BACKGROUND
Introduction
Brand equity plays a crucial role in providing sustainable competitive advantages for a brand A brand with strong equity is more likely to be chosen by consumers, leading to increased purchase frequency and enhanced customer loyalty (Pitta and Katsanis, 1995).
Moreover, brand equity has strong relationship with marketing communication From various study, importance of brand equity are witnessed
Brand equity is crucial for companies as it offers numerous advantages, including serving as a source of sustainable competitive advantage (Bharadwaj et al., 1993; Hoffman, 2000) A strong brand equity fosters brand loyalty, leading to increased selection and purchase frequency (Pitta and Katsanis, 1995) Additionally, robust brand equity enhances the potential for brand extension into new product categories, enabling companies to leverage established brand names to attract consumers (Aaker and Keller, 1990).
Numerous studies highlight the significant role of brand equity in enhancing the effectiveness of marketing communication strategies (Barwise, 1993; Farquhar et al., 1991; Keller, 1993; Keller, 1998; Pitta and Katsanis, 1995; Simon and Sullivan, 1993; Smith and Park, 1992; Yoo et al., 2000) It not only boosts consumers' willingness to pay a premium price for a brand but also influences their price elasticity, increasing responsiveness to price reductions while decreasing sensitivity to price hikes Additionally, strong brand equity fosters collaboration and support from distribution channels, while also mitigating a company's vulnerability to competitive marketing efforts and potential crises.
Despite recognizing the significance of brand equity, managers in Vietnam's growing body lotion market have inadequately invested in its development Leading advertisers, Unilever and Beiersdorf, are heavily competing in advertising and sales promotions; however, they lack research on how marketing communication elements affect brand equity Over the past two years, there has been a heavy reliance on sales promotions to boost short-term sales, potentially neglecting the long-term impact on brand equity Furthermore, there is a lack of a clear communication strategy aimed at enhancing brand equity Thus, it is essential to investigate the relationship between marketing communication elements and brand equity dimensions.
Research Objectives
This research aims to examine how marketing communication factors influence the elements of brand equity In Vietnam's emerging market, building brand equity is crucial for major advertisers' communication strategies, making this a highly relevant topic in management today Additionally, the study serves as a foundation for future research on the relationship between the marketing mix and brand equity.
Research methodology and scope
The research focuses on the dynamic market of Ho Chi Minh City (HCMC), which accounts for a significant 80% of sales for each key brand, according to the AC Nielsen Market Retail Audit 2010.
Key brands are defined as brands with satisfying one of following criteria:
The brand is the market leading in the body lotion category or
The brands have long heritage in Vietnam market and have influence on the market or
The brand have been active in marketing activities like adverting, promotion, etc or
The brands that have high chance of consideration when making buying decision
This study is conducted by two steps: (1) qualitative study and (2) quantitative study
A qualitative study was conducted by analyzing secondary data and conducting in-depth interviews with current users and brand managers in the cosmetic industry This approach aims to confirm the key drivers of marketing communications and refine the measurement scales for more accurate insights.
A quantitative study is performed through face-to-face interviews conducted at consumers' homes The next phase involves reconfirming the components and measurement scales, as well as testing the research model To analyze the collected data, methods such as Cronbach’s alpha, Exploratory Factor Analysis (EFA), and multiple regression are employed.
Managerial implications
The research findings will provide managers with a comprehensive understanding of the key elements of marketing communication and their impact on brand equity within the body lotion market This insight will enable brand managers to develop effective marketing communication strategies that enhance brand value.
Structure of the research report
This article is structured into five chapters: Chapter 1 provides the study's background, while Chapter 2 reviews literature on brand, brand equity, and outlines the research model and hypotheses Chapter 3 details the research methodology and measurement scales employed Chapter 4 focuses on the data analysis process and presents the study's results Finally, Chapter 5 summarizes the key findings, discusses their implications for management, addresses research limitations, and offers recommendations for future studies.
LITERATURE REVIEW AND RESEARCH MODEL….7 2.1 Introduction
Brand equity
Brand equity refers to the collection of assets and liabilities associated with a brand that influence its value in the eyes of customers Aaker (1991, 1996) describes brand equity as a multidimensional concept encompassing perceived quality, brand awareness, brand loyalty, brand associations, and proprietary assets Supporting Aaker's framework, Shocker and Weitz (1998) highlight the importance of brand loyalty and associations, while Keller (1993) emphasizes brand knowledge, which includes awareness and image Additionally, Lasscar et al (1995) identify five key elements of brand equity: perceived quality, perceived value, brand image, trustworthiness, and brand commitment.
Brand awareness is a crucial aspect of consumer behavior, reflecting the strength of a brand's presence in memory It encompasses two key components: brand recognition and brand recall Brand recognition involves consumers' ability to identify a brand they have previously encountered, while brand recall pertains to their capacity to retrieve the brand from memory without any cues Understanding these elements is essential for effective brand management and marketing strategies.
Perceived quality, as defined by Zeithaml (1988), refers to the consumer's subjective assessment of a product's overall excellence or superiority, influenced by personal experiences, individual needs, and specific consumption contexts A high level of perceived quality signifies that consumers recognize a brand's differentiation and superiority, often stemming from long-term experiences with it Furthermore, Zeithaml emphasizes that perceived quality is a vital component of brand value, leading consumers to prefer a brand over its competitors Consequently, as consumers perceive higher brand quality, brand equity is likely to increase.
Brand loyalty, as defined by Oliver (1997), is a strong commitment to consistently repurchase a preferred product or service, regardless of external influences or marketing efforts that may encourage switching This loyalty leads consumers to regularly choose the same brand, thereby resisting the temptation to switch to competitors As a result, increased brand loyalty contributes to the growth of brand equity.
Brand associations, as defined by Aaker (1991), encompass all elements linked to a brand in a consumer's memory, while brand image represents a meaningful collection of these associations High brand awareness through positive brand associations enhances brand equity, serving as indicators of quality and commitment This connection influences consumer decision-making at the point of purchase, ultimately fostering favorable behavior towards the brand.
Vietnamese female consumers exhibit distinct behaviors in the body lotion market, characterized by strong brand recognition and a consistent purchasing process This highlights three key components of brand equity: brand awareness, perceived quality, and brand loyalty High brand equity enables consumers to identify and differentiate brands, associate them with superior quality, and foster loyalty within the body lotion category.
This study focuses on the components of brand equity, specifically examining the positive relationships identified by Yoo et al (2000) and other researchers, which include brand name, brand loyalty, perceived quality, and brand awareness/associations, without delving into how each component individually contributes to the overall increase in brand equity.
Brand equity is a crucial strategic element in marketing management, as it can be developed, sustained, and enhanced by focusing on its key components Research indicates that marketing communication elements significantly influence brand equity, highlighting the importance of effective messaging in building brand strength.
This study focuses on exploring how marketing communication increase or decrease brand equity Hence, the following part of this chapter concentrates on theoretical framework on marketing communication
The elements of marketing communication
Based on insights from prior qualitative research conducted at Beierdoft Company, three essential components of marketing communication have been identified as pivotal in enhancing brand equity, commonly employed by major cosmetic companies in Vietnam.
This research focuses on three key elements of marketing communication in the Vietnamese cosmetic industry: advertising spending, field support activities, and sales promotion While these factors do not encompass the entirety of marketing strategies employed by cosmetic companies, they are among the most frequently utilized actions Understanding the impact of these marketing activities on brand equity is crucial for marketing managers, as it allows them to formulate effective marketing programs By promoting brand-building initiatives and minimizing activities that could harm brand equity, managers can enhance their brand's overall value (Yoo et al., 2000).
Advertising is a paid, non-personal communication method used to promote ideas or products across both traditional media (such as TV, print, radio, cinema, and out-of-home) and non-traditional media (like the Internet) Research by Jobber (2001) and others suggests that advertising spending effectively builds brand awareness by reaching a mass audience quickly and reinforcing brand positioning through repetition While advertising can enhance sales efforts by legitimizing a company and its products, it remains impersonal and has limited ability to directly close sales.
Research by Simon and Sullivan (1993) indicates that advertising expenditure positively influences brand equity Additionally, Cobb-Walgren et al (1995) found that the amount invested in advertising significantly enhances both brand equity and its key components.
In the Vietnamese market, Unilever Vietnam and Procter & Gamble (P&G) have significantly invested in advertising over the past decade, allocating billions of dollars to enhance their brand presence in this emerging market According to Kantar Media (2010), this substantial advertising expenditure highlights its critical role as a key driver in effectively building brand equity in Vietnam.
Research by Yoo et al (2000) highlights a positive correlation between advertising expenditure and brand loyalty Similarly, Shimp (1997) supports this finding, indicating that increased advertising spending enhances brand-related associations and attitudes Consequently, effective advertising plays a crucial role in fostering brand loyalty among consumers.
H1: Advertising spending positively affects brand awareness
H2: Advertising spending positively affects brand loyalty
H3: Advertising spending positively affects perceived quality of the brand 2.3.2 Field support activities
Field support activities involve direct technical assistance provided by cosmetic firms to consumers through market visits and meetings aimed at boosting sales These personal interactions allow for immediate question resolution, overcoming objections, and fostering relationship-building This two-way communication enables sales teams to better understand consumer needs and tailor their messaging effectively Additionally, well-crafted sales materials help representatives communicate product benefits and enhance the shopping atmosphere Consequently, these efforts contribute to increased brand awareness and perceived quality, encouraging proper product usage and fostering brand loyalty Thus, field support activities positively influence brand equity.
H4: Field support activities conducted for the brand positively affects brand awareness
H5: Field support activities conducted for the brand positively affects brand loyalty
H6: Field support activities conducted for the brand positively affects perceived quality of the brand
Sales promotion is an effort to stimulate product purchases by offering incentives to consumers and trade, but its excessive use can harm brand equity and be easily replicated by competitors Regular sales promotions can create a low-quality brand image in the long term, as they fail to generate lasting brand associations Moreover, frequent price discounts can confuse consumers about the correct price, leading to perceptions of poor brand quality and negatively influencing consumer brand choice decisions Additionally, sales promotions can cause brand switching, as consumers are drawn to the benefits but lose interest once the promotion ends, ultimately switching to another brand.
(2000) suggest that manager should focus on advertising spending to develop brand equity instead of offering price promotion.The following hypotheses are proposed: establish
H7: Sales promotion negatively affects brand awareness
H8: Sales promotion negatively affects brand loyalty
H9: Sales promotion negatively affects perceived quality of the brand.
Research Model
This research aims to investigate the connection between key elements of marketing communication and the components of brand equity The literature review highlights a direct correlation between marketing communication efforts and brand equity For clarity, the elements of marketing communication and the components of brand equity are categorized separately, with a simplified research model presented in Table 2.1.
Table 2.1: Structural model – Relationship between some key elements of marketing communication and brand equity
This chapter reviews the literature on brand equity and essential marketing communication elements It identifies three core components of brand equity: brand awareness, perceived quality, and brand loyalty Additionally, it highlights three key elements of marketing communication: advertising spending, field support activities, and sales promotion The chapter also presents a structural model that elucidates the relationship between these marketing communication elements and the fundamental components of brand equity.
The chapter on spending explores how various elements of marketing communication influence key components of brand equity, leading to hypothesized relationships The subsequent chapter outlines the research methodology employed to validate these measures and test the proposed hypotheses.
Introduction
This chapter outlines the research methodology employed to create measurement scales for evaluating the studied concepts and testing the hypotheses It encompasses three key components: (1) the research design, (2) the development of measurement scales, and (3) the execution of fieldwork.
Research design
This research was carried out in two phases: a qualitative study followed by a quantitative study The quantitative phase involved analyzing secondary data and conducting in-depth interviews with both regular consumers and brand managers The aim of this approach was to validate the key elements of marketing communication.
From March to May in Ho Chi Minh City, the measurement scales were adjusted and fine-tuned through a qualitative research process This involved initial personal contact via telephone calls and emails, followed by open-ended interviews that allowed interviewees to provide detailed responses To clarify any unclear information gathered during the interviews, follow-up communications were conducted through emails or informal meetings, and additional insights were obtained from brand managers Subsequently, a quantitative study was carried out using face-to-face interviews at consumers' homes from June to August in Ho Chi Minh City Data analysis was performed using Cronbach’s alpha, Exploratory Factor Analysis (EFA), and multiple regression methods, with the research progression outlined in Table 3.1.
Step Methodology Data collection technique Time Location
1 Qualitative Secondary data Mar-Apr 2011 HCM City
In-depth interview May 2011 HCM City
2 Quantitative Face-to-face interview Jun-Aug 2011 HCM City
The process of this study is structured in Table 3.2
Literature review and conceptual framework
Eliminate variables that have low Item-Total Correlation coefficients Check Cronbach’s alpha coefficients
Test convergent and discriminate validity Eliminate variables that have low EFA loadings Check eigen values and extraction Sums of Squared Loadings
This study evaluates the impact of essential marketing communication elements on brand equity by testing specific hypotheses It examines the adequacy of the multiple regression equation through the coefficient of determination (r²) and assesses its significance using the F-test Additionally, the significance of each regression coefficient is analyzed via the t-test, providing a comprehensive understanding of the relationships between marketing communication and brand equity.
Cronbach's alpha was utilized to assess the reliability coefficient for each component's items, with a threshold of 70 established as the minimum acceptable level for theory testing research (Nunnally & Bernstein, 1994) Following the guidance of Yoo et al (2000), items that did not significantly enhance reliability were excluded to maintain parsimony.
Exploratory Factor Analysis (EFA) is a set of procedures primarily utilized for data reduction and summarization This intricate, multi-step process often employs principal component analysis to condense information from numerous variables into weighted linear combinations The extraction of principal components involves a variance-maximizing (varimax) rotation of the original variable space, aimed at enhancing the variability of the new variable while minimizing variance around it Following these principles, EFA was performed using the varimax rotation technique alongside the principal component analysis extraction method.
The primary goal of Exploratory Factor Analysis (EFA) is to assess convergent and discriminant validity while removing variables with low EFA loadings It is essential to examine eigenvalues and the extraction sums of squared loadings during this process As stated by Kaiser (1960), only components with eigenvalues exceeding 1 should be retained for further analysis.
Multiple regression analysis was employed to evaluate the hypotheses within the research model The fitness of the multiple regression equation was assessed using the coefficient of determination (r²), while the significance of r² was tested through an F-test Additionally, the significance of each regression coefficient was examined using t-tests.
The questionnaire consists of four key sections: first, it identifies respondents; second, it assesses marketing communication elements such as advertising expenditure, field support activities, and sales promotions; third, it evaluates dimensions of brand equity, including brand awareness, perceived quality, and brand loyalty; and finally, it gathers demographic information from respondents.
Measurement scale development
The set of measurement scales were developed based on (1) the literature review in Chapter 2, and (2) recommendations from other authors (Yoo et al., 2000; Martin,
2000) All items were measured on 5-points Linkert-type scales, with anchors of 1
= strongly disagree and 5 = strongly agree The first set of measurement scales (draft measurement scales) was developed and taken to in-depth interviews
Measurement scales are tailored to fit the consumer and body lotion markets Through comprehensive interviews with both regular consumers and brand managers in the cosmetics industry, the initial measurement scales have been refined into a final version This paper will further elaborate on the developed final measurement scales.
Brand awareness (BA) will be assessed through four observed variables (BA1 to BA4), each representing key factors that contribute to overall brand recognition A comprehensive list of these variables is detailed in Table 3.3 of this research.
Table 3.3: Measurement scales for brand awareness
BA2 I can recognize X among other competing brands
BA3 I can easily distinguish X from other body lotion brands
BA4 The characteristics of X can come to me very quickly
Perceived quality refers to a consumer's subjective assessment of a product's excellence (Zeithaml, 1998) According to Yoo et al (2000), it is essential to evaluate a consumer's overall judgment of a brand's quality rather than focusing on specific quality components.
The measurement scales for perceived quality have been refined to encompass five observation variables, labeled PQ1 to PQ5 A comprehensive list of these variables utilized in the research on perceived quality is available in Table 3.4.
Table 3.4: Measurement scales for perceived quality
PQ1 X provides high efficacy in the body lotion category
PQ2 X helps my skinsmooth and whiten
PQ3 X helps to protect my skin
PQ4 X is very easy to apply for my skin
PQ5 Packaging of X looks very attractive
Brand loyalty refers to a strong commitment to consistently repurchase a preferred product or service, regardless of external influences or marketing tactics that may encourage switching (Oliver, 1997) To assess perceived quality, Yoo et al (2000) identified three key variables (BL1, BL3, and BL6), while qualitative research also highlighted three additional variables (BL2, BL4, and BL5) A comprehensive list of the variables utilized in this study on brand loyalty is detailed in Table 3.5.
Table 3.5: Measurement scales for brand loyalty
BL1 X is my first choice
BL2 I will definitely use X again
BL3 I will not buy other body lotion brands if X is available at the store
BL4 If X is not available at the store I will go to another store to find
BL5 I will recommend X to others
BL6 I think I am a loyal consumer of X
3.3.4 Measurements of attitudes toward advertising spending
Yoo et al (2000) recommend that controlling actual marketing efforts in research may not be feasible; instead, perceived marketing efforts significantly influence consumer psychology more directly than the actual marketing efforts themselves.
This study explores consumer attitudes towards advertising expenditures, field support initiatives, and sales promotions related to body lotion brands, focusing on perceived rather than actual marketing elements.
The full list of measurement scales used in this research for advertising can be found in Table 3.6
Table 3.6: Measurement scales for attitudes toward advertising spending
AD1 In general, I think advertising spending of X are very appeal for me
AD2 I mainly know about X through seeing advertisements
AD3 In general, I like the advertisements of X brand
AD4 In general, the advertising spending campaigns for X brand make me think that X is a high quality product
AD5 I think X brand is intensively advertised, compared to other brands in the category
3.3.5 Measurements of attitudes toward field support activities
The attitudes of consumers towards field support activities are assessed using five indicators, labeled from FS1 to FS5, similar to the scales employed for measuring advertising effects A comprehensive list of the measurement scales utilized in this research for field support activities is available in Table 3.7.
Table 3.7: Measurement scales for attitudes toward field support activities
FS1 In general, I think field support activities of X is very good
FS2 I mainly know about X through field support activities
FS3 In general, I like the field support activities X brand
FS4 In general, field support activity for X brand makes me think that X is a high quality product
FS5 I think X brand is intensively provided field support activities, compared to other brands in the category
3.3.6 Measurements of attitudes toward sales promotion
Consumer attitudes toward sales promotions are evaluated using five key indicators, designated as SP1 to SP5, similar to the scales employed for measuring advertising effects A comprehensive list of the measurement scales utilized in this research on sales promotions is presented in Table 3.8.
Table 3.8: Measurement scales for attitudes toward sales promotion
SP1 In general, I think sales promotion of X is very interesting
SP2 I mainly know about X through sales promotion
SP3 In general, I like to join sales promotion campaigns of X brand
SP4 In general, sales promotions for X brand make me think that X is a high quality product
SP5 I think sales promotion for X brand is more often than other brands in the category
Field work
To be selected, brands must fulfill at least one of the following criteria: they should be market leaders in the body lotion category, possess a long-standing heritage in the Vietnamese market, actively engage in marketing activities such as advertising and promotions, or have a high likelihood of being considered during purchasing decisions Qualitative research identifies three brands that meet these criteria: Nivea, Hazeline, and Vaseline, which collectively account for nearly 90% of the body lotion market share (Source: AC Nielsen Market Retail Audit, 2010).
The simple random method is utilized in fieldwork, with exploratory factor analysis (EFA) and multiple regression methods employed for data analysis EFA relies on the correlation matrix of the variables, which requires a sufficiently large sample size for stability A common guideline suggests a minimum of 50 observations and at least five times as many observations as variables Recommendations for the sample size to variable ratio range from 2:1 to 20:1, with some experts advocating for a minimum sample size of 100 to 200 observations (Guadagnoli and Velicer, 1988) Their research indicated that the absolute sample size is more crucial than relative functions in achieving stable solutions Given that there are thirty observed variables, the sample size should be at least n.
To determine the sample size for multiple regression models, Tabachnik and Fidell (1989) recommend the formula N ≥ 50 + 8m, where m represents the number of independent variables In this case, with three independent variables, the minimum sample size required is N = 50 + 8 × 3, resulting in a total of at least 74 participants.
Taking above literature on minimum sample size required for EFA and multiple regression analysis together with time and budget constrain into consideration, this study selects the sample size n = 170
The primary goal of this study is to analyze consumer attitudes regarding marketing communication strategies and brand equity components The research focuses on female body lotion users aged 15 to 39 residing in Ho Chi Minh City.
Summary
This chapter outlines the research methodology employed to create measurement scales for the studied concepts and to test the hypotheses The research is carried out in two phases: a qualitative study followed by a quantitative study The qualitative phase utilizes in-depth interviews, with 170 face-to-face interviews conducted in consumers' homes in Ho Chi Minh City A total of thirty observed variables are identified to assess six latent variables, and details regarding the sampling method and sample selection are also provided.
Chapter 4 presents the methods for data analysis This study uses Cronbach’s alpha, Exploratory Factor Analysis (EFA) and multiple regressions methods to analyze the data and test the research model After all, the research results are interpreted and conclusions on hypotheses are provided
H1: Advertising spending positively affects brand awareness
H2: Advertising spending positively affects brand loyalty
Advertising expenditures enhance the perceived quality of a brand, while field support activities significantly boost brand awareness, loyalty, and overall perceived quality.
H7: Sales promotion negatively affects brand awareness
H8: Sales promotion negatively affects brand loyalty
H9: Sales promotion negatively affects perceived quality of the brand
AD1 In general, I think advertising spending of X are very appeal for me AD2
I mainly know about X through seeing advertisements
In general, I like the advertisements of X brand
The advertising campaigns for X brand suggest that it is a high-quality product, as they are more intensive compared to other brands in the same category.
FS1 In general, I think field support activities of X is very good
FS2 I mainly know about X through field support activities
FS3 In general, I like the field support activities X brand
In general, field support activity for X brand makes me think that
I think X brand is intensively provided by the field support activities, compared to other brands in the category
SP1 In general, I think sales promotion of X is very interesting
SP2 I mainly know about X through sales promotion
In general, I like to join sales promotion campaigns of X brand
In general, sales promotions for X brand make me think that X is a high quality product
SP5 I think sales promotion for X brand is more often than other brands in the category BA1 I am aware of X
BA2 I can recognize X among other competing brands
BA3 I can easily distinguish X from other body lotion brands
BA4 The characteristics of X can come to me very quickly
PQ1 X provides high efficacy in the body lotion category
X helps my skin smooth and whitening
X helps to protect my skin PQ4 X is very easy to apply for my skin
PQ5 Packaging of X looks very attractive
BL3 I will not buy other body lotion brands if X is available at the store BL4
If X is not available at the store I will go to another store to find
I will recommend X to others BL6 I think I am a loyal consumer of X
RESEARCH RESULTS
Introduction
This session check measure reliability and show results through EFA and multiple regression
A total of 170 questionnaires were distributed to body lotion users, and after collecting the responses, they were thoroughly reviewed The findings revealed that 86% of the participants were aged between 20 and 34 years, while 80% reported a monthly income of at least VND 4 million These results are detailed in Table 4.1.
Advertising spending (AD) demonstrates a strong reliability with a Cronbach’s alpha of 821, exceeding the acceptable threshold for reliability coefficients Additionally, all item-total correlation values are above 58, confirming the validity of these items for subsequent analysis.
Field support activities (FS) demonstrate a strong reliability coefficient with a Cronbach’s alpha of 854, exceeding the acceptable threshold Additionally, all item-total correlation values are above 0.57, confirming that all items are suitable for further analysis.
Sales promotion (SP) demonstrates a strong reliability coefficient with a Cronbach’s alpha of 852, exceeding the acceptable threshold Additionally, all item-total correlation values are above 0.53, confirming their significance for further analysis.
Brand awareness (BA) demonstrates a high reliability coefficient with a Cronbach’s alpha of 840, indicating strong internal consistency Additionally, all item-total correlation values exceed 0.58, confirming the suitability of all items for further analysis.
Perceived quality (PQ) demonstrates a high reliability coefficient with a Cronbach’s alpha of 850, indicating strong internal consistency Additionally, all item-total correlation values exceed 0.58, confirming the validity of the items, which were thus retained for further analysis.
Brand loyalty (BL) demonstrates strong reliability with a Cronbach’s alpha of 842, exceeding the acceptable threshold for reliability coefficients Additionally, all item-total correlation values are above 0.48, confirming the retention of all items for subsequent analysis.
As the result of Cronbach’s alpha analysis, 30 items were retained for coming analysis which is exploratory factor analysis The Cronbach’s alpha coefficient is showed in table 4.2
Table 4.2: Cronbach’s Alpha coefficient for the used measurement scales
Exploratory factor analysis (EFA)
The initial Exploratory Factor Analysis (EFA) involved three criteria factors applied to 15 independent variables, yielding a KMO value of 0.850 The analysis revealed that three components could be extracted, with eigenvalues of 1.505, in accordance with Kaiser’s criteria.
(1960), only components with eigenvalues greater than 1 should be maintained The total variant extracted was 63.686% The result of the first EFA analysis is presented in table 4.3 and 4.4
The analysis utilized three key components to derive three new independent variables The first component, encompassing five observed variables related to Field Support Activity (FS1, FS2, FS3, FS4, FS5), resulted in the creation of the variable TBFS, with scores exceeding 0.64 The second component, which included five observed variables associated with Sales Promotion (SP1, SP2, SP3, SP4, SP5), led to the establishment of the variable TBSP, with scores greater than 0.56 Lastly, the third component comprised five observed variables concerning Advertising Spending (AD1, AD2, AD3, AD4, AD5), resulting in the new variable TBAD, with scores surpassing 0.62.
The second exploratory factor analysis (EFA) was performed using a factor criterion of three components for 15 dependent variables, yielding a KMO value of 820 This analysis revealed the extraction of three components with eigenvalues of 1.363, accounting for a total variance of 64.065% The findings from the initial EFA analysis are detailed in Tables 4.5 and 4.6.
The analysis involved the computation of three key variables derived from distinct components The first component, encompassing six observed variables of Brand Loyalty (BL1, BL3, BL4, BL6, BL5, BL2) with scores exceeding 0.6, was designated as TBBL The second component consisted of five observed variables of Perceived Quality (PQ2, PQ1, PQ4, PQ3, PQ5) that achieved scores greater than 0.67, resulting in the new variable TBPQ Finally, the third component included four observed variables of Brand Awareness (BA2, BA4, BA1, BA3) with scores above 0.6, which was named TBBA.
The six new variables were used in multiple regression analysis in the next step The new variables were summarized in the table 4.7
Table 4.3: Total Variance Explained – elements of marketing communication
Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Extraction Method: Principal Component Analysis
Table 4.4: Rotated Component Matrix(a) – elements of marketing communication
Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization.a Rotation converged in 5 iterations
Table 4.5: Total Variance Explained – elements of brand equity
Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Extraction Method: Principal Component Analysis
Table 4.6: Rotated Component Matrix(a) – elements of brand equity
Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 5 iterations
The article discusses various features and components, including FS1 through FS5, SP1 through SP5, AD1 through AD5, BL1 through BL6, PQ1 through PQ5, and BA1 through BA4 Each section highlights distinct functionalities and benefits, emphasizing the importance of these elements in enhancing user experience and overall performance By integrating these components effectively, the article illustrates how they contribute to a cohesive system that meets diverse needs and expectations.
Examination research model by multiple regression
4.5.1 Examination the effects of advertising spending, field support activities and sales promotion on brand awareness
In Chapter 2, there were three hypotheses defined for the relationship between advertising spending, field support activities, sales promotion and brand awareness These hypotheses are followed:
H1: Advertising spending for the brand positively affects brand awareness
H4: Field support activities conducted for the brand positively affects brand awareness
H7: Sales promotion for the brand negatively affects brand awareness
Multiple regression was used to test these three hypotheses The new independent variables (TBAD, TBFS, TBSP) against brand awareness (TBBA) was reported in Table 4.8, 4.9 and 4.10
The Model Summary table indicates a correlation coefficient (R) of 624, highlighting the relationship between advertising spending, field support activities, and sales promotions with brand awareness, considering their inter-correlations Additionally, the R Square value of 389 represents the explained variance, derived from the square of the multiple R The ANOVA table further supports these findings.
F value of 35.291 is significant at the 000 level
The results show that 38.9% of the variance (R Square) in brand awareness has been significantly explained by the three selected elements of marketing communications
Table 4.10, titled "Coefficients," reveals the impact of three marketing communication elements on brand awareness variance Advertising spending shows the highest Beta value of 288, indicating that increased investment in advertising is essential for enhancing brand awareness, thus supporting hypothesis H1 Additionally, field support activities demonstrate a significant Beta of 265 at the 001 level, confirming hypothesis H4 Lastly, sales promotion has a Beta of -.212, significant at the 004 level, which supports hypothesis H7.
Table 4.8: Model Summary – Marketing Communication and Brand Awareness
Std Error of the Estimate
1 624(a) 0.389 0.378 0.55329 a Predictors: (Constant), TBSP, TBAD, TBFS
Table 4.9: ANOVA (b) – Marketing Communication and Brand Awareness
Model Sum of Squares df Mean Square F Sig
Total 83.228 169 a Predictors: (Constant), TBSP, TBAD, TBFS b Dependent Variable: TBBA
Table 4.10: Coefficients (a) – Marketing Communication and Brand Awareness
4.5.2 Examination the effects of advertising spending, field support activities and sales promotion on perceived quality
In Chapter 2, there were three hypotheses defined for the relationship between advertising spending, field support activities, sales promotion and perceived quality These hypotheses are followed:
H3: Advertising spending positively affects perceived quality of the brand
H6: Field support activities conducted for the brand positively affects perceived quality of the brand
H9: Sales promotion negatively affects perceived quality of the brand
Multiple regression was used to test these three hypotheses The new independent variables (TBAD, TBFS, TBSP) against perceived quality (TBPQ) was reported in Table 4.11, 4.12 and 4.13
The Model Summary indicates a correlation coefficient (R) of 522, reflecting the relationship between advertising spending, field support activities, and sales promotion with perceived quality, considering their inter-correlations The R Square value of 272 represents the explained variance, derived from the square of the multiple R Additionally, the ANOVA table provides further insights into the model's statistical significance.
F value of 20.693 is significant at the 000 level
The results show that 27.2% of the variance (R Square) in perceived quality has been significantly explained by the three selected elements of marketing communication
Table 4.13, titled Coefficients, reveals the influence of three marketing communication elements on perceived quality variance The Standardized Coefficients show significant Beta values for Advertising spending, Field support activities, and Sales promotion, all below the 05 threshold Notably, Advertising has the highest Beta value of 177, indicating that increased investment in advertising is essential for enhancing brand perceived quality, thus supporting hypothesis H3 Additionally, Sales promotion exhibits a significant Beta of -.290 at the 000 level, further validating hypothesis H9.
Table 4.11: Model Summary – Marketing Communication and Perceived Quality
Std Error of the Estimate
1 522(a) 0.272 0.259 0.59106 a Predictors: (Constant), TBSP, TBAD, TBFS
Table 4.12: ANOVA (b) – Marketing Communication and Perceived Quality
Model Sum of Squares df Mean Square F Sig
Total 79.679 169 a Predictors: (Constant), TBSP, TBAD, TBFS b Dependent Variable: TBPQ
Table 4.13: Coefficients (a) – Marketing Communication and Perceived Quality
4.5.3 Examination the effects of advertising spending, field support activities and sales promotion on brand loyalty
In Chapter 2, there were three hypotheses defined for the relationship between advertising spending, field support activities, sales promotion and brand loyalty These hypotheses are followed:
H2: Advertising spending positively affects brand loyalty
H5: Field support activities conducted for the brand positively affects brand loyalty
H8: Sales promotion negatively affects brand loyalty
Multiple regression was used to test these three hypotheses The new independent variables (TBAD, TBFS, TBSP) against brand loyalty (TBPQ) was reported in Table 4.14, 4.15 and 4.16
The Model Summary table reveals a strong correlation (R = 926) between advertising spending, field support activities, and sales promotion in relation to brand loyalty, accounting for all inter-correlations Additionally, the R Square value of 858 indicates that a significant portion of the variance is explained by these factors, as it represents the square of the multiple R The ANOVA table further supports these findings.
F value of 335.084 is significant at the 000 level
The results show that 85.8% of the variance (R Square) in brand loyalty has been significantly explained by the three selected elements of marketing communication
Table 4.16, titled "Coefficients," reveals the influence of three marketing communication elements on brand loyalty variance The standardized coefficients show that field support activities have the highest Beta value of 552, supporting hypothesis H5 Advertising spending also demonstrates significance with a Beta of 235, thereby supporting hypothesis H2 Additionally, sales promotion has a Beta of -.330, which is significant, confirming hypothesis H8 All Beta values are significant at levels below 05, indicating their relevance in the analysis.
Table 4.14: Model Summary – Marketing Communication and Brand Loyalty
Std Error of the Estimate
1 926(a) 0.858 0.856 0.2384 a Predictors: (Constant), TBSP, TBAD, TBFS
Table 4.15: ANOVA (b) – Marketing Communication and Brand Loyalty
Model Sum of Squares df Mean Square F Sig.
Total 66.568 169 a Predictors: (Constant), TBSP, TBAD, TBFS b Dependent Variable: TBBL
Table 4.16: Coefficients (a) – Marketing Communication and Brand Loyalty
Summary
This chapter explained methods for data analysis and research results There are total 30 variables for analysis All hypotheses are supported and reported in the table 4.17
The next chapter will concentrate on discussions and conclusions and limitations of this paper
Table 4.17: Hypothesis and research results
DISCUSSION AND CONCLUSION
Introduction
This study explores the relationship between three key components of marketing communication and the elements of brand equity within the body lotion category The findings are presented alongside their managerial implications, offering valuable insights for marketing managers Additionally, the session addresses the limitations of the research and provides recommendations for future studies in this area.
5.2 Marketing communication on elements and building brand equity
Brand equity is significantly influenced by factors such as brand name, brand loyalty, perceived quality, and brand awareness/associations (Yoo et al., 2000) Aaker (1997) emphasizes the importance of understanding these foundational dimensions of brand equity, as they are crucial for developing effective brand-leveraging strategies and preventing potential damage to the brand.
Advertising spending significantly enhances brand equity by increasing brand awareness and perceived quality among consumers Higher investments in advertising correlate with greater consumer loyalty, affirming findings from Yoo et al (2000) To effectively leverage brand equity, companies, especially in the competitive body care sector, must adopt strategic advertising approaches Managers should set clear objectives for each campaign and allocate budgets wisely, while also implementing a monitoring system to assess the impact of advertising on brand equity elements Regular quarterly reports on these metrics will enable proactive adjustments to advertising strategies, ultimately improving the Brand Equity Index (BEI) over time.
Field support activities significantly enhance brand equity by fostering direct interactions between cosmetic companies and consumers To effectively boost brand equity, it is essential for managers to strategically invest in and consistently implement these activities Such efforts include market visits, meetings, and the distribution of sales materials, all aimed at providing face-to-face technical support This two-way communication allows sales staff to better understand consumer needs and clearly explain product functions, such as the proper use of body lotion As consumers become more informed about the brand and recognize its quality, their satisfaction increases, leading to greater brand loyalty.
To enhance the effectiveness of field support activities, managers must prioritize organizing sales training sessions that enrich the knowledge, skills, and abilities of their sales forces A well-trained sales team is crucial for successfully implementing field support activities, ultimately leading to improved brand equity.
Sales promotions, while effective for short-term gains, can negatively impact brand equity by diminishing perceptions of quality, brand awareness, and customer loyalty Increased investment in sales promotions may lead to a decline in long-term brand equity, as evidenced by the body lotion market Frequent promotions can cause consumers to question the brand's quality, making them less likely to remain loyal Consequently, managers must exercise caution when implementing sales promotions and establish clear objectives to safeguard brand equity over time.
This study identifies several limitations that present opportunities for future research It focuses solely on the relationship between three elements of marketing communication and brand equity, leaving out other components of the marketing mix, such as price and distribution Additionally, the research only examines the one-way influence of marketing communication on brand equity, neglecting to explore how brand equity may affect communication elements Furthermore, it does not delve into specific advertising executions or field support activities that could enhance brand equity Future research is encouraged to address these gaps, providing valuable insights for managers in crafting effective marketing strategies.
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APPENDIX: Questionnaire for quantitative survey