INTRODUCTION
Background of the research
Vietnam, as a developing country, boasts a significant agricultural land capacity, comprising 39% of its total area and contributing 15% to the GDP in 2017 (Statista, 2020) According to Statista, the agriculture sector employs around 40% of the labor force, equating to approximately 20 million people in 2018 Within this sector, the coffee industry plays a crucial role in both domestic and international markets, with Vietnam consistently ranking as the world's second-largest coffee exporter.
In the early twentieth century, Vietnam saw the introduction of coffee during French colonization, leading to a rapid increase in coffee production, which became a vital agricultural product The first instant coffee plant was established in Dong Nai Province in 1969, with a manufacturing capacity of 80 tons per year Vietnam primarily produces two types of coffee beans: Robusta, which contains 1.6 to 2.7% caffeine, and Arabica, with 1 to 1.5% caffeine, resulting in a uniquely bitter and healthier coffee compared to global standards.
In the marketing year of 2018/2019, Vietnam's domestic coffee consumption reached 3 million bags, with experts predicting significant growth driven by intense competition among local and international coffee brands (Tran, 2019) This consumption represents about 10% of the country's total coffee production, indicating substantial potential for local coffee shops to expand Data from 2010 to 2018 highlights a consistent upward trend in coffee consumption among Vietnamese consumers, suggesting that domestic coffee consumption will continue to rise in the future.
Figure 1.1 Total domestic coffee consumption in Vietnam from 2010 to 2018
In recent years, Vietnam has witnessed a surge in newly-established coffee chains, which have gained a competitive edge by swiftly identifying target customers and implementing standardized management systems (Le, 2018) These professional brands are more effective at attracting consumers, contributing to the growing trend of coffee chains amidst the rise of e-commerce and delivery services While it is challenging to determine the exact number of independent coffee shops in Vietnam due to their sparse locations and short life cycles, leading coffee chain brands such as Highland Coffee, Starbucks, The Coffee House, and Trung Nguyen Coffee dominate the market in terms of store count and revenue.
Starbucks, the American coffee giant that established its presence in Vietnam in 2013, currently operates 60 locations primarily in Hanoi and Ho Chi Minh City Despite being positioned in the premium segment, Starbucks charges higher prices compared to local competitors like The Coffee House and Highland Coffee In contrast, domestic coffee chains offer a diverse range of products, including beverages and food, while providing secure Wi-Fi and a peaceful atmosphere, demonstrating their keen sensitivity to market trends and customer preferences.
Vietnam's rapid economic development is driving competition across various business and service sectors Major companies are investing significant financial resources to capture market share and increase revenue, even at the cost of short-term profits, particularly in the establishment of chain businesses This trend is exemplified by the rise of convenience stores throughout the country.
2010 2011 2012 2013 2014 2015 2016 2017 2018 markets, supermarkets, and food chains, the coffee chain market is among the fastest- growing sector in terms of the number of stores and revenue
In 2019, Euromonitor reported that Vietnam's chain coffee shop industry surpassed one billion USD, highlighting its significance amid rising living standards and urbanization By 2020, Statista noted that the hot drinks market in Vietnam generated revenue of 8.817 billion USD, with coffee leading the sector at 5.682 billion USD Additionally, a BMI Research report revealed a substantial increase in coffee consumption in Vietnam, rising from 0.42 kilograms per person annually in 2005 to 1.39 kilograms per person by 2020.
2015 Therefore, domestic coffee chains play a crucial part in the coffee market
In 2019, Euromonitor reported that the top five coffee chain brands captured 15.3% of the market share, with Highlands Coffee leading at 7.2% Among these prominent chains, Highlands Coffee, The Coffee House, and Starbucks generated the highest revenue Table 1.1 provides a detailed overview of the revenue and number of stores for leading coffee shop brands in Vietnam for that year.
Table 1.1 Leading coffee shops brand in Vietnam in 2019
Highlands Coffee The Coffee House Starbucks Revenue
Highlands Coffee and The Coffee House are Vietnamese brands competing against the foreign giant Starbucks, targeting middle-class consumers with pricing ranging from 30,000 to 60,000 VND This study focuses on these two local brands to gather empirical data, aiming to provide valuable insights into customer behavior that can benefit both Highlands Coffee and The Coffee House.
The coffee chain market in Vietnam reveals significant disparities between Hanoi and Ho Chi Minh City, particularly in the number of stores The Coffee House operates 32 locations in Hanoi compared to 88 in HCM City, while Highlands Coffee has 81 stores in Hanoi and 111 in HCM City This stark difference raises questions about potential variations in customer behavior between the two cities.
Highlands Coffee, founded by CEO David Thai in 1998, has become Vietnam's leading coffee chain, gaining significant brand recognition and investment after 2012 The company expanded from 50 stores in 2012 to 300 by 2019, thanks to its prime locations in bustling districts, comfortable ambiance, and high-quality products With a vision to globalize Vietnamese coffee, Highlands recently opened its first outlet in the Philippines As a long-standing leader in the Vietnamese coffee market, Highlands continuously enhances its brand visibility and product quality, particularly through its delivery services and corporate social responsibility initiatives In addition to in-store offerings, Highlands is known for its signature products, including roasted and ground coffee, instant coffee, and ready-to-drink options, and partners with food review platforms like Now.vn and Foody.vn for delivery services.
The Coffee House (TCH), established in 2014, has quickly risen to become the second-largest coffee chain in Vietnam CEO Nguyen Hai Ninh highlights three key strengths that attract customers: a vibrant socializing space, exceptional staff service, and convenience TCH recognizes Highlands Coffee as its main competitor and continuously adapts its menu to align with current trends, including a strategic acquisition of the Ten Ren brand to enhance its offerings against milk tea shops TCH is committed to long-term growth by focusing on high-quality raw materials and superior customer service, offering products like roasted coffee beans and subscription combos The brand prioritizes a seamless delivery experience, notably through the development of the TCH smartphone app and partnerships with popular e-wallets like Momo, catering to the growing number of users in Vietnam.
Coffee shops are increasingly serving as social hubs, where customers gather not just for drinks but for connection and interaction Understanding customer satisfaction and loyalty is crucial for brands like Highlands Coffee and TCH, especially as they navigate the differing markets of Hanoi and Ho Chi Minh City While many coffee shop brands find success in HCM City, they hesitate to expand into Hanoi due to unique customer preferences, such as a desire for attractive open spaces This research aims to analyze customer behavior in both cities and provide valuable insights for coffee shop brands looking to thrive in the competitive market.
Problem statement
From an academic standpoint, brand equity, customer satisfaction, and brand loyalty are essential for fostering sustainable development within companies Satisfied and loyal customers not only repeat their purchases but are also inclined to spend more on their preferred brands (Hoyer and MacInnis, 2008) In today's landscape, loyalty has evolved to include sharing positive feedback and recommending brands to friends and family These customer behaviors generate word-of-mouth promotion and enhance brand image, both of which significantly contribute to a brand's sustainable growth.
In Vietnam's service industry, particularly among coffee chains, prices are relatively high compared to customer spending, making it essential to prioritize Customer-Based Brand Equity (CBBE) and brand loyalty as demand continues to rise Coffee shops have evolved into premium services where customers are willing to invest significantly, often becoming regular patrons Similar to fast-food chains like KFC and Golden Gate, which maintain a strong customer base despite higher prices than local eateries, coffee chains must navigate intense competition Therefore, focusing on educating loyal customers and enhancing customer satisfaction is crucial for retaining clientele.
Keller (1993) developed the Customer-Based Brand Equity (CBBE) model, which was later utilized by Nam et al (2011) to analyze the impact of brand equity on customer satisfaction and loyalty in the UK Similarly, Tu et al (2012) examined customer satisfaction and loyalty at Starbucks Coffee in Taiwan using structural equation modeling (SEM) However, there is a noticeable gap in research exploring the relationship between brand equity, price, customer satisfaction, and brand loyalty in the Vietnamese market This study aims to fill that gap by investigating factors influencing brand loyalty among Vietnamese customers, thereby enhancing the understanding of their behavior Ultimately, it seeks to determine whether Western models of brand equity, customer satisfaction, and loyalty are applicable in explaining the behavior of Vietnamese consumers towards brands.
This research introduces a new factor—price—into the existing model to explore its impact on customer satisfaction We analyze how price influences customer satisfaction, brand loyalty, and brand equity.
This research offers valuable insights for brand management in coffee shops by highlighting differences in customer behavior across two scenarios It is particularly beneficial for individuals planning to establish a coffee shop in Vietnam, emphasizing the importance of understanding customer behavior, particularly in relation to customer satisfaction and loyalty.
This study highlights the critical role of factors influencing brand loyalty and customer satisfaction through empirical research conducted in Vietnam Future investigations could explore additional factors or expand to different markets within Vietnam to enhance understanding of customer behavior.
Research objectives
This i study i has i three i objectives i as i follows: i
To i investigate i the i effect i of i price, i congruence i and i quality i on i customer i satisfaction i in i chain i coffee i shops i in i Vietnam i
To i investigate i the i effect i of i customer i satisfaction i on i brand i loyalty i in i chain i coffee i shops i in i Vietnam i
i To i describe i the i customer i behavior i from i analysis i results i in i two i scenarios i of i coffee i chains i in i Hanoi i and i HCM i City
Scope of the research
This study aims to achieve three key objectives by focusing on customers of Highlands Coffee and The Coffee House in Hanoi and Ho Chi Minh City A quantitative questionnaire was utilized to investigate the phenomenon and test the hypotheses outlined in the subsequent chapter.
Significance of the research
This study investigates the connection between price, Customer-Based Brand Equity (CBBE), and customer satisfaction within Vietnam's coffee chain industry Utilizing questionnaire surveys, data was collected from 400 participants across two major coffee chains in Hanoi and Ho Chi Minh City This quantitative methodology facilitates a comprehensive analysis of the data, allowing for robust testing of relevant theories.
The chain coffee shop sector plays a crucial role in driving growth within both the coffee and service industries This study offers valuable insights into customer preferences, enabling brands to enhance their understanding of the market Additionally, it presents branding recommendations that can benefit coffee chains and other sectors in Vietnam.
The literature review indicates a significant gap in academic research directly examining the impact of price, congruence, and quality on customer satisfaction and brand loyalty within Vietnamese coffee chains This lack of studies highlights the importance of this research for scholars, providing valuable insights into variable measurement The findings of this paper enhance the understanding of Vietnamese consumer behavior in the coffee market and offer a foundation for future research in related areas.
Thesis structure
This paper is structured into five chapters, beginning with an overview of the research background to establish the study's scope Chapter 2 presents a literature review that highlights the theoretical relevance of prior studies and formulates the model and hypotheses for further investigation In Chapter 3, we outline the methodology, including data collection and analysis techniques Chapter 4 reveals the research findings, featuring both descriptive analysis and analytical results Finally, the concluding chapter discusses the results, addresses the research objectives, offers recommendations, and suggests directions for future research.
LITERATURE REVIEW
Brand equity
Brand equity, a key concept in marketing and branding since the 1980s, has been extensively studied and described in various ways Previous research has explored brand equity from three main perspectives: customer-based (Aaker, 1991), financial (Simon and Sullivan, 1993), and a combined view of both (Anderson, 2007) Aaker (1991) defines brand equity as the collection of brand assets and liabilities, including elements like symbols and names, which influence the value of products and services for both the firm and its consumers.
Keller (1993) defined Customer-Based Brand Equity (CBBE) as the differential effect of brand knowledge on consumer responses to marketing efforts This concept encompasses three key elements: brand knowledge, differential impact, and consumer response to marketing Brand knowledge refers to the blend of brand image and brand awareness, aligning with the relationships and characteristics of brand associations previously discussed.
Customer response to marketing plays a crucial role in determining brand equity, as it reflects how consumers perceive, prefer, and behave towards a brand's marketing efforts This response can be influenced by various marketing-mix activities, such as reactions to promotional coupons, perceptions of advertising copy, and evaluations of potential brand extensions By comparing customer reactions to marketing from a specific brand with those to a fictional or unnamed version of the same product or service, we can better understand the differential effects on brand equity.
Brand equity refers to the increased perceived value and desirability that a brand name adds to its products or services (Lassar, Mittal, and Sharma, 1995) According to Christodoulides (2010), brand equity encompasses consumer attitudes, perceptions, behaviors, and knowledge, which collectively enhance the utility of products and services This, in turn, enables brands to achieve higher revenues and profit margins compared to those without established brand equity.
Aaker (1991) introduced a comprehensive framework for measuring brand equity, highlighting various elements and dimensions He connects brand equity to key factors such as brand awareness, brand association, perceived quality, brand loyalty, and other proprietary brand assets This study specifically focuses on Customer-Based Brand Equity (CBBE), which is the primary type of brand equity Aaker aims to explore and analyze.
According to Washburn and Plank (2002), four key concepts—brand awareness, perceived quality, brand association, and brand loyalty—are essential for measuring consumer-based brand equity (CBBE) They emphasized that other proprietary brand assets are not relevant in this measurement Additionally, Yoo and Donthu (2001) highlighted that CBBE at the individual customer level can be divided into behavioral and cognitive perspectives, making consumer surveys a valid method for assessment.
Consumer-based brand equity is a synthesis of physical quality, staff behavior, brand identification, lifestyle congruence, and ideal self-congruence (Nam et al., 2011) This paper examines how these characteristics influence brand loyalty, with customer satisfaction serving as a mediator Ko and Chiu (2006) recognized the coffee shop industry as part of the broader service sector, particularly within food and service, making the measurement items from Nam et al (2011) applicable to this study Additionally, O’Loughlin and Szmigin (2006) emphasized that developing the relationship between brand associations and the five dimensions of consumer-based brand equity addresses both the functional and symbolic needs of customers.
This study explores consumer-based brand equity within the service industry, specifically focusing on the hotel and restaurant sectors in the UK By utilizing a model developed by Nam et al (2011), it examines four key dimensions of brand equity, including physical food quality, service quality, lifestyle congruence, and ideal self-congruence The research aims to measure consumer-based brand equity in the coffee shop industry, drawing parallels with the hotel and restaurant industries to enhance understanding of brand perception and value among consumers.
Customer satisfaction
Research in the marketing field highlights customer satisfaction as a crucial element for a brand's long-term success (Pappu and Quester, 2006) Consequently, many scholars have utilized customer satisfaction as a key factor to investigate post-purchase behaviors, including attitudinal and behavioral loyalty.
(2011) i described i customer i satisfaction i as i the i level i a i product i or i service i serves i the i customer i and i satisfies i his i or i her i expectations i
Customer satisfaction encompasses both cognitive and affective dimensions The cognitive aspect involves thoughts and judgments regarding the product, service, and brand, while the affective aspect relates to the subjective feelings that arise from the overall experience with the company, which should be positive (Tu et al., 2012; Baig and Khan).
In 2010, I recognized that retaining customers is financially beneficial compared to the high costs of acquiring new ones Consequently, customer satisfaction became a crucial factor in highly competitive markets, particularly in the hotel, restaurant, and coffee shop industries.
Researchers primarily focus on cumulative satisfaction, which measures the overall post-purchase satisfaction of customers Tu et al (2012) assessed this overall satisfaction by analyzing recent experiences with products and services, as well as interactions with the brand and its employees.
Brand loyalty
Brand loyalty is a crucial element in branding and marketing, defined as the repeated purchase of products and services by customers who hold a positive attitude towards a brand (Hoyer and McInnis, 2008) According to Jacoby and Chestnut (1978), brand loyalty encompasses a biased behavioral response from consumers over time, influenced by their decisions to purchase a specific brand or multiple brands This process reflects the psychological thinking of customers, as positive experiences with a brand lead to continued purchases, serving as a signal of loyalty By focusing on brand loyalty, companies can cultivate a loyal customer base, which is essential for business expansion and growth.
Brand loyalty is a complex psychological concept that is challenging to measure objectively One common method involves analyzing price sensitivity and purchasing behaviors, as highlighted in various studies Researchers often assess customer commitment to a brand by examining attitudes towards products and the consistency of opinions over time (Mohammad, 2012) Previous studies present two perspectives on brand loyalty: attitudinal loyalty, which reflects positive feelings towards a brand or its products (Gremler and Brown, 1996), and behavioral loyalty, which focuses on the frequency of repeat purchases from the same brand (Chaudhuri & Holbrook, 2001) Attitudinal loyalty can be measured through metrics such as "intention of word of mouth" (Boulding et al., 1993) and "willingness to pay a premium price" (Narayandas, 1996) Bandyopadhyay and Martell (2007) explored the cause-and-effect relationship between these two types of loyalty, suggesting that a positive customer experience can lead to repeated purchases.
Choi et al (2011) created a comprehensive set of brand loyalty items that serve as a valuable tool for future research, effectively minimizing the influence of external factors like convenience and habit on behavioral brand loyalty Additionally, Nam et al (2011) introduced their own items for measuring brand loyalty This research utilizes items from these prior studies to examine the relationship between brand loyalty and various other variables.
Price
Price represents the payment exchanged for goods or services and is a key component of the marketing mix, alongside product, place, and promotion It serves as a vital tool for businesses to meet marketing goals and enhance sales and financial performance In the service industry, where services are intangible, price often becomes a crucial indicator of quality when other information is lacking Additionally, firms must strategically set competitive prices, as customers frequently use price as a deciding factor when selecting a brand among competing service providers.
Olson (1977) distinguishes between objective price and perceived price, indicating that customers determine whether a price is low or high based on the actual price Additionally, Yoo et al (2000) emphasize that price perception is subjective and can be assessed through consumer opinions, as demonstrated by the research of Smith and Park.
In 1992, the authors introduced eight items for price measurement, including statements like, “the price of this brand is high.” This study will utilize this price assessment method as a key component of the scale for evaluating the research variable.
Relationship between brand equity, price, customer satisfaction and
2.5.1 Brand equity and customer satisfaction
Service quality is a crucial aspect of marketing that plays a significant role in business success (Fitzsimmons et al., 2001) This paper examines service quality in the coffee shop industry through two key perspectives: staff behavior and physical quality Staff behavior encompasses the competence, friendliness, and helpfulness of employees, while physical quality pertains to the brand's physical facilities (Bloemer and Kasper, 1995).
The physical facilities of a business play a crucial role in creating a pleasant customer experience, which can lead to repeated purchases and positive word-of-mouth A positive experience significantly influences customer satisfaction and loyalty, as highlighted by research from Bloemer and Kasper (1995) and Ryu and Jang (2008).
Staff behavior significantly influences customer satisfaction during the service delivery process, as customers have unique experiences that can be either positive or negative Employees play a crucial role in shaping customer satisfaction by directly interacting with customers and meeting their expectations (Zeithaml et al., 1986) Research indicates that low-skilled staff may lead to negative emotional experiences for customers, as they may struggle to effectively manage customer emotions, ultimately representing the firm poorly (Bloemer & Kaspe, 1995; Lemmink and Mattsson, 2002) Furthermore, Han et al (2015) emphasized that employee behavior greatly affects overall customer satisfaction Additionally, Bhattacharya and Sen (2003) found that the politeness and attentiveness of staff are key factors that impact customer satisfaction.
Numerous scholars have explored the relationship between customer satisfaction, physical quality, and staff behavior across various sectors of the service industry, including notable studies by Parasuraman et al (1988) and Bergami.
& i Bago i i i (2000); i Brady i & i Cronin i (2001); i Ryu i & i Jang i (2008)
Lifestyle influences consumer behavior, particularly in brand selection and product purchasing, with brands serving as reflections of individual lifestyles (Solomon, 2002) According to Peter and Olson (2008), lifestyles represent the specific ways people navigate their lives, while Solomon et al (2006) emphasize that lifestyle differentiates group membership Casswell and Maxwell (2005) highlight that consumers interpret desired experiences through products and services, which helps shape brand identity They argue that a brand's alignment with a consumer's lifestyle fosters a positive attitude towards it Lifestyle-congruence, as defined by Nam et al (2011), measures how well brand consumption aligns with consumers' activities, interests, and opinions, reinforcing their unique living patterns.
Sarki et al (2012) highlighted that purchasing behavior is driven more by emotions than by rationality Their research emphasized that various external factors, including culture and lifestyle, significantly influence customers' decisions to buy products or services from a brand.
Solomon (2002) identified a marketing mechanism that aligns a customer's specific lifestyle with brand strategy to enhance customer satisfaction Research indicates a positive relationship between customer satisfaction and lifestyle, as supported by studies from Kyungnam (2011) and Awan and Rehman.
2014) i A i further i study i conducted i by i Nam i et i al i (2011) i also i confirmed i that i the i congruence i between i the i lifestyle i of i consumer i and i a i brand i strongly i reinforce i customer i satisfaction
The concept of congruence connects brand personality with consumers' self-concept (Nienstedt et al., 2012) Self-concept, as defined by Baumeister (1999), encompasses an individual's thoughts and feelings about themselves, including their understanding of who they are Carl Rogers (1959) identified three aspects of self-concept: self-image, self-esteem, and ideal self This paper focuses on the ideal self, which represents the aspirations individuals have for their personal development.
Sirgy et al (2000) introduced self-congruence theory, defining self-congruence as the degree to which an individual's actual self aligns with their ideal self and the brand image This alignment significantly influences customer behavior.
(2002) i also i share i the i same i opinion i on i self-congruence; i the i individual i owns i or i buys i brands i to i enhance i their i self-esteem
Mukherjee (2007) identified self-congruity as a vital element in understanding customer behavior, emphasizing its significant role as a precursor to customer satisfaction Prior research by Andreassen supports this notion, highlighting the importance of self-congruity in enhancing customer experiences.
Research by Baker (1994), Grewal & Mangleburg (2000), and others indicates a positive correlation between customer satisfaction and ideal self-congruence in the service industry Furthermore, studies show that brand self-congruence significantly influences customer satisfaction, surpassing the effects of attitude and preference.
This study integrates the physical quality, staff behavior, lifestyle congruence, and ideal-self congruence dimensions of Customer-Based Brand Equity (CBBE) to examine their effects on customer satisfaction.
According to Peng and Wang (2006), customers view price as a significant financial factor influencing their purchasing decisions for products or services Furthermore, research by Al-Msallam highlights the strong link between perceived price fairness and customer satisfaction, emphasizing the importance of pricing strategies in enhancing consumer contentment.
According to a 2015 study, price fairness is a crucial factor influencing customer satisfaction, as consumers are likely to switch to competitors that provide more reasonable prices This suggests that brands that maintain fair pricing can foster long-term customer loyalty.
Customers often associate price with service quality, leading to satisfaction when both align (Oliver, 1997) This suggests that consumers are willing to pay for a product or service if they perceive the offer as reasonable According to Cheng et al (2008), price perception can be viewed from two angles: the perceived reasonableness of the price, which involves comparing different brands, and the evaluation of a brand's relative position, influencing their sense of price fairness in relation to value Typically, lower-quality products or services are priced lower than their higher-quality counterparts (Chitty et al., 2007).
Research model
This article explores the relationships between Customer-Based Brand Equity (CBBE), brand loyalty, price, and customer satisfaction It posits that both price and brand equity influence customer satisfaction, which in turn affects brand loyalty Unlike the model proposed by Nam et al (2011), this study does not include brand identification due to the limited awareness among Vietnamese coffee chain customers Notably, the research highlights the potential positive impact of price on customer satisfaction, introducing a new dimension to the conceptual model Additionally, hypotheses are formulated and tested through two distinct empirical cases in Hanoi and Ho Chi Minh City, leading to the development of a research model comprising four hypotheses.
Hypothesis 1: Price i has i a i positive i effect i on i customer i satisfaction i in i chain i coffee i shops i in i Vietnam i i i
Hypothesis i 2: i Quality i has i a i positive i effect i on i customer i satisfaction i in i chain i coffee i shops i in i Vietnam
Hypothesis i 3: i Congruence i has i a i positive i effect i on i customer i satisfaction i in i chain i coffee i shops i in i Vietnam i
Hypothesis i 4: i Customer i satisfaction i has i a i positive i effect i on i brand i loyalty i in i chain i coffee i shops i in i Vietnam.
METHODOLOGY
Research design
This study aims to explore the relationship among price, congruence, quality, customer satisfaction, and brand loyalty within the coffee shop industry in Vietnam The researcher employs deductive reasoning, focusing on formulating testable hypotheses through data collection and observations to confirm the original theory on the topic.
This paper utilizes a quantitative research strategy to generate numerical representations of a specific phenomenon through collected data It employs a survey-style questionnaire, recognized for its popularity and effectiveness in previous research within the field Given the constraints of time and resources, the author determines that a deductive approach, combined with quantitative research methods and a questionnaire, is the most suitable design for this study.
This study employed secondary data from journal articles, textbooks, and media stories to establish research motivation and conduct literature reviews A pilot test involving 47 offline surveys (27 in Hanoi and 20 in Ho Chi Minh City) validated the questionnaire and ensured accurate translation of items into Vietnamese Primary data was collected through online questionnaires over one month, from February to March 2020, using a purposive sampling technique Respondents were customers of Highlands Coffee or The Coffee House in Hanoi and Ho Chi Minh City, who had purchased products or services from these brands at least three times in the past three months.
This study on structural equation modeling (SEM) incorporates both exploratory and confirmatory factor analysis According to Gorsuch (1983), a minimum sample size of 200 observations is necessary for fair results Hair et al (2010) suggest that there should be at least a 5:1 ratio of observations to questionnaire items, while Kline (2015) recommends a ratio of 20:1 for each parameter in the research model, indicating that at least 120 respondents should be collected for accurate analysis.
The i author i generated i 450 i questionnaires i equally i distributed i in i Hanoi i and i HCM i City i After i check i and i elimination i of i false i or i incomplete i responses, i there i were i
427 i completed i and i valid i answers i for i the i analyzation i steps i (218 i in i Hanoi i and i 209 i in i HCM i City), i which i indicated i the i valid i rate i of i 94.9%
This study employed IBM SPSS Statistics 20 and AMOS 21 for multivariate analyses and hypothesis testing AMOS, an extension of SPSS, is widely recognized for its capabilities in Structural Equation Modeling (SEM) and facilitates the visualization and adjustment of variable relationships.
Data collection instruments
This study explores the interplay between five key variables: price, quality, congruence, customer satisfaction, and brand loyalty within Vietnam's coffee shop industry The research employs a scale previously validated in earlier studies, specifically incorporating four price-related items from Yoo et al (2000) The congruence variable is assessed through six items reflecting ideal-self and lifestyle congruence, based on Nam et al (2011) Additionally, product and service quality are evaluated using six items from the same source Customer satisfaction and brand loyalty are measured with four items each, as adapted from Choi et al (2011).
In addition to demographic inquiries, this study's surveys utilized a five-point Likert scale to evaluate respondents' answers, measuring their level of agreement from strong disagreement to strong agreement The table below summarizes the scale and constructs used in the questionnaire.
Tải bản FULL (61 trang): https://bit.ly/3dlpbZN
Dự phòng: fb.com/TaiHo123doc.net
Table 3.1 Questionnaire scale and construct
PR1 The price of this brand is higher than other brands PR2 The price of this brand is lower than other brands
PR3 The price of this brand is more affordable than other brands
PR4 The price of this brand is more expensive than other brands
QL1 Quality of foods and drinks QL2 Staff behavior
QL3 Physical quality QL4 Staff behavior QL5 Quality of atmostphere and space QL6 Attitude of staff
CON1 Self-congruence from other personal view CON2 Lifelstyle support
CON3 Self congruence from other people’s view CON4 Lifestyle congruence
CON5 Ideal self expectation CON6 Personal lifestyle
CS1 Foods and drinks satisfaction CS2 Staff behavior satisfaction CS3 Good experience in this coffee chain brand CS4 Choosing this brand is a right choice
BL1 Sharing good comments about the brand BL2 Continue purchasing and using the brand in future BL3 Prefer this brand to others
BL4 Recommend this brand to someone who ask
Data analysis
Structural equation modeling (SEM) offers the advantage of simultaneously analyzing multiple regression models, allowing for variables to serve as both independent and dependent This study adheres to standard SEM procedures to explore relationships identified in existing literature Initially, each latent variable undergoes a reliability assessment using Cronbach’s alpha indices If the observed variables meet the established threshold, they advance to exploratory factor analysis (EFA) to determine their association with the same variables The key outcome is principal axis factoring, which confirms convergence through iterations Following this, confirmatory factor analysis (CFA) is conducted to evaluate the overall reliability of the measurement items through goodness-of-fit and statistical indices The final step involves executing SEM analysis to test the path loading of the proposed model This research focuses on the coffee chain market in Hanoi and Ho Chi Minh City, necessitating two separate model runs to validate hypotheses and compare results across both locations.
Tải bản FULL (61 trang): https://bit.ly/3dlpbZN
Dự phòng: fb.com/TaiHo123doc.net