UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Thi Minh Thu EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2015 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Nguyen Thi Minh Thu EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY ID: 22110061 MASTER OF BUSINESS (Honours) SUPERVISOR: Dr. Tran Ha Minh Quan Ho Chi Minh City – Year 2015 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY 1 Acknowledgement Firstly, I would like to thank all the lecturers and staffs in ISB who have been supporting me throughout the course. Secondly, I would like to express my special gratitude to Dr. Tran Ha Minh Quan, my master thesis‟s supervisor, for providing me supporting materials, spending time to review the draft and giving many comments and recommendations on my work.
Finally, I would not be able to complete the thesis without supporting and encouragement from my family and my friends in searching for necessary data and information during the study process, I would like to thank all of them. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY 2 Abstract In Vietnam, market research is an emergent industry since 15 years around. Regardless the Vietnamese companies or the international ones, domestic market research industry cannot avoid the global trend: Brand needs agencies to be faster, more predictive on what consumers‟ plan to do and even cheaper – “conflicted”. This research is aimed to introduce a effective way to measure brand equity to solve this problem in both tracking projects and ad-hoc usage and attitude project.
This measurement can be used as a strong product for local agencies. This also probably helps the agencies shorten the questionnaire length and cost as a consequence. Specifically, the objective of this research is to validate whether this new measurement that can be used for calculating the brand equity is strong/ powerful enough in Vietnam market, which means: (1) Brand Attitudinal Equity has the positive impact on Brand Claimed Share of Wallet (2) Brand Attitudinal Equity has the positive impact on real brand market share In order to achieve objectives, the researcher employed quantitative methods. Primary data was collected through a survey by questionnaire.
The questionnaire was based on literature review and focused on variables to measure brand attitudinal equity. In order to validate two hypotheses, the author applied linear regression, curve regression. The results showed that that there is positive impact of brand attitudinal equity to brand claimed share of wallet (individual level) and to real brand market share (aggregate level). Some limitations and implication for future research are also mentioned in this study.
Key words Brand attitudinal equity, measurement, brand equity, Zipf distribution LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY 3 TABLE OF CONTENT Chapter 1: Introduction .9 Chapter 2: Literature review and research model. Brand Equity and Brand attitudinal equity:. Brand attitudinal equity:. New approach – Zipf distribution:.
The Zipf distribution (or power law):. The Zipf distribution applied to calculate brand attitudinal equity:. Claimed Share of Wallet: .25 Chapter 3: Research Method .30 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY 4 3. Limitation of the method: .36 Chapter 4: Research Result.
Background information analysis:. Calculation of brand attitudinal equity:. Validation among respondent level:. Validation among aggregate level:.
Building of aggregate “brand attitudinal equity” variable: .46 Chapter 5: Research Implication. Build up questionnaire:. Build up calculation:. Possible further analysis:.
For further research: .53 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY 5 References.56 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY 6 Chapter 1: Introduction 1. Background: In Vietnam, market research is an emergent industry since 15 years around. One of the first and the biggest companies shoot the lively shot for this industry is AC Nielsen. Up to this day, the game for market research is blooming with many players joined including not only international companies such as Kantar World Panel, Millward Brown, TNS, FTA, Ipsos, Epinion, Chimigo,… but also local agencies such as Tita, FFL, AMCO, The Window… However, regardless the Vietnamese companies or the international ones, domestic market research industry cannot avoid the global trend: “the research will be much cheaper, more insightful, predictive and faster.
The existing model of market research, in particular the large trackers, is broken. It is too slow, too expensive, and not sufficiently useful.” – Jan Hofmeyr (2013) – TNS Chief Researcher – gave his points of view regarding the market research trend in the future In the Mobile World (MRMW) Conference 2013 in London. And the analytics seems like usually report what did happen weeks or months ago rather than predicting what is likely to happen next. Obviously, there is sign of changing raised in the market research industry on the world.
Many market research companies have adjusted their strategy in order to focus on new products/ models – which are not only simpler/ easier to measure but also more helpful in predicting. Brand needs agencies to be faster, more predictive on what consumers‟ plan to do and even cheaper – which means, the current status of research agencies in Viet Nam does not meet brand‟s expectation. This is the conflict that needs to be solved. Look at the conflict given, especially for trackers (as mentioned) where people usually spend at least 45 – 60 minutes to answer the full questionnaire (Mai, 2014), would the market research companies need to review their model again – to make their LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY 7 questionnaire length shorter but the model is still powerful? Remember that the adult brain can effectively focus and concentrate for up to 25 minutes only (Chrapko, 2014).
Cases of international companies seem to be more optimistic than the local ones due to the development from mother branch. Sooner or later, these companies would be able to change their focusing and change more easily and quickly. They can get more advantages than Vietnam market research companies since they have the power to “grow” research products. Usually, local companies don‟t have any new products which are validated worldwide and improved time-to-time.
The old/ backward and modest methodology makes Vietnam companies losing their competitions among blooming market research field. This research is aimed to introduce an effective way to measure brand equity with well-validation in Vietnam market. Brand equity is the most important section in both tracking projects and ad-hoc usage and attitude project. This measurement can be used as a strong product for local agencies.
This also probably helps the agencies shorten the questionnaire length and cost as a consequence. Research questions The objective of this research is aimed to validate whether this new measurement that can be used for calculating the brand equity is strong/ powerful enough in Vietnam market. This study would answer the above question. With the result of the study, not only local market research agencies or Vietnamese market research team – who do not have the specific model to measure brand equity can consider applying without any doubt, but also international companies – who have already built their model globally can consider improving their product more competitive.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY 8 1. Research significance Firstly, mentioning about brand equity, there is a huge storage of research topics, studies talking about this. However, brand attitudinal equity is totally difference. Attitude is not behavior, it is more about the one‟s perception towards a brand, it lead to the probability buy or not buy if consumers want or do not want buy a brand.
The first significance of this research is – talking about measurement “brand attitudinal equity” but “brand equity”. Secondly, this research is aimed to provide a measurement that can be applied during research work in research agencies. If this measurement is well-validation in Vietnam, it can be used regardless any individual company. They can use without “black box” confidential requirements to consult their clients.
Finally, there is no research in Vietnam doing the validation this “brand attitudinal equity” measurement based on Zipf distribution. Research boundary To validate a new measurement, the previous researcher has used many sources of sample to compare together: building panel samples, conducting many surveys across countries, conducting surveys across categories….Due to limitation of time, capability and the ability to access information, this research focuses on the validation within study, within Vietnam market only and with three categories of beverages. Moreover, the target respondents were also chosen based on the assumption that these population account for 80% of categories‟ user. However, the result provided is still able to answer whether this measurement is strong enough to be used for Vietnam market or not.
LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY 9 1. Research structure Chapter 1 – Introduction This chapter gives an overview of the research. Chapter 1 –introduction is built with the meaning as its name. In this chapter, the background information about the topic is discussed, such as the context, the significance of the research.
The concepts of topic are mentioned in a general way, which builds the topic of the research. The research aim and objectives are also discussed. This chapter also introduces the boundary and structure of the research. Chapter 2 – Literature review This chapter analyzes the aspects of brand equity, especially the effective way to measure brand attitudinal equity – Zipf distribution.
In the first part, the concept of brand equity, brand attitudinal equity and the current measurements of brand equity in the world (public research and “black box” products of some market research companies. In the second part, the author talks more deeply about Zipf distribution and how to apply it in order to calculate brand attitudinal equity. The third and most important section of chapter 2 is building models to be validated in chapter 3 and chapter 4. Chapter 3 – Research methodology This chapter describes the research strategy, including collecting information methods, data sources and methods of analysis used in the research.
This chapter also identifies the limitations of research method as well as potential problems may be encountered with the chosen research technique and strategy LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY 10 Chapter 4 – Research result This chapter presents and analyzes the data collected in the implementation research. Within the scope of this research, despite limitation of time and ability to access information, the research result answers the research questions. Chapter 4 ends with conclusion of the hypothesis provided in chapter 2: whether rejected null hypothesis or not. Chapter 5 – Research Implication This chapter summarizes the main ideas, the main findings of the research and offers recommendations drawn from these findings.
Simultaneously, this chapter also draws the limitations of the research, which suggest directions for further researches. LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com EFFECTIVE WAY TO MEASURE BRAND ATTITUDINAL EQUITY 11 Chapter 2: Literature review and research model A effective measure of brand attitudinal equity based on the Zipf distribution 2. Brand Equity and Brand attitudinal equity: 2. Brand Equity: Brand Equity concept is a “multiheaded monster” (Franzen & Moriaty, 2009).
There is a variety of definition with practically no common ground. Meanwhile, Kohli confirms that brand equity is defined as “the differential effect of brand knowledge on customer response”, three elements of this definition need to be emphasized.