The effect of marketing communications mix on the coffee house brand equity 2022

The effect of marketing communications, mix on the coffee house ,brand equity 2022

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM

BANKING UNIVERSITY OF HO CHI MINH CITY

NGUYEN DANH KIET

THE EFFECT OF MARKETING COMMUNICATIONS MIX ON THE COFFEE HOUSE BRAND EQUITY

GRADUATE THESIS OUTLINE MAJOR: BUSSINESS ADMINISTRATION

CODE:

SUPERVISOR

DR TRAN DUC THUC

HO CHI MINH, 2022

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM

HO CHI MINH UNIVERSITY OF BANKING

NGUYEN DANH KIET THE EFFECT OF MARKETING COMMUNICATIONS MIX ON THE COFFEE HOUSE’s BRAND EQUITY

GRADUATE THESIS OUTLINE

MAJOR: BUSSINESS ADMINISTRATION

CODE:

SUPERVISOR

DR TRAN DUC THUC

HO CHI MINH, 2022

APPROVED BY: Committee APPROVED BY: Advisor

Dr Tran Duc Thuc; PH.D

THESIS COMMITTEE

DECLARATION

I declare that this thesis has been composed solely by myself and that it has not been submitted, in whole or in part, in any previous application for a degree Except where states otherwise by reference or acknowledgment, the work presented is entirely

my own The thesis has done under the guidance of DR TRAN DUC THUC at the Ho Chi Minh University of Banking, Viet Nam

Thesis’s Author

Nguyen Danh Kiet

ACKNOWLEDGE

This thesis is the author’s work, the research results are honest, in which no previously published content or content is done by others except for cited quotes in the thesis During my thesis time, I got loads of backings and supportive gestures from numerous people This thesis would not have been accomplished without that valuable input, support, counsel, and advice

First and foremost, I would like to express my deepest acknowledge to my advisor – DR TRAN THUC DUC– lecturer at Ho Chi Minh University of Banking – for his believable and unreserved help, valuable advice, and recommendation Thank for his effort and wide knowledge to make my topic possible, his suggestions, direction, and advices are always highly appreciated and greatly contributing to the success of this thesis

I would also like to express my sincere appreciation to the professors and lecturers for their guidance during my academic years at the Ho Chi Minh University of Banking The knowledge and skills that I have learned, have assisted

me in the completion of this thesis

Last but not least, honestly the most supported ones are my family Words fail to express my thankfulness to my parents for their endless love To all the above and so many more, I just simply want to say again “Thank you for all your

Purpose – The thesis between components of the marketing communications mix,

such as brand identification, brand image, brand love, and brand loyalty, are investigated in this study The study focuses on attitudes toward advertisements, monetary and non-monetary advertising as parts of the marketing communications mix

Design/methodology/approach – Based on a cross-section, online,

self-administered survey, proposed relationships are examined with 415 before the coffee House consumers

Findings – Attitudes toward advertisements, monetary advertising, and

non-monetary advertising, all play important roles in marketing communications mix

Keywords - Advertising, Sales promotions, Brand image, Brand identification,

Brand love, Brand loyalty, Coffee shop industry

TABLE OF CONTENTS

LIST OF FIGURE 9

CHAPTER 1: OVERVIEW OF THESIS 11

1.1 The necessity of the topic 11

1.2 Objective and questions 12

1.3 Research subjects and scope 12

1.4 Research methods 13

1.5 Research significance 13

1.6 Thesis structure 13

CHAPTER 2: LITERATURE REVIEW 16

2.1 Prior literature 16

2.1.1 Marketing communications Process 16

2.1.2 Marketing communications mix tools 18

2.2 Three components of the communication mix 19

2.2.1 Attitude toward Advertisement 19

2.2.2 Non-Monetary marketing 20

2.2.3 Monetary marketing 20

2.3 The element of brand equity 21

2.3.1 Brand Identification 21

2.3.2 Brand Image 22

2.3.3 Brand Love 23

2.3.4 Brand Loyalty 24

2.4 Previous empirical thesis 25

2.5 Hypotheses model 28

CHAPTER 3: THE REASEARCH METHODOLOGY 30

3.1 Research process 30

3.2 Research methods 30

3.3 Sample description 31

3.4 Survey design 32

3.4.1 Scale applied in the survey 32

3.4.2 The questionnaire designs 32

3.5 The reliability of the scale 33

3.5.1 EFA-Exploratory factor analysis 34

3.5.2 CONFIRMING FACTOR ANALYSIS (CFA) 34

3.5.3 SEMLINEAR STRUCTURE MODEL 36

CHAPTER 4: DATA ANALYSIS 38

4.1 Descriptive statistic 38

4.2 DATA ANALYSIS RESULTS 40

4.2.1 Testing the scale by Cronbach's Alpha reliability coefficient 40

4.2.2 The results of exploratory factor analysis EFA 42

4.2.3 Confirmatory factor analysis CFA 44

4.2.4 Unidirectional and data fit TESt 45

4.2.5 CHECKING THE VALUE OF CONFIGURATION OF THE COVERAGE45 4.2.6 Evaluate the reliability of the scale 47

4.2.7 Check the discriminant validity of the scale 49

4.2.8 SEM linear structural model testing 50

4.2.9 Check the relationship between the factors in the model 51

4.2.10 Testing theoretical model estimation using Bootstrap 53

4.3 Conclusion of Statistical Hypothesis 54

4.4 Discussion 55

Chapter 5: COnclusion 58

5.1 Implications 58

5.2 Limitations 60

5.3 Recommendations for Policy and Future research 61

References 63

PART II: SURVEYING IMPACTS OF FACTORS 70

LIST OF FIGURE

FIGURE 2-1 SIMPLE MODEL OF COMMUNICATION PROCESS 17

FIGURE 2-2 COMPLEX MODEL OF MARKETING COMMUNICATIONS PROCESS 18

FIGURE 2-3 RESEARCH MODEL 28

FIGURE 3-1 RESEARCH FLOW CHART 30

FIGURE 4-1 CFA RESULTS OF THE CRITICAL MEASUREMENT MODEL (NORMALIZED) 45

FIGURE 4-2 SEM RESULTS OF THE RESEARCH MODEL (NORMALIZED) 51

LIST OF TABLE

TABLE 2-1 SHOW HOW THE COMMUNICATION MIX INTERPRETS THE MARKETING MIX 19

TABLE 4-1 DESCRIPTIVE STATISTICS OF THE STUDY SAMPLE 39

TABLE 4-2 SUMMARY OF CRONBACH'S ALPHA TEST RESULTS 41

TABLE 4-3 EFA ANALYSIS RESULTS FOR MEASUREMENT CONCEPTS 43

TABLE 4-4 UNNORMALIZED REGRESSION COEFFICIENTS OF THE CFA MODEL 46

TABLE 4-5 STANDARDIZED REVOLUTION COEFFICIENTS OF THE CFA MODEL 47

TABLE 4-6 SUMMARY RELIABILITY RESULTS AND EXTRACTED VARIOUS 49

TABLE 4-7 RESULTS OF DIFFERENT VALUE BETWEEN VARIABLES 50

TABLE 4-8 SEM MODEL NON-NORMALIZED WEIGHT 53

TABLE 4-9 STANDARDIZED WEIGHT OF SEM MODELS 53

TABLE 4-10 STANDARDIZED REGRESSION COEFFICIENT OF THEORETICAL MODEL 55

CHAPTER 1: OVERVIEW OF THESIS

In this section, the author will give brief evidence about the importance of the topic Furthermore, the author also provides background information about the research such as research object, research scope, research questions, and research methods

1.1 The necessity of the topic

Currently, the food and beverage (F&B) market arisen of fertile lands for potential investors Because it is a potential market, coffee shops have continuously sprouted with a new brand in recent years Because of the fierce competition in the food and beverage (F&B) market, investors often have to change their business ideas and plans, and constantly improve the quality and service of the food to get the best results can bring comfort to customers as well as win customers' love for the brand

To survive and thrive in an environment with intense competition like today's food and beverage (F&B) market in Vietnam, where investors constantly face difficulties in making a difference distinctive features in the industry, especially in the service industry Christian Haposan Pangaribuan et al (July 2019) studied: "Factors influencing the decision to return to a coffee shop and word of mouth through customer satisfaction"; "Factors influencing the decision to return

to a coffee shop and word of mouth through customer satisfaction" customers' intention to return at Klang valley cafes" by Hui Hue Yeow et al (2014); Measuring the important influence of Marketing Mix on customer loyalty through customer satisfaction customers for food and beverage products (Sudari et al., 2019);

After referring to the above research, the author found that more knowledge

is integrated such as consulting on choosing the right restaurant model, making business plans Marketing policies such as: attention to customer experience, customer retention, reasonable prices management are factors that help investors gain a foothold in this attractive market In addition, the authors will focus their

research on a specific brand to better determine how this relationship works at scale if the marketing communications mix elements in each brand are different

From the above reasons, the author decided to choose the topic: “THE EFFECT

OF MARKETING COMMUNICATIONS MIX ON THE COFFEE HOUSE BRAND EQUITY”

1.2 Objective and questions

The study focuses on the following specific objectives:

Firstly, Determine the impact factors of the Marketing communicationss

Mix on the brand equity of The Coffee House

Secondly, Evaluate the impact of the elements of the Marketing

Communications Mix on the brand equity of The Coffee House

Lastly, Propose management implications to improve ove brand equity of

The Coffee House

- What are the factors that affect the brand equity of The Coffee House?

- How does each variable in the research model of Marketing Communications Mix affect the brand equity of The Coffee House?

- What should be done to improve Marketing Communications Mix in order to rate up the brand equity of The Coffee House?

1.3 Research subjects and scope

Research object Research object: The impact of factors combining marketing

communications on the brand equity of The Coffee House

Survey object: Customers have known The Coffee House

Scope of research Scope of space: The Coffee House in Thu Duc District

Time range: Survey period from 01/02/2022 - 14/03/2022

1.4 Research methods

The research was carried out by using the mixture methodology of qualitative and quantitative research in this paper

Qualitative research: By referring to and summarizing relevant research

results, the author identifies factors of the Marketing communications Mix that influence on the brand equity of The Coffee House then uses survey tools (survey online via Google form tool and collect survey forms directly)

Quantitative research: Conduct a survey of customers on the impact of the

Marketing communications Mix through questionnaires to collect data From the collected information, SPSS software will be used to process the data through EFA analysis, confirmatory factor analysis (CFA), and other factors Others side The AMOS was used to test the proposed relationships in this study using structural equation modeling techniques Cronbach’s alphas were used to test the internal consistency of study constructs and other necessary analyses

1.5 Research significance

The study’s findings are potentially important to marketers and marketing managers in organizations in planning for their strategies’ marketing communications mix to realize the importance of marketing communications mix

to The Coffee House brand equity It is also useful to marketing managers and marketers when it comes to management and policymaking Students of marketing will definitely find the generalizations of this study essential in the review of literature as a requisite for higher studies in the area of marketing communications, macro-environment, or other related variables of the study and for future research studies

1.6 Thesis structure

Chapter 1: Introduction

In this section, the author will give brief evidence about the importance of the topic Furthermore, the author also provides background information about the research such as research object, research scope, research questions, and research methods

Chapter 2: Literature review

In this chapter 2, the author will focus on learning about the theoretical overview and related previous studies This step plays an important role in helping the author better understand the concept and research area, which helps to provide theoretical frameworks or theoretical bases The study gives theories related to the online learning model, disrupted education, student satisfaction and a number of previous studies related to online learning

Chapter 3: The research methodology

After having a solid theoretical foundation, the author proceeds to build a research model and research methods In this section, the author also provides information about the stages in the research process and detailed questionnaires to conduct the survey

Chapter 4: Data analysis

The study is analyzed through SPSS software In addition, this chapter focuses on building measurement scales in research and methods to assess the reliability of the scale through Cronbach's alpha coefficient, exploratory factor analysis EFA, check the research model by SEM parsing The research results will show the impact of the independent variables on the dependent variable, the correlation relationship between the variables, and compare the differences between the observed variables Finally, there is a discussion of the results of the data analysis

Chapter 5: Conclusion

In this last chapter, based on the previous analysis results, the author will make recommendations to improve and enhance students' satisfaction with online learning platform

CHAPTER 2: LITERATURE REVIEW

“In this chapter 2, the author will focus on learning about the theoretical overview and related previous studies This step plays an important role in helping the author better understand the concept and research area, which helps to provide theoretical frameworks or theoretical basis.”

2.1 Prior literature

2.1.1 Marketing communications Process

It was already mentioned above that marketing communication is an active process between sellers and buyers Nowadays, market is fulfilled with many offers Interpretation and communication is very important in order to get customers’ attention Marketing communication is also a complex process that needs to be recognized by every seller and customer It means that every person concerned should use some kind of filter command to pick up all necessary information that are needed for another smoothing communication process Marketing communication processhas changed and marketers have

to understand communication process A few years ago, model of marketing communications process would definitely answer:

- Who

- Says what

- In what channel

- To whom

- With what effect

Since marketing communication has become more complex because international boundaries were opened, we also need complex model

of marketing communications process that gives us reliable information In Figure , we can see the model of communication process which has been using recently Two major elements of the model are sender and receiver,

which are crucial part of communication Then, other two elements message and media represent major elements of the communication process (Hughes, Fill, 2006p.3-5).The Figure shows the simplest model of communication process which describes three basic elements of communication process

Figu

re

0-1

Simp

le model of communication process

In order to avoid any misunderstanding while sending and receiving the message, also there is more detailed communication process Marketing communications process gives a clear picture how to communicate Figure shows the communication process which is more complicated but there is smaller probability that any misunderstandings will occur while sending and receiving the message

1 Source (sender) –the sender as a source sends the message which needs to be encoded in order to clearly understand the main point of the message Usually it is a company presenting its products and services

2 Encoder –represents the meaning of the message Encoder helps to transmit and understand the message for the audience

3 Decoder – means that the message was encoded correctly and customer

understands it

4 Receiver – audience that the message was sent

5 Feedback – receiver has a space for responses which are very important for every communication in order to make sure that the main point of

the message is understood correctly (Hughes, Fill, 2006 p.3-5)

Figure 0-2 Complex model of marketing communications process

2.1.2 Marketing communications mix tools

Marketing communication mix is changing as 21st century is developing new technologies and strategies in marketing generally The world’s population is almost 6.5 billions and 400 billion businesses are all around the world Consumers are booming from every side with new products Marketing has generally changed from “customer acquisition“ -getting new customers to “customer retention“ trying to keep customers towards “customer selection“ getting rid of nonprofit able and looking for profitable customers

So it is marketing communication mix process of changing while it has been developing to the form customers know nowadays (Smith, Taylor, 2004 p 78)

Table 0-1 Show how the communication mix interprets the marketing mix

The table shows how the communication mix has been developed and interpreted into the marketing mix To compare and analyze marketing communication mix is very necessary and complex because every culture is so different which must be considered

2.2 Three components of the communication mix

2.2.1 Attitude toward Advertisement

Consumers' attitudes regarding the economic and social impacts of advertising were studied by Bauer and Greyser (1968) using a 7-item Likert type scale For the first time, a sophisticated scale was employed to gauge how consumers felt about advertising as a whole It was found that attitudes may be assessed along the axes of attitude-institution and attitude-instrument by using semantic differential items Various elements influencing attitudes toward advertising, such as perceptions about advertising, attitudes toward advertising institutions, and attitudes toward advertising instruments, were discovered by Muehling (1987) Economic and social advertising belief metrics were examined

by Andrews (1989) A different group of researchers looked at how people think

about advertisements in general, including how they think about information sources, sexual material and the use of women, ethical concerns and deceit (Andrews, 1989; Alwitt and Prabhaker,1992; Lutz, 1985; Muehling, 1987) Advertising was thought to have four beneficial effects: providing information, enhancing one's social status and image, providing amusement, and having a favorable impact on the economy

2.2.2 Non-Monetary marketing

While both hedonic and utilitarian goods benefit from non-monetary marketing, the latter's impact is greater on established hedonic goods (Lowe & Barnes, 2012) (Montaner & Pina, 2008) Customers prefer non-monetary incentives when the stakes are minimal (Lowe, 2010) Non-monetary marketing appeals to customers who are looking for ways to express their values, discover new interests, and have fun Interest in gaming and other hedonic advantages is a non-monetary marketing benefit for customers Non-monetary advertising, according to previous studies, has a greater long-term impact on the product's

brand equity and is thus more valuable Value addition and stockpiling are two

functions of non-monetary advertising that make it successful Consumers that are interested in both non-monetary and monetary promotions feel financially constricted, according to Raid et al (2015) A review of the literature suggests that non-monetary advertising does not influence the available reference price in customers' minds, but that non-monetary promotion may also heighten consumer expectations, creating a sense of deceit both prior to and during the special promotion (Liu, Cheng, & Ni, 2011) If the non-monetary promotional has not been appreciated by the normal customer, this may lead to a brand switch or poor brand loyalty

promotions is not limited to price reduction; it also provides customers with other advantages such as greater product quality and shopping ease (Chandon et al., 2000) Consumers who are engaged on a certain task are drawn to monetary advertising (Büttner, Florack, and Göritz, 2015) Researchers discovered that monetary promotion outperforms non-monetary promotion in terms of effectiveness (Alvarez & Casielles, 2005; Gilbert & Jackaria, 2002) Financial marketing is beneficial for the utilitarian product, nevertheless, financial promotion

is beneficial for all product categories, according to Kwok and Uncles (2005) Monetary marketing is proven to be more effective than non-monetary promotion (premiums) in terms of increased benefit (Palazon & Delgado-Ballester, 2009) When compared to non-brand loyal consumers, brand loyal purchasers sense higher value in monetary promotions than non-brand loyal consumers (Owens et al., 2001) Price reductions are seen as having more value by customers when they are faced with a high level of risk (Ben Lowe, 2010)

2.3 The element of brand equity

2.3.1 Brand Identification

Brand identification refers to customers’ perceptions of sameness between the brand and the consumer (Tuskejet al., 2013) Brands are able to represent significant aspects of the customer identity (Fournier, 1998) Different factors influence brand identification Stokburger-Sauer et al (2012) investigate antecedents of brand identification, identifying brand-self similarity, brand distinctiveness, brand prestige, brand social benefits, brand warmth and memorable brand experiences as drives of consumer-brand identification In addition, brand identification plays an important role in the hospitality industry So et al (2013) identify the role of customer-brand identification in influencing service quality, perceived value and brand trust, which all influence brand loyalty

2.3.2 Brand Image

A brand's image can be defined as the perceptions of a brand in the minds of consumers as reflected in their brand identification according to Anwar et al.,

Keller (1993) Another way to look at this is to think about the consumer's feelings

and thoughts about the brand And according to Keller (1993) in Erfan & Kwek (2013) It is therefore shown as summarizing and summarizing all of the factors that influence a consumer's perception of a product or service and how they interact with that product or service As Hsiang-Ming et al (2011) point out, these linkages might imply a few features of the brand in the consumer's memory, according to Aaker (1996b) Kotler (1988) and Meenaghan (1995) have both gone

on to describe the brand image as a collection of client perceptions about a particular brand or product Consumers' buying decisions are heavily influenced by

a company's image Because Dobni and Zinkhan (1990) said that the consumer's perception, sentiment, or attitude toward the brand image is a major factor in brand and product selection Reynold's (1965) theory states that the customer selects just the most important impressions from the many impressions he has of the product/service, and when it comes to building an image, those memories are extended, embellished and nicely ordered by the consumer Since consumers cooperate with brands via their own personal pictures, this might be seen as a reflection of the brand's image, which includes much of the brand's information and companies that consistently maintain a positive and ideal public image gain a better marketplace and increase their competitive advantage, ultimately leading to

a greater share of the market Negative influences of monetary promotion are due

to the relationship between internal reference price and deteriorated perceived quality perception (Buil et al., 2013)

Customers develop brand identification and brand image, reflected by the three elements of marketing communications mix Prior research identifies the positive influence of advertising spending on brand equity (Yoo et al., 2000), perceived quality (Moorthy and Hawkins, 2005) and brand image (Meenaghan,

1995) In addition, the influence of price discounting on customers’ reference price leads to favorable quality evaluations (DelVecchio et al., 2006) On the other hand, the frequent use of price promotions leads to a negative impact on perceived quality and brand identification because customers use price as an extrinsic cue to infer product quality (Agarwal and Teas, 2002) Negative influences of monetary promotion are due to the relationship between internal reference price and deteriorated perceived quality perception (Buil et al., 2013) Moreover, non-monetary promotion strategies enhance brand equity (Montaner and Pina, 2008) and brand identification to the brand (Palazon and Delgado, 2009) Therefore, when a coffee shop offers different marketing communications elements, customers are predicted to evaluate the coffee shop brand Thus, the following hypotheses are proposed

H1 Customers’ attitudes toward a coffee shop brand’s advertisement positively influence (1) brand identification and (2) brand image

H2 Customers’ perceptions of a coffee shop brand’s monetary promotion positively influence (1) brand identification and (2) brand image

H3 Customers’ perceptions of a coffee shop brand’s non-monetary promotion positively influence (1) brand identification and (2) brand image

They find lovemarks, brand love and brand respect, have a significant moderating effect between satisfaction and brand loyalty and between brand trust and brand loyalty Song et al (2019b) also identify the importance of brand love that influences brand loyalty in the context of a name-brand coffee shop

The relationship between brand identification and brand love is predicted to

be positive Albert and Merunka (2013) identify positive effects of brand identification on brand love and brand commitment Tuskej et al (2013) also confirm the positive relationship between brand identification and positive word-of-mouth Therefore, the following hypothesis is posited

H4 Brand identification positively influences (1) brand love and (2) brand loyalty In addition, when customers form favorable brand images, they have better value perceptions and develop deeper purchase intentions (Chiang and Jang, 2007) Therefore, it is predicted that brand image has a positive impact on brand love and brand loyalty, proposing the following hypothesis

H5 Brand image positively influences (1) brand loyalty and (2) brand love

represent two distinct types of brand loyalty As the coffee shop industry has

become more competitive, brand loyalty has become more important (Song et al., 2019a) Consider, for example, Busser and Shulga (2019), who look at the role of loyalty as a predicate of trust and the results of transparency, authenticity, and

interaction with customer-generated advertising in a coffee shop brand in the US Customers who are devoted to a certain brand are less price sensitive and more willing to pay a higher price for that brand than they are for other choices because they may believe that the brand has a unique value Companies that have customers who are loyal to their brand have an advantage in the market

Prior research supports the concept that customers experience a feeling of love for their brand (Batra et al., 2012) Prior study identifies outcomes of brand love, which influences brand loyalty (Carroll and Ahuvia, 2006) and active participation in a brand community (Bergkvist and Bech-Larsen, 2010) Based on the well-identified relationship between brand love and brand loyalty (Batra et al., 2012), the following hypothesis is proposed in a coffee shop context

H(6) Brand love positively influences brand loyalty

2.4 Previous empirical thesis

The function of marketing communications is to serve as a conduit between

a product's maker and the end user In order to reach the intended audience, the vendor employs a variety of promotional strategies tailored to the product's attributes, the buyer's perspective, and other factors (Lin & Chang, 2010) Customer reactions to a firm's marketing communications mix have long been an issue of enormous theoretical and practical importance, which is why marketers have worked tirelessly to align marketing communications efforts with sales results

in order to ensure the long-term health and growth of a company (Matthyssens & Johnston, 2006)

Demand is continuously changing in today's complicated and competitive business contexts, therefore companies must increase their revenue by concentrating on client awareness and retention The most difficult part of any organization's performance and development is evaluating and assessing the impact of its marketing communicationss activity and its market result on its target audience (Okyere, Agyapong & Nyarku, 2011) Customers and other stakeholders

may begin a dialogue with businesses about their products and services, as well as other corporate concerns, via marketing communications (Keller, 2001) Marketing communications have grown in importance in recent years for a variety of reasons New technologies and a more fragmented audience have fundamentally transformed the landscape of marketing communication (Schultz, 1999; Low, 2000) Due to the proliferation of consumer-to-business communication channels, both traditional and non-traditional, firms have been forced to reevaluate their methods of mass communication and come up with new ones (Kotler, Wong, Saunders, & Armstrong., 2005) Communication about a company's products and services is based on information from a variety of media platforms (Keller, 2001)

This research, which builds on the findings of Buil et al (2013), examines four different facets of communication First and foremost in the communication mix is advertising, which conveys a brand's functional and emotional values (de Chernatony, 2010) When an organization's goals are aligned with its advertising strategy, it has a better chance of succeeding (Kotler et al., 2006) Al-Rfou, A.N., (2012) “Competition and Organizational Performance: Empirical Evidence from Jordanian Firms” The results indicated that the intensity of market competition has

a positive strong consequence on the organizational performance of such companies

As a result of increased expenditure on advertising, consumers become more familiar with brands (Chu and Keh, 2006) When assessing the efficacy of an advertise campaign, this is a critical reaction from the target audience (MacKenzie and Lutz, 1989) In order to raise awareness of a company's brand, advertisements connect strong customer-brand connections, and encourage good brand perceptions

in the minds of consumers (Keller, 2007) Advertising has a significant impact on customers' perceptions of a brand's value, which in turn affects their purchasing decisions (Lu et al., 2014) Study about the nature of sales promotion and its control on consumer’s preference Consumer perceptions of deal value for non-monetary and monetary promotion are affected by the stock up characteristic of the

division (Smith and Sinha, 2000) Consumers' internal reference prices remain unchanged for one-time promotion Study about the impact of benefit level on the effectiveness of different sales-promotion Price discounts (monetary promotion) are more successful than premiums on the condition of high benefit, while premiums (non-monetary) are more successful than price discounts at low benefit levels (Palazon and Delgado-Ballester, 2009)

Academics show an increased interest on the effectiveness of marketing communications mix since it is considered a key benefit for developing a strong brand (Keller, 2009) The communication mix is a set of components that reintegrate with each other to attain desirable marketing objectives (Kotler et al., 2006) The communication mix positively influences Marketing strategies in coffee shops The current issue and full text archive of this journal is available on Emerald Insight at: organizational performance and the development of customers’ brand loyalty (Berezan et al., 2016)

Hossein and Navaie (2011), to investigate the impact of advertising mix on cosmetics and beauty product sales, questionnaires were sent to 384 women who had used Atousa hair color products at least once The surveys included questions

on the influence of promotion mix techniques on sales growth The findings of testing study hypotheses (one-sample T-test) revealed that sales promotion, advertising, and personal selling were the most potent variables in raising sales, whereas direct marketing had the least influence The study's limitations were the respondents' unwillingness to answer questions and the study did not examine all

of the marketing communications mix, such as publicity, therefore further research

on the function of marketing mix in improving product sales may be done

Previous researchers point out the importance of understanding coffee shop brand marketing management techniques (Choi et al., 2017) Despite the significance of understanding brand loyalty, the prior study has not examined how marketing communications influences brand loyalty in coffee shops industry Thus, this study explores relationships among the elements of a marketing

communications mix, brand identification, brand image, brand love and brand loyalty However, research in the relationship between the marketing communications mix and brand evaluation is scant and calls for more investigation

in the future (Yoo and Bai, 2013)

2.5 Hypotheses model

Customers' purchasing decisions are influenced by both positive and negative brand evaluations, according to research, hypotheses were formulated in the following;

Figure 0-3 Research model

Source: Self-illustrated author

hesis

S o

Advertising positively influence (1) brand identification and (2) brand image

H2 Monetary Promotion marketing has a significant positive impact

on customers' impressions of a coffee shop's (1) brand identification and (2) brand image

H3 Customers’ attitudes toward a coffee shop brand’s advertisement

positively influence brand awareness

H4 Brand identification has a beneficial impact on (1) brand love and

CHAPTER 3: THE RESEARCH METHODOLOGY

Chapter 3 will present the research methodology A detailed description of the research process including qualitative and quantitative research, and a description of the research sample In this chapter, the author also designs the research model and builds the survey questionnaire

3.1 Research process

Here is a breakdown of the whole research process, from generating a research question to formulating a hypothesis and creating a model Data processing and analysis are necessary for drawing conclusions from study data

Figure 0-1 Research flow chart

Source: Self-illustrated author

3.2 Research methods

The research was carried out by using the mixture methodology of qualitative and quantitative research in this paper

Qualitative research: By referring to and summarizing relevant research

results, the author identifies factors of the Marketing communications Mix that influence the brand equity of The Coffee House then uses survey tools (survey online via Google form tool and collect survey forms directly)

Quantitative research: using SPSS, AMOS software

Stage 1: The topic will conduct a test survey of 33 questionnaires to check the reliability of the scale with Crouchback’s Alpha coefficients to adjust the questionnaire

Stage 2: The research will conduct an empirical survey of 415 customers of The Coffee House However, after collecting the data, some survey questionnaires were rejected due to ineffective evaluation data The survey aims to scale the role

of marketing communicationss mix to The Coffee House brand equity; Testing the reliability of the scale by Crouchback’s Alpha coefficient, using EFA exploratory factor analysis and then regression analysis 4 linear to determine the factors affecting

3.3 Sample description

Based on large sample distribution theory, SEM analysis requires a large sample to obtain a reliable estimate While the question of how large a sample should be is not completely resolved (Hair et al., 2010), it depends on the statistical methods used However, Hair et al suggest that a ratio of sample size to the number of these metrics should be at least 5:1 when using SEM According to Tabachnick and Fidell (1989) experience shows that a sample size of 300 is good,

500 is very good and 1000 is excellent The results are based on the number of observed variables in the linear structural model requiring a sample of 300 respondents who were selected and used the population sampling method for the main survey Therefore, the sample was selected according to the convenience method and the expected sample size was 400 observations On the other hand, according to Tho (2013), the principle that the number of observations must be at

least 5 times the number of observed variables in the research model The number

of observed variables of the factors in the research model is 33 observed variables Therefore, the minimum sample size should be 5 x 33 = 165 observations So the sample size collected for analysis including 400 observations is expected to be appropriate

3.4 Survey design

3.4.1 Scale applied in the survey

In order to receive the highest possible response, the investigation process must go through personal relationships such as family, friends, relatives and colleagues at your company, make contact first and send The survey will then follow up closely to collect the results of the survey, check the survey results if there are errors, they will contact the survey again In addition, in order to increase the sample and survey efficiency, at peak times every day such as 11 am to 12 am and from 19 pm onwards every day, the survey will be sent through the link created and sent to the groups On social networks, always comment and comment

on online sales suppliers, before posting, you need to contact the site manager to coordinate Data were collected from January 1st to March 1st The total number

of questionnaires sent was 415 questionnaires Collected data will be cleaned before conducting analysis

A five-point Likert scale which is the most popular type of scale was adopted for analysis Likert scale questions require survey respondents to select their level of agreement to a statement including (1) Strongly disagree, (2) Disagree, (3) Normal, (4) Agree, (5) Strongly agree

3.4.2 The questionnaire designs

Based on the proposed research model and some previous survey samples, the questionnaire is divided into 2 main parts

Part 1: Basic information about survey subjects

Part 2: Building a questionnaire to assess the level of research subjects' opinions on factors of Marketing communicationss Mix on The Coffee House brand equity according to standard scales

The questionnaire was designed to be completed within about ten minutes The author uses Google Forms to create the form with an easy-to-use interface to shorten the time to complete and sent to respondents quickly The survey questionnaires are sent via social networking sites such as Facebook, zalo and forum pages of some universities Such forms allow the entry of data, which are saved in a text file These text files are subsequently extracted and inputted into an Excel database, for subsequent analysis In the next stage, the survey form is edited and samples continue to be sent Finally, the amount of data collected through the survey is a total of samples At the end of the last main section of the questionnaire, students are invited to make any further comments

3.5 The reliability of the scale

The reliability of the scale is assessed through the Cronbach Alpha coefficient, which only measures the reliability of the scale (including 3 or more observed variables) and does not calculate the reliability for each observed variable) The above coefficient has a variable value in the range [0, 1] Cronbach's Alpha is a statistical test of the rigor (explainability for a research concept) of the set of observed variables (questions) in the scale Hair et al (2010) and Kline (2005) said that when Cronbach's Alpha coefficient has a value of 0.8 or more, it is

a good scale; from 0.7 to nearly 0.8 is usable However, there are also many researchers (Slater, 1995) who suggest that Cronbach's Alpha coefficient of 0.6 or more can be used in case the concept being studied is new or new to the respondents in the context of the study research scene Cronbach's Alpha coefficient value of 0.6 or more is considered a qualified scale In theory, the higher this coefficient, the more reliable the scale is However, when Cronbach's Alpha coefficient is too large (above 0.95), it shows that many variables in the

scale have no difference, this phenomenon is called overlap in the scale (Tho, 2013)

3.5.1 EFA-Exploratory factor analysis

According to Tho (2013), after testing the reliability, the concepts in the research model need to be tested for convergence and discriminant validity through exploratory factor analysis The basis of this reduction is based on the linear relationship of the factor with the observed variables The suitability of applying EFA analysis method was assessed through KMO and Bartlett's test

Bartlett's test: to see if the correlation matrix is a unit matrix (the unit matrix

is a matrix with the correlation coefficient between the variables equal to 0 and the correlation coefficient with itself equal to 1) If the test has a P-value < 0.05 (with a significance level of 5%), it shows that the observed variables are correlated with each other in the factor So use the appropriate EFA

KMO coefficient (Kaiser-Meyer-Olkin): is an index to assess the suitability

of factor analysis The higher the KMO coefficient, the higher the rating Kaiser (1974) suggested: KMO ≥ 0.9 is very good; 0.9 > KMO ≥ 0.8 is good; 0.8 > KMO

≥ 0.7 is fine; 0.7 > KMO ≥ 0.6 is temporary; 0.6 > KMO ≥ 0.5 is bad; KMO < 0.5

is not acceptable The coefficient is in the range [0.5; 1] is the basis for the appropriate factor analysis Use EFA to evaluate the unidirectionality, convergent validity and discriminant validity of the scales

3.5.2 CONFIRMING FACTOR ANALYSIS (CFA)

Confirmatory factor analysis has many advantages over traditional methods such as the correlation coefficient method; exploratory factor analysis method EFA; multi-method method, multi-concept, etc (Bagozzi and Foxali, 1996) Criteria for implementing CFAs include general coverage standards and content merit-based coverage standards In which, to evaluate the overall fit of the model, the author uses the following criteria: Chi-square (Chi-squared CMIN); Chi-square adjusted for degrees of freedom (CMIN/df); GFI (Goodness of Fit Index;) TLI

index (Tucker and Lewis Index); CFI (Comparative Fit Index;) RMSEA (Root Mean Square Error Approximation) index

The model is considered suitable when the Chi-square test has p value ≥ 0.05 However, Chi-square has the disadvantage that it depends on the sample size The larger the sample size, the larger the chi-square, thereby reducing the model's goodness of fit Therefore, besides p-value, the criteria used are CMIN/df ≤ 2 (according to Carmines and Mciver, 1981, in some cases it is acceptable to CMIN/df ≤3); GFI, TLI, CFI ≥ 0.9 (Bentler and Bonett, 1980) However, according to Hair et al (2010), the GFI index is still acceptable when it is less than 0.9; RMSEA ≤0.08, the case of RMSEA ≤ 0.05 according to Steiger (1990) is considered very good

Criteria for assessing model fit in terms of content value aspects include The reliability of the scale is evaluated through the composite reliability coefficient (ρc- Composite reliability), the total variance extracted (ρvc-variance extracted), and the reliability coefficient (Cronbach's alpha - α) In which, the extracted variance reflects the overall variability of the observed variables explained by the latent variable (Hair et al., 2010); composite reliability measures the reliability of a set of observed variables measuring a concept (factor); Cronbach's Alpha reliability coefficient measures the intrinsic consistency across the set of observed variables of the responses (Schummacker and Lomax, 2006) Criteria to evaluate the suitability of the model by the reliability of the scale is ρc > 0.5 or ρvc > 0.5; or α ≥ 0.6

The unidimensionality of a scale representing each observed variable is used to measure only one latent concept According to Steenkamp and Trijp (1991), the fit of the measurement model to market data gives us the necessary and sufficient conditions to conclude the set of observed variables is unidirectional, unless the errors of the set of variables are unidirectional observed variables are correlated with each other

Convergent validity represents a measure of a concept that is closely correlated after repeated measurements According to Anderson and Gerbing (1988), the scale is considered to have converged value when the standardized weights of the scale are all high (> 0.5) and statistically significant, ie p < 0.05

Discriminant validity represents the difference between the concepts in the research model, and this occurs when the correlation coefficient between the concepts on the overall scale is different from 1 and significant statistics (Bagozzi and Foxali, 1996; Hair et al., 2010) In particular, the evaluation of this standard, if tested on a pair of concepts, will have more advantages, because the correlation coefficient will change when another concept is involved Furthermore, in case the test concept is higher order, this test will allow to compare the correlation coefficient between two concepts and the correlation coefficient between two components of the same concept However, it is also possible to test the discriminant validity of concepts through a critical model (Saturated model - a model in which the research concepts are freely related to each other), but testing

in this way requires requires large sample size because the number of parameters

to be estimated will increase

Nomological validity represents the fit between the research model and the theoretical basis that builds the model According to Anderson and Gerbing (1988) the theoretical relevance value is evaluated in the theoretical model and Churchill (1979) is considered appropriate when “Each measure is related to the other measures as expected about theory"

3.5.3 SEMLINEAR STRUCTURE MODEL

Hair et al (2010) suggest that SEM is an extension or a unique combination

of several multivariate techniques such as regression analysis and multifactorial analysis Therefore, SEM allows researchers to assess the contribution of each scale, how the relationship between the conceptual scales and estimate the relationship between independent and dependent variables (Sanchez et al events, 2005) SEM allows researchers to uncover measurement errors and unify abstract

and difficult-to-distinct concepts It not only links theory to data but also compares theory to data (Bagozzi and Foxall, 1996; Anderson and Gerbing, 1988) Thus, the same test criteria are applied as in the CFA analysis

In addition, when the number of structural relationships in SEM is equal to the number of possible correlations in the CFA, the model is said to be a saturated structural model As a result, the statistical fit of the saturated theoretical model should be the same as that obtained for the CFA model (Hair et al., 2010) In this study, linear structural model analysis is used to test the research model; ML (Maximum likelihood) is used to estimate the model parameters According to Muthen and Kaplan (1985), this test allows the distribution of observed variables

to deviate slightly from the multivariable normal distribution, but most of the Kurtoses and Skewnesses are within the limit [-1 ,+1] However, it should also be recognized that few measurement models meet all of the above criteria In fact, in many studies, p-value and unidirectionality are often difficult to achieve on all scales of research concepts (Tho, 2009)

CHAPTER 4: DATA ANALYSIS

Chapter 4 focuses on data processing methods through SPSS software by different testing methods This chapter will also present the contents of descriptive statistical analysis, test the reliability of the scale through Crouchback ’s Alpha coefficient, exploratory factor analysis (EFA), regression analysis, test the Hypothesis of the research model, compare the difference in customer satisfaction assessment

4.1 Descriptive statistic

Based on the table results, we can see that out of 358 people surveyed, 153 people are male, accounting for 42.7% and 205 are female, accounting for 57.3%, this proves that Women use services at cafes more than men There are 115 people aged from 18 to under 25 years old, accounting for 32.1%; There are 170 people aged from 25 to under 31 years old, accounting for 47.5% and over 31 years old, there are 73 people, accounting for 20.4% Undergraduate education has 96 people, accounting for 26.8%; There are 189 people with university degree, accounting for 52.8% and 73 people at the university level, accounting for 20.4% The number of people still in school is 68 people, accounting for 19%; business occupations have

144 people, accounting for 40.2%; doing office work has 87 people, accounting for 24.3% and other jobs have 59 people, accounting for 16.5% Income of less than 5 million VND per month, there are 68 people, accounting for 19%; from 5 to under

14 million VND per month, there are 78 people, accounting for 21.8%; from 14 to less than 20 million VND per month, there are 140 people, accounting for 39.1% and from 20 million VND or more, there are 72 people, accounting for 20.1% The number of people using The Coffee House's coffee to buy goods is 90 people, accounting for 25.1%; of High Land has 83 people, accounting for 23.2%; Starbucks has 67 people, accounting for 18.7%; of 3 O'clock is 63 people, accounting for 17.6% and of other brands is 55 people, accounting for 15.4% And all of 358 people have known about The Coffee House accounting for 100%

Classify Times Frequency

Table 0-1 Descriptive statistics of the study sample

Source: Author's data analysis

4.2 DATA ANALYSIS RESULTS

4.2.1 Testing the scale by Cronbach's Alpha reliability coefficient

Testing the reliability of the scale through Cronbach's Alpha coefficient in order to exclude variables with a total variable correlation coefficient less than 0.3 Criteria choose the scale when it has Cronbach's Alpha reliability ≥ 0.6 The scale

of reliability Cronbach's Alpha ≥ 0.6 was also chosen when it was first used (Nunally, 1978; Peterson, 1994; Slater, 1995) In theory, the higher the Cronbach's Alpha.Cronbach's Alpha of the component scales are presented in the following tables:

OBSERVED

VARIABLE

Average of scale if the variable type

Scale variance if the variable type Total variable

correlation

Cronbach's Alpha if the variable type Non-Monetary scale with Cronbach’s Alpha = 0,873