Introduction
This chapter serves as a comprehensive introduction to the current study, outlining the research background, motivations, objectives, and procedures that underpin the investigation It also details the methodology employed and defines the scope of the study Additionally, the chapter concludes with an overview of the study's structure.
The Outline of this chapter is shown in figure 1.1
Research Background
Kathman (2002) emphasized the critical role of brand building in today's rapidly evolving market landscape, driven by the rise of new media, accelerated globalization, and the swift pace of marketplace transformation He noted that market fragmentation, diverse product offerings, and the prevalence of short-life-cycle brands further underscore the necessity of establishing strong brand equity in the current environment.
Research Motives
In today's competitive market, effective brand building is essential for business success With an overwhelming number of products and brands available, consumers often struggle to recognize or remember specific brands, making it crucial for companies to develop strong brand identities.
Branding has become a focal point in marketing across various countries, evidenced by an increase in conferences, publications, and media coverage dedicated to the subject Companies are making substantial investments in branding, recognizing its potential as a strategic asset When effectively managed, strong brands can lead to significant benefits, including enhanced market share and increased corporate profitability (Aaker, 1996).
Branding is essential for establishing credibility in sales (Keller, 2003) In Vietnam, the concept of branding—representing the unique characteristics of a product or company—is relatively new Most Vietnamese businesses are small to medium-sized and have not yet addressed branding challenges The importance of branding gained attention only after several Vietnamese brands were appropriated internationally (VnExpress, 2002; VET, 2003).
In the late 1980s and early 1990s, Vietnam faced a severe commodity shortage, leading to a lack of awareness among manufacturers regarding branding, especially given the low per capita income However, the emergence of new producers, service suppliers, and foreign competitors has drastically transformed the market landscape This influx has resulted in a wider variety of higher-quality goods and services, advanced technologies, and shorter product life cycles, prompting local businesses to prioritize brand development for long-term sustainability Today, branding is a crucial focus for Vietnam as a developing country, representing a significant area for conceptual growth and managerial importance.
Brand awareness and image are key components of brand equity, as highlighted in numerous studies (Keller, 1993) Despite this recognition, there is limited research exploring the correlation between these components and specific products or services.
Numerous studies have explored consumer perceptions and classifications of brands, offering valuable insights into their thought processes and responses The branding literature presents theoretical frameworks that assist marketers in comprehending the concept of brand identity and its significance in consumer behavior.
Brand equity is increasingly recognized as a vital metric for long-term business performance, garnering attention from executives, accountants, and academics alike As the knowledge economy gains traction in management practices, it is surprising that many companies have not made significant strides in enhancing brand knowledge, one of their most valuable assets.
Nearly 40 years ago, Theodore Levitt highlighted a crucial distinction in marketing: while selling prioritizes the seller's needs, marketing centers on the buyer's needs Selling is focused on converting products into cash, whereas marketing aims to satisfy customer needs through the product and its associated services Despite significant growth in marketing departments and budgets over the years, evidence indicates that these teams have not improved their understanding of users Consequently, the reputation of the marketing function has diminished in many organizations.
Problem statement
This study explores the significance of brand awareness and brand image for a company's survival, focusing on how well students recognize motorcycle brands (brand awareness) and their perceptions of these brands as reflected in the associations stored in their memory (brand image).
Research Ojective
This paper investigates the impact of marketing efforts on brand equity, specifically focusing on brand awareness and brand image as perceived by consumers It is part of a broader study aimed at developing a model to measure brand equity through the influence of various marketing actions, including pricing, product strategies, distribution, and communication Key components of marketing effort, such as perceived advertising spending, distribution intensity, store image, and price deals, are identified as antecedents that contribute to the formation of brand name knowledge.
& Percy, 1987; Aaker, 1991) and (b) determinant of the associations linked to its image (Alba & Hutchinson, 1987; Yoo, Donthu & Lee, 2000)
This article develops a theoretical model illustrating the causal relationships between marketing efforts and brand equity dimensions, specifically brand awareness and brand image Brand equity is defined as a collection of assets and liabilities associated with a brand that influences its value in customer relationships (Aaker, 1991) To validate this model, a linear regression analysis is employed.
Yoo et al (2000) examine how various components of brand equity are influenced by market perceptions of a company's marketing efforts related to its brands.
To validate our model, we conducted empirical research on a sample of consumers of durable goods, specifically motorcycles, using a questionnaire designed to assess attitudes After establishing the reliability and validity of the questionnaire, we applied it to test the structural model effectively.
To serve this task, two questions need to be answered:
Q1:Is there a relationship between marketing effort and two dimensions of brand equity: brand awareness and brand image?
Q2: Is there any difference of brand awareness and brand image among year in college?
Research methodology and design
The research consists of two main phases: a pilot study and a primary survey The pilot study incorporates both qualitative and quantitative elements, with the qualitative phase aimed at gathering relevant response schemes from University of Technology students The insights gained will inform the quantitative pilot study, assessing the relevance and reliability of the items Ultimately, the main survey is conducted to evaluate research hypotheses, address research questions, and achieve the study's objectives.
Cronbach's alpha was utilized to assess the reliability of the scale, while exploratory factor analysis was conducted to identify the appropriate factors Additionally, multiple linear regression analysis was employed to evaluate the significant relationships between various dimensions of marketing elements and their impact on brand awareness and brand image.
Research Procedure
The procedures of this study are shown in figure 1
Figure 1-2 : Structure of the study
Collecting and Exploring Related Literature
Data Collection Questionnaire Design Establishing Research Framework
Introduction
This chapter reviews relevant theories from the literature to develop a research model connecting marketing efforts with brand awareness and brand image The objective is to formulate hypotheses that will be tested in the context of students' motorcycle choices, ultimately addressing the research questions and validating the proposed model.
Figure 2-1 : The structure of Chapter 2
Brand
Brand Awareness
Brand awareness refers to how easily and likely a brand name is recalled by consumers, highlighting the strength of its presence in their minds This concept, as defined by Keller (1993) and further explored by Pappu, Quester, and Cooksey (2005), emphasizes the importance of a brand's visibility and recognition among its target audience.
Imagery plays a crucial role in enhancing the strength of a brand's memory trace, significantly influencing a consumer's ability to recognize the brand under various conditions (Rossiter & Percy).
Brand awareness is crucial for businesses and can be exhibited through two main forms: brand recall and brand recognition Brand recall happens when consumers remember a brand name in response to a prompt, such as the name of a product category This concept highlights the importance of effective marketing strategies in enhancing consumer memory and association with brands.
Brand recognition is the consumer's ability to acknowledge a brand they have encountered before when prompted with it as a cue This concept, distinct from brand recall, involves recognizing a brand after prior exposure, indicating that the consumer can identify it from previous experiences.
Researchers have established that recall is a more advanced form of memory performance compared to recognition Specifically, if a consumer can recall a brand when prompted with the product category outside a store, it indicates that they will likely recognize the brand when they see it inside the store.
Brand awareness encompasses various levels, as outlined by Aaker (1991), starting from recognition, where a brand is identified from previous encounters, to brand recall, which occurs when a brand is triggered by a product category cue The highest level of brand awareness is when a brand is the only one that comes to mind for a consumer At the lowest level, consumers should be able to recognize a brand when they see it Both brand recall and recognition play crucial roles in guiding consumers in selecting brands for potential purchase, as highlighted by Baker et al (1986) Understanding these aspects of brand awareness is essential for effective marketing strategies.
Marketing efforts
Advertising
Advertising, derived from the Latin word “adverture,” signifies attractiveness and charm In Vietnamese, it refers to the promotion of goods and services to persuade consumers to make purchases The Oxford dictionary defines advertising as a method of drawing public attention to goods or services through various media to enhance sales It is a paid, nonpersonal message disseminated by businesses, non-profit organizations, or individuals, targeting audiences via mass media such as television, radio, and print The primary aim of advertising is to inform and persuade consumers to buy specific brands, ultimately generating profit Additionally, advertising serves to educate and motivate the public on non-commercial issues like health, politics, and environmental conservation, highlighting its broader role in society beyond mere sales promotion.
Distribution intensity
Distribution intensity refers to the number of intermediaries a manufacturer employs within its trade areas Often associated with the "place" element of the marketing mix, distribution encompasses the physical movement of products Marketing managers focus on the marketing structure and distribution channels, which include wholesalers, distributors, retailers, agents, and others tasked with delivering goods and services to customers.
Ideal distribution intensity would make a brand available widely enough to satisfy, but not exceed, target customers' needs, because oversaturation increases marketing costs without providing benefits (McCarthy and Perreault 1984)
There are three broad options - intensive, selective and exclusive distribution:
Intensive distribution seeks to achieve maximum market coverage by utilizing all available retail outlets, as total sales for many products, such as cigarettes and beer, correlate directly with the number of distribution points This strategy is essential when customers have multiple acceptable brand options; if one brand is unavailable, they are likely to select an alternative.
Selective distribution is a strategy where producers sell their products through a limited number of carefully chosen outlets in a specific geographical area This approach allows producers to focus their efforts, such as training and support, on the best-performing retailers It is particularly effective when consumers are willing to "shop around," demonstrating a preference for specific brands or prices and actively seeking out the outlets that offer them.
Exclusive distribution is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area.
Store image
Store image has a long history of changing conceptualizations This change indicates the difficulties that researchers have in defining the construct (e.g., Sewell,
In 1958, Martineau introduced the concept of store image to the retail sector, defining it as the way consumers perceive their favorite stores This perception is shaped by various factors, including the store's functions and characteristics—such as product selection, pricing, customer service, and product quality—as well as the psychological attributes and atmosphere created by friendly employee interactions, welcoming cashier smiles, and engaging store activities.
Store image refers to the consumer's perception of value when comparing their preferred store to others (Hirschman & Krishnan, 1981) With the rise of convenience stores, supermarkets, and hypermarkets, retailers have developed distinct store images to attract and retain loyal customers A strong store image communicates product quality, encouraging consumers to shop there and recommend it to others (Dodds et al., 1991) Additionally, brand loyalty is closely tied to store image; consumers are less likely to remain loyal to a brand if they perceive the store's image as poor.
In recent years, retailers have shifted from solely relying on low-price strategies to leveraging their store image as a key marketing tool Research indicates that many consumers are uncertain about their preferred product brands prior to shopping, often making brand decisions during their retail experience A strong store image can significantly enhance customer attraction and increase purchasing behavior Furthermore, consumers are more likely to spend additional money and return to a retail store that boasts a positive image.
Conclusion
Brand equity refers to the unique marketing effects directly associated with a brand, distinguishing one product from another (Faircloth et al., 2001) According to Keller (1993), it can be defined as the outcomes generated by a product or service's brand name, which can lead to varying results from identical marketing efforts This concept highlights the importance of branding in influencing consumer perceptions and behaviors.
Customer-based brand equity emphasizes the influence of consumer knowledge on their reactions to marketing efforts (Aaker, 1991; Keller, 1993) According to the Customer-based Brand Equity model, brand knowledge is crucial for developing brand equity, as it generates the unique impact that enhances brand value Therefore, marketers require a meaningful approach to illustrate how brand knowledge is stored in consumer memory.
The associative network memory model, developed by psychologists, conceptualizes memory as a network of nodes and links, where nodes represent stored information or concepts, and links indicate the strength of associations between them This model allows for the storage of various types of information, including verbal, visual, abstract, and contextual data In the context of branding, brand knowledge is viewed as a brand node in memory connected to multiple associations According to Keller (1993), brand knowledge comprises two key components: brand awareness and brand image, which will be explored in the following sections.
Figure 2-2 : Dimensions of Brand Knowledge, Keller (1993)
Brand awareness refers to how easily and frequently a brand name is recalled by consumers, highlighting the strength of its presence in their minds (Keller, 1993; Pappu, Quester, & Cooksey, 2005).
Imagery plays a crucial role in enhancing brand recognition, as it relates to the strength of the brand node or memory trace This strength significantly impacts a consumer's ability to identify the brand under various conditions (Rossiter & Percy).
Brand awareness encompasses both brand recall and brand recognition, as highlighted by Keller (1993) Brand recall is triggered when a brand name comes to mind in response to a specific cue, such as the name of a product category (Hutchinson & 1987).
Brand recognition is the consumer's ability to confirm prior exposure to a brand when presented with it as a cue This concept differs from brand recall, as brand recognition occurs when individuals can identify a brand they have previously seen or heard.
Researchers have identified recall as a superior form of memory performance compared to recognition (Aaker, 1991; Washburn & Plank, 2002) This implies that if a consumer can recall a brand when prompted with a product category outside of a store, they are likely to recognize that brand when they encounter it in-store (Keller, 1993; Rossiter & Percy, 1987).
Brand awareness encompasses various levels, as outlined by Aaker (1991), starting from brand recognition, which is the ability to identify a brand upon seeing or hearing it, to brand recall, where a brand is evoked in response to a specific cue, such as a product category The highest level of brand awareness is when a consumer can directly recall a brand from memory This progression indicates that consumers should recognize a brand when they encounter it, reflecting a low level of awareness Both brand recall and recognition serve as important cues that help consumers narrow down their choices for potential purchases, as noted by Baker et al (1986) Understanding these dimensions of brand awareness is crucial for effective branding strategies.
Brand image plays a crucial role in brand knowledge, alongside brand awareness (Keller, 1993) It refers to the perceptions and associations linked to a brand in consumers' memories (Aaker, 1991; Keller, 1993) This image is formed through consumer associations and serves to distinguish brands within a specific product category.
Brand associations contain meanings about a brand for the consumer (Keller,
1993) A brand’s image results from the favorability, strength, and uniqueness of brand associations that are held by the consumer (Grace & O’Cass, 2002; Keller,
1993) Positive and unique brand associations that are strongly held by consumers enable consumers to build strong, favorable attitudes and emotions toward a brand (Aaker, 1991)
Brand associations encompass the attitudes, attributes, and benefits that consumers associate with a brand (Faircloth et al., 2001; Keller, 1993) A key component of this is brand attitude, which refers to the overall evaluation a consumer forms about a brand based on their perceptions of these associations (Wilkie, 1986; Aaker, 1991; Keller).
1993) Beliefs related to product/non-product attributes, brand benefits, and quality perceptions have been discussed as primary influences of brand attitude (Zeithaml,
Brand attitude serves as a reference point influencing consumer behavior towards a product (Lutz, 1991) Consumers perceive products through attributes, which can be categorized into product-related and non-product-related types (Keller, 1993) Product-related attributes pertain to the physical composition and performance of the product, while non-product-related attributes encompass external factors influencing purchase and consumption, such as user imagery and usage imagery (Keller, 1993) User imagery relates to the demographics and psychographics of the brand's users, whereas usage imagery connects the brand to specific contexts of use (Keller, 1993) These imagery attributes contribute to the development of brand personality, reflecting human characteristics associated with the brand (Aaker, 1997) The perceptions of users and usage inform these personality traits (Plummer, 1985) Ultimately, brand benefits represent the value consumers believe the product or service provides, highlighting the personal significance attached to the brand (Keller, 1993).
Benefits of products can be categorized into functional, symbolic, and experiential dimensions Functional benefits address needs related to problem removal or prevention, while symbolic benefits connect to social approval, self-esteem, and self-concept Experiential benefits focus on the feelings consumers experience when using a product, catering to cognitive stimulation and sensory pleasure Brand equity is influenced by brand marketing, which shapes consumer brand knowledge through associative networks comprising brand awareness and brand image Brand image reflects various brand associations, including their favorability, strength, and uniqueness, and is formed through consumers' interpretations of brand signals like names, visuals, and advertising The brand name plays a crucial role in helping consumers recognize products and associate deeper meanings, enabling them to interpret the brand image effectively.
Effective marketing strategies enhance brand equity by generating more favorable consumer responses to branded products compared to unbranded alternatives Managerial actions in marketing are crucial as they influence brand equity through various dimensions To successfully create, manage, and leverage brand equity, it is essential to understand how marketing efforts relate to these dimensions.
This study explores consumer perceptions of four key strategic marketing elements: advertising, price promotions, store image, and distribution intensity While these factors do not encompass all marketing strategies, they effectively illustrate the connections between marketing efforts, brand awareness, and brand image.
Introduction
This chapter offers a comprehensive overview of business research, detailing the research methodology utilized to develop and evaluate measurement scales It also outlines the statistical techniques applied for data analysis and the testing of research hypotheses and models An outline of the chapter is presented in Figure 3.1.
Research design
Item generation
Introduction
The research design process begins with item generation, which is accomplished through a literature search to define measurement constructs and create the initial questionnaire Initially crafted in English, the original version was subsequently translated into other languages.
The questionnaire, initially translated from English to Vietnamese and then back to English by proficient translators, underwent a comparative analysis to verify the consistency of meaning across versions Any discrepancies were addressed to refine the content, resulting in the first draft consisting of 32 potential scale items, as detailed in section 3.3.2.
A focus group discussion (FGD) was employed in this study to refine the questionnaire from prior research, involving eight participants from HUTECH University This FGD aimed to verify and explore the relevance of the questionnaire items for learners, allowing researchers to assess their understanding and identify any weaknesses in wording Ultimately, the questionnaire was modified and finalized, resulting in a set of 32 candidate scale items for the main survey.
Preliminary study
The initial phase of business research involves clearly defining the research objectives Following this, an effective research design allows the researcher to choose suitable methods that efficiently align with and fulfill these objectives.
This study utilizes a descriptive method to assess customer-based brand equity constructs, enabling the researcher to articulate customers' attitudes toward a brand's marketing elements and to analyze the relationships among various variables (Tho & Trang, 2007).
The study utilized a survey technique for data collection, which offers a rapid, efficient, and precise method for evaluating information about a population, particularly when secondary data is unavailable (Zikmund, 1997, cited in Quan).
The research process of this study is shown in figure 3.2
Delete low item-total correlation item (
