MINISTRY OF EDUCATIION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY NGUYỄN THỊ HỒNG NGUYỆT EXPLORING THE FACTORS AFFECTING LAPTOP CONSUMER’S BRAND LOYALTY IN HOCHIMINH CITY Major : Business Administration Major Code : 60.05 ECONOMICS MASTER THESIS Supervisor: Dr. Nguyễn Thị Mai Trang HOCHIMINH CITY - 2010 ACKNOWLEDGEMENTS The study about “Exploring the factors affecting Laptop consumer’s Brand Loyalty in Ho Chi Minh City” was not going to be completed without the assistance and support from different relevant sources. First of all, I would like to express my whole-hearted appreciation to my supervisor, Dr. Nguyen Thi Mai Trang, who has provided me with her strict comments and invaluable advices during the process of my study.
Besides, my special thank would be sent to my parent. Without their warmly constant encouragement, my further pursuit and attendance in Master of Business Administration in order to then conduct this dissertation would not have been brought to life. Profound gratitude was also extended to my cousin, Ms. Nguyen Thi Bich Duyen, who has assisted me in the process of data collection and to my close friend, Ms.
Do Thuy, who has guided me to the usage of SPSS software. An honorable mention goes to my dear husband, Mr. This study is the result of his encouragement, help and love. Finally, I would like to send sincere thanks to my friends for their great contributions and motivation to the accomplishment of my dissertation.
ABSTRACT This study investigated and reported the effect elements and their affected level on brand loyalty for the laptop product in Ho Chi Minh market. The important variables comprised Self-expressive value, Distinctiveness, Perceived Quality, Perceived Price. The framework of in-depth - interview in form of the qualitative research based on the items of the previous research to discover new observed variables. Then, the researcher would modify available observed variables of the previous researches in order to meet with laptop category and Ho Chi Minh market.
The 300 respondents in the quantitative research who were from the universities in Ho Chi Minh city were used to test reliability (Cronbach Alpha), Correlation (Exploring Factor Analysis) and test Multiple Regression Model. After analyzing, the research’s results indicated that all of observed variables obtained reliability and correlation, except one variable (bl5). Besides, all of four factors have influenced on brand loyalty. The different affected levels of the factors as well as the implications of the study were also represented in this paper.
i CONTENTS CHAPTER 1: INTRODUCTION 1.3 Research questions and objectives.4 Limitations and research methodology.4 CHAPTER 2: LITERATURE REVIEW 2.1 Consumer’s loyalty and brand equity.2 Value strategy of brand loyalty.3 The factors affected on brand loyalty in Ho Chi Minh market.1 Self-expressive value of brand personality.2 Distinctiveness of brand personality. 13 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Measure of Sef-expressive value.2 Measure of Distinctiveness.3 Measure of Perceived Quality.4 Measure of Perceived Price.5 Measure of Brand Loyalty. 20 CHAPTER 4: DATA ANALYSIS AND RESULTS 4.1 Descriptive data analysis.1 Cronbach Alpha Reliability Analysis.2 Exploring Factor Analysis (EFA).1 EFA results of the independent variables.2 EFA results of the dependent variable.1 Testing Assumptions of Multiple Regression.2 Testing Hypotheses between Independent Variables and Brand Loyalty.4 The relationship among the quality variables and the quantitative variables.1 Testing the relationship between gender factor and SEV.2 Comparing the different influence levels of buyer factor on Brand Loyalty.3 Testing the different influence levels of used time factor on PQ.4 Testing the different influence levels of using brand name factor on D.5 Consumer’s evaluation on Brand Loyalty following using brand names.1 Antecedents of Brand Loyalty.2 Outcome of qualitative variables affected on quantitative variables.4 Self – expressive value. 45 Appendix 2: EFA results of independent variables.47 Appendix 3: EFA results of dependent variable (Step 1).49 Appendix 4: EFA results of dependent variable (Step 2).50 Appendix 5: Testing assumptions of multiple regression.51 Appendix 6: Multiple Regression Line results.53 7 LIST OF FIGURES Figure 2.1 : Two models about the relationship between product with brand.4 : Histogram, Normal P – P Plot and Scatter Plot of Brand Loyalty.5 : Mean of each using brand name on Brand Loyalty.34 8 LIST OF TABLES Table 3.1 : Scale of Self – expressive value.2 : Scale of Distinctiveness.3 : Scale of Perceived Quality.4 : Scale of Perceived Price.5 : Scale of Brand Loyalty.2 : Cronbach Alpha of observed variables of independent variables.3 : Correlations between Self – expressive value, Distinctiveness, Perceived Quality, Perceived Price and Brand Loyaly.4 : The results of Regression Coefficients analysis.5 : Independent samples t – test results of gender factor and Self-expressive value.6 : The analysis results of the different influence levels of buyer factor on Brand Loyalty.7 : The analysis results of the different influence levels of used time factor on Perceived Quality.8 : The analysis results of the different influence levels of using brand name factor on Distinctiveness.9 : Mean of each using brand name on Brand Loyalty.33 1 CHAPTER 1: INTRODUCTION The introduction chapter identify the research background, present the problem statement, the research questions, and introduce the research methodology, the objectives as well as limitation of the study.
Furthermore, the significance of the research problem and thesis structure are also outlined.1 Research background Meeting human’s the various complicated demands is an extremely harsh problem for a firm, especially a new firm which has just penetrated in a market. Moreover, to survive in the high competitive globalized and integrated environment in the recent years, the firm must be hardworking not only for producing high quality products, but also for understanding its consumer’s all requirements and desires. In particular, it is critical for the survival of a firm to retain its current customers and to make them loyal to the brand (Mellens, Dekimpe, Steenkamp, 1996). For these reasons, the success of a firm depends largely on its capability to attract customers towards its brands and maintain them loyal.
Aaker (1996) argue that if we can maintain consumer loyal with our brand, we have many benefits which are come from reducing the marketing cost, trade leverage, attracting new consumers as well as having time to respond to competitive threats. Therefore, it is necessary to study Brand Loyalty and explore the factors affected on it, then we have a suitable branding strategy. In fact, Vietnam is a dynamic and developing economy with higher and higher economic growth rate year by year, and it is industrialized and modernized towards an integration into global economy. This means consumption demand about technology and high-technology product is dramatically being increased, especially with the laptop product – a product has various functions can be used for various working goals.
Therefore, the imported laptop which is estimated will be increased significantly in the future. That also means the competition is quite fierce in this field; and this can be proved through the appearance of most prestigious laptop brands around the world in Vietnam. 2 Furthermore, Hochiminh city is the best dynamic area in Vietnam. It is known as the central economic of Vietnam with the highest economic growth rate in both commercial industry and agriculture.
The rapid growth in economic together with the particular advantage conditions, Hochiminh city is a place that concentrates the largest population in nationwide. So, Hochiminh city is considered a place that has the best numerous laptop user in Vietnam.2 Problem statement Customer loyalty plays more and more important role in business field. This matter attracts not only businessman but also researcher. Previous research suggest that loyal customers spend more than non-loyal customers, act as advocates for a brand by engaging in positive word of mouth, and are therefore “at the heart of a company’s most valuable customer group” (Zeithaml et al.
Besides, it can cost as much as six times more to win a new customer than it does keep an existing one (Rosenberg et al. Hence, the increase and retention of loyal customer become a key factor for the long-term success of the companies. However, how to maintain and increase loyal consumer to a brand or what factors affect on Brand Loyalty, and what influence level of the factors on Brand Loyalty are an outstanding problem. Another problem is that most of the brand loyalty models are conceptualized by researchers and validate in the developed countries.
This poses the question of whether or not those models will work well in a developing country as Vietnam.3 Research questions and objectives To solve the problems defined above, this research aims at answering the following question: ► What are the key determinants affect on Brand Loyalty? By evaluating the influence level of the factors on Brand Loyalty, the importance of increasing loyal customer shall be highlighted to eventually help the managers identify the right direction of their investment and keep their customers under a tough competitive environment.4 Limitations and research methodology This research focuses on one important type of high technology product through two phases: an exploratory study and a main survey. A choosen product to examine is the laptop for its quite high price and high-competitive pressure of its market. For this reason, the consumers will consider carefully and seriously when making a buying decision. In exploratory study, a qualitative study is undertaken by an in-depth-interview.
Collected information is used to explore, adjust, and supplement to the measuring scale of the factors affected on brand loyalty for Laptop brands. The main survey is conducted by quantitative research in form of questionnaire. The result of questionnaire data is presented in the numerical form such as percentage of age groups who attend this survey, or percentage of the main using laptop brand name and so on. These numbers are, then, demonstrate in tables, graphs or other forms of statistics.
Conducted in Hochiminh city, the purpose of quantitative research is to confirm the components as well as value and reliability of the measuring scales of brand loyalty. Cronbach alpha coefficient, Exploring Factor Analysis (EFA), and Multiple Linear Regression analysis (MLR) are applied through SPSS software; and Convenience sampling is used.5 The research implications This study brings the practical meanings to human’s life in terms of business (marketing manager, advertising agency and market researchers.) and academic (educators, students of the business administration deparment especially in the marketing division) as follows: The research result has been a scientific foundation so that based on it, the managers will make an effective strategy to enhance consumers’ loyalty for laptop brands. The research result contributes additionally to the marketing literature in particular in Brand Loyalty. 4 The research will be a reference material for not only researchers, lecturers, students in the marketing, branding and management fields but also other people in the society as well.6 Thesis structure This research is organized in five chapters.
The beginning is the introduction chapter. It includes a brief overview of the research background, problems and objectives. The limitations and research methodology, the implications of research, and structure are also presented. Chapter 2 is the literature reviews and conceptual model.
It explores and reviews the extant literature on brand and Brand Loyalty. The factors of brand personality and brand association which promote the effectiveness of Brand Loyalty are also discussed in this chapter. Based on the literature reviews, a research model is proposed. Chapter 3 is the research methodology.
An attention is concentrated on the research design, then interprets and illustrates the way that primary and secondary data is collected. The measurement scales apply for the research factors will be determined clearly and suitably. Chapter 4 analyzes the collected data and presents the findings from the survey in terms of Self-expressive value of brand personality, Distinctiveness of brand personality, Perceived Quality and Perceived Price. Besides, results from the university students’ interviews for the effective levels of these factors on Brand Loyalty are show as well.
Chapter 5, the final part of this dissertation, is the chapter of conclusion and signification. The researcher will mention several recommendations for brand managers of Laptop products in Ho Chi Minh City Market in terms of the theoretical and managerial significance.