INTRODUCTON
Background of research
In the first seven months of 2013, Vietnam exported 14.5 million bags of green coffee, marking a 3 percent increase from the previous year and establishing the country as the world's second-largest coffee exporter, according to MARD data With a rich coffee culture dating back to 1857, coffee has become an essential part of daily life for many Vietnamese people Today, numerous domestic and international coffee brands are expanding throughout Vietnam to meet the growing demand for this beloved beverage.
Globalization has made the domestic coffee market in Vietnam increasingly appealing to foreign investors, leading to the emergence and growth of renowned international coffee brands such as NYDC Coffee, The Coffee Bean and Tea Leaf, and Angel In.
The domestic roasted coffee market in Vietnam is becoming increasingly competitive, with international brands like Starbucks entering the scene Despite their extensive experience, local brands such as Trung Nguyen, Highland, and Gogo coffee face challenges in gaining market share The focus in the premium roast coffee segment is shifting from pricing and product quality to brand building, making branding and product image crucial for appealing to Vietnamese consumers Consequently, brand equity is recognized as a vital element for Vietnamese coffee marketers and companies, enhancing their competitive advantage and informing management decisions.
Trademarks are essential for product differentiation, contributing significantly to a firm's competitive advantage (Wood, 2000) Brands not only enhance the value of products but also safeguard them against imitation by competitors (Aaker, 1991) For Vietnamese roasted coffee brands, a deeper understanding of brand equity can lead to increased profits and customer loyalty This insight prompted an investigation into the relationship between specific dimensions of brand equity and overall brand equity.
Founded in 1996 by Dang Le Nguyen Vu, Trung Nguyen Coffee began as a modest coffee processing business in Ban Me Thuoc city During this period, Vietnam re-emerged as a prominent coffee producer globally, primarily focusing on the production of raw coffee beans.
Trung Nguyen Coffee began its journey in 1998 with the launch of its first shop in Ho Chi Minh City, addressing the challenges of unregulated green coffee sales that affected quality and pricing By 2001, the brand expanded its reach to all provinces, and today operates over 50 coffee shops across Vietnam Committed to sustainable development, Trung Nguyen Coffee aims to establish itself as a premium brand catering to high-income customers, emphasizing the importance of effective branding from the outset.
Research problem and purpose
Competition is a crucial element influencing brand emergence and growth, particularly in the fiercely competitive coffee shop market Companies strive to surpass their rivals to capture a larger market share, making an effective marketing strategy essential In this context, brand equity is a vital marketing concept that significantly impacts a company's business development.
In a competitive market, brand reputation, product style, and quality are crucial factors influencing customer choices Despite significant investments in mass production, price reductions, and promotional campaigns, Vietnamese roasted coffee brands often overlook that consumers prefer well-known and trusted brands Consequently, many domestic coffee enterprises struggle to establish a distinctive brand identity linked to their roasted coffee, resulting in a lack of national recognition.
Research objective
This study aims to explore the concept of brand equity in marketing, focusing on the measurement and effectiveness of its dimensions—brand awareness, brand association, perceived quality, and brand loyalty—on consumer-based brand equity Additionally, it seeks to identify which dimensions positively impact the brand equity of Trung Nguyen Coffee The findings will assist Vietnamese coffee companies in building positive brand equity, ultimately contributing to their business growth and profitability.
What dimensions of brand equity have positive effect on perception of Vietnamese coffee brand with representative is Trung Nguyen coffee?
How much they affect the brand equity of Trung Nguyen coffee?
What is the current brand equity level of Trung Nguyen Coffee?
How to improve the current brand equity level of Trung Nguyen Coffee?
Scope of the study
This research is centered on Trung Nguyen Coffee and conducted in Ho Chi Minh City, specifically targeting office buildings with a high concentration of potential customers for Vietnam's coffee brands However, the findings may not fully represent the perceptions of all consumers in Vietnam regarding the brand equity of local coffee brands.
This research may not represent the views of all coffee brand customers in Ho Chi Minh City, as the survey primarily targeted specific office buildings in select districts Additionally, time constraints and limited experience hindered a comprehensive analysis of the broader customer base.
Contribution of the study
This study provides valuable insights for managers of Vietnam's coffee brands, particularly Trung Nguyen, by assessing the current brand equity from the customers' perspective and identifying existing challenges in their branding strategies.
This study offers scientific solutions aimed at enhancing the brand equity of Vietnam's coffee brands, thereby providing them with a competitive edge The questionnaires developed in this research can be effectively utilized to bolster the customer survey systems of these brands.
This research aims to enhance Vietnamese coffee brands' understanding of how brand equity influences customer perceptions The findings will serve as a valuable reference for similar coffee brands to evaluate their services and performance, while also providing insights for future studies in related fields.
Organizational structure of the study
This paper is structured into several key sections: the introduction outlines the research background, problems, purposes, scope, significance, and overall structure; the literature review defines essential terms and presents relevant previous studies; the research methodology details the approach taken for the study; the data analysis and discussion chapter examines and interprets the results from the collected data; finally, the conclusion and recommendations aim to address the research question, offer suggestions, and lay the groundwork for future research.
LITERATURE REVIEW & THEORETICAL FRAMEWORK
Concepts & Definitions
The idea of branding has been applied for more than a hundred years (Feldwick,
1996) Until now, the meaning of brand has been changed a lot The significant of brand is also gaining which is considered as one of sustainable competitive advantage in business
According to Kotler (1994), a brand encompasses a name, term, sign, symbol, or design, or a combination thereof, that serves to identify the goods or services of a specific seller or group of sellers, distinguishing them from their competitors.
Historically, brands were primarily identified by their features, characteristics, and logos, serving as a means to differentiate products from competitors (Aaker, 1991) This traditional approach positioned brands as protective sources for both customers and producers, safeguarding them against rival offerings Consequently, brands became recognized as visual identifiers, essential for distinguishing one product from another.
The current market landscape has evolved, making it increasingly challenging to distinguish one product from another and establish strong brands, as noted by Aaker (1991) Consequently, traditional methods that heavily focus on product differentiation and visual features are inadequate for today’s market environment (Arnold 1992; Crainer 1995).
In recent years, marketing has shifted from a product-centric approach to a brand-centric perspective, emphasizing the brand as the focal point (Wood, 2000) This holistic view highlights the brand's image in consumers' minds (Keller, 1993), its personality (Aaker, 1996), and the added value it provides (De Chernatony & McDonald, 1992; Doyle, 1994) Consequently, the product is now seen as just one attribute of the broader brand identity.
The branding approach, widely endorsed by researchers like Aaker (1991) and Keller (1993), emphasizes that brands fulfill both physical and emotional needs, whereas products only address physical needs A brand is defined as “a product that provides functional benefits plus added values that some consumers value enough to buy” (Aaker, 1991, p.1) Stephen King highlights the distinction between products and brands, stating, “A product is something that is made in a factory; a brand is something that is bought by a customer A product can be copied by a competitor; a brand is unique A product can be quickly outdated; a successful brand is timeless” (Aaker, 1991, p.1).
Brands are essential for a firm's success, as they differentiate products and enhance customer satisfaction, leading to a willingness to pay more (Wood, 2000) This differentiation not only adds value for customers but also protects products from imitation by competitors (Aaker, 1991) Consequently, a strong brand is considered a valuable asset for any company (Aaker, 1991).
Since its introduction in the 1980s, brand equity has garnered significant interest from both academic marketers and industry practitioners Various interpretations of brand equity have emerged, serving multiple purposes It is defined as the disparity between overall brand preference and multi-attributed preference derived from objectively assessed attribute levels, as well as the relationship between overall quality and choice intention.
Brand equity is a crucial concept in brand management, significantly impacting both business practices and academic research (Kim et al., 2008) Effective development and management of brand equity are vital for firms, as it can enhance cash flow and facilitate product differentiation, leading to competitive advantages (Hao et al., 2007; Yoo et al., 2000; Aaker, 1991) Consequently, many firms regard brand equity as one of their most valuable intangible assets (Hao et al., 2007).
Brand equity, as defined by Aaker (1991), refers to the collection of brand assets and liabilities associated with a brand, its name, and its symbol This concept highlights how these elements can enhance or diminish the value delivered by a product or service to both the company and its customers.
According to Aaker (1991), brand equity is comprised of five key dimensions: brand loyalty, name awareness, perceived quality, brand associations, and other proprietary brand assets such as patents, trademarks, and channel relationships.
Brand equity is viewed through the lens of individual consumers, highlighting their knowledge and perceptions of brands Customer-based brand equity refers to the unique impact that brand knowledge has on consumer reactions to marketing efforts (Washburn and Plank, 2002) Advocates emphasize that a brand's value is intrinsically linked to how much customers appreciate and value it.
Brand equity, as defined by Farquhar (1989), represents the added value perceived by consumers through enhanced attitudinal strength towards a brand This consumer attitude links an object to its evaluation stored in memory, and a strong brand is characterized by three key elements: positive brand evaluation, clear brand attitude, and reliable brand image Martin and Brown (1990) further emphasize that brand equity encompasses the overall perception a consumer has of a brand, while Blackston (1992) describes it as the consumer's ideas about the brand Additionally, Edell (1993) posits that brand equity is the disparity in consumer evaluation between a branded product and an unbranded product with similar attributes.
Consumer-based brand equity is defined as the positive associations and familiarity a customer has with a brand, as highlighted by Keller (1993) This concept emphasizes the importance of brand knowledge, which influences customer responses through two key factors: brand image and brand awareness According to Keller, a brand achieves positive customer-based brand equity when consumers respond more favorably to its product, promotion, price, or distribution compared to similar offerings from fictitious or unnamed brands.
Understanding brand equity from the customer's perspective is crucial for effective brand management According to Keller (1993), positive customer-based brand equity leads to increased revenue and profits, while also reducing costs It directly impacts a company's ability to set higher prices, influences customer willingness to explore new distribution channels, enhances the efficiency of marketing communications, and contributes to the success of brand extensions and licensing opportunities.
Customer-based brand equity is a complex construct that includes various attitudinal and behavioral components, with most models primarily focusing on attitudinal aspects Key measurement constructs include brand image, brand awareness, and brand preference, along with brand performance and brand loyalty The Aaker brand equity model, introduced in 1991, is frequently utilized in empirical studies as it effectively combines both attitudinal and behavioral dimensions of brand equity, offering a comprehensive framework for understanding customer perceptions of brand value.
Research model
This study applies Aaker's brand equity model (1991) to analyze Vietnam's coffee brand, focusing on its five dimensions: brand awareness, brand associations, brand loyalty, perceived quality, and other brand assets The research evaluates these dimensions through customer assessments, aiming to retest customer-based brand equity by concentrating on four key dimensions: brand awareness, brand associations, brand loyalty, and perceived quality, as illustrated in the accompanying figure.
The research model identifies four key independent variables—brand awareness, brand associations, brand loyalty, and perceived quality—that significantly impact the dependent variable, brand equity.
Brand awareness is a crucial aspect of brand equity, reflecting how strongly a brand is recognized in consumers' minds It serves as an indicator of quality and commitment, helping customers become familiar with the brand and influencing their purchasing decisions.
Brand awareness, as defined by Aaker (1991), encompasses various levels, from simple brand recognition to brand dominance, where a consumer recalls only one brand Aaker highlights that brand awareness reflects a potential buyer's ability to recognize and remember a brand within a specific product category Keller (1993) further elaborates on brand awareness by identifying two key dimensions: brand recall and recognition Brand recall refers to a customer's ability to retrieve a brand from memory when prompted by the product category or its needs, while brand recognition becomes crucial during in-store decision-making.
Brondoni (2001) emphasized that brand awareness is a crucial factor in consumer selection, significantly impacting brand equity When consumers think of products or services, a strong brand presence increases the chances of repeat purchases Customer-based brand equity arises from high levels of brand awareness and familiarity, coupled with strong, positive, and unique associations in consumers' memories Therefore, it can be hypothesized that enhancing brand awareness will lead to greater consumer consideration and loyalty.
H1: Brand awareness has a positive effect on brand equity
Brand association refers to the information connected to a brand in consumers' memory, shaping its meaning (Keller, 1993) The dimensions of brand knowledge, including favorability, strength, and distinctiveness, influence how customers respond to the brand, ultimately contributing to brand equity (Keller, 1993).
Brand association, as defined by Aaker (1991), is a crucial dimension of brand equity that encompasses various elements such as product attributes, customer benefits, uses, users, lifestyles, product classes, competitors, and nations It aids customers in processing and retrieving information, ultimately providing value by influencing purchasing decisions and fostering positive feelings towards the brand Rio et al (2001) emphasize that brand associations are vital for the formation and management of brand equity High brand equity indicates that consumers possess strong positive associations with the brand, aligning with their needs and demands (Wood, 1998) Therefore, it can be hypothesized that strong brand associations significantly contribute to enhanced brand equity.
H2: Brand association has a positive effect on brand equity
Brand loyalty is a crucial element of brand equity, as it indicates a customer's likelihood to remain with a brand despite changes in price or product characteristics According to Aaker (1991), brand loyalty reflects the potential for customers to switch to competing brands Javalgi and Moberg (1997) further elaborate on brand loyalty by defining it through behavioral, attitudinal, and choice perspectives, highlighting its multifaceted nature.
The behavioral perspective on brand loyalty focuses on the frequency of purchases, while the attitudinal perspective emphasizes consumer preferences and attitudes toward brands In contrast, the choice perspective examines the motivations behind purchasing decisions and the factors influencing them Research by Rundle-Thiele and Bennett (2001) categorizes brand loyalty definitions into three main approaches: behavioral, attitudinal, and multi-domain.
Brand loyalty can be understood from an attitudinal perspective, where it reflects a deep-seated commitment to a brand's unique value Chaudhuri and Holbrook (2001) emphasized that this form of loyalty involves a personal attachment to the brand Additionally, Yoo and Donthu (2001) defined brand loyalty as the inclination to consistently choose a primary brand, highlighting the importance of the intention to purchase it as the first option.
Brand loyalty, as defined by Aaker (1991), reflects the emotional attachment a customer has to a brand Oliver (1997) elaborates on this concept by describing brand equity as a strong commitment to repeatedly choose a preferred product or service, despite external influences and marketing efforts that may lead to switching Therefore, brand loyalty is considered a crucial dimension of brand equity, leading to the following hypothesis.
H3: Brand loyalty has a positive effect on brand equity
Perceived quality is a fundamental element of the Customer-Based Brand Equity (CBBE) framework, emphasizing that it reflects customers' perceptions of a product's overall quality rather than its actual attributes This perception is crucial for companies, as it influences their competitive edge and drives customer satisfaction By focusing on customer-driven quality, businesses can effectively meet consumer needs and preferences, transforming perceived quality into a strategic advantage that enhances value and profitability.
Kotler (2000) emphasizes the strong link between customer satisfaction, product and service quality, and company profitability High perceived quality enhances brand value by encouraging consumer purchases and differentiating the brand from competitors (Aaker, 1991) Marketers in various sectors increasingly acknowledge the significance of perceived quality in shaping brand evaluations (Morton).
H4: Perceived quality has a positive effect on brand equity.
RESEARCH METHOD
Research methodology
This research adopted Quantitative method, included:
- Secondary data: literature review, articles, research papers, books, etcs
The research follows Quantitative approach to conduct customer survey Primary data will be collected for analyzing and coming up with findings in the later section.
Quantitative approach
Malhotra and Birks (2006) define quantitative research as a methodology that aims to quantify data through statistical analysis Additionally, Parasuraman (1991) asserts that quantitative research is a type of conclusive research that utilizes large representative samples and structured data collection methods.
Quantitative research involves large-scale surveys or structured observations in conclusive research projects According to Veal (2006), it encompasses statistical analysis that relies on numerical evidence to draw conclusions or test hypotheses This approach typically requires research involving relatively large sample sizes and the use of computer software for data analysis to ensure the reliability of the results.
Questionnaire design
The questionnaire survey aims to gather empirical evidence and assess brand equity for Trung Nguyen Coffee from the customer's viewpoint It is crafted to directly obtain data from customers, utilizing straightforward and comprehensible language The statements within the questionnaire are concise and clear, ensuring that respondents can easily understand and respond without confusion.
The questionnaire comprises two sections: the first gathers demographic information about Trung Nguyen Coffee customers, while the second assesses brand equity through key dimensions such as brand awareness, brand association, brand loyalty, and perceived quality.
The 5-points Likert scale is applied to measure in the questions about brand equity and its dimensions mentioned above According to Cooper et al (2006), the likert scale, which was developed by Rensis Likert, is the most commonly used variation of the summated rating scale It comprises statements expressing either a favorable or an unfavorable attitude toward the object of interest Respondents are asked to indicate their level of agreement with a given statement by the way of a 5-point scale ranging from
The scale ranges from "Strongly Disagree" to "Strongly Agree," with "Neither Agree nor Disagree" positioned in the center The options are as follows: 1) Strongly Disagree, 2) Disagree, 3) Neither Agree nor Disagree, 4) Agree, and 5) Strongly Agree.
The questionnaire was originally created in English and subsequently translated into Vietnamese to accommodate the local market, where English is not widely understood To ensure the accuracy and equivalence of meanings, a back-translation process was employed, allowing for a comparison between the original and Vietnamese versions This step was crucial for refining the questionnaire items as needed.
When conducting marketing research, it is crucial for researchers to grasp the concepts of scaling and measurement, ensuring they have a clear understanding of their objectives concerning target respondents (Malhotra and Birks, 2006) Measurement, as defined by Summers (1970), involves assigning numbers to observations or responses based on specific rules, which is essential for accurate data analysis.
Malhotra and Birks (2006) define measurement as the process of assigning numbers or symbols to distinguishable objects based on specific rules, emphasizing that the establishment of these rules is crucial For effective measurement, marketing researchers must create clear operational definitions of the concepts they intend to measure Additionally, theory is integral to measurement, as it underpins the entire process; without a theoretical framework, measurement cannot occur (Malhotra and Birks, 2006).
Parasuraman (1991) emphasized that the initial step in creating a measurement tool for marketing research is to establish an appropriate response scale that accurately utilizes the gathered data Furthermore, Malhotra and Birks (2006) contended that the process of scaling plays a crucial role in this development.
Scaling is an essential process in measurement, particularly in research projects where respondents' feedback is collected In this study, a Likert scale was utilized for the questionnaire, as it is a popular rating tool that allows participants to express their level of agreement or disagreement with various statements related to the stimulus objects (Miller and Salkind, 2002) The Likert scale effectively measures respondents' attitudes toward products, making it straightforward to construct, administer, and comprehend Data on brand equity dimensions and six selected promotional activities were gathered through a survey questionnaire, with the complete measurement details presented in the following table.
Table 3.1 presents the measurement scale used in the study The questionnaire was crafted to encompass all constructs of the conceptual model, aiming to test the hypotheses The questions were formulated based on prior theoretical discussions (refer to Appendix A).
I can recognize Trung Nguyen Coffee quickly among other competing brands
BAW2 Some characteristics of Trung Nguyen
Coffee come to my mind quickly
I am familiar with Trung Nguyen Coffee and know what it‟s logo look like
BAW4 When refer to premium roasted coffee,
I think of Trung Nguyen Coffee first
Association BAS1 Trung Nguyen Coffee is a premium coffee brand
Trung Nguyen Coffee has very unique brand image, compared to competing brands
BAS3 I like and trust the company, which creates Trung Nguyen Coffee
I am impressed with Trung Nguyen Coffee‟s customers for the same interest of using Trung Nguyen Coffee
BAS5 I‟d like to be Trung Nguyen Coffee‟s customer because I like its style
I‟d like to be Trung Nguyen Coffee‟s customer because I like its advertisements
PQU1 Trung Nguyen Coffee‟s products have very good tastes
Trung Nguyen Coffee‟s products are diverse and very well designed and decorated
PQU3 Trung Nguyen Coffee‟s employees work quickly and neatly
PQU4 Trung Nguyen Coffee‟s employees are courteous and professional
Trung Nguyen Coffee shops have nice and reasonable decoration and interior design
PQU6 Trung Nguyen Coffee shops have good and modern facilities
PQU7 Trung Nguyen Coffee shops have relaxed and friendly atmosphere
PQU8 Trung Nguyen Coffee‟s quality is well worth for money
PQU9 I highly appreciate Trung Nguyen
Coffee brand for its quality
BLO1 Trung Nguyen Coffee is always my first choice
BLO2 I consider myself to be loyal to Trung
I will go to other coffee brands if Trung Nguyen Coffee closed or has no seats for available
I will say good things about and recommend Trung Nguyen Coffee for my friends and my relatives
BLO5 I will go to Trung Nguyen Coffee more often
BLO6 I will buy many of other products of
BEQ1 I like Trung Nguyen Coffee 5 points
Trung Nguyen Coffee is a prestige brand for high quality and good services
Trung Nguyen Coffee is the leading brand in premium roasted coffee market in Vietnam
Even if another coffee brand has the same products, style and features as Trung Nguyen Coffee, I would prefer to buy Trung Nguyen Coffee
If there is another coffee brand as good as Trung Nguyen coffee, I would prefer to buy Trung Nguyen coffee
Sampling
The study aims to examine the impact of brand equity dimensions on Trung Nguyen Coffee's brand equity, focusing on Vietnamese customers in Ho Chi Minh City, Vietnam's primary commercial hub The population of the study consists of all units of analysis relevant to this investigation, as defined by Davis (2000) An empirical study will be conducted in the Ho Chi Minh market to test the proposed theoretical model.
The sample size for this study is 258, which exceeds the recommended minimum ratio of 5:1 for subjects to variables in Exploratory Factor Analysis, as advised by Gorsuch (1983) and Hatcher (1994) With 30 variables, the ratio achieved is over 8:1, indicating a strong sample size Comfrey and Lee (1992) provide a scale for evaluating sample size suitability, categorizing 50 as very poor, 100 as poor, 200 as fair, and 300 as good Thus, a sample size of 258 is deemed appropriate for this research.
This study employs convenience sampling due to constraints in time, budget, and human resources This method allows researchers to select participants based on their accessibility, enabling easier interaction with the subjects involved.
Moreover, the population in this study is unknown, so Convenience Sampling is the most feasible.
Pilot test
The data gathering stage of the research process begins with pilot testing, which serves as a trial run for the techniques and instruments intended for use This testing identifies weaknesses in design and instrumentation while providing proxy data for selecting a probability sample According to Cavana et al (2001), it is essential to pilot a questionnaire with a representative sample from the target population In this research, a pilot test was conducted with 20 participants to evaluate the clarity and relevance of the questions Before responding, each participant was informed about the purpose of the questionnaire and assured of their anonymity.
The findings indicate that the questionnaire features clear and straightforward language, allowing customers to easily comprehend and respond without confusion Its multiple-choice format enhances convenience and minimizes the time required for completion, effectively encouraging respondents to engage Consequently, the questionnaire meets the necessary criteria for quality, paving the way for the subsequent phase of the research.
Data collection
The survey targeted Trung Nguyen Coffee customers in Ho Chi Minh City, utilizing both printed and online questionnaires to gather responses Initially, printed questionnaires were distributed directly to customers and collected immediately after completion Simultaneously, an online version was sent via email, maintaining the same structure and questions To enhance outreach, a snowball sampling technique was employed, where initial respondents were encouraged to share the questionnaire with their social networks, including friends and family A total of approximately 300 questionnaires were distributed, with data collection taking place over a two-week period.
The research is mainly conducted at four office building Saigon Trade Center, Saigon Center, Bitexco Financial Tower, Centec Tower in Hochiminh City
The sources of secondary data are from published articles, books, research papers, web pages and online newspapers, etc.
Data analysis
Data analysis involves summarizing and reorganizing data through a series of interrelated procedures It utilizes statistical methods to interpret and represent raw data effectively Various software options are available for conducting business analysis, with the Statistical Package for the Social Sciences (SPSS) being a prominent choice in this research.
SPSS 20.0 is an effective statistical software for beginners in quantitative research within the business field, offering user-friendly features that facilitate the learning of more advanced statistical tools (Harvard-MIT Data Center, 2009) The survey data collected was analyzed using various statistical techniques.
Descriptive statistics is the process of converting raw data into a format that effectively summarizes and describes key factors in a given situation It includes the calculation of frequencies, measures of central tendency, and dispersion, providing valuable insights into the data set.
Reliability testing is essential in research, and Cronbach's alpha serves as a key reliability coefficient that measures the degree of correlation among items in a set, as noted by Cavana et al (2001) This coefficient ranges from 0 to 1, with Bryman and Cramer (1990) suggesting that a value of 0.8 or higher indicates strong reliability However, Nunnally (1978) argues that a value of 0.6 or above is acceptable for preliminary studies, highlighting the flexibility in assessing reliability in initial investigations.
Factor analysis is a statistical method that evaluates how respondents answer opinion items, allowing researchers to group related items into specific factors or clusters (Cavana et al, 2001) This technique effectively reduces data dimensions to better fit various contexts In this study, factor analysis is employed to identify the key factors that influence customer-based brand equity.
Regression analysis investigates the impact of multiple independent variables on a dependent variable measured on an interval scale This method is utilized to determine the extent to which various dimensions of brand equity, from the customer’s perspective, account for the variance in overall brand equity.
DATA ANALYSIS & DISCUSSIONS
Respondent demographic profile
Demographic questions offer valuable insights into the characteristics and preferences of Trung Nguyen Coffee's customers This analysis categorizes respondents by key factors such as gender, age, profession, and income, identifying potential customer segments for Trung Nguyen Coffee Additionally, the research examines varying opinions among these subgroups, providing a comprehensive understanding of the customer base.
A total of 300 questionnaire surveys were distributed to respondents in Ho Chi Minh City, resulting in 238 valid responses after data editing The collected data was analyzed using SPSS software.
Table 4.1 illustrates the gender distribution of respondents in the questionnaire survey, revealing that 41.6% of participants were male, while 58.4% were female.
According to table 4.1 also, there have 9.24% of respondents are below 20 years old, 77.73% within 21-35 years old, 11.77% who around 36-50 years old and 1.26% who are above 50
In this study, the majority of respondents are officers, comprising 50.84% of the sample, indicating a strong presence of self-employed individuals within departments and offices Additionally, 38.24% of participants are workers, highlighting a significant employment rate among the surveyed group Conversely, students represent a minimal portion at just 1.26%, while there are no Trung Nguyen Coffee customers classified as "other," accounting for 9.66% Given that Trung Nguyen Coffee targets middle-class consumers, particularly officers and workers, the sample effectively reflects the population relevant to this research.
The analysis of Trung Nguyen Coffee's customer income levels reveals that 43.28% of respondents, primarily office workers, earn between 10 million and 20 million VND per month Conversely, only 13.44% of customers belong to the lowest income bracket of less than 5 million VND, while 27.31% earn between 5 million and 10 million VND, predominantly consisting of workers Additionally, approximately 15.97% of customers have an income exceeding 20 million VND.
4.1.2 Central tendencies measurement of construct
Descriptive statistics provide a quantitative summary of the characteristics of a sample and its variables As shown in Table 4.2, the minimum and maximum scores for each factor, along with the mean and standard deviation, confirm the accurate administration of these factors, with no invalid responses The mean serves to estimate the central tendency of the distribution, while the standard deviation measures the dispersion of the data A low standard deviation indicates that the data points are closely clustered around the mean, whereas a high standard deviation signifies that the data points are spread out over a wider range.
N Minimum Maximum Mean Std Deviation
The brand awareness (BAW) aims to measure the strength of the presence of Trung Nguyen Coffee brand in customers‟ minds
Brand association (BAS) evaluates how consumers perceive the significance of Trung Nguyen Coffee The perceived quality (PQU) aspect assesses customer satisfaction regarding the overall quality of the coffee Brand loyalty (BLO) measures the commitment of customers to repurchase or continue patronizing Trung Nguyen Coffee Additionally, brand equity (BEQ) reflects the value that customers associate with the brand, gauged through their agreement on various statements using a scale from 1 to 5.
“strongly disagree” to “strongly agree”
4.2 Evaluation and refinement of measurement scale
Zikmund (2003) defines reliability as the degree to which measures are free from errors, as a consequence, yield consistent result
The reliability analysis conducted using SPSS software assesses the independent variables of brand awareness, brand association, perceived quality, and brand loyalty, alongside the dependent variable of brand equity.
The Cronbach‟s Alphas were computed to modify the internal reliability of measuring instruments For this research, reliability test includes 238 respondents
As the following information, the research will clarify more specific about Cronbach‟s Alpha for the actual test
The reliability test results indicate a Cronbach's alpha of 0.809 for brand awareness, surpassing the 0.6 threshold This high value confirms the internal consistency of the measurement set, demonstrating a strong relationship among the four factor items within this dimension.
Removing items from the scale does not enhance Cronbach's alpha, confirming that the scale is well-constructed and effectively represents the brand awareness dimension.
Table 4.3 also explains that the Cronbach‟s alpha for brand association is 0.876 which is greater than 0.6, means brand association has the high category of reliability
Removing items does not enhance the value of Cronbach's alpha, confirming that the scale is well-constructed and effectively represents the brand awareness dimension.
Table 4.3 shows that the Cronbach's alpha for brand awareness is 0.915, exceeding the acceptable threshold of 0.6 This high reliability score confirms the internal consistency of the measurement set, indicating a strong relationship among the four factor items within this dimension.
The component "PQU2" exhibits the lowest corrected item-total correlation, while the overall scale demonstrates a Cronbach's Alpha of 0.915 Notably, if "PQU2" is removed, the Cronbach's Alpha increases to 0.924, indicating a slight improvement in the overall reliability of the components.
“PQU2”, value of the new Cronbach‟s alpha will be 0.924
Table 4.3 explains that the Cronbach‟s alpha for brand loyalty is 0.880 which is greater than 0.6; that means brand loyalty has the high category of reliability
The fact that removing any item does not enhance the current value of Cronbach's alpha indicates that the scale is effectively designed, demonstrating that the factor items adequately represent the measurement of brand loyalty.
Table 4.3 indicates that the Cronbach's alpha for brand equity is 0.877, exceeding the threshold of 0.6, which signifies a high level of reliability Consequently, all items on the scale are retained.
Hypothesis testing
The multiple regression analysis was applied to determine the significant relationships between independent variables and dependent variable
The R square value of 0.271 in the model summary indicates that the independent variables—perceived quality, brand loyalty, and brand association—explain only 27.1% of the variation in brand equity This suggests that a significant 72.9% remains unexplained, highlighting the presence of additional variables that are crucial for understanding brand equity but were not addressed in this study.
Std Error of the Estimate
The analysis reveals that the model has achieved statistical significance, with an ANOVA significance value of 0.000 (p
