lOMoARcPSD|39606864 The impact of brand equity’s dimensions on purchase intention: An empirical study of beer brand in Vietnam Bachelor of Business Administration Thesis Group members: Lê Đình Thành HS130152 Vũ Nhật Lệ HS130144 Hoàng Thị Lý HS130138 Vũ Phương Anh HS130189 Nguyễn Thị Khánh Dân HS130249 Supervisor: Dr. Nguyen Hoang Phuong Linh Ha Noi, December 27, 2021 1 Downloaded by TOM BOY (tomboy2@gmail.com) lOMoARcPSD|39606864 ACKNOWLEDGEMENT We would like to extend our heartfelt gratefulness to all individuals and organizations who have supported us during the research process. Without them, we would have had difficulty completing the necessary milestones during our study and research for this thesis. First of all, we would like to thank Dr.
Nguyen Hoang Phuong Linh, who directly guided and helped us. With her knowledge as well as expertise and acquirements in the research sector, Dr. Nguyen Hoang Phuong Linh is always dedicated to teaching, always giving us motivation throughout the learning process, guiding us to overcome difficulties and challenges during our research so that we could efficiently complete this thesis. Second, we we are thankful to FPT University, Dr.
Trinh Trong Hung (Head of Marketing), and the teachers at the school who supported and guided us during our four years of university. Finally, we also express gratitude to everyone who took part in the survey and provided feedback. Their responses were important data that was useful for us to complete this study. Hanoi, December 16, 2021 The authors of the thesis 2 Downloaded by TOM BOY (tomboy2@gmail.com) lOMoARcPSD|39606864 SUMMARY The purposes of the thesis are to investigate the impact of brand equity’s dimensions on the purchase intention of beer brands in the context of Vietnam.
Samples were collected from beer drinkers and buyers in the Vietnamese market and studied through quantitative and qualitative analyzes to examine hypotheses. As a result: (a) dimensions of brand equity consist of Brand Awareness, Brand Association, Brand Loyalty, Perceived Quality, Brand Desire; (b) dimensions all have an influence on Purchase intention except Brand awareness, where Perceived quality is the most impactful dimension. Several studies on the influence of brand equity on purchase intent have been conducted throughout the world over the years, but none on the beer market, particularly in Vietnam. The following study uses data collected from customers in three regions of Vietnam through convenience sampling and interviews to accurately assess customer evaluation behavior in Vietnam.
With these findings, the study points out useful suggestions for businesses in Vietnam to be able to improve their brand equity to help increase consumer purchase intention. 3 Downloaded by TOM BOY (tomboy2@gmail.com) lOMoARcPSD|39606864 TABLE OF CONTENT ACKNOWLEDGEMENT. 3 LIST OF FIGURES. 7 LIST OF TABLES.
7 LIST OF CHARTS .6 Methodology and data overview .7 Outline of thesis. 16 CHAPTER 2: LITERATURE REVIEW.2 Purchasing decision process .5 Hypothesis and research model. 33 4 Downloaded by TOM BOY (tomboy2@gmail. Define dimensions of brand equity .1 Qualitative research method.2 Quantitative research method.6 Data collection method .7 Data analysis method.
66 CHAPTER 4: ANALYSIS AND FINDINGS .2 Quantitative data analysis. 76 5 Downloaded by TOM BOY (tomboy2@gmail.4 Exploratory Factor Analysis .7 Control variable test. Impact of Brand Equity’s dimensions on Purchase Intention. 89 CHAPTER 5: RECOMMENDATIONS & CONCLUSIONS.
Summary of research results .1 Research Question 1: “What are the dimensions of brand equity?” .2 Research Question 2: “Investigating the impact of brand equity’s dimensions on purchase intention about beer in Vietnam?” .3 Research Question 3: “Give useful recommendations and propose some solutions to enhance brand equity about beer in Vietnam?”. Implication and recommendations .2 Managerial implication & Recommendations .3 Limitations and perspectives .2 Perspective for future research. 106 6 Downloaded by TOM BOY (tomboy2@gmail.com) lOMoARcPSD|39606864 LIST OF FIGURES Figure 1. 1: Monthly beer consumption (General Statistics Office of Vietnam) .2: Vietnam's beer market share 2018 (Source: FPTS).
1: Model of the consumer buying process. 2: Steps between evaluation of alternatives and a purchase decision. 3: Conceptual model of Aaker (1991). 4: Conceptual model of Keller (1993).
5: Conceptual model of Lassar et al. 6: Conceptual model of Atilgan et al. 7: Conceptual model of Lee and Leh (2011). 8: Conceptual model of Thọ, N.
9: Conceptual model of Jalilvand, M. 10: Conceptual model of DK Gautam & SK Shrestha (2018). 11: Conceptual model of Le Thanh Tuan (2015). 12: Conceptual model of Azzari & Pelissari (2020).
13: The proposed research model. 1: Deductive research in research approach (Saunders, Lewis and Thornhill, 2012). 2: Inductive research in research approach (Saunders, Lewis and Thornhill, 2012). 3: Compare the main differences between abductive, deductive and inductive approaches.
4: Research and analysis process. 93 LIST OF TABLES 7 Downloaded by TOM BOY (tomboy2@gmail.com) lOMoARcPSD|39606864 Table 2. 1: Comparison between previous research results. 2: Research about Brand Equity impact Purchase Intention.
1: Level of sample size assessment of Tabachnick and Fidell (1996). 2: Measurement scale of Purchase Intention. 3: Measurement scale of Brand Awareness. 4: Measurement scale of Brand Association.
5: Measurement scale of Brand Loyalty. 6: Measurement scale of Perceived Quality. 7: Measurement scale of Brand Desire. 1: Demographics Characteristics of In-depth Interviewees (N=15).
4: Reliability statistics of INTEN. 5: Item-total statistic of INTEN. 6: Reliability Statistics of AWARE. 7: Item-total statistic of AWARE.
8: Reliability statistics of ASSO. 9: Item-total statistic of ASSO. 10: Reliability statistics of LOYAL. 11: Item-total statistic of LOYAL.
12: Reliability statistics of PERCEI. 13: Item-total statistic of PERCEI. 14: Reliability statistics of DESIRE. 15: Item-total statistic of DESIRE.
16: KMO and Barlett’s Test. 17: Rotated Component Matrix. 80 8 Downloaded by TOM BOY (tomboy2@gmail.com) lOMoARcPSD|39606864 Table 4. 18: Exploratory Factor Analysis.
23: Independent T-test and One-way ANOVA of control variable. 24: Multiple Comparisons of purchase frequency variable. 25: Group Statistics of purchase frequency variable. 26: Independent Sample Test of purchase frequency variable.
27: Regression analysis of purchase frequency variable. 28: Results of testing hypotheses. 91 LIST OF CHARTS Chart 4. 1: Gender of respondent profile.
2: Age of respondent profile. 3: Region of respondent profile. 4: Occupation of respondent profile. 5: Income of respondent profile.
6: Purchase frequency of respondent profile. 75 9 Downloaded by TOM BOY (tomboy2@gmail.com) lOMoARcPSD|39606864 CHAPTER 1: INTRODUCTION 1.1 Topic Background With continual growth, the beer manufacturing and trade business plays a critical part in the global economy, bringing in income and providing hundreds of billions of dollars to the budget. According to the research "Worldwide Beer Market and COVID-19 Impact in the Medium Term" In 2015, the worldwide beer market was $498.66 billion USD (in retail prices) and the average per capita consumption was $112. The emergence of the coronavirus illness (COVID-19) and the subsequent adoption of lockdown and social separation laws in a number of nations have affected on-premises beer consumption and sales.
On the contrary, this tendency has increased demand for home delivery services and to-go packs via online platforms. The beverage production and trade business has long been one of Vietnam's most significant and promising economic sectors. This is the industry that mobilizes a large number of social resources, particularly from the domestic and international private sectors, produces a large number of employees, and contributes to the budget year after year; contributes to social security. With a yearly consumption of billions of liters, it is easy to see why beer firms all over the world want to capture the Vietnamese market.
According to the Nikkei Asian Review, Vietnam is one of Asia's fastest-growing beer markets.2 According to Minh Dung (2020)3, in the last ten years, the Beer industry in Vietnam has expanded speedily, beer production accounts for 95 percent of total alcoholic beverage consumption in Vietnam. Moreover, annual beer consumption increases steadily, Vietnam has used up over 4.5 billion liters of beer (including all types of beer such as canned beer, bottled beer, draft beer,.) by the end of 2019, making Vietnam the largest beer consumer in the ASEAN region. Beer consumption has risen in Vietnam at a pace of 6.6 percent per year over the last six years, which is extremely significant when compared to the global 1 Research and Markets, ‘Global Beer Market Report 2020 with Impact of COVID-19 in the Medium Term’, GlobeNewswire News Room, 19 October 2020, https://www.com/en/newsrelease/2020/10/19/2110117/28124/en/Global-Beer-Market- Report-2020-with-Impact-of-COVID-19-in-theMedium-Term. 2 ‘Vietnam’s Top Beer Maker Sabeco Loses Its Fizz’, Nikkei Asia, https://asia.com/Business/FoodBeverage/Vietnam-s-top-beer-maker-Sabeco-loses-its-fizz.
3 ‘Cạnh Tranh Quyết Liệt Giành Thị Phần Bia’, Báo Nhân Dân, https://nhandan.vn/tin-tuc-kinh-te/canh- tranh-quyetliet-gianh-thi-phan-bia-609791/. 10 Downloaded by TOM BOY (tomboy2@gmail.com) lOMoARcPSD|39606864 average of 0. Due to the market's high attraction, the world's major beer brands, including Heineken, Budweiser, Carlsberg, Tiger, Sapporo, and others, have all "landed" in Vietnam. Depending on the Vietnam Beer, Alcohol, and Beverage Association (VBA), from 2011 to 2021, Vietnam's average beer consumption will rise by 65%.
However, the beverage sector has been impacted from the beginning of 2020, due to the combined impacts of the Covid-19 outbreak and Decree 100, the beverage business group's manufacturing capacity is presently less than 80% of its pre-pandemic level (General Statistics Office of Vietnam, 2021). 1: Monthly beer consumption (General Statistics Office of Vietnam) In 2020, Beer consumption per capita is 40.5 liters, a decrease of 7.1 liters compared to 2019. Beer output was 3,955.1 million liters, a decrease of 13.9%, and the indicator of consumption of the beverage industry decreased by 6. In the first five months of 2021, the Covid-19 pandemic grew more complicated, and some communities were forced to institute social distancing measures to avoid epidemic sickness, such as limiting meetings and dining in public areas.
As a result, the beverage industry's index of industrial production (IIP) fell by 0.5% in May compared to the previous month (General Statistics Office of Vietnam, 2021). 4 Ha Thai, ‘Tác động kép của dịch Covid-19 và Nghị định số 100/2019/NĐ-CP tới Ngành công nghiệp sản xuất đồ uống’, General Statistics Office of Vietnam, https://www.vn/du-lieu-va-so-lieu-thong- ke/2021/06/tac-dongkep-cua-dich-covid-19-va-nghi-dinh-so-100-2019-nd-cp-toi-nganh-cong-nghiep-san- xuat-do-uong/. 11 Downloaded by TOM BOY (tomboy2@gmail.com) lOMoARcPSD|39606864 Figure 1.2: Vietnam's beer market share 2018 (Source: FPTS) According to the FPTS data chart (2018), four brewing groups control more than 90% of the Vietnamese beer market share: Heineken, Sabeco, Habeco, and Carlsberg. The rest will be important worldwide brands like Sapporo, Budweiser,.
Sabeco is the market leader, accounting for 40.9 percent of Vietnam's beer production market share. Sabeco's major products include Saigon Red Beer (Saigon Export 355), Canned beer 333, and Beer cans Saigon Lager, Green Saigon Beer, Saigon Beer. Heineken is ranked second, with four major beer brands: Heineken, Tiger, Larue, and Amstel controlling approximately 23 percent of the Vietnamese beer market. Habeco with Hanoi Beer branded products were fiercely competed by two rivals Sabeco and Vietnam Brewery Co.
Particularly in the case of Carlsberg, after acquiring all interests at Hue Brewery, this Danish brewery is ranked 4th in the market with an 8% market share. After ThaiBev acquired 53.6 percent of the capital of Saigon Beer Alcohol Beverage Joint Stock Corporation (Sabeco) through the legal entity Vietnam Beverage, Hanoi Beer Alcohol Beverage Joint Stock Corporation (Habeco) is the last large company in the Vietnamese beer market that is not dominated by foreign giants.2 Practical Problem Stemming from the above background, Vietnam's beer market is gradually becoming a fiercely competitive playground among beer brands to find their place in the market. 5 ‘ThaiBev thâu tóm Sabeco - Thương vụ M&A hàng đầu của ngành bia châu Á’, Báo Pháp luật Việt Nam điện tử, 26 October 2019, https://baophapluat. 12 Downloaded by TOM BOY (tomboy2@gmail.com) lOMoARcPSD|39606864 Up to now, the Vietnamese beer market has been dominated by domestic beer brands such as Habeco (Hanoi Beer Alcohol Beverage Joint Stock Corporation) and Sabeco (Saigon Alcohol Beer and Beverage Joint Stock Corporation).