THE STATE BANK OF VIETNAM HO CHI MINH BANKING UNIVERSITY ********** LE PHAM DANG KHOA FACTORS AFFECTING BRAND AUTHENTICITY IN F&B INDUSTRY IN VIETNAM – A CASE STUDY OF STARBUCKS IN HO CHI MINH CITY BACHELOR’S THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 52340101 HO CHI MINH CITY, 09/2021 THE STATE BANK OF VIETNAM HO CHI MINH BANKING UNIVERSITY ********** LE PHAM DANG KHOA FACTORS AFFECTING BRAND AUTHENTICITY IN F&B INDUSTRY IN VIETNAM – A CASE STUDY OF STARBUCKS IN HO CHI MINH CITY BACHELOR’S THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 52340101 SUPERVISIOR: MR. TRAN VAN DAT HO CHI MINH CITY, ABSTRACT The main purpose of this study is to find out which factors affecting brand authenticity in F&B industry by concentrating on Starbucks. For this purpose, a conceptual model was developed based on other research models. The study had collected data by conducting 200 surveys online in Ho Chi Minh City.
The author use SPSS 20 software to do analysises have show the results that Uniqueness, Scarcity, Longitudinal Consistency, Longevity, Brand legitimacy and Employee‟s passion are 6 factors that have positive influence on brand authenticy of Starbucks. This results study could be used as a reference for further research and for Entrepreneurs, Marketing managers, or businessman to have a concept about the brand authenticity therefore make plans to build authenticity to have a more competitive position. DECLARATION I declare that the thesis "Factors affecting brand authenticity in F&B industry in Vietnam – A case study of Starbucks in Ho Chi Minh City" is the result of my research. Except for the references to previous research papers mentioned in the thesis, the survey data and results of the thesis are genuine and have never been published before.
ACKNOWLEDGEMENTS The first person I would like to thank is Ph. Tran Van Dat who supported me directly. He has given me lots of valuable advice and suggestions for me to complete the thesis. I would like to thank the teachers of the Facility of Business Administration.
They gave me the knowledge and useful experience during the time I was learning at the university. I would like to thank my friends from HQ5 – GE11 for sharing, helping me during my time at school. I also express my attitude to all my friends who helped me directly or indirectly. Who answered the survey for my data in this thesis.
Finally, I would like to thank my family, relatives for encouraging me during this thesis. Table of Contents Chapter 1. Overview of thesis 1 1. Aim of research 3 1.
Research object and Research cope 3 1. Research structure 4 Chapter 2. Definition of Authenticity 6 2. Definitions of different perspectives of authenticity 6 2.
Definition of brand authenticity 7 2. The concept of brand authenticity 8 2. Overview Starbucks case 13 2. Proposed model 14 Chapter 3.
Adjusting model research 24 3. Building the scale 28 3. Scale of Uniqueness: 29 3. Scale of Scarcity 30 3.
Scale of Longevity 31 3. Scale of Longitudinal Consistency 32 3. Scale of Brand Legitimacy 33 3. Scale of Employee‟s passion 34 3.
Scale of Brand authenticity 35 3. Data processing methods: 35 3. Cronbach's alpha analyzing: 35 3. Regression and ANOVA analyzing: 37 Chapter 4.
Reliability coefficients Cronbach‟s Alpha 42 4. EFA of independent variables 49 4. EFA of dependent variable 52 4. Determining the difference by the characteristics of the research object 58 4.
Income differences 64 Chapter 5. Conclusion and managerial implications 67 5. Limitation and further research 71 5. Limitation of thesis 71 5.
Further research 72 LIST OF ACRONYMS ANOVA Analysis of Variance EFA Exploratory Factor Analysis HCMC Ho Chi Minh City F&B Food and Beverage SPSS Statistical Package for Social Sciences LIST OF FIGURES, TABLES FIGURES: Figure 2.1 The research model of a journal titled "Authenticity in branding – exploring antecedents and consequences of brand authenticity". The model research of journal titled “Brand Authenticity: Testing the Antecedents and Outcomes of Brand Management's Passion for its Products”.3 3 The model research of Mike Schallehn Christoph Burmann Nicola Riley, (2014) with journal titled "Brand authenticity: model development and empirical testing".4 Proposed research model.3 Adjusted research model. Statistics by gender…. Statistics by age.
Statistics by job…. Statistics by income.1 Scale of Uniqueness.2 Scale of Scarcity.3 Scale of Longevity.4 Scale of Longitudinal Consistency.5 Scale Brand Legitimacy.6 Scale of Employee's passion.7 Scale of Brand Authenticity.2a Relationship between the hypothesis and brand authenticity of Starbucks. Reliability Statistics of Uniqueness (UQ).1b Item-Total Statistic of Uniqueness (UQ). Reliability Statistics of Scarcity (SC).3b Item-Total Statistic of Scarcity (SC).
Reliability Statistics of Longevity (LG).3b Item-Total Statistic of Longevity (LG). Reliability Statistics of Longitudinal consistency (LC).3b Item-Total Statistic of Longitudinal consistency (LC). Reliability Statistics of Brand legitimacy (BL).3b Item-Total Statistic of Brand legitimacy (BL). Reliability Statistics of Employee‟s passion (EP).3b Item-Total Statistic of Employee‟s passion (EP).
Reliability Statistics of Brand authenticy (BA).3b Item-Total Statistic of Brand authenticity (BA). KMO and Bartlett‟s Test. Total Variance Explained. Rotated Component Matrix.
KMO and Bartlett‟s Test. Total Variance Explained. Linear Regression Result. Compare differences in gender.
ANOVA Comparing differences by gender. Compare differences in age. ANOVA Comparing differences by age. Compare differences in job.
ANOVA Comparing differences by job. Compare differences in income. ANOVA Comparing differences by income. Overview of thesis 1.
Introduction In integrating economies, globalization is the goal for every brand. Brands from all around the world are trying to make penetration into different countries to expand their scale. With the wave of globalization, the F&B industry in Vietnam has some positive improvements with new brands appearing to bring to customers a lot of choices. According to Euromonitor Vietnam- a market research company, the Food & Beverage industry had an average growth rate of 18% per year from 2014 to 2019.
Vietnamese today require going out, and a coffee shop is a place frequently chosen by them. Drinking coffee is not a strange concept in Viet Nam, it is a common thing for Vietnamese to drink coffee throughout the day. They are willing to pay a reasonable price even high for the coffee shop if it provides good quality drinks, good services. In a report by Nielsen, by 2022, Vietnam will have had about 44 million people classified in the urban middle class and will increase to 95 million by 2030.
The above shows there are great possibilities for businesses to make investments in this industry in Vietnam. For the past several decades, customer orientation has long been regarded as one of the most important ideas in marketing, that means brands that want to be successful should use customer orientation by knowing what the customers want and how they want it then create a product to fulfill those needs (Moulard et al. To support this, according to (Fritz et al., 2017) customers nowadays do not just need good products and services, they demand more than that, customer' demand for authenticity in products and services is growing. Authenticity is seen as a reaction due to the increasing number of significant crises in recent years, such as the financial crisis and ongoing problems to society such as climate change to relieve this uncertainty people want authenticity in their daily lives, including the things they consume and the brands they are using (Bruhn et al.
Consumers nowadays expect brands to be consistent and real, and they are no longer ready to 1 accept insincere brand behavior (Holt, 2002). Therefore, knowledge about the authenticity of brands is necessary. In the marketing discipline, research has asserted the relevance of the concept of brand authenticity, one stated "consumer's search for authenticity is one of the cornerstones of contemporary marketing" (Brown et al. The idea of authenticity was demonstrated to be related to branding and consumer behavior, how it has been used to legitimate products and services, and how it contributes to the market value of consumer goods and cultural goods (Mason, 2011).
According to Tran & Keng (2018) consumers who strive to satisfy their demand for authenticity continuously make subjective judgments about the authentic worth of commodities and their consumption. To support that, there are ideas about the importance of brand authenticity “authenticity‟s long-standing, persistent, and contemporary marketplace appeal” (Grayson and Martinec, 2004), brands that are perceived as authentic are evaluated more positively (Moulard et al. Though, companies still have limited knowledge of factors that influence brand authenticity or how this concept affects consumer behavior. Therefore, the need for understanding what is brand authenticity to attract customers is crucial more than ever.
Despite that, in reality, there are quite a few researches, papers, and evaluations focusing on brand authenticity in general and in the F&B industry to be specific as one of the effects to their business success. Thanks to this research, the researcher believes that it will somehow contribute to the Ho Chi Minh City entrepreneur and brands' decisions of investing in building their authenticity. Building authenticity can increase the competitive position between enterprises by attracting more customers. Furthermore, this research can help brands have a concept about authenticity.
Entrepreneurs, Marketing managers, or businessman can make their recommendations about managing their business and future plans to be an authentic brand in order to express their value and attract more customers. 2 That is the reason why the researcher intends to research with the topic: "FACTORS AFFECTING BRAND AUTHENTICITY IN F&B INDUSTRY IN VIETNAM – A CASE STUDY OF STARBUCKS IN HO CHI MINH CITY” to discover the factors that influence brand authenticity to help businesses have a reference and improve their brand authenticity. Aim of research Overall objectives Analyzing factors affecting brand authenticity of Starbucks in Ho Chi Minh City. Hence, give out managerial implications for businesses to improve or make a penetration in this industry.
Detailed objectives Based on general objectives, there would some analysis about: 1. Identifying factors affecting brand authenticity of Starbucks in Ho Chi Minh city 2. Measuring the level of influence of each factor 3. Give out important managerial implications to improve brand authenticity Research questions The research is conducted with a target to focus on solving these questions to have results that could be used in practice: 1.
Which factors affecting the brand authenticity of Starbucks in Ho Chi Minh city? 2. Which factors affecting the brand authenticity of Starbucks the most? 3. Which managerial implications could be made to improve brand authenticity? 1. Research object and Research cope Research object: Factors affecting brand authenticity in the F&B industry in Viet Nam.
Research scope: 3 Space scope: The research is concentrated on Starbucks in Ho Chi Minh city Time scope: The thesis has been studied for 14 weeks 1. Methodology: This research would use main methods: quantitive research, qualitative research - Qualitative research method: The author forms the basis for the factors that affect the brand authenticity of Starbucks in HCMC through reviewing and analyzing a considerable amount of related research references. Based on this foundation, the researcher has an in-depth interview with 10 participants who are consumers of Starbucks in HCMC. Then interview 10 participants in an in-depth discussion to adjust the research model.
- Quantitive research method: The questionnaire would be conducted in HCMC to collect data. The author will use the SPSS 20 software to process the collected data through the following steps: o Describing research sample by statistics description o Cronbach‟s Alpha analysis o EFA analysis o Linear regression analysis o Analysis of ANOVA 1. Research structure Chapter 1: Overview of the thesis 1.2 Aim of research 1.3 Research object and research scope 1.4 Research structure Chapter 2: Literature review 2.4 Proposed model Chapter 3: Research methodology 3.3 Adjusting the research model 3.4 Building the scale 3.5 Data processing methods: 3.1 Cronbach's Alpha analysis: 3.3 Regression and ANOVA analyzing Chapter 4: Research results 4.2 Reliability coefficients Cronbach‟s Alpha 4.5Determining the difference by the characteristics of the research object Chapter 5: Conclusion and managerial implications 5.3 Restrictions of thesis and further research 5 Chapter 2.