MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY TRAN THI HONG DAO THE INFLUENCE OF BRAND EQUITY ON CUSTOMER PURCHASE DECISION: A CASE STUDY OF CO.OPMART BACHELOR THESIS FACULTY OF BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR: PH.D NGUYEN VAN THUY HCMC, September 2021 MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY TRAN THI HONG DAO THE INFLUENCE OF BRAND EQUITY ON CUSTOMER PURCHASE DECISION: A CASE STUDY OF CO.OPMART BACHELOR THESIS FACULTY OF BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR: PH.D NGUYEN VAN THUY HCMC, September 2021 DECLARATION I hereby declare that this study entitled “The influence of brand equity on customer purchase decision: A case study of Co.opmart” is my original work prepared under the guidance of my advisor Nguyen Van Thuy (Ph. I would like also to confirm that all the sources of materials used in this study are duly acknowledged. I am responsible for my study. Signature Trần Thị Hồng Đào ACKNOWLEDGE First of all, I would like to thank my advisor Ph.D Nguyen Van Thuy for his valuable guidance and motivation throughout the process of completing my thesis.
His encouragement and comments had significantly enriched and improved my thesis. It would be no exaggeration to say that this research would not have been completed today without his rock steady guidance and moral support. Secondly, I sincerely thank my family for allowing and supporting me to spend my free time on this project work and thus have helped me in completing the project work successfully. Finally, I would like to thank my friends who always support me during the time I study in university.
TABLE OF CONTENTS CHAPTER 1 : OVERALL OF THESIS. Objectives of the study. Subject and scope of the study. Organization of the study .5 CHAPTER 2 : LITERATURE REVIEW.
The basic of concepts. The concept of brand equity. Brand equity theory. The concept of customer behavior.
The concept of purchase decision. Research model and hypothesis .34 CHAPTER 3 : RESEARCH METHODOLOGY. Modified the scale of factors influencing customer purchase decision at Co. The scale of brand awareness.
The scale of brand association. The scale of brand loyalty. The scale of perceived quality. The scale of pricing policy.
The scale of customer purchase decision. Test validity by Cronbach’s Alpha. Regression analysis and hypothesis testing .47 CHAPTER 4 : RESULTS AND DISCUSSION. Retail brands are chosen during the Covid - 19 pandemic.
The way of shopping during the Covid - 19 pandemic. Frequency visiting Co. Spending at Co. Evaluating brand awareness scale.
Evaluating brand association scale. Evaluating brand loyalty scale. Evaluating perceived quality scale. Evaluating pricing policy scale.
Evaluating purchase decision scale. Result of exploratory factor analysis (EFA). Factor analysis for independent variable. Factor analysis for dependent variables.
Test of regression analysis. Purchase decision based on demographic profile. Purchase decision based on gender. Purchase decision based on age.
Purchase decision based on occupation. Purchase decision based on frequency visiting Co. Purchase decision based on spending .70 CHAPTER 5 : CONCLUSION AND RECOMMENDATION .opmart should focus on perceived quality to attract customers .opmart should focus on pricing policy to attract customers.opmart should focus on brand awareness to attract customers .opmart should focus on brand association to attract customers. Contribution of the study.
Limitations and directions for future researches .84 LIST OF FIGURES Figure 2.1: Brand equity model (Aaker, 1991) .2: Customer buying decision process (Phillip Kotler, 2003) .3: A model of purchase decision, Beyene & Feyisa (2021) .4: A model of consumer purchase decision, Syed, Kazi, Zohir, Ishtiak & Nurul (2020) .5: A model of purchase intention, Rungsrisawat & Sirinapatpokin (2019) .6: A model of purchase behavior, Muhammad & Arshia (2019) .7: A model of purchase decision, Rocky Simon Hia (2017) .8: A model of purchase decision, Maulik & Ashish (2017) .9: A model of consumer purchase decision, Muhammad & Sameen (2016) .10: A model of consumer purchase decision, Naeem, Qurat-ul-ain, Umer, Amna & Muniba (2016) .11: A model of customer purchase decision, Ulas & Javad (2016) .12: A model of purchase intention, Ren - Fang Chao & Ping - Chu Liao (2016) .13: A model of purchase intention, Cristina, Valentín-Alejandro, Oscar & Jean-Pierre (2015) .14: A model of consumer behavior, Nguyen Truong Son (2008) .36 LIST OF TABLES Table 2.1: Previous studies summary .2: Factors identified in the literature that impact of branding on customer purchase decision .3: Synthesize the hypotheses of the current study .1: Statistics of participants in the focus group .2: Encode the brand awareness scale .3: Encode the brand association scale .4: Encode the brand loyalty scale .5: Encode the perceived quality scale .6: Encode the pricing policy scale .7: Encode the purchase decision scale .1: Respondents who choosing retail brands .2: The way of shopping .3: Distribution of respondents by gender .4: Distribution of respondents by age .5: Distribution of respondents by occupation .6: Frequency visiting Co.7: Distribution of respondents by spending at Co.8: Distribution of respondents by product purchase .9: Result of the reliability assessment of brand awareness .10: Result of the reliability assessment of brand association .11: Result of the reliability assessment of brand loyalty .12: Result of the reliability assessment of brand loyalty after removing BL4 .13: Result of the reliability assessment of perceived quality.14: Result of the reliability assessment of pricing policy .15: Result of the reliability assessment of purchase decision .16: Synthesize Cronbach’s Alpha of each variable .17: The result of KMO and Bartlett's Test for independent variables .18: Eigenvalues and covariance deviations for independent variables.19: Result of independent factor analysis with principal varimax rotation method .20: The result of KMO and Bartlett’s Test for dependent variable .21: Eigenvalue and covariance deviations for dependent variables .22: The factor rotation matrix of the dependent variable .23: Pearson correlation analysis .26: Result of dependent variables’ linear regression .27: One-way test of purchase decision based on gender .28: One-way test of purchase decision based on age .29: One-way test of purchase decision based on occupation .30: One-way test of purchase decision based on frequency visiting Co.31: One-way test of purchase decision based on spending .1: Descriptive statistics of perceived quality .2: Descriptive statistics of pricing policy.3: Descriptive statistics of brand awareness .4: Descriptive statistics of brand association .74 LIST OF ACRONYMS Acronyms Meaning KMO Kaiser-Mayer-Olkin EFA Exploratory Factor Analysis ANOVA Analysis of Variance SIG. Significance level VIF Variance inflation factor SPSS Statistical Package for the Social Sciences BAW Brand Awareness BAS Brand Association BL Brand Loyalty PQ Perceived Quality PP Pricing Policy PD Purchase Decision ABSTRACT The purpose of this study is to investigate the influence of brand equity on customer purchase decision of products at Co.opmart in Ho Chi Minh city, Vietnam. The study evaluates the impact of brand equity mainly brand awareness, brand association, brand loyalty, perceived quality and pricing policy on the purchasing decision of a customer. A total of 251 customers who bought products at Co.opmart in Ho Chi Minh city were surveyed using structured questionnaires.
In this study, quantitative and qualitative methods are used to collect and analyze the data. The results of data analysis indicate that brand awareness, brand association, perceived quality and pricing policy have a significant impact on customer purchase decision at Co. From the result of the study, this study proposed some implications to improve and enhance customer purchase decisions of products at Co.opmart as well as some suggestion for further studies. Key words: Brand Equity, Brand Awareness, Brand Association, Brand Loyalty, Perceived Quality, Pricing Policy, Purchase Decision.
CHAPTER 1 : OVERALL OF THESIS This chapter introduces the research proposal of this study which includes problem thesis, objectives of the study, subject and scope of the study, research method and research question. In addition, this chapter outlines the presentation structure of the current study. Research problem Becoming a member of the World Trade Organization (WTO) in 2007, Vietnam's financial system has made commendable traits in lots of aspects. After overcoming the global financial crisis in 2008, the Vietnamese market has made remarkable progress and has become an attractive destination for several domestic and foreign investors, particularly in the retail market.
In recent years, the Vietnam retail sector is considered to be developing quite strongly, with the total retail sales of consumer goods and social service revenue increasing rapidly. According to Deloitte's report "Retail in Vietnam - An accelerated transition towards omnichannel retailing" published in July 2020, while the COVID-19 crisis stays complicated globally, Vietnam retail industry is regarded as having significant growth in Southeast Asian. According to the data of the Ministry of Industry and Trade, retail sales of products were approximately 4,000 billion VND, accounting for 79% and increasing by 6.8% over the previous year. In addition, Vietnam has been named among the Top 6 most-attractive retail markets in the world due to its large population (over 93.7 million citizens) and the young population structure (60% of the population is aged 18-50).
However, the main challenges in the context of integration is the competitive pressure on domestic retailers. Domestic businesses would deal with several difficulties and challenges in competing directly with international firms. Therefore, understanding and satisfying the requirement of consumers are critical to a company's long-term survival and development. 1 Nowadays, consumers can easily find a wide range of goods in the market including local and foreign products, at different prices, serving different client groups.
Besides the traditional markets and street stores, there has been an increase in the number of supermarket systems and large commercial centers in big cities, especially in Ho Chi Minh city. Currently, with the explosion of domestic and foreign supermarket systems that have reputations in the Vietnam market such as Big C, AEON, Lotte Mart, Vinmart, Emart,…, the Co.opmart supermarket is dealing with more and more difficulties and challenges in attracting new clients and retaining existing customers.opmart is a chain of retail supermarkets in Vietnam under Ho Chi Minh City Union of Trade Cooperatives (Saigon Co. The first supermarket was established in 1996, which has been and is constantly developing to become a well- known retail business in Vietnam. After nearly 25 years of development, Co.opmart is the leading supermarket chain, with more than 128 outlets.
In addition, Co.opmart has become a firm with the most stores in Vietnam and received many awards such as Excellence Customer Service FAPRA (2013), Top 200 leading retailers in Asia - Pacific (2015),… Moreover, Co.opmart is the only Vietnamese company to be honored with the “Best of the Best - Top 10 most outstanding retailers in Asia – Pacific” award in 2014. In the view of challenges of competition and a higher customers’ demand for the quality of life, brand equity play an important role in the long-term existence and development of retail businesses in general and Coopmart in particular. Brand equity symbolizes the relation that consumers share with the brand and the way they react to the brand and its products. Therefore, the topic “The influence of brand equity on customer purchase decision – A case study of Co.opmart” was chosen to examine the relationship between the brand value of a retailer and the customer purchase decisions.
Moreover, this study may serve as a reference for Coopmart to build effective strategies and develop in the Vietnamese retail industry. Objectives of the study The general objective of this study investigate the influence of brand equity on customer purchase decision of products at Co.opmart in Ho Chi Minh city, Vietnam. The specific objectives of this study were to: - Identify and analyze factors of brand equity affecting customer buying decision of products at Co.opmart in Ho Chi Minh city, Vietnam. - Examine the relationship between brand equity and consumer behavior on buying products at Co.opmart in Ho Chi Minh city, Vietnam.