple smartphones.
Brand loyalty is a critical component of Apple’s business strategy, as it ensures repeat purchases, enhances customer retention, and drives positive word-of-mouth referrals (Kotler & Keller, 2016). Previous studies have highlighted several factors influencing brand loyalty, such as perceived product quality, brand image, customer satisfaction, and brand trust (Chaudhuri & Holbrook, 2001; Oliver, 1997). However, the unique cultural, economic, and social context of Vietnam necessitates a localized understanding of these factors. Vietnamese consumers have distinct behaviors and preferences that may impact their loyalty to Apple differently compared to other markets.
11 This research aims to fill the gap by providing a comprehensive analysis of the factors influencing brand loyalty towards Apple smartphones in Vietnam. By understanding these factors, Apple can tailor its marketing strategies, product offerings, and customer engagement initiatives to better meet the needs and preferences of Vietnamese consumers. Additionally, this study will contribute to the academic literature on brand loyalty in emerging markets, providing valuable insights for researchers and practitioners alike. Research Question and Objectives of the Study 1.