UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------ Cao Thi Hang THE EFFECT OF COMMUNICATION MEDIA ON DIMENSIONS OF BRAND EQUITY ID:22110016 MASTER OF BUSINESS (Honours) SUPERVISOR: Le Nguyen Hau Ho Chi Minh City – Year 2014 1 TIEU LUAN MOI download : skknchat@gmail.com Abstract This study is aimed to explore the relative impact of social media and traditional media on customer-based brand equity dimensions in three groups of product market such as foods (Cocacola, Nescafe, Vinamilk), banking (ACB, Techcombank, Vietcombank) and electronics (Samsung, Sony, Toshiba). It then tests the impact of dimension of customer-based brand equity on purchase intention. The study was conducted through two steps including preliminary research and formal research. Preliminary research employed focus group discussion while formal research is quantitative research technique with a sample of 228 cases.
The Model used in this study based on the previous researches and qualitative study to identify factors in brand value chain. The results show that both of traditional media and social media have a strong impact on dimensions of brand equity (brand awareness, brand association). Social media have a stronger impact on brand awareness and brand association compared to traditional media. Additionally, brand awareness have no direct relationship with purchase intention.
In this research, there is no difference between firm created social media and user generated social media, these concept combined with each other. 2 TIEU LUAN MOI download : skknchat@gmail.com Chapter 1: Introduction .13 Chapter 2: Literature Review .1 The concept of Social Media Marketing .3 Brand Equity and Customers-based Brand Equity .4 Concept of Brand Value Chain .2 A Brief Review of Previous Study .3 Research hypotheses and Model .21 Chapter 3: Research Method .1 Firm created social media .2 User generated Social Media .30 3 TIEU LUAN MOI download : skknchat@gmail.1 Firm created Social Media .2 User generated Social Media .1 Brand name for research .2 Sample size and sample method .3 Data collection Method .38 Chapter 4 Research Result .47 4 TIEU LUAN MOI download : skknchat@gmail.4 Research Model Testing .1 The saturated model .2 Testing Theoretical Model .3 Testing Competitive model .4 BOOTSTRAP analysis for Theoretical Model (Refined) .63 Chapter 5: Conclusions, Implication and Limitation .73 5 TIEU LUAN MOI download : skknchat@gmail.com LIST OF FIGURES Figure 2.1: Brand Value Chain Figure 2.2 Research Model Figure 3.1: Research Process Figure 4.1: CFA for Social Media Figure 4.2: CFA for Brand Association Figure 4.3: CFA for Brand Awareness Figure 4.4: Theoretical Model Figure 4.4: Competitive model Figure 4.5: SEM for The saturated model Figure 4.6: CFA for Theoretical Model Figure 4.7: CFA for Theoretical Model (Refined) Figure 4.8: CFA for Competitive model 6 TIEU LUAN MOI download : skknchat@gmail.com LIST OF TABLES Table 3.1: The measurement of scales Table 3.2: Firm created Social Media Scale Table 3.3: User generated Social Media Scale Table 3.4: Traditional Media Scale Table 3.5: Brand awareness Scale Table 3.6: Brand Association Scale Table 3.7: Brand Attitude Scale Table 3.8: Purchase Intention Scale Table 3.9: Reliability analysis of all items (Pilot test) Table 3.10: Reliability analysis Brand awareness, Brand association and Purchase intention (after deleted unsatisfied items) Table 4.1: Cronbach’s alpha of all items (Main study) Table 4.2: Pattern Matrixa Table 4.3: Pattern Matrixa Table 4.4: Pattern Matrix – after deleted variance with unsatisfied Table 4.5: Factor Matrixa Table 4.7: SEM for Scale - Covariances: (Group number 1 - Default model) 7 TIEU LUAN MOI download : skknchat@gmail.8: Composite reliability and Variance extracted for Scale Table 4.9: Briefly result of scale measuring Table 4.10: SEM statistics Table 4.11: Theoretical Model - Covariance Table 4.12: SEM statistics for Theoretical Model (Refined) Table 4.13: Theoretical Model (Refined) - Regression Weights (Unstandardized) Table 4.14 - SEM statistics Competitive model Table 4. 15 - Competitive model - Regression Weights Table 4.16: Bootstrap Result Table 4.17: Bootstrap Result 8 TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 1: INTRODUCTION 1.1 Background The rapid growth in the popularity of social media platforms (such as Youtube, social network, etc.) in recent years has raised the question of whether this phenomenon has reduced marketers’ control of brand management (Berthon et al. Moreover, consumers are increasingly using social media sites to search for information and turning away from traditional media, such as television, radio, and magazines (Mangold and Faulds 2009); cited in Schivinski & Dąbrowski (2013).
According to Burmann and Arnhold, 2008, the Internet and Web 2.0 have empowered proactive consumer behavior in the information and purchase process. Based on the latest survey of the development of the Internet, social media, digital and mobile phones in Asia, Vietnam known as "the most interesting markets in Asia". The percentage of Internet users over total population is 34% (higher than the world average is 33%). In 2012, Vietnam has added 1.59 million new users (wearesocial.
Additional, social networking, digital devices and mobile phone VN is growing astonishingly, internet users in Vietnam increased by 5% since late 2011. 35% of mobile Internet users access social media content over the phone. This is also one of facilities which helps social media of enterprise reach more target customers (wearesocial. The strong development of social networks create trends in the advertising in Social networks.
Advertising on social networks become a trend in over the world, they predicted that advertising on social networks will bring more than $ 8 billion in revenue in 2015. This makes 9 TIEU LUAN MOI download : skknchat@gmail.com the enterprise pay attention to this channel of communication, and social media plays an important role in marketing strategy. Potential of communication via social media will be increased strongly in the future because internet in Vietnam gets more impressed development in near time. For example, Da Nang installed nearly 400 Wi-Fi post cover through this province, ensuring 10,000 peoples can access at the same time in September 2013.
In Vietnam, Da Nang city is the fourth city with free Wi-Fi coverage, after Hoi An, Ha Long and Hue (vnexpress. Ho Chi Minh City tended to set up free Wifi on bus for attracting more people use bus. Along with the development of internet with high speed internet and increase quickly of mobile devices that makes Social Media become popular more than any marketing tool. Additionally, consumers are turning away from traditional media such as TV, radio, or magazines and increasingly using social media to search for information (Mangold and Faulds, 2009).
The advantage of social media is two-way interoperability on widespread but rarely the communication tools can reach before that. Therefore, brand communication not only created solely by company, but also generated by users on Social Media communication. This creates opportunities for enterprise do social activities not only widely but also deeply. Social media not only allows companies convey the message to the target customers but also build stronger relationships with them.
There are different effects between firm-created and users-generated in Social Media. This research will examine effect size of social media and traditional media on dimensions of brand equity. Social media include firm-created and user-generated in Social Media. Then, this study will test the impact of dimensions of brand equity on purchase intention.
10 TIEU LUAN MOI download : skknchat@gmail.2 Research problem Keller (1991) stated that advertising can affect brand equity through brand association, perceived quality and use experience. While view of Hoch & Ha (1986), advertising influences consumers’ perceptions of the products when they experience it, Farquhar (1989) proved that advertising can make positive brand evaluation and attitude readily accessible in memory (cited in Simon & Sullivan, 1993). In sum, the literature review demonstrates that advertising (marketing communications) as one of the sources driving brand equity. Stephen and Galak, 2009 (cited in Bruhn et al, 2012) investigated how social media and traditional media affect sales.
They demonstrate that both social and traditional media have strong effects on marketing performance. However, the authors reveal that the effect of traditional media is stronger than the effect of social media. There have been a number of researchers who are interested in social media and try to analysis its effects on business. These results helps management level in over the world get more knowledge to understand more about Social Media.
However, most of researchers come from other countries, so the results have a little bit different from Vietnam context. There are some studies analysis effect of communication on brand equity in Vietnam but they do not research particular communication method of marketing communication strategy such as social media or traditional media. This make social media role is underestimated. Based on these issues, this research will answer the research question below: Does Social Media replace Traditional Media in Marketing Communication Strategy? How effect size of each Social Media and Traditional Media affect to dimensions of Customer-based brand equity creation.
Whether differently effect of firm-created and users-generated in Social Media on the metrics of brand equity? 11 TIEU LUAN MOI download : skknchat@gmail.com In addition, this study provides a framework for the future study deeply about relationship Social Media, Traditional Media in Customer-based brand equity.3 Research objectives Research objectives of this study are as follows: To identify dimensions of customer-based brand equity To measure effect size of brand-based Social Media compare with Traditional of marketing communication on metrics of brand equity Measure how does each communication way contribute in Brand Value chain 1.4 Scope This thesis will examine how different effect size of social media and traditional media on dimension of brand equity. Respondent for this study who accessed one of tools of social media such as Blog, News / PR, Video, Social Network, YouTube, some websites, so on and received communication campaign through traditional tools such as TV, radio, magazine, newspaper in service and production industry. Regarding social media tool, this study spend most focus on Social networks because of the large number of social networks users. For traditional media tools, this research will pay more attention on TV, newspaper and magazine because of their popularity.
The survey will conduct in Ho Chi Minh City, the brands in survey are belong three industrial such as banking, electronics and foods. 12 TIEU LUAN MOI download : skknchat@gmail.5 Research Structure This thesis have five sections: The first section is introduction structure. This sections give brief overview of the main reason led to research, this describes practical information about Vietnam context. The second section describes theoretical background and give a brief review of previous study.
Then, building theoretical model and the hypotheses. In the third section a methodology is presented to appraise measurement scale, research model and hypotheses proposal. In the fourth section will present result of scale, research model and hypotheses testing along with research results. Conclusions, implication and limitations are shown in the final section.
13 TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 2: LITERATURE REVIEW This chapter will present some theories related to seven main concepts as social media marketing, traditional communication, brand equity and customers-based brand equity, brand awareness, brand association, brand attitude. Based on these concepts, the hypothesis and research model will be built. The research model aim to evaluate the effect of communication media on dimensions of customers-based brand equity. This chapter included three parts: 1.
A Brief Review of Previous Study, 3. Research hypotheses and Model 2.1 Social Media Marketing Firm-created Social Media Social Media is as new social environment based on Web 2.0 services such as Blog, News / PR, Video, Social Network, etc. Social media is a spread communication process (Viral, Copy and spread) from one person to another with the same interest. Social Media is not a mass communication, because it based on three factors such as participation, connection and relationship.
Social media is two ways communication; it is interactive and highly filtered. Social media are changing the way that information is passed across societies and around the world.