INTRODUCTION
Research Statement
Brand equity is a crucial intangible asset for businesses, particularly in the banking sector, where its enhancement has become a top priority for management over the past decade The significance of improving brand value has garnered substantial attention from both academic researchers and industry leaders, highlighting its competitive importance (Keller, 1993; Aaker, 1991; Aaker, 1996; Yoo and Donthu, 2001; Lassar et al., 1995; Baalbaki and Guzman, 2016; Christodoulides et al., 2015).
The competition among commercial banks is intensifying, driven by both financial and non-financial factors such as technology, human resources, and service quality To thrive, bank managers must prioritize building brand equity and fostering customer trust and confidence Establishing a solid reputation is crucial for banks to ensure customers feel secure when using their products and services, as brand equity significantly influences customer perception Following Vietnam's accession to the European-Vietnam Free Trade Agreement (EVFTA), banks face increased competition from established European financial institutions that bring advanced technology, quality human resources, and a diverse range of offerings Consequently, the banking sector must undergo transformation, focusing on branding and innovation to align with emerging trends Notably, BIDV has made significant strides in recent years, emerging as the bank with the largest total assets in the system.
BIDV is recognized as one of the most valuable brands in Vietnam, ranking 15th in Forbes' 2020 list of the Top 50 leading brands It stands out as one of the three commercial banks with the highest brand equity in the country.
Brand equity is a crucial asset for companies, encompassing logos, symbols, slogans, and other identifying marks In Vietnam, there is a notable absence of research focused on BIDV's brand equity, with existing studies primarily employing qualitative methods This gap highlights the need for a quantitative approach to identify the factors that influence brand equity, particularly in the context of retail business Key elements such as brand association, perceived quality, customer satisfaction, and loyalty, as outlined by Keller (1993) and Yoo and Donthu (2001), are essential for enhancing brand equity from the consumer's perspective Therefore, this thesis will explore the factors influencing brand equity.
A CASE STUDY OF BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (BIDV)‖ to analyze factors of brand equity.
Research Objectives
This study aims to identify the factors influencing brand equity and assess their impact on BIDV's brand equity Based on the findings, the research will propose actionable solutions to enhance brand equity at BIDV in the future To achieve this overarching goal, the study outlines specific research objectives.
To explore the factors influencing brand equity at BIDV
To measure the impact of factors affecting the brand equity at BIDV
To find out the relationship between corporate social responsibility and brand equity at BIDV
To propose managerial implications related to influencing factors to enhance the brand equity at BIDV in the coming time
Research Questions
Based on the research objectives and research problems identified above, the thesis answers the following research questions:
What factors influence BIDV's brand equity?
Does the corporate social responsibility factor have a direct impact brand equity of BIDV?
How is the degree of influence of each factor on the brand equity of BIDV Bank? How to improve the brand equity of BIDV bank?
Research Subjects and Scope
The subject of this study is to investigate the impact of factors on brand equity BIDV based on consumers’ perceptions
The thesis focuses on customers who have used products and services at BIDV in
The primary information of the topic was collected through a questionnaire survey on the customers who have used products and services at BIDV during the period from 10/2021 to 12/2021.
Research Methodology
This research employs a qualitative method to identify the factors influencing brand equity at BIDV, drawing on related studies and documents A model of these factors is proposed, followed by the implementation of a focus group and a pilot questionnaire targeting random users of BIDV's products and services Utilizing a non-probability sampling technique, specifically convenient sampling, the study aims to effectively reach survey participants The survey will be conducted through two methods: online via Google Forms and in-person with customers at BIDV's branch in Ho Chi Minh City.
Quantitatively, this method distributes survey questionnaires for consumers who used to product or service at BIDV in Ho Chi Minh City to collect information
Data collected from the questionnaire include (brand awareness, brand loyalty, satisfaction, perceived quality, and corporate social responsibility)
The data analysis will focus on characterizing the sample and removing inconsistently observed variables using Cronbach's Alpha for reliability assessment Additionally, Exploratory Factor Analysis (EFA) will be employed to identify underlying factors and assess the internal consistency of the measurement scale Furthermore, multivariate regression will be utilized to investigate the factors influencing changes in the independent variables.
Research Significance
Assessing the factors influencing brand equity at BIDV provides valuable insights that enhance the bank's overall brand strength This analysis not only evaluates the current state of BIDV's brand equity components but also offers data-driven recommendations for improvement, ensuring a strategic approach to bolstering its market presence.
Expected Contribution
This study offers empirical insights into the factors affecting brand equity at BIDV, providing actionable recommendations for management to enhance their brand value The findings highlight several strategic implications that bank managers can implement to strengthen brand equity, applicable not only to BIDV but also to other financial institutions and service-oriented businesses Additionally, this research serves as a valuable reference for other scholars exploring the concept of brand equity.
Thesis Outline
The content of this thesis consists of 05 chapters, specifically as follows:
Chapter 1 presented an overview of issues related to the research topic, including the urgency of the topic, research objectives and tasks, research problems and questions, research objects and scope research, research methods and data, and the contributions of the study From the above content, the topic "FACTORS INFLUENCING BRAND EQUITY: A CASE STUDY OF BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (BIDV)" is both scientific and practical This serves as the basis for further research steps It is in-depth research on the theoretical basis, research methods, and data collection to produce research results and provide solution implications
LITERATURE REVIEW
Basic Concepts
The American Marketing Association defines a brand as a name, term, sign, symbol, design, or a combination of these elements that serves to identify the goods or services of a specific producer or seller, as well as a group of manufacturers, while distinguishing them from competing brands.
In today's competitive landscape, a brand transcends being merely a product component; it serves as a vital differentiator in the marketplace A brand encompasses a name, symbol, and unique attributes that set a company's products apart from competitors, influencing both functional and emotional consumer needs (Keller, 2013) While tangible product features are important, the intangible aspects—such as brand imagery, emotions, and symbols—play a crucial role in distinguishing brands within the same category (Keller, 2013) Unlike products, which can be easily replicated and may become obsolete, a strong brand represents a unique asset that endures over time, making it invaluable to businesses (Aaker, 1991) Ultimately, a successful brand not only fulfills consumer desires but also establishes a lasting competitive edge, guiding consumer choices and reinforcing its status as a key intangible asset (Aaker, 1991, 1996; Keller).
1993, 2013) The brand represents the feelings and emotions of consumers about a
A brand's true value lies in its ability to capture consumer preference and foster loyalty, as it represents trust and promises kept (Kotler and Armstrong, 2012; Reichheld, 2001, 2006) This is particularly crucial for services, where the brand acts as a proxy for intangible offerings, alleviating consumer anxiety and boosting confidence in purchasing decisions (Berry, 2000) According to Information Economy Theory, consumers assess product quality differently across categories, necessitating trust in service providers (Nelson, 1970) For instance, while food quality can be easily evaluated, confidence in the brand becomes essential for intangible services Thus, a brand serves as a risk-reducing signal, shaping its value from an information economy perspective (Erdem and Swait, 1998) As risk perception varies by product category, strategies for enhancing brand equity must be tailored accordingly (Fischer et al., 2010).
A brand represents the image of a company's products and services, reflecting their quality and customer interactions It encompasses various elements, such as symbols, slogans, and logos, that help create a lasting impression on consumers Beyond its legal implications, understanding a brand is essential from the viewpoints of corporate governance and marketing, as it differentiates a company's offerings from those of its competitors.
2.1.2 Composition and function of the brand
A brand comprises two key components: functional and emotional The functional aspect focuses on delivering practical benefits to consumers, encompassing attributes like functionality, features, and product quality In contrast, the emotional component offers symbolic value, providing psychological benefits to customers Additionally, trademarks serve multiple functions in the branding process.
Market segmentation is a crucial function for businesses, allowing them to categorize their target audience based on various criteria such as geography, gender, and income By conducting thorough market research, companies can identify the most relevant segmentation factors tailored to their brand This strategic approach not only enhances brand recognition but also helps consumers easily differentiate a company's products from those of competitors.
The second function emphasizes the importance of consistency in product development to foster consumer loyalty and minimize production costs By maintaining their brand characteristics throughout the new product development process, businesses not only enhance customer trust but also safeguard themselves against competitor imitation through intellectual property protection.
The primary function of a brand is to embed its products and services in the consumer's mind, fostering long-term recognition and loyalty To achieve this, it is crucial to design and develop a brand that is easily identifiable, ensuring that consumers can readily remember and connect with it, while also preventing it from being easily forgotten.
The fourth function of brand strategy is to establish orientation and meaning for the product, necessitating long-term consistency Each product and brand within the enterprise must support one another in the brand-building process A strong brand effectively communicates essential information about the product, including its strategic direction and commitments, while fostering a reputable presence across all markets.
The fifth function emphasizes the importance of commitment between producers and consumers In today's marketplace, businesses that implement a strong brand strategy and uphold their promises tend to enhance consumer satisfaction By consistently delivering on their commitments, these businesses foster positive feelings and loyalty among their customers.
Brand equity is the core content in brand management (Keller and Lehmann,
Brand equity plays a crucial role in a business's survival, as it encompasses the value and loyalty consumers associate with a brand (Barwise, 1993) While the term "brand equity" has been in use since the 1980s, there remains a lack of consensus on its definition and measurement Marketers can leverage brand equity to implement strategies that foster customer preference and create a competitive advantage This article will explore Consumer-Based Brand Equity (CBBE) concepts, drawing on foundational research by Aaker (1991) and Keller, highlighting the multifaceted perspectives on brand equity, including financial, consumer, and employee viewpoints.
Brand equity can be evaluated from the consumer's perspective through two primary frameworks: Signaling Theory, which stems from Information Economy Theory and highlights the asymmetrical nature of market information, and Cognitive Psychology Theory, which focuses on consumer attitudes While both assessment methods have distinct advantages and disadvantages, this study opts to measure brand equity at BIDV using the Cognitive Psychology Theory approach.
10 measure the components of brand equity at BIDV In the direction based on Cognitive Psychology Theory, some definitions can be mentioned as follows:
Brand equity, as defined by Aaker (1991), refers to the value derived from customer loyalty, brand awareness, perceived quality, and strong associations linked to trademarks and assets like patents Keller (1993) emphasizes that consumer-perceived brand equity influences how customers respond to marketing, shaped by their thoughts, feelings, and experiences related to the brand This brand knowledge consists of various associations stored in the customer's memory Lassar et al (1995) highlight that customer-based brand equity (CBBE) arises when consumers are familiar with a brand and hold strong, favorable associations Aaker (1996) further elaborates that brand equity encompasses loyalty, customer satisfaction, perceived quality, brand leadership, personality, differentiation, awareness, market positioning, pricing, and distribution levels.
Brand equity, from the consumer's perspective, represents the total added value a business gains based on customer responses that influence their consumption behavior toward the brand's products or services Various definitions of brand equity highlight common elements, primarily those identified by Aaker Therefore, this thesis will adopt Aaker's definition of brand equity (1991) as its foundational concept.
Brand equity is a critical focus for businesses, as its calculation plays a vital role in assessing a brand's value Various researchers suggest different methodologies for measuring brand equity, reflecting the diverse approaches within the field.
Theoretical Models on Equity Brand
The foundation of CBBE was built by researchers Aaker (1991, 1996) and Keller
Customer-Based Brand Equity (CBBE) is defined as a multifaceted construct that encompasses consumers' cognitive, affective, and conative responses to a brand, shaped by the firm's branding activities It reflects consumers' understanding, attitudes, emotions, and behaviors towards a brand based on their experiences and comparisons with competitors The CBBE approach is widely supported in marketing research, emphasizing that a brand holds no value if it lacks significance for consumers, rendering it irrelevant to manufacturers and retailers Numerous empirical studies, particularly in the banking sector, have been conducted to validate the CBBE framework.
(2012), Rambocas and Kirpalani (2014), Subramaniam et al (2014) Aaker (1991) and Keller (1993) have conceptualized brand equity in distinct ways, but both authors define brand equity from the customer's point of view
The Aaker model of brand equity, established by Aaker in 1991 and further developed in 1996, is widely utilized in empirical research and emphasizes consumers' perceptions of brand value This model identifies five key components of brand equity: brand awareness, perceived quality, brand associations, brand loyalty, and proprietary brand assets.
Keller (1993) proposed a brand equity model with two main factors: brand awareness and brand image (Figure 2.2) Keller (1993) argues that brand equity is
- Time to respond to competitive threats
Anchor to which other associations can be attached
Provides value to firm by enhancing: -Efficiency and effectiveness of marketing programs
Provides value to customer by enhancing customers’s:
- Confidence in the purchase decision
Customers' knowledge of a brand significantly influences their reactions to marketing efforts This knowledge encompasses not just factual information, but also the thoughts, feelings, perceptions, and experiences linked to the brand Essentially, it forms a network of associations in the consumer's memory, shaping their overall perception and response to marketing activities.
Previous Research
Yoo and Donthu (2001) conducted a study titled "Developing and validating a multidimensional consumer-based brand equity scale," utilizing Aaker and Keller's brand equity model The research involved a sample of 1,530 participants, including Americans, Korean-Americans, and Koreans, across 12 brands in three industry categories: athletic shoes, film for cameras, and color television sets.
This research introduces a consumer-based brand equity scale, encompassing four key factors: brand awareness, brand association, perceived quality, and brand loyalty The findings indicate that this brand equity model is both reliable and applicable for analyzing various cultures and product categories Furthermore, the author emphasizes the importance of tailoring marketing strategies to address the distinct aspects of brand equity across different cultural contexts.
Hoàng Trọng, Chu Nguyễn Mộng Ngọc, Hoàng Thị Phương Thảo (2010) based on Aaker and Keller's research model on brand equity, conducted the study
Measuring brand equity in banking services from the customer perspective reveals that brand awareness, perceived quality, brand image, and brand loyalty all significantly enhance brand equity The research indicates a strong correlation between brand equity and a bank's financial performance, suggesting that robust brand equity leads to positive financial outcomes, while strong financial results also reinforce brand equity.
Pinar, Ginard, and Eser (2012) conducted a study titled "Consumer-based brand equity in the banking industry: A comparison of local and global banks in Turkey," utilizing Aaker and Keller's brand equity model The research surveyed 607 customers across 13 banks, including state, private, and foreign institutions in Turkey The findings reveal distinct differences in brand equity factors—perceived quality, brand image, brand association, and brand loyalty—among the three types of banks.
Nadernezhad and Vakilalroaia (2013) conducted a study titled "Measuring Brand Equity in the Banking Industry: A Case Study of Mellat Bank," utilizing Aaker's (1991) brand equity model The research involved a survey of 196 Mellat Bank customers and developed a research model highlighting four key factors influencing brand price: brand loyalty, brand awareness, perceived quality, and brand associations.
Research indicates that brand loyalty, brand compatibility, and brand awareness significantly impact the brand equity of Mellat Bank A study by Subramaniam, Mamun, and Permarupan (2014) examined the effects of brand loyalty, image, and quality on brand equity among Bank Islam consumers in Kelantan, Malaysia, surveying 200 customers The findings reveal a strong positive influence of brand loyalty and brand image on Bank Islam's brand equity, with brand loyalty having a greater impact than brand image and perceived quality.
Rambocas and Kirpalani (2014) explored the connection between brand affinity, customer experience, and satisfaction in retail banking in Trinidad and Tobago, surveying 315 banking customers Their research identified a model that includes satisfaction, brand affinity, and service experience, revealing that all three factors positively influence brand equity Additionally, the study highlights that customer satisfaction mediates the relationship between service experience and brand equity, indicating that while brand affinity positively affects brand equity, it can be further enhanced through improved customer satisfaction.
Singh and Verma (2017), based on Aaker's model to develop the research model
Corporate Social Responsibility (CSR) significantly influences the brand equity of Indian firms by enhancing brand awareness, brand image, brand loyalty, and purchase intention The positive effects of CSR on brand equity are mediated by these key factors, demonstrating that a strong commitment to social responsibility can lead to improved consumer perceptions and stronger brand loyalty Ultimately, integrating CSR into business strategies not only fosters a positive corporate image but also drives consumer purchasing behavior, thereby elevating overall brand equity.
In 2017, Trần Đăng Khoa conducted a study titled "Measuring Bank Brand Equity in the Ho Chi Minh City Market," focusing on assessing brand equity from the consumer perspective within the banking sector of Ho Chi Minh City.
A survey conducted with 173 banking customers in Ho Chi Minh City identified four key components of brand equity: perceived quality, brand loyalty, brand image, and brand awareness These findings serve as a valuable reference for assessing and enhancing the value of bank brands from the consumer's perspective in the Ho Chi Minh City market.
A study by Thuy, Binh, and Nguyen (2019) involving 378 customers from 17 commercial banks in Ho Chi Minh City identified five key factors that influence brand equity: brand awareness, brand loyalty, perceived quality, brand association, and brand satisfaction The findings revealed that brand awareness, brand loyalty, perceived quality, and brand association significantly impact a bank's brand equity, with brand loyalty and brand association being the most influential These insights provide a foundation for commercial bank managers to develop strategies aimed at enhancing brand equity and fostering customer trust.
In 2018, Phạm Hùng Cường conducted a study on the factors influencing brand equity among retail enterprises in Ho Chi Minh City, utilizing the research model developed by Aaker and Keller The research involved a survey of 2,500 consumers across six major retail businesses in the area Cường proposed a model encompassing key elements such as brand association, perceived quality, customer satisfaction, brand loyalty, consumer attitude, cohesion, reliability, and corporate social responsibility The findings indicated that all these factors significantly impact brand equity.
In their 2020 study, Bùi Thanh Dâng and Trần Dục Thức examined the brand equity of Dong A Commercial Joint Stock Bank, utilizing the brand equity models of Aaker (1991) and Keller (1993) They surveyed 229 customers to identify seven key factors influencing the bank's brand equity: brand awareness, perceived quality, brand association, brand loyalty, brand image, corporate social responsibility, and service quality The findings highlight the critical elements that contribute to the overall brand perception of Dong A Bank.
19 show that there are five groups of factors affecting brand equity of Dong A Bank in descending order as follows: brand awareness, service quality, brand loyalty, brand association, brand image
2.3.2 Studies on Corporate Social Responsibility and Brand Equity
Corporate social responsibility (CSR) is gaining traction among companies as a vital long-term strategic investment aimed at maintaining reputation and fostering stakeholder relationships (Hur et al., 2012; McWilliams et al., 2006; Carroll, 1999) By integrating CSR into their business strategies, companies can achieve competitive advantages, enhance operational efficiency, and generate profits while contributing positively to society (Barone et al., 2000; Ellen et al., 2006; Lichtenstein et al., 2004) Engaging in CSR activities helps build customer trust, leading to a favorable brand image and sustained business growth, as consumers are more inclined to support socially responsible companies (Bhattacharya and Sen, 2004; Du et al., 2010; Maignan and Ferrell, 2001) Furthermore, a strong reputation derived from CSR initiatives significantly contributes to brand equity (Roberts and Ferrell, 2001; Brickley et al., 2002), with evidence showing that buyers' perceptions of CSR activities influence industrial brands (Lai et al., 2010; Hur et al., 2014) Despite the recognized importance of CSR in building brand equity, research in this area remains limited (Guzman and Davis, 2017; Baalbaki and Guzmán, 2016; Singh, 2017).
Numerous studies have established a direct correlation between Corporate Social Responsibility (CSR) and brand equity within the banking sector According to Chomvilailk and Butcher (2010), CSR significantly influences brand perception and enhances the overall value of the brand.
Research Model and Hypotheses
Numerous studies across various fields and countries have highlighted the widespread acceptance and application of Aaker's (1991) model in assessing brand equity from a consumer perspective Researchers have consistently found that the factors outlined in Aaker's model significantly influence brand equity, demonstrating its clarity and practicality However, due to the unique characteristics of different regions and industries, both tangible and intangible, adaptations of Aaker's model have been necessary For instance, Yoo and Donthu (2001) modified the model by excluding certain elements to better fit their research context.
Aaker's brand equity model presents 26 factors; however, its application in measuring brand equity has faced challenges, as highlighted by Behnam Ghorbanifard et al (2013), who utilized only four of the model's five factors in their tourism industry study In the financial services sector, both corporate social responsibility (CSR) and brand equity are essential for success, with consumer perceptions of CSR activities significantly influencing brand equity (Lai et al., 2010; Torres et al., 2012) Shelley (2008) notes that while CSR affects brand equity, purchase intention serves as a mediator in this relationship In this research, the author selects factors influencing brand equity relevant to BIDV and the socio-economic context of Vietnam, identifying brand awareness, perceived quality, and brand loyalty as key components supported by prior studies Additionally, the author incorporates corporate social responsibility and customer satisfaction to adapt to the evolving business landscape.
The author proposes a research model that impacts Brand Equity (BE), illustrated in Figure 2.3, which encompasses five key factors: Brand Awareness (BAW), Brand Loyalty (BL), Satisfaction (SAT), Perceived Quality (PQ), and Corporate Social Responsibility (CSR).
Source: The author’s illustration 2.4.2 Hypotheses
Relationship between brand awareness and brand equity
Brand awareness is defined as the extent to which consumers recognize or recall a brand when considering its products, as noted by Netemeyer et al (2004) Keller (1998) emphasizes that brand awareness develops through frequent exposure and prior purchase experiences Aaker (1991) further defines it as the potential buyers' ability to remember a brand associated with specific products Brand awareness can be categorized into four levels: from unknown to brand recognition, brand recall, and ultimately, a strong presence in the consumer's mind, serving as a foundational element for memory retention.
Brand equity is significantly influenced by brand awareness, as highlighted by Keller (2008) and Aaker (1996) Aaker emphasizes that low brand awareness hinders the development of substantial brand equity, which is shaped by consumers' familiarity and unique associations with the brand Numerous studies, including those by Yoo and Donthu (2001) and others, support the notion that brand awareness is a crucial component of brand equity This research aims to explore the positive impact of brand awareness on brand equity specifically at BIDV, leading to the hypothesis H1 that asserts this relationship.
Relationship between brand loyalty and brand equity
Brand loyalty, as defined by Aaker (1991), refers to a customer's strong attachment to a brand, leading them to prefer its products or services despite competitive pressures on price and quality Oliver (1999) highlights that loyal customers consistently choose their preferred brand, resisting marketing efforts from rivals that aim to sway their purchasing decisions This concept encompasses both attitudinal and behavioral aspects; attitudinal loyalty reflects consumers' emotional connection to the brand and their future buying intentions In terms of consumer behavior, loyal customers tend to disregard alternatives, showing a strong commitment to their chosen brand and a lack of interest in competing options (Tong and Hawley, 2009).
Brand loyalty is measured through three key indicators: customers' initial purchase preferences, self-identified loyal customers, and customers' refusal to consider rival brands It is crucial for a brand's success, as loyal customers tend to pay premium prices, reduce service costs, and attract new clientele The stronger the brand loyalty, the greater the profit and brand value, as highlighted by Nguyen Dinh Tho and Nguyen Thi Mai Trang (2008) and supported by Nguyen Van Thuy and Dang Ngoc Dai (2012) Brand loyalty is recognized as a fundamental component of brand equity, essential for enhancing overall brand value (Tong and Hawley, 2009) Numerous studies, including those by Yoo and Donthu (2001) and others, confirm the positive correlation between brand loyalty and brand equity This study aims to explore the impact of brand loyalty on brand equity at BIDV, leading to the hypothesis that brand loyalty positively influences brand equity at the institution.
Relationship between satisfaction and brand equity
Customer satisfaction is the state in which consumers feel fulfilled when their expectations are met, stemming from their perceived quality and desires (Oliver, 1997; Olsen, 2002; Cronin et al., 2000) It serves as a crucial element in enhancing brand equity, as brand satisfaction reflects the overall evaluation following product usage (Oliver, 1997) Despite its importance, research on the relationship between customer satisfaction and brand equity is limited, with studies indicating that changes in customer satisfaction can significantly impact brand equity (Pappu and Quester, 2005) According to Hong-Youl Ha (2011), brand satisfaction acts as a key driving force behind this relationship.
Brand loyalty is a crucial component in building brand equity, with brand satisfaction playing a significant role in this process Prasad and Dev (2000) emphasize that assessing customer satisfaction is the first step toward effective brand management Customer satisfaction can be evaluated through experiences with the service and the decision to continue using it Pappu and Quester (2005) highlight a positive correlation between customer satisfaction, brand satisfaction, and brand equity Numerous studies, including those by Rambocas and Kirpalani (2014), Phạm Hùng Cường (2018), and Thuy, Binh, and Nguyen (2019), support the notion that satisfaction influences brand equity This study aims to explore the impact of satisfaction on brand equity at BIDV, leading to the hypothesis H3 that satisfaction positively affects brand equity at BIDV.
Relationship between perceived quality and brand equity
Perceived quality is the consumer's subjective perception of the overall quality and superiority of a branded product compared to competitors' products (Aaker,
Perceived quality, defined by Parasuraman et al (1985) as the gap between customer expectations and actual service quality, plays a crucial role in brand equity According to Zeithaml (1988), this subjective assessment can vary among consumers and is influenced by their experiences with a product or service Aaker (1991) emphasizes that perceived quality is essential for evaluating brand equity, as it significantly impacts consumer choices among competing brands (Yoo et al., 2000) Furthermore, Aaker (1996) notes its strong correlation with business performance, while Netemeyer et al (2004) identify it as a core factor in enhancing brand equity Ultimately, high perceived quality not only persuades customers to choose a brand but also increases their willingness to pay a premium.
Numerous theoretical studies, including those by Yoo and Donthu (2001) and others, highlight the significance of perceived quality in influencing brand equity This research specifically examines the impact of perceived quality on brand equity at BIDV Based on the findings from previous studies, we propose Hypothesis H4, which posits that perceived quality positively affects brand equity at BIDV.
Relationship between corporate social responsibility and brand equity
Social responsibility encompasses the activities related to an organization's obligations to society and its stakeholders (Sen and Bhattacharya, 2001) Many businesses globally are increasingly investing in corporate social responsibility (CSR) initiatives (Drumwright, 1996; Lichtenstein et al., 2004), aiming to enhance corporate brand value while benefiting employees, the government, and local communities Rust et al (2010) highlight that social responsibility is a vital aspect of brand equity, as consumers, who prioritize price and quality, are more likely to engage with brands perceived as socially responsible The assessment of a brand's social responsibility by customers significantly influences their perception of the brand's contributions to society The relationship between CSR and brand equity has been extensively studied (Singh and Verma, 2017; Trần Đăng Khoa, 2017; Phạm Hùng Cường, 2018; Bùi Thanh Dâng, Trần Dục Thức, 2020) This study will explore how corporate social responsibility affects brand equity at BIDV, leading to the hypothesis H5.
32 proposed that corporate social responsibility has a positive impact on brand equity at BIDV
The following table summarizes the hypotheses that the author expects the factors that will positively influence brand equity:
Table 2.3: Summarize the author's hypotheses and expectations
H1 Brand awareness has a positive impact on brand equity at BIDV
H2 Brand loyalty has a positive impact on brand equity at BIDV
H3 Satisfaction has a positive impact on brand equity at BIDV
H4 Perceived quality has a positive impact on brand equity at BIDV
H5 Corporate social responsibility has a positive impact on brand equity at BIDV
Chapter 2 of this chapter has systematized the theoretical bases related to the research topic, including the theoretical basis of the brand, the theoretical basis of the brand equity, and the theoretical basis of the commercial bank In addition, the author has also proposed a model of factors influencing the brand equity of BIDV and research hypotheses
METHODOLOGY
Research Process
The author investigates the factors influencing brand equity in the banking sector by first defining the research problem and reviewing theoretical concepts and prior studies This groundwork allows the author to establish clear objectives, hypotheses, and the scope of the research Subsequently, a theoretical framework is constructed to propose a research model focused on these influencing factors Following the development of the theoretical model, a research design is created to facilitate data collection and test the proposed connections and hypotheses The author also designs a scale for data collection and analysis, which serves as a foundation for drawing conclusions and offering managerial implications A study design acts as a blueprint for the effective implementation of research studies (Hair et al., 2003; Malhotra, 2006).
Research Steps
This study is carried out through two steps
Preliminary research utilizes qualitative methods to refine and enhance observations for measuring concepts and research content The author develops a research model by evaluating and synthesizing previous studies In this context, focus group discussions are employed to adjust and supplement observed variables, ensuring the scale aligns with BIDV's practical applications The discussion group includes 10 customers residing and working in Ho Chi Minh City who have engaged in transactions at BIDV.
The author facilitated a group discussion by posing open-ended questions to explore key issues, such as the reasons for selecting BIDV's brand name for transactions and the factors influencing this choice.
Research problem Objective of research Review the literature
Collecting data Statistical analysis The result, the solution implication
When considering BIDV's brand, trust emerges as a crucial factor influencing customers' banking choices The bank's reputation not only reflects its reliability but also highlights the numerous benefits it provides to society and the community A discussion group has identified five key components that contribute to a bank's brand equity, emphasizing the importance of these elements in shaping consumer perceptions and decisions.
Table 3.1: Measurement scale of observed variables
I know what BIDV’s brand looks like
Donthu (2001) and Bravo et el
I can quickly recall BIDV’ brand
I can recognize BIDV’s brand among other competing brands
I am aware of BIDV BIDV is the first bank that comes to mind when I need to transact with a bank
BIDV’s brand would be my first choice
I consider myself to be loyal to BIDV’s brand
I take pride in doing all my banking activities with BIDV
I always use BIDV's services for all my banking needs
BIDV bank brand has high quality
The likelihood that BIDV’s brand is reliable is very high
The actual quality of the BIDV bank brand is very high
The staff of BIDV is polite The staff of BIDV bank skillfully solve problems
BIDV's staff quickly grasp and solve customers' needs well BIDV's service fees are commensurate with quality and service
I consider BIDV as a socially responsible brand
Eisingerich and Rubera (2010) Tian (2011) This brand is more beneficial to society’s welfare than other brands
BIDV bank brand contributes a lot to society
I will pay more to use services at BIDV when the bank is socially responsible
Overall, I am satisfied with the service experience at the BIDV brand
I am satisfied with the decision to use the service at the BIDV brand
The services I get from BIDV exceed my expectations
I consider my choice to continue transacting with BIDVa wise one
BIDV provides me with all the services I need from a bank
Even if another brand has the same features as BIDV, I would prefer to buy BIDV
If there is another brand as good as BIDV, I prefer to buy BIDV
It makes sense to use the service of BIDV instead of any other brand, even if they are the same
I have great respect for BIDV
I have a positive attitude towards BIDV
Research Method
Research methodology is crucial in research design as it dictates how information is collected In marketing, scientific research primarily employs two methods: qualitative and quantitative research Quantitative research is objective and hypothesis-driven, beginning with a theoretical hypothesis and seeking evidence to support or refute it Conversely, qualitative research is subjective and inductive, starting with observations to identify patterns and processes.
38 determine the model of factors affecting the brand equity of BIDV with a set of predefined hypotheses Therefore, the quantitative method will be applied.
Research Design
For effective data analysis in exploratory factor analysis, the sample size should be sufficiently large, ideally at least 4 to 5 times the number of variables involved (Hoang Trong, 1999) Research by Hair et al (1998) suggests that the sample size (n) should equal five times the number of observed variables (m) Alternatively, Tabacknick and Fidell (1996) propose a formula where the sample size n = 50 + 8*m, with n representing the sample size and m denoting the number of independent factors To fulfill the diverse requirements of exploratory factor analysis and multivariate linear regression analysis, a comprehensive survey was conducted.
350 customers using services at BIDV
This study employs a non-probability sampling method, which offers advantages such as convenience, easy access to participants, time efficiency, low cost, and enhanced objectivity The research is exploratory in nature, focusing on gaining an in-depth understanding of the issue at hand A survey questionnaire will be distributed to individuals who have utilized BIDV's products and services.
Building a scale for the model's variables is an essential tool in building a bridge between theory and theory testing (Anderson and Gerbing, 1988)
Quantitative research primarily focuses on complex economic and social phenomena, necessitating precise measurement tools that ensure reliability The Likert scale, particularly the 5-point version, is the most widely utilized instrument in this type of research Researchers may also opt for the 3-point or 7-point Likert scales, allowing for flexibility in assessing attitudes and opinions.
This study employs a 5-level Likert scale to evaluate respondents' attitudes towards various statements, allowing them to express their level of agreement from "Completely disagree" to "Completely agree." The scale is designed to assess the attributes of the research object, providing a structured approach to gauge opinions on the topic at hand.
Disagree No idea Agree Completely agree
To ensure objectivity in the research, the measured variables are coded into symbols, specifically as follows:
Table 3.2: Coding the variables of the scale
BAW1 I know what BIDV’s brand looks like BAW2 I can quickly recall BIDV’ brand
BAW3 I can recognize BIDV’s brand among other competing brands BAW4 I am aware of BIDV
BAW5 BIDV is the first bank that comes to mind when I need to transact with a bank
BL1 BIDV’s brand would be my first choice
I am proud to be a loyal customer of BIDV, consistently choosing their services for all my banking needs I actively recommend BIDV to others, reflecting my strong belief in the brand and its offerings.
PQ1 BIDV bank brand has high quality
PQ2 The likelihood that BIDV’s brand is reliable is very high PQ3 The actual quality of the BIDV bank brand is very high
PQ4 The staff of BIDV is polite
PQ5 The staff of BIDV bank skillfully solve problems PQ6 BIDV's staff quickly grasp and solve customers' needs well PQ7 BIDV's service fees are commensurate with quality and service
CSR1 I consider BIDV as a socially responsible brand
CSR2 This brand is more beneficial to society’s welfare than other brands
CSR3 BIDV bank brand contributes a lot to society CSR4 I will pay more to use services at BIDV when the bank is socially responsible
I am highly satisfied with my overall experience at BIDV, as the services provided consistently exceed my expectations Choosing to use BIDV's services has proven to be a wise decision, as they offer everything I need from a bank.
BE1 Even if another brand has the same features as BIDV, I would prefer to buy BIDV
BE2 If there is another brand as good as
BIDV, I prefer to buy BIDV
BE3 It makes sense to use the service of BIDV instead of any other brand, even if they are the same
BE4 I have great respect for BIDV BE5 I have a positive attitude towards BIDV
Source: The author’s summary 3.4.4 Questionnaire Design
The author developed a comprehensive questionnaire for the survey by utilizing the suggested scales and observed variables This questionnaire underwent testing and refinement before the formal data collection process began.
The focus group research method was employed to assess customer perceptions and evaluations regarding the factors influencing BIDV's brand equity, including brand awareness, brand loyalty, perceived quality, satisfaction, and corporate social responsibility The discussion involved a group of 7-10 participants, who engaged in a structured questionnaire addressing these key factors impacting BIDV's brand equity.
The detailed structure of the questionnaire is presented in the form of a survey form consisting of 3 main parts as follows (APPENDIX 2)
Part 1: Introduction to the survey and instructions for answering
Part 2: The questions revolve around the personal information of the surveyed people so that the author can make statistics and describe the survey sample
Part 3: The study's central questions are quantitative questions, using a 5-level Likert scale to survey the level of agreement for each observed variable of the study
This study employs a non-probability sampling method to conduct an exploratory investigation aimed at gaining a deeper understanding of a specific issue A survey questionnaire will be distributed to participants who have utilized BIDV's products and services.
This study involves a sample size of 350 individuals aged 18 to 35 residing in Ho Chi Minh City Data collection will occur through two methods: online surveys via Google Forms and in-person surveys at BIDV's branch in the city The data collection period is from October 1 to November 5.
Data Analysis
Primary data was gathered through a survey, with the author first filtering out invalid responses The validated data was then stored in Excel and subsequently transferred to SPSS 22.0 software for descriptive statistical analysis, scale evaluation, factor importance assessment, and hypothesis testing.
The reliability of the scale was evaluated using the Cronbach's Alpha coefficient method, which helps identify and eliminate inappropriate variables that may lead to dummy factors (Nguyen Dinh Tho and Nguyen Thi Mai Trang, 2009) While Cronbach's Alpha indicates the connection between measurements, it does not specify which observed variables to retain or discard To refine the scale further, calculating the correlation coefficient among total variables is essential; variables with a correlation coefficient below 0.3 should be removed A reliable scale is indicated when Cronbach's Alpha exceeds 0.6, with higher values reflecting greater internal consistency reliability (Nunnally, 1978).
Researchers generally consider a Cronbach's Alpha of 0.8 or higher to indicate a good scale, while a value between 0.7 and 0.8 is deemed usable Additionally, a Cronbach's Alpha of 0.6 or above may be acceptable for measuring concepts that are either new or unfamiliar to the respondents, as noted by Nunnally.
1978) Therefore, items with Cronbach's Alpha coefficient less than 0.6 and corrected Total Item correlation less than 0.3 will be excluded from the model
After evaluating the scale's reliability using Cronbach's Alpha of the factors, the next step is to analyze the EFA exploratory factor
Exploratory factor analysis (EFA) is a statistical technique that simplifies observed variables into broader, more meaningful factors by examining the correlations among them This method is essential for assessing both convergent and discriminant validity in research.
The EFA analysis must satisfy the following criteria:
1 To decide whether to keep or remove the observed variable to ensure that the scale reaches the convergent value, it must be based on factor loading If the loading factor is less than 0.5, it will be removed from the model and vice versa Factor loading ≥ 0.5 (Hair et al., 2006)
2 To determine the number of factors, we rely on the Eigenvalue index If the Eigenvalue index is less than 1, that factor will be excluded from the research model
3 Total Variance Explained to evaluate the scale: The scale is accepted when the extracted variance > 50% shows that the EFA model is suitable (Hair et al., 2006) Considering the variation as 100%, Total Variance Explained shows how the factors explain the variation of the variation
4 To determine the appropriateness of the EFA factor analysis, we use the Barlett test and the Kaiser-Meyer-Olkin coefficient (KMO) KMO coefficient must be greater than 0.5 (0,5 ≤ KMO ≤ 1) If the KMO coefficient is less than 0.5, the model is not accepted for EFA factor analysis
5 To test observed variables are correlated with each other in the population The Barlett test has statistical significance (Sig.