i VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY NGUYỄN LÊ KHÁNH DUY RELATIONSHIP BETWEEN PEER ENDORSER CREDIBILITY AND CUSTOMERS' BENEFITS AND BRAND LOYALTY: A STUDY IN ONLINE BRAND COMMUNITIES ON FASHION IN VIETNAM Major : Business Administration Major code : 8340101 MASTER’S THESIS HO CHI MINH CITY, JUNE 2023 i THIS THESIS IS COMPLETED AT HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY – VNU-HCM Supervisor: Assoc. Nguyễn Mạnh Tuân Examiner 1: PhD Lê Hoành Sử Examiner 2: Assoc. Hồ Trung Thành This master’s thesis is defended at HCM City University of Technology, VNU-HCM City on 15th June, 2023. Master’s thesis Committee: 1.
Phạm Quốc Trung 2. Mai Thị Mỹ Quyên 3. Lê Hoành Sử 4. Hồ Trung Thành 5.
Nguyễn Mạnh Tuân Approval of the Chair of Master’s Thesis Committee and Dean of Faculty of CHAIRMAN DEAN OF INDUSTRIAL MANAGEMENT ii VIETNAM NATIONAL UNIVERSITY HO CHI SOCIALIST REPUBLIC OF MINH CITY VIETNAM HO CHI MINH CITY UNIVERSITY OF Indepence – Liberty – Happiness TECHNOLOGY ______________________________ _________________________________ MASTER’S THESIS TASKS Student’s name: Nguyễn Lê Khánh Duy Student ID: 2270046 Date of Birth: 18/01/1997 Place of Birth: Ho Chi Minh Major: Business Administration Major Code: 8340101 I. THESIS’S NAME: RELATIONSHIP BETWEEN PEER ENDORSER CREDIBILITY AND CUSTOMERS' BENEFITS AND BRAND LOYALTY: A STUDY IN ONLINE BRAND COMMUNITIES ON FASHION IN VIETNAM II. MISSIONS AND CONTENTS: - Propose a structural model between Consumer Interest, Endorser Credibility, Impact on Customer Engagement, and consequent customer brand loyalty. - Verify the above model in the fashion field in Vietnam.
Besides, the topic also provides management implications for businesses dealing in fashion products. DATE OF ASSOCIATION: 28/11/2022 IV. DATE COMPLETE MISSION: 04/05/2023 V. Nguyễn Mạnh Tuân TPHCM, 04th May, 2023 INTRUCTIONS HEAD OF DEPARTMENT (Name and Signature) (Name and Signature) DEAN OF INDUSTRIAL MANAGEMENT (Name and Signature) iii ACKNOWLEDGEMENTS The topic "RELATIONSHIP BETWEEN PEER ENDORSER CREDIBILITY AND CUSTOMERS' BENEFITS AND BRAND LOYALTY: A STUDY IN ONLINE BRAND COMMUNITIES ON FASHION IN VIETNAM" is the subject I chose to research and do my graduation thesis after two years of studying a master's program.
majoring in Business Administration at Bach Khoa University. To complete the research process and complete this thesis, first of all, I would like to express my sincere gratitude to Assoc. Nguyen Manh Tuan, Faculty of Industrial Management - University of Science and Technology. He directly guided and guided me throughout the research process so that I could complete this thesis.
In addition, I would like to sincerely thank the teachers in the Faculty of Industrial Management for their valuable comments on the thesis. On this occasion, I would also like to thank the Faculty of Industrial Management, University of Technology, leaders and colleagues working at the University for creating conditions and time for me during the research process. And most especially, I would like to express my deep gratitude to my Family. My family is a solid support to help me overcome all difficulties, a great source of encouragement for me throughout the study process.
Sincerely thank you! iv ABSTRACT The growth of social media has significantly changed the way in which brands and their customers create relationships with one another. This study investigates the relationship between the credibility of peer endorsers and the involvement of customers in the product development process. In addition to this, it also investigates the effect that customer identification has on the level of customer involvement. (N=518) customers joined the online brand communities, and data was gathered from them.
According to our review, prior research on customer retention in online brand communities included a variety of research procedures and methodologies. We conducted a survey and found that community engagement is driven by consumer brand identification. The findings indicate that companies need to establish strong online communities for their followers so that they may continue to use their products and express their thoughts. This will help differentiate our products in the eyes of consumers who buy competitor brands.
v THE COMMITMENT OF THE THESIS’ AUTHOR I hereby declare that the content in the thesis "RELATIONSHIP BETWEEN PEER ENDORSER CREDIBILITY AND CUSTOMERS' BENEFITS AND BRAND LOYALTY: A STUDY IN ONLINE BRAND COMMUNITIES ON FASHION IN VIETNAM" is the result of my personal research under the guidance of Assoc. Nguyen Manh Tuan, do not copy results from other studies. Ho Chi Minh City, April 2023 Thesis’ Author Nguyễn Lê Khánh Duy vi TABLE OF CONTENT CHAPTER 1: INTRODUCTION. 9 CHAPTER 2: LITERATURE REVIEW AND PROPOSED RESEARCH MODEL.
Online Brand Communities. Source-Credibility theory. Peer-Endorser Credibility on Social Media. Consumer Brand Identification.
Electronic Word-Of-Mouth (eWOM). Model of customer benefits and participation in product support (Nambisan and Baron 2007). The antecedents and consequences of consumer participation (Woisetchlager 2008). Model of community credibility and advertising effectiveness (Munnuka 2016).
Model of brand relationship performance through customer engagement and value creation in brand communities on social media (Carlson 2019). PROPOSED RESEARCH MODEL:. Peer endorser credibility and consumer brand identification. Interaction-based customer benefits, customer participation and consumer brand identification.
Consumer brand identification, customer participation and eWOM. Customer participation, eWOM and brand loyalty. Electronic word-of-mouth (eWOM) and brand loyalty. Research Method Process.
Method to approach survey audience:. DATA ANALYSIS METHOD:. Cronbach’s Alpha Analysis. Exploratory factor Analysis.
Confirmatory factor Analysis. Structural Model Analysis:. 59 CHAPTER 4: RESEARCH FINDINGS. Formal quantitative data sampling process.
EXPLORATORY FACTOR ANALYSIS (EFA). EFA 1st time:. EFA 2nd time:. CONFIRMATORY FACTOR ANALYSIS:.
Convergence and composite reliability testing. Discriminant value test. 73 CHAPTER 5: CONCLUSION AND RECOMMENDATIONS. Limitations and further research.
PROBLEM STATEMENT Companies are being pushed to develop novel approaches to marketing and business as a result of the shift toward a knowledge-based economy and the rapid expansion of information and communication technology (ICT). To speak more generally. In particular, the growth of next-generation Internet technology, more popularly known as Web 3.0, the current explosion of Metaverse, and new technologies to enhance the customer experience all contribute to the fact that co-branding continues to play a significant role in the engagement of consumers. In addition, because of the quick growth of Web 2.0-based community platforms like viral marketing and buzz marketing, which are both types of marketing.
This is because these users view online communities as important sources of information. GlobalData report saying Vietnam’s e-commerce market has doubled over the past five years, with total online spending expanding from USD 3.9 billion in 2015 to USD 9. In this scenario, internet marketers concentrate their efforts on their Direct Brand Communities, which are the classic form of brand communities brought into the modern era via the internet. The use of social media, which has become an integral part of modern life, is radically altering the way in which customers connect with brands and businesses.
The fashion industry in Vietnam has witnessed remarkable growth, particularly in its developed state. Research has emerged as a vital tool that drives the success of this dynamic industry, contributing to its sustainability and competitiveness in the global market. The importance of research in the fashion industry in Vietnam is multifaceted, encompassing various aspects ranging from consumer preferences, market trends, and sustainable practices to collaborations, reputation building, and economic growth. One of the key reasons why research is crucial in the fashion industry in Vietnam is to understand and cater to consumer preferences.
As the fashion market evolves, consumer demands and preferences change rapidly. Conducting research helps fashion businesses 2 in Vietnam to gain insights into consumer behavior, lifestyle choices, and fashion preferences. This information enables them to design and produce fashion products that align with the needs and desires of their target consumers, ultimately leading to increased sales and brand loyalty. Market trends play a pivotal role in the fashion industry, and research is essential in identifying and analyzing these trends.
By keeping track of market trends, fashion businesses in Vietnam can anticipate changes in consumer preferences, fashion cycles, and industry dynamics. This knowledge helps them make informed decisions about product development, pricing, marketing strategies, and inventory management (ChartonVachet and Lombart, 2018). Research also helps in identifying emerging markets and expanding the reach of Vietnamese fashion brands internationally. Furthermore, research helps fashion businesses stay updated with the latest technological advancements, materials, and production techniques, which can enhance their competitiveness and sustainability in the fast-paced fashion industry (Alireza et al.
Sustainability has become a critical focus in the global fashion industry, and research plays a pivotal role in promoting sustainable practices in Vietnam's fashion industry. Research also aids in understanding consumer attitudes towards sustainable fashion, enabling businesses to create marketing strategies that resonate with environmentally-conscious consumers and contribute to building a more sustainable fashion ecosystem in Vietnam. Collaborations are another key aspect where research plays a significant role in Vietnam's fashion industry. These collaborations not only promote the preservation of traditional craftsmanship and cultural heritage but also create value-added products that have a distinct identity and appeal to consumers (ChartonVachet and Lombart, 2018).
Research also facilitates collaborations with international brands, designers, and industry stakeholders, which can lead to knowledge exchange, exposure to new markets, and increased opportunities for growth and recognition in the global fashion arena. Building a reputation is critical for the success of any industry, and research plays a pivotal role in shaping the reputation of Vietnam's fashion industry. Through research, fashion businesses can develop a deep 3 understanding of the local fashion ecosystem, its strengths, weaknesses, and opportunities, which can be leveraged to build a positive reputation for Vietnamese fashion brands. Research helps in understanding consumer perceptions, market positioning, and competitive advantage, which can be used to create brand stories and marketing campaigns that resonate with consumers and stakeholders alike.
A strong reputation enhances consumer trust, brand loyalty, and industry recognition, creating a positive image of Vietnam's fashion industry on a global scale. The economic impact of the fashion industry cannot be overlooked, and research contributes significantly to the economic growth of Vietnam's fashion industry. Research helps in identifying export markets, understanding trade regulations, and exploring business opportunities, which can lead to increased exports and economic growth. It also aids in identifying the strengths and weaknesses of the local fashion.
The growth of online brand communities has resulted in a significant increase in the value that can be provided to businesses. This is due to the fact that these communities make it possible for brands to get closer to the customers who use their products, which in turn increases the brands' competitiveness and purchase intent. Online brand communities (OBCs) have developed to enable more users to communicate with one another and create a shared virtual environment. Every fashion brand has a following of consumers who express their social identity through fashion and offer style advice through a network of fashion or brand followers.
This is especially true in the fashion industry, which is vulnerable to consumer individualism. Given the importance of social connections centered around fashion brands, social influence plays a vital role in maintaining loyalty inside OBCs. According to research, many brands' digital marketing strategies include online brand communities as a key component. These communities provide a space in which brands may interact with their target audiences, raise brand awareness, and increase sales.
Online brand communities have a beneficial impact on brand loyalty and purchase intent (Coelho, Bairrada, and Peres, 2019). Because of the sense of belonging and trust that can be fostered among consumers through the use of these communities, 4 consumers are more likely to remain committed to a given brand and make subsequent purchases. Little fashion firms can also profit from online brand communities, which are not just for huge fashion brands. Due to the intense competition in the fashion business, it can be difficult for smaller fashion brands to establish themselves in the market.