MINISTRY OF EDUCATION AND TRANNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ------------------------- NGUYỄN VĂN THANH THE EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY: AN EMPIRICAL STUDY OF CHICKEN EGGS MASTER THESIS OF BUSINESS ADMINISTRATION HO CHI MINH CITY - 2012 TIEU LUAN MOI download : skknchat@gmail.com MINISTRY OF EDUCATION AND TRANNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ------------------------- NGUYỄN VĂN THANH THE EFFECT OF COUNTRY OF ORIGIN ON BRAND EQUITY: AN EMPIRICAL STUDY OF CHICKEN EGGS Subject: Master of Business Administration Code: 60.02 MASTER THESIS OF BUSINESS ADMINISTRATION SUPERVISOR: Assoc. NGUYỄN ĐÌNH THỌ HO CHI MINH CITY - 2012 TIEU LUAN MOI download : skknchat@gmail.com I ACKNOWLEDGEMENT To complete this thesis, a lot of efforts have been put in during the whole MBA course for three years. Therefore, I would like to give my warmest thanks to: Respectful lecturers of University of Economics Ho Chi Minh City, who are enthusiastic in every minute in the class to provide me a huge useful knowledge which helps me understanding better about economy, especially Dr. Nguyễn Đình Thọ, who has consulted and instructed me the main contents like research model, hypotheses and other relevant matters of this thesis.
Friendly classmates of eMBA course 19, University of Economics Ho Chi Minh City for helping, coordinating with me during the course, especially for always making class in relaxible and funny atmosphere to absorb new knowledge from the lectures. The most special classmate – Mrs. Phạm Võ Thanh Điệp who has married with me and given many useful discussion and advices during implementing this thesis. Lastly, the author acknowledges that nothing is perfect so the mistakes and errors could not be avoided although the author already tried the best.
Therefore, the author is looking forward to any constructive comments and advices from respectful lectures and friends in order to amend the thesis. Nguyễn Văn Thanh Ho Chi Minh, 16th October, 2012 TIEU LUAN MOI download : skknchat@gmail.com II COMMITMENT I would like to commit that this thesis, “The effect of country of origin on brand equity: an empirical study of chicken eggs”, was completed based on my independent and serious effort and scientific researches. The data was collected in reality. Nguyễn Văn Thanh TIEU LUAN MOI download : skknchat@gmail.com III LIST OF CONTENTS ACKNOWLEDGEMENT.
II LIST OF CONTENTS. III LIST OF ABRREVIATION. VI LIST OF TABLE. VII LIST OF FIGURE .6 Scope and Methodology of the study .1 Scope of the study .2 Methodology of the study .7 Structure of the study.
6 CHAPTER 2: LITERATURE REVIEW .2 Country of Origin. The effect of country of origin on buyer evaluations to products.3 Brand, brand equity and its components. Brand equity and its dimensions .4 Research model, hypothesis and statements. 15 TIEU LUAN MOI download : skknchat@gmail.3 Official quantitative Research.4 Methods of data analysis .3 Exploratory Factor Analysis (EFA) .4 Linear Correlation Analysis .5 Simple Linear Regression (SLR) .1 Measurements of country of origin (CI).2 Measurements of brand distinctiveness (BD) .3 Measurements of brand equity (BE).
DATA ANALYSIS AND FINDINGS .2 Descriptions of sample .3 Assessment of scales.2 Exploratory Factor Analysis (EFA) .4 Simple Regression Analysis. 35 TIEU LUAN MOI download : skknchat@gmail.1 Testing the correlations of constructs.2 Evaluating the fitness of the linear regression model with the sample data 37 4.3 Testing the fitness of the linear regression model with population .4 Testing the regression coefficient. CONCLUSIONS AND IMPLICATIONS .2 Conclusions of the study .3 Implications of study. Limitations and recommendations.
48 APPENDIX 1: CRONBACH’S ALPHA. 52 APPENDIX 2: EFA RESULT. 58 APPENDIX 3: TESTING THE ASSUMPTION OF REGRESSION .1: Testing the assumption of regression for CI – BE .2: Testing the assumption of regression for CI – BD .3: Testing the assumption of regression for BD – BE. 66 APPENDIX 4: REGRESSION ANALYSIS RESULT .1: Dependent Variable CI and Independent Variable BE .2: Dependent Variable CI and Independent Variable BD .3: Dependent Variable BD and Independent Variable BE.
70 APPENDIX 5: PEARSON COEFFICIENT. 71 APPENDIX 6: QUESTIONNAIRE IN ENGLISH. 72 APPENDIX 7: QUESTIONNAIRE IN VIETNAMESE. 74 TIEU LUAN MOI download : skknchat@gmail.com VI LIST OF ABRREVIATION BD: Brand distinctiveness BE: Brand equity CI: Country of origin EFA: Exploratory factor analysis SLR: Simple linear regression TIEU LUAN MOI download : skknchat@gmail.com VII LIST OF TABLE Table 3.1: Measurements of country of origin .2: Measurements of brand distinctiveness .3: Measurements of brand equity .2: Cronbach’s Alpha of reliability testing.10: Results of testing the hypotheses.
42 TIEU LUAN MOI download : skknchat@gmail.com VIII LIST OF FIGURE Figure 2.1 The Aaker’s brand equity model .2 Elements of brand awareness .3 The main types of brand associations.1: The research model with detail of impacts. 43 TIEU LUAN MOI download : skknchat@gmail.com 1 ABSTRACT Vietnam has had remarkable result in economic and political for the last twenty years. Specifically, in term of diplomacy, Vietnam has increased its role on the international community. In term of economy, Vietnam has integrated deeper and wider into global economy and become one of the countries with highest gross domestic products growth.
Together with those performances, living standard of Vietnamese have improved attaching with a higher needs and wants about food for Vietnamese population. This inspires the need to do a research regarding to food sector, specially, in the chicken eggs field. The purpose of this research is to study the impact of the country of origin to the brand equity directly and indirectly through mediating variable. The data for this study is collected from consumers who consume chicken eggs and can recognize the country of origin of the brand name which they bought.
There are 240 respondents, who are in Binh Duong province and Ho Chi Minh city, selected for analyses in this study. The study used the software SPSS version 11.5 to analyze the data. In detail, the Cronbach’s alpha was used to test the reliability of measurements, EFA was used to test the validity of the measurements, the Pearson coefficient was used to test the linear correlation between the variables, and simple linear regression was used to measure the impact of CI to BE and to BD, and the impact of BD to BE. The results showed that both CI and BD had positive effect to BE but the effect of BD was stronger.
Therefore, practitioners should pay more attention the BD when promoting the products. Anyhow, CI had strong effect to BD so it is important too. TIEU LUAN MOI download : skknchat@gmail.com 2 Chapter 1: INTRODUCTION 1.1 Introduction In the first chapter, a general introduction is given as the reasons for doing the study. The research background including general and Vietnamese context are mentioned to convince the necessary of this study in practice of Vietnam.
The research problem and the research objective are also provided in this chapter to strongly support the necessary of carrying this study and how the author determine the relationship between the variables involved in the research model. In the later part of this chapter the scope of study and the research method are addressed as well in order to illustrate a general imagination of what this study is done and what methods are used to assess the hypotheses. The structure of the whole study is provided at the end of this chapter to outline a general picture of the study.1 General background Food, all the time, is necessary and important to human life. All the countries around the world are trying to develop their own nation and one of the criteria to measure the level of development are the amount of food consumption per capita per year, so all the countries try to maximize their own population food satisfaction.
The fact is that the development is not equal among countries, there are some countries called rich and developed while others called poor and less developed or developing countries. The people lives in developed countries getting a better chance to consume more and better food while the people lives in less developed countries consume less food and may not be enough food for their basic need. There is a gap in term of food availability in developed countries and less developed countries. The reasons of this gap are many but one of them is different level of technology development.
As a result, many companies from developed countries TIEU LUAN MOI download : skknchat@gmail.com 3 penetrate the less developed countries by exporting their products or investing factories directly abroad. When companies export their products or invest factories abroad, they for sure would like maximize their profit, but the process of getting profit is not easy at all. The exporting companies and the abroad investing companies are not only facing the competition among themselves but also facing the competition from local companies on the same product category. It is important to find out what factors influence to competition race and help the involved firms increasing their competition capability.
It is significant necessary to do the research and understand the factors influencing the competition in this case and help both foreign companies and local companies improving their competitive strength in the real market, especially in Vietnam market. Among other food, chicken eggs is one of the most popular food source to Vietnamese and the author want to focus on this product in this study.2 Vietnamese background In general, the food consumption of Vietnamese is much lower than that of the world’s average. Vietnamese consume 46 kg of meat per capita per year while that average amount of the world is 80 kg. Vietnamese consumes 67 eggs per capita per year while that average amount of the world is 150 eggs (Sơn Nghĩa 2011).
From these information, we can conclude that Vietnam still be a very potential market for food sector especially the chicken eggs business. The conclusion above is supported by the practice when many foreign companies invest into livestock in Vietnam like CP group from Thailand, Jafa Comfeed from Indonesia, Emivest from Malaysia, and QL from Malaysia ect. and many other local TIEU LUAN MOI download : skknchat@gmail.com 4 companies like Ba Huan, Adeco, Vietfarm ect., specifically the eggs production. That why a study in this sector is significant necessary.3 Problem statement Brands bring a lot of benefits to both customers and firms (Kotler & Keller 2009).
For customers, brands identify the origin of a product so it allows customers to assign a product’s performance to a manufacturer. Customers might spend less time to inspect a product before buying if they have experience with the product or a product under the same brand. For the firms, brands help them protecting some unique features of their product by registering trademarks, patent or copyrights. A strong brand also results in a better profit (Kotler & Keller 2009).
There are direct and indirect approaches to measure brand equity (Kotler & Keller 2009). There are many models of brand equity in marketing field and many factors affecting to the brand equity but to my best knowledge, there is no model applying for chicken eggs in Vietnam.4 Research questions The aim of this study is to find out the answers for the following questions: 1. What factors influence to the customers’ evaluation of products? 2. How do these factors influence to the customers’ evaluation of products? 1.5 Research objective The objective of this study is to examine the impact (direct and indirect) of country of origin to brand equity, specifically: 1.
The impact of country of origin to brand equity 2. The mediating role of brand distinctiveness on the relationship between country of origin and brand equity. TIEU LUAN MOI download : skknchat@gmail.com 5 Basing on the study result, author gives some suggestions to practitioners for their decision making in eggs business sector.6 Scope and Methodology of the study 1.1 Scope of the study The study focuses on how consumers evaluate a chicken eggs brand name basing on the country of origin and brand distinctiveness.