NGUYEN THI LAN THE IMPACT OF DIGITAL TRANSFORMATION AND EMOTIONAL BACHELOR OF BUSINESS (MARKETING) HELP UNIVERSITY ADVERTISING ON CUSTOMER’S BEHAVIOR: A CASE STUDY OF GEN Z’S COFFEE CONSUMPTION IN VIETNAM NGUYEN THI LAN BACHELOR IN MARKETING VIETNAM NATIONAL UNIVERSITY, HANOI BACHELOR OF BUSINESS (MARKETING) HELP UNIVERSITY APRIL 2025 APRIL 2025 THE IMPACT OF DIGITAL TRANSFORMATION AND EMOTIONAL ADVERTISING ON CUSTOMER’S BEHAVIOR: A CASE STUDY OF GEN Z’S COFFEE CONSUMPTION IN VIETNAM BY NGUYEN THI LAN Graduation Project Submitted to Vietnam National University, Hanoi – International School in Partial Fulfilment of the Requirements for the Degree of Bachelor of Marketing and Department of Business Studies, HELP University, in Partial Fulfilment of the Requirements for the Degree of Bachelor of Business (Marketing) Hons ACKNOWLEDGEMENT Completing this thesis, titled “The impact of digital transformation and emotional advertising on customer’s behavior: A case study of Gen Z’s coffee consumption in Vietnam,” marks an important milestone in my academic journey. It has been a challenging yet fulfilling experience that I could not have achieved without the guidance, support, and encouragement of many individuals. First and foremost, I am profoundly grateful to Dr. Mai Anh, my supervisor, for his unwavering support and insightful guidance throughout this research journey.
His expertise and attention to detail have helped me navigate the complexities of this topic and refine my work. Mai Anh’s encouragement and constructive feedback have not only shaped this thesis but also inspired me to pursue academic rigor and critical thinking in my future endeavors. I would also like to express my sincere appreciation to the lecturers and staff at VNU-IS for providing me with a strong foundation in marketing, research methods, and critical analysis. The knowledge and skills I have gained during my studies have equipped me to undertake this research with confidence.
Additionally, the resources and academic environment at VNU-IS have played a key role in supporting my progress. This research would not have been possible without the contributions of the Gen Z respondents, who willingly shared their perspectives and experiences regarding coffee consumption and their engagement with digital platforms. Their insights have been invaluable to the findings and conclusions presented in this thesis. Lastly, I would like to express my sincere appreciation to my family, friends, and classmates for their continuous encouragement and understanding during this journey.
Their support has been a constant source of motivation, helping me to overcome challenges and remain focused. This thesis is not just a culmination of my efforts but also a reflection of the collective contributions and support of everyone who has been a part of this journey. For that, I am deeply grateful. Student i BUSINESS DEPARTMENT BACHELOR OF BUSINESS MGT400 GRADUATION PROJECT DECLARATION FORM Name: Nguyen Thi Lan Student ID: 21070677 - E2300083 Programme of Studies: Marketing Title of Project/Dissertation: The impact of digital transformation and emotional advertising on customer’s behavior: A case study of gen z’s coffee consumption in Vietnam Name of Supervisor(s): Dr.
Mai Anh Declaration: In accordance with the appropriate regulations, I hereby submit the above Graduation Project for examination and I declare that: i. I have read and understood the sections on Plagiarism found in the University’s “General Information to Students” Handbook and certify that the Graduation Project embodies the results of my own work. 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. Each contribution to, and quotation in my Graduation Project from the work of other people has been attributed, and has been cited and referenced.
I have not allowed and will not allow, anyone to copy my work with the intention of passing it off as his or her own work. I am aware that I may have to forfeit the degree in the event that plagiarism has been detected after the award. Notwithstanding the supervision provided to me by HELP University, I warrant that any alleged act(s) of plagiarism during my stay as registered student of the HELP University is entirely my own responsibility and HELP University and/or its employee shall under no circumstances whatsoever be under any liability of any kind in respect of the aforesaid act(s) of plagiarism. I am aware that my Graduation Project may be used by my supervisor(s) and/or HELP University for further research or any collaborative work, and under no circumstances whatsoever would claim any rights to the said work.
Signature: Date: 25/3/2025 ii LIST OF FIGURES AND TABLES Figure 2.1: Theory of Planned Behavior (Ajzen, 1991) .2: Sample size calculator .1: Partial Least Squares (PLS) model .2: Convergent Validity Results .3: Common Method Bias Results .4: Factor Analysis Results .Error! Bookmark not defined.5: Discriminant Validity Results .7: Model Fit Results .8: Hypothesis Testing Results .32 iii LIST OF ABBREVIATIONS No. Abbreviations Full name 1 AVE Average Variance Extracted 2 CB Customer’s Behavior 3 CMB Common Method Bias 4 CSR Corporate Social Responsibility 5 DT Digital Transformation 6 DV Dependent Variable 7 EA Emotional Advertising 8 eWOW digital Word-Of-Mouth 9 FGDs Focus Group Discussions 10 Gen Z Generation Z 11 HTMT Heterotrait-Monotrait Ratio of Correlations 12 IV Independent Variable 13 KMO Kaiser-Meyer-Olkin 14 PI Purchase Intention 15 PLS Partial Least Squares 16 R² R Square 17 SM Social Media 18 SRMR Standardized Root Mean Square Residu 19 TPB Theory of Planned Behavior 20 UGC User-generated Content 21 VECOM Vietnam E-commerce Association 22 VIF Variance Inflation Factor iv TABLE OF CONTENTS ACKNOWLEDGEMENT. ii LIST OF FIGURES AND TABLES. iii LIST OF ABBREVIATIONS.
vii CHAPTER 1: INTRODUCTION .1 Background of Study .5 Scope of Study .6 Significance of Study. 6 CHAPTER 2: LITERATURE REVIEW .2 Definition of key concepts .1 The relationship between Social Media and Purchase Intention in coffee consumption .2 The relationship between Emotional Advertising and Purchase Intention in coffee consumption .3 The relationship between Digital Transformation and Purchase Intention in coffee consumption .4 The relationship between Purchase Intention and Consumer Behavior in coffee consumption .15 CHAPTER 3: RESEARCH METHODOLOGY. 21 CHAPTER 4: RESEARCH RESULT .2 Respondent age group .3 Common Method Bias (CMB). 32 CHAPTER 5: DISCUSSION AND CONCLUSION .4 Future Research Directions .51 vi ABSTRACT THE IMPACT OF DIGITAL TRANSFORMATION AND EMOTIONAL ADVERTISING ON CUSTOMER’S BEHAVIOR: A CASE STUDY OF GEN Z’S COFFEE CONSUMPTION IN VIETNAM By NGUYEN THI LAN April 2025 Supervisor: Dr.
Mai Anh This thesis investigates the combined impact of digital transformation and emotional advertising on consumer behavior, focusing on Generation Z's coffee consumption habits in Vietnam. As the first digitally native generation, Gen Z exhibits distinctive consumer traits shaped by their extensive interaction with technology, their reliance on social media, and their preference for emotionally resonant brand communication. This study explores how technological advancements and advertising strategies influence their preferences, decision-making processes, and loyalty toward coffee brands in Vietnam, a rapidly growing and highly competitive market. The research provides a comprehensive understanding of the interplay between digital transformation and emotional advertising.
The quantitative component analyzes survey data to examine the role of digital tools—such as e- commerce platforms, mobile apps, social media channels, and online payment systems—in shaping Gen Z’s coffee-buying journey. These tools are evaluated for their influence on factors such as brand discovery, purchasing convenience, and post- purchase satisfaction. The findings underscore the transformative role of digital transformation in shaping Gen Z’s consumer behavior. Personalized recommendations, seamless online purchasing experiences, and engaging digital content have become critical touchpoints in the customer journey.
Platforms such as Instagram, TikTok, and Facebook serve as primary channels for product discovery and brand interaction, often influencing purchasing decisions through influencer endorsements, user- generated content, and interactive marketing campaigns. Simultaneously, emotional vii advertising proves to be a powerful driver of brand loyalty and consumer engagement. Campaigns that tell authentic and relatable stories, tap into cultural and generational identities, or evoke nostalgia and aspiration resonate deeply with Gen Z consumers. Based on these findings, this thesis provides actionable recommendations for coffee brands seeking to capture and retain Gen Z consumers in Vietnam.
Key strategies include optimizing digital platforms for personalization and convenience, leveraging authentic emotional narratives in advertising campaigns, and embedding sustainability and ethical values into the core of their brand messaging. Beyond its practical implications, this study contributes to the academic understanding of consumer behavior in the digital era. It highlights the significance of integrating digital transformation and emotional advertising as complementary strategies to address the evolving expectations of modern consumers. The findings underscore the need for marketers to balance technological advancements with human-centric approaches, ensuring that their strategies not only meet functional needs but also foster emotional connections and reflect societal values.
In conclusion, this thesis sheds light on the unique characteristics of Gen Z consumers in Vietnam’s coffee market and offers insights into how brands can effectively engage this influential demographic. By combining digital convenience, emotional authenticity, and ethical alignment, coffee brands can not only drive immediate sales but also secure long-term loyalty in an increasingly complex consumer landscape. These insights provide valuable guidance for marketers, business leaders, and researchers seeking to navigate the challenges and opportunities of the digital age. Keywords: Digital Transformation, Emotional Advertising, Social Media, Purchase Intention, Gen Z, Coffee Consumption, Consumer Behavior, Vietnam viii CHAPTER 1: INTRODUCTION 1.1 Background of Study The consumer landscape has undergone tremendous change due to the rise of digital transformation and the increased focus on emotive advertising.
The use of digital technology in every aspect of business, or "digital transformation," has completely changed how businesses interact with their clientele. Technologies like e-commerce, smartphone apps, and social media platforms have given brands new avenues to interact and tailor their interactions with their target customers (Kotler et al. Emotional advertising, which makes use of psychological triggers, cultural symbolism, and narrative, has become a potent instrument for creating enduring bonds with customers (Gobe, 2010). Known as "digital natives," Generation Z is a distinct and powerful group that is spearheading these developments.
Gen Z is the first generation to have grown up with extensive access to digital devices and the internet, having been born between the middle of the 1990s and the beginning of the 2010s. This group is characterized by their reliance on technology, preference for authentic and emotionally resonant brand communications, and increasing focus on ethical and sustainable consumption (Francis & Hoefel, 2018). These traits have profound implications for how businesses craft their marketing strategies, particularly in fast-evolving industries such as coffee. Vietnam, one of the largest coffee producers in the world, has a rich coffee culture that blends traditional and modern influences.
In recent years, the country’s coffee market has experienced rapid growth, fueled by the rise of specialty coffee shops, the popularity of ready-to-drink beverages, and the integration of digital tools into the customer journey. Generation Z consumers play a pivotal role in this dynamic market, as their preferences and behaviors are shaping new trends in coffee consumption (Nguyen, 2024). They are not only attracted to the convenience of digital engagement, such as mobile ordering and online payment systems, but also to brands that resonate with their values through authentic and emotionally compelling advertising. 1 Despite the evident importance of digital transformation and emotional advertising, there is limited research on how these factors jointly influence the consumption behaviors of Gen Z in Vietnam’s coffee market.
Previous studies have primarily focused on either digital marketing or emotional branding in isolation, leaving a gap in understanding their combined impact on this demographic. Additionally, while global insights into Gen Z’s consumer behavior are available, their application to the culturally specific context of Vietnam remains underexplored. This study seeks to address these gaps by examining the interplay between digital transformation and emotional advertising and their influence on Gen Z’s coffee consumption in Vietnam. By doing so, it aims to provide actionable insights for coffee brands looking to effectively engage this critical demographic while contributing to the broader academic discourse on consumer behavior in the digital age.