VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL STUDENT RESEARCH REPORT FACTORS AFFECTING GREEN COSMETIC’S BRAND LOVE TOWARD BRAND LOYALTY: AN APPROACH RESEARCH FROM CONSUMER PERSPECTIVE IN HANOI_ KT.23_44 Team Leader: Vũ Khánh Huyền ID: 21070432 Class: IB2021D Hanoi, April 15th 2024 1 TEAM LEADER INFORMATION I. Student profile - Full name: Vũ Khánh Huyền - Date of birth: 30/03/2003 - Place of birth: Thai Binh - Class: IB2021D - Program: International Business Picture 4x6 - Address: Nam Tu Liem – Ha Noi - Phone no. Academic Results (from the first year to now) Academic year Overall score Academic rating 1st year 3.59 Good 2nd year 3.59 Good 1st semester, 3rd year 3. Other achievements: Hanoi, April 15th 2024 Advisor Team Leader (Sign and write fullname) (Sign and write fullname) Lê Thị Mai Vũ Khánh Huyền 2 TABLE OF CONTENT [LIST OF TABLES].
Background of the study. Objectives of study. Contribution of the study. Scope of Research.
14 LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT. Sample and Data Collection. Population and Sample size. Data Analysis Technique.
Descriptive Statistic Analysis. Reliability and Content Validity Analysis. Comparing Mean Test. Structural Equation Model.
26 RESULTS AND DISCUSSION. Descriptive Analysis and Mean Comparison. Structural Equation Model. 38 CONCLUSIONS AND RECOMMENDATIONS.
Limitations and future research. 51 4 [LIST OF TABLES] Table 1: Likert's Five-Point Rating Scale.20 Table 2: Dimensions and indicators of conducted variables.21 Table 3: Demographic descriptive (n=205) .26 Table 4: T-test results by gender.27 Table 5: Analysis of Variance between Purchase Intention and Profile.28 Table 6: Reliabilities among the variables.28 Table 7: Outer loadings.30 Table 8: Cronbach’s alpha, CR, and AVE of the model.31 Table 9: Fornell-Larcker criterion.33 Table 10: Collinearity statistics (VIF).35 Table 13: Results for Structural equation model.36 Table 14: The Hypothesis Analysis Results.38 5 [LIST OF FIGURES] Figure 1: The proposed research model.18 Figure 2: The result of the research model.36 6 INTRODUCTION FACTORS AFFECTING GREEN COSMETIC’S BRAND LOVE TOWARD BRAND LOYALTY: AN APPROACH RESEARCH FROM CONSUMER PERSPECTIVE IN HANOI 1. Project Code KT. Member List: Full Name Class ID Trần Thị Minh Thu IB2021D 21070682 Nguyễn Thị Mai Hương IB2021D 21070174 Ngô Dương Đức IB2021D 21070435 3.
Advisor(s): Full name Academic degree Rank Lê Thị Mai Business and Management PhD 4. Abstract (300 words or less): Understanding the core factors necessary for the sustainable competitiveness of a green cosmetics brand is crucial. The objective of this study is to demonstrate the direct and indirect influences of brand experience, brand image, and customer satisfaction on brand love and brand loyalty. The research investigates the profound impact of brand love on brand loyalty for green cosmetic brands in Hanoi, Vietnam.
We surveyed 205 respondents using purposive sampling as the data collection technique. The research model was derived from previous studies. Data was collected through surveys and analyzed using SPSS and SmartPLS software. In SPSS, data are analyzed statistically and analyzed for reliability.
In SmartPLS, the Partial Least Squares (PLS) method was employed to analyze the measurement and structural models. The findings of the study indicate that certain factors, such as brand experience and customer satisfaction, directly influence brand love, while these factors do not have a direct impact on brand loyalty. On the contrary, brand image 7 directly influences brand loyalty without the mediation of brand love, which differs from previous research and hypotheses. Furthermore, the research results also demonstrate that brand love has a positive impact on brand loyalty.
This research aims to address the gaps in previous research articles and contribute new knowledge to green cosmetic brands in Vietnam. Keywords (3 – 5 words) Green cosmetic, Brand Loyalty, Brand Love, Brand Experience, Brand Image, Customer Satisfaction. 8 SUMMARY REPORT IN STUDENT RESEARCH, 2023-2024 ACADEMIC YEAR CHAPTER I INTRODUCTION 1. Background of the study The cosmetics industry has experienced significant expansion and changes in recent years, becoming a prominent sector in today's world (Anjana, 2018).
Over the previous 20 years, this industry has continuously grown at an average annual growth rate of 4.5%, mostly due to rising demand in emerging regions like Asia and Latin America (Łopaciuk & Łoboda, 2013). This trend emphasizes the continuous rise in consumer demand for cosmetic products, with no indication of decline. Consequently, numerous cosmetic brands and new products have emerged to cater to evolving beauty standards. Cosmetics play a crucial role in enhancing our appearance, offering products that aim to improve the aesthetic appeal of our bodies and often contain a combination of chemical compounds.
In order to enhance their quality and effectiveness, these products often include additives such as preservatives, stabilizers, mineral pigments, dyes, and shine enhancers. However, some of these substances may pose risks to human health, such as allergies, irritations, and potential harm, as well as adverse effects on the environment (Kaličanin & Velimirović, 2016). Despite regulations governing the use of these substances in the cosmetics industry, consumers remain concerned about potential health issues and unintended environmental impacts associated with their usage. (Cervellon et al., 2011) senior research analyst at Euromonitor International Virginia Lee highlighted this growing consumer knowledge in a Wall Street Journal interview, saying, "As consumers become more interested in what they're taking into their bodies, they've also become more interested in what they're applying topically to the body." 9 Despite the concerns, consumers cannot simply cease using cosmetics altogether.
As a result, the industry for "green cosmetics" has emerged and grown significantly in recent years. This term's most obvious meaning is its correlation with being "environmentally friendly" and utilizing natural or organic materials (Camilla Custoias Vila, 2020). The term "green cosmetics" encompasses a multifaceted concept that encompasses various aspects, such as environmental preservation, pollution reduction, responsible utilization of non- renewable resources, and the promotion of animal welfare and biodiversity conservation (McEachern & Mcclean, 2002). Green cosmetics involve the utilization of natural elements from the environment, ensuring the preservation of the environment.
The inclusion of renewable raw materials in cosmetics contributes to the environmentally-friendly nature of the product (Prothero, 1996). The idea of "green cosmetics" spread throughout time, incorporating a variety of principles and tactics like sustainability, recycling, eco-friendly packaging, and refraining from animal experimentation (Prothero, 1996). Notable data highlighting the growth of the green cosmetics industry includes the dynamic market for organic cosmetics in Europe, which has experienced a 20% annual growth rate (Cervellon et al. Organic Monitor, a specialized research institute in agriculture, forecasts continued annual growth of 20% in sales of organic cosmetics.
According to Transparency Market Research, the global market size of green cosmetics is estimated to reach US $33.7 billion in 2023, with a growth rate of 7. In Vietnam, like in many other countries, there has been a noticeable shift in consumer awareness and concern for the environment and health. Vietnamese buyers are actively looking for companies that share their beliefs and have become more discriminating in their purchases. As a result, "green" products have gained popularity and preference in Vietnam.
Some well-known green cosmetic brands originating in Vietnam include Cocoon and Cỏ Mềm. However, the question arises as to how these brands can transition from mere popularity to fostering customer loyalty specifically in the realm of green cosmetics. Although previous studies have identified factors influencing brand love and loyalty in various industries, there is a scarcity of research on this topic within the green cosmetics 10 industry, particularly in a promising market like Vietnam. Understanding the factors that influence brand love and loyalty towards green cosmetics in the Vietnamese context is crucial for researchers and manufacturers in this industry.
By identifying these factors, companies can develop effective marketing strategies and activities to enhance brand love and stimulate consumer loyalty. Therefore, our research aims to address the existing gaps in previous studies and contribute new knowledge to green cosmetic brands in the Vietnamese market. Objectives of study This research investigates the factors that affect green cosmetics brand love toward brand loyalty from a consumer perspective in Vietnam. Noticeably, it refers to the following objectives: • Describing the customer’s profile as designed by: • Gender • Educational level • Occupation • The brand of green cosmetics they use the most • Examine factors affecting loyalty to green cosmetic brands of customers in Vietnam.
• Testing the relationship among factors in terms of customer satisfaction, brand image, brand experience toward green cosmetics brand love, and brand loyalty. • Provide valuable recommendations for businesses and brands that are developing green cosmetic products, as well as other brands aiming to venture into green cosmetic production. Contribution of the study 1. Research Contribution This research plays a significant role in supplementing existing literature on factors that can influence brand love and brand loyalty towards green cosmetic brands in Vietnam's current context.
It provides a profound understanding of the various direct and indirect aspects that impact brand love and brand loyalty, thereby offering valuable insights for brands to 11 improve and further study their products. The study employs quantitative methods to enhance the reliability of findings, while accurately measuring specific information indicators to assess the importance of the factors. Practical Contribution The outcomes of this study can assist existing green cosmetic brands in the Vietnamese market, as well as brands intending to transition or start ventures in green cosmetic production in Vietnam, in understanding the factors influencing brand love and brand loyalty. This understanding can further aid in developing strategies to enhance brand love and loyalty.
The research also aims to contribute to the sustainable and ethical development of a cosmetic brand in the current competitive landscape. It serves as a positive approach towards environmental conservation, animal welfare, and the sustainable growth of green cosmetic brands. The profound insights gained from this research can improve consumer shopping experiences and contribute to the development of Vietnam's green cosmetic industry. Research Flowchart • Step 1: Review relevant literature and identify pressing research topics.
• Step 2: Investigate the theoretical foundations to identify research gaps. • Step 3: Establish research objectives, determine the research scope, select research models, and methods. • Step 4: Put forward a hypothetical research model. • Step 5: Develop a survey plan and construct a questionnaire based on prior research.
• Step 6: Design appropriate questionnaires in a sequential manner and gather data. • Step 7: Perform an initial analysis to assess measurement reliability, and conduct factor analysis to address potential multicollinearity issues when employing independent variables. 12 • Step 8: Analyze and synthesize the collected data. • Step 9: Interpret the findings obtained from the collected data.
• Step 10: Provide recommendations and proposals based on the research outcomes. Research Organization The research is divided into five main chapters: an overview, a literature review, the methodology used, the findings and the discussion that follows, and lastly, suggestions and conclusions. The research environment, research objectives, research questions, and a study structure overview are all covered in the first chapter's Introduction. In-depth analyses of the elements and expert assessments of their importance will be covered in Chapter II.
Thus, a deeper examination of the primary variables impacting brand love and loyalty may be carried out. The research model, operational definitions, research variables and measurement design, sample size, data type, data collection methodologies, and data analysis techniques are all covered in Chapter III Methodology section. The results of this study will be covered in more detail in the following chapter. The results of the measurement model, reliability analysis, descriptive and comparative mean analyses, and structural equation modeling are presented in chapter IV, Results and Discussion.
Chapter V, Conclusion and Recommendations, will wrap up with a post-analysis, an explanation of the research discussion results, and helpful suggestions for companies based on the conclusions drawn. Furthermore, this study tackles the shortcomings of the earlier investigation and establishes a framework for next research endeavors. Scope of Research The scope of this research encompasses individuals under the age of 40 who either use green cosmetics now or have shown a desire to use them in the Hanoi region.