INTRODUCTON
Background of research
Vietnam exported 14.5 million bags of green coffee in the first seven months of 2013, marking a 3% increase compared to the previous year, according to MARD data This growth underscores Vietnam's position as the second-largest coffee exporter globally.
Vietnam is renowned as a coffee country with a rich coffee culture that dates back to 1857 Over the years, coffee has become an essential part of Vietnamese daily life, reflecting the deep-rooted tradition and love for this beverage Today, both international and domestic coffee brands have widespread presence across Vietnam, catering to the country's growing demand for high-quality coffee.
Globalization has made the Vietnamese coffee market highly attractive to international investors, leading to the emergence and rapid growth of renowned global coffee brands like NYDC Coffee, The Coffee Bean & Tea Leaf, and Angel In.
The domestic roasted coffee market has become increasingly competitive with the presence of international chains like US Coffee and Starbucks Vietnamese coffee brands such as Trung Nguyen Coffee and Highland Coffee leverage years of experience and expertise in producing high-quality roasted coffee, strengthening their position in the market This dynamic landscape highlights the growth and resilience of Vietnam's coffee industry amid intensified competition.
Gogo Coffee and other brands have attempted to penetrate the market, but most companies acknowledge that gaining even a small market share remains challenging In the premium roast coffee segment, competition has shifted from focusing solely on price and product quality to emphasizing brand building Strengthening brand image and establishing strong brand equity are now crucial, as Vietnamese consumers increasingly value brand reputation and product presentation when making purchasing decisions.
2 recognized as an important part that assisting Vietnamese coffee marketers or companies increase competitive advantage and assist to make management decision
Brands are essential for product differentiation and have become a key success factor in gaining a competitive advantage (Wood, 2000) They add value for both companies and consumers by enhancing product appeal and recognition According to Aaker (1991), strong brands increase product value and safeguard against imitation by competitors For Vietnamese roasted coffee brands, understanding the importance of brand equity can lead to higher profits and increased customer loyalty.
These circumstances motivated me to investigate the relationship between selected brand equity‟s dimensions and brand equity
Founded by Dang Le Nguyen Vu in 1996, Trung Nguyen Coffee started as a small business processing coffee in Ban Me Thuot city At that time, Vietnam had re-emerged as one of the world's leading coffee producers, primarily specializing in robusta coffee Over the years, Trung Nguyen has grown into a renowned Vietnamese coffee brand, symbolizing the nation's rich coffee heritage and global reputation in the coffee industry.
In its early days, Trung Nguyen Coffee recognized the importance of controlling coffee quality beyond just trading "green" unroasted beans on the commodity market, which lacked oversight over final product standards and prices The company's first coffee shop opened in Ho Chi Minh City in 1998, marking the beginning of its retail presence By 2001, Trung Nguyen expanded to establish coffee shops across all provinces of Vietnam, and today, it operates over 50 locations nationwide Trung Nguyen Coffee is optimistic about its sustainable development future, driven by Vietnam’s continued growth and emerging market opportunities.
3 branding and always tried to build its brand to become a high-class brand of coffee for customers who have high income.
Research problem and purpose
Competition is a key factor that significantly influences brand emergence and growth (Laaksonen, 1994) In today's market, fierce competition exists across all industries, driven by the constant threat of new entrants and existing rivals The coffee shop industry is no exception, facing intense competitive pressures that mandate innovative strategies for success.
To outperform competitors and Capture a larger market share, implementing an effective marketing strategy is essential Brand equity, a key concept in marketing, significantly influences business growth by enhancing a company's reputation and customer loyalty Building strong brand equity can lead to sustainable competitive advantages and long-term success in the marketplace.
In a highly competitive market, brand reputation, product style, and quality are crucial factors influencing customer choices Vietnamese roasted coffee brands have invested heavily in mass production, price reduction, and promotional campaigns to attract consumers However, they often overlook the fact that customers prefer well-known, trusted, and reliable brands As a result, many domestic coffee companies struggle to establish a distinct and effective brand identity associated with their roasted coffee products.
Most of them have not yet achieved national recognition.
Research objective
This study aims to deepen the understanding of the concept of brand equity and its application in marketing strategies It focuses on measuring and evaluating the effectiveness of key brand equity dimensions, including brand awareness, brand associations, perceived quality, and brand loyalty By analyzing these dimensions, the research seeks to provide insights into how brand equity influences consumer perceptions and behavior, ultimately enhancing brand management practices.
4 loyalty on consumer based brand equity creating and also determine what dimensions of customer based brand equity have positive effect on the brand equity of Trung Nguyen
This paper's findings provide valuable insights for Vietnamese coffee companies aiming to build positive brand equity By understanding key factors that influence consumer perception, these companies can enhance their brand image to drive future business growth and increase profitability Implementing strategies derived from this research will enable Vietnamese coffee brands to strengthen their market position and achieve sustainable success.
What dimensions of brand equity have positive effect on perception of Vietnamese coffee brand with representative is Trung Nguyen coffee?
How much they affect the brand equity of Trung Nguyen coffee?
What is the current brand equity level of Trung Nguyen Coffee?
How to improve the current brand equity level of Trung Nguyen Coffee?
Scope of the study
This research was conducted in Ho Chi Minh City, focusing on customers of Vietnam’s coffee brands, particularly Trung Nguyen Coffee The study targeted office buildings with a high concentration of employees who are potential consumers of Vietnam’s coffee brands However, these findings do not represent the overall perception of all Vietnamese customers regarding the brand equity of Vietnam’s coffee companies.
This study's findings may not represent the views of all coffee brand customers in Ho Chi Minh City, as the survey was primarily conducted among office workers in select districts Limitations such as time constraints and the research team's experience could introduce biases that impact the accuracy and generalizability of the results.
Contribution of the study
This study provides valuable insights for Vietnam’s coffee brand managers, particularly those of Trung Nguyen Coffee, enabling them to assess their current brand equity from customers’ perspectives The findings help identify key strengths and weaknesses in their branding strategies, allowing for targeted improvements By understanding the brand’s positioning and customer perceptions, managers can make informed decisions to enhance brand loyalty and competitiveness in the market Overall, the research supports effective branding management and strategic development for Vietnam’s leading coffee brands.
It also helps to come up with scientific solutions to improve the brand equity of
Vietnam‟s coffee brands and gain competitive advantages The questionnaires designed in this study can be applied in practice to support to the customer survey system of
This research provides valuable insights into how brand equity influences customer perceptions within Vietnam’s coffee industry The findings serve as a crucial reference for coffee brands seeking to enhance their branding strategies and improve service quality Additionally, the study offers a foundation for future research in related sectors, supporting ongoing efforts to optimize brand performance and customer satisfaction.
Organizational structure of the study
This article is structured into several key sections The introduction provides the research background, objectives, scope, significance, and study structure The literature review outlines the definitions, conceptual frameworks, and reviews of related previous studies The research methodology describes the approach used to conduct the study The data analysis and discussion chapter interprets the collected data and discusses the findings Finally, the conclusion summarizes the main insights and implications of the research.
6 recommendations are figured out in order to help answer the research question, make suggestions and also provide some basic for further study
LITERATURE REVIEW & THEORETICAL FRAMEWORK
Concepts & Definitions
The idea of branding has been applied for more than a hundred years (Feldwick,
1996) Until now, the meaning of brand has been changed a lot The significant of brand is also gaining which is considered as one of sustainable competitive advantage in business
According to Kotler (1994), a brand is a name, term, sign, symbol, or design—or a combination of these elements—used to identify a seller's goods or services It serves to distinguish a company's offerings from those of competitors, playing a vital role in brand differentiation and recognition in the marketplace.
Historically, brands were primarily seen as identifiers marked by features, characteristics, and logos that distinguished products from competitors According to Aaker (1991), brands served as the source of a product, offering protection for both customers and producers against imitators in the marketplace This traditional approach treats brands as the visual and functional elements that differentiate one product from another, establishing their role in brand recognition and competitive advantage.
The current market environment has significantly evolved, making it more challenging to distinguish individual products and establish strong brands compared to a few decades ago (Aaker, 1991) Consequently, the traditional approach of differentiation based primarily on visual features and product focus is no longer effective in today's competitive landscape (Arnold, 1992).
In recent years, marketing has shifted from a product-centric approach to emphasizing the importance of brand focus This new strategy adopts a holistic perspective, positioning the brand itself as the central element for building customer loyalty and recognition Emphasizing the brand over individual products helps companies create a stronger, more cohesive identity in the marketplace By prioritizing brand consistency and reputation, businesses can foster long-term relationships and enhance their overall market presence.
(Wood, 2000) Brand is underlined as an image in consumers‟ minds by this approach
(Keller 1993), brand personality (Aaker, 1996) and brands as added value (De
Chernatony & Mcdonald 1992; Doyle 1994) Hence, the product is only one attribute of the brand under this approach
This branding approach has been broadly accepted by researchers (Aaker, 1991;
A brand offers both physical and emotional benefits to customers, whereas a product primarily satisfies only physical needs According to Aaker (1991), a brand is “a product that provides functional benefits plus added values that some consumers value enough to buy,” emphasizing its role in delivering additional value beyond the physical product Stephen King highlights that “a product is something made in a factory; a brand is something that is bought by a customer,” underscoring the unique and intangible nature of brands that cannot be easily copied Unlike products, which can quickly become outdated, successful brands possess a timeless quality that ensures ongoing relevance and customer loyalty Incorporating these distinctions enhances brand positioning and highlights the importance of emotional and functional benefits in consumer decision-making.
As a consequence, brands are now perceived as the key success element for achieving competitive advantages in terms of revenue, profit, added value or market
Differentiation is a key factor for firms to gain a competitive edge, as strong brands set products apart and provide customers with satisfaction and perceived benefits that justify their willingness to pay (Wood, 2000) Brands add value to both companies and consumers by enhancing product appeal and loyalty, while also shielding products from imitation by competitors (Aaker, 1991) Consequently, a robust brand is regarded as a valuable asset that significantly contributes to a company's overall value and market position (Aaker, 1991).
Since the term “brand equity” emerged in the 1980s, interest in this concept has grown among academic marketers and practitioners Various definitions of brand equity have been proposed, reflecting its importance in marketing strategies (Cobb Walgren et al., 1995; Keller, 2002) It is often described as the difference between overall brand preference and multi-attribute preference based on objective attribute levels, or as the relationship between overall quality and consumer choice intention (Park & Srinivasan, 1994; Agarwal & Rao, 1996).
Brand equity is a crucial concept in brand management, business practices, and academic research, as it significantly influences a company's success (Kim et al., 2008) Developing and effectively managing brand equity is essential for firms to enhance cash flow and achieve product differentiation, leading to sustainable competitive advantages (Hao et al., 2007; Yoo et al.).
2000; Aaker, 1991) Thus, brand equity is been appreciated as one of the most valuable intangible assets by most firms (Hao et al., 2007)
According to Aaker (1991), brand equity is defined as "a set of brand assets and liabilities linked to a brand, its name, and symbol, that add to or subtract from the value provided by a product or service to a firm and/or its customers." This widely accepted definition emphasizes the importance of brand elements in influencing a company's value.
According to Aaker (1991), brand equity is built upon five key dimensions: brand loyalty, name awareness, perceived quality, brand associations, and other proprietary brand assets such as patents, trademarks, and channel relationships These elements collectively form the foundation of a company's brand strength and market value.
Brand equity is conceptualized from the perspective of the individual consumer and a conceptual framework is provided of what consumers know about brands
Customer based brand equity is defined as the differential effect of band knowledge on consumer response to the marketing of the brand (Washburn and Plank, 2002)
Proponents argue that for a valuable brand must be valued by the customer
Brand equity, from the consumer’s perspective, is the added value reflected by increased attitudinal strength toward a product using that brand (Farquhar, 1989) It is rooted in the consumer's attitude, which links an object to its evaluation stored in memory A strong brand is characterized by three key elements: positive brand evaluation, a clear brand attitude, and a reliable brand image According to Martin and Brown (1990), brand equity represents the overall impression and perception a consumer has of a brand Similarly, Blackston (1992) describes brand equity as the consumer’s ideas and perceptions about the brand, highlighting its importance in shaping consumer behavior and loyalty.
Further, Edell (1993) supposes that brand equity is the difference between the consumer‟s evaluation of a branded product and an unbranded product with the same attributes
Consumer-based brand equity (CBBE) is most widely defined as the extent to which customers are familiar with a brand and hold favorable, strong, and unique brand associations in their memory (Keller, 1993) Keller also describes brand equity as the influence of different levels of brand knowledge on customer responses to marketing efforts, emphasizing the importance of the associative brand knowledge in shaping consumer perceptions and behaviors.
12 network memory model in terms of two factors, brand image and brand awareness
A brand possesses positive customer-based brand equity when customers respond more favorably to the product, promotion, price, or distribution associated with the brand compared to the same marketing elements linked to a fictitious or unnamed version of the product or service (Keller, 1993, p 1) This concept underscores the importance of brand perception in shaping consumer reactions and loyalty Building strong brand equity enhances customer preferences and can lead to increased market success.
Understanding brand equity from the customer's perspective is crucial for effective brand management Keller (1993) emphasizes that positive customer-based brand equity leads to increased revenue, higher profits, and cost savings It directly impacts the firm's ability to command premium prices, encourages customers to seek out new distribution channels, enhances marketing communication efficiency, and supports successful brand extensions and licensing opportunities.
Customer-based brand equity is a multidimensional construct that encompasses various attitudinal and behavioral components (Anantachart, 1998) Typically, these models primarily measure attitudinal elements, with brand image and brand associations being the most commonly utilized constructs Understanding these dimensions is essential for assessing a brand's overall value and influence in the marketplace.
(Kim & Kim, 2004; Martin & Brown, 1990; Pappu et al., 2005; Washburn & Plank 2002;
Yoo et al., 2000); brand awareness (Holden & Lutz, 1992; Nguyen & Nguyen, 2003;
Washburn & Plank, 2002; Yoo et al., 2000) and brand preference (Anantachart, 1998;
Nguyen & Nguyen, 2003) Brand equity‟s behavioral components are also measured in
13 some research as parts of the combination of attitudinal components of customer based brand equity, brand performance (Lassar et al., 1995) and brand loyalty (Kim & Kim,
Research model
Based on the literature review, Aaker’s (1991) brand equity model is selected to analyze Vietnam’s coffee brands The original model comprises five key dimensions: brand awareness, brand associations, brand loyalty, perceived quality, and other brand assets This study tests these dimensions through customer evaluations However, for this research, the measurement focuses on four core dimensions: brand awareness, brand associations, brand loyalty, and perceived quality, as illustrated in the following figure.
This research examines four key independent variables—brand awareness, brand associations, brand loyalty, and perceived quality—that significantly influence brand equity Understanding how each factor impacts brand equity can help businesses develop targeted strategies to strengthen their brand strength and market position Optimizing these elements enhances overall brand value, making them essential components of effective brand management and SEO-focused marketing efforts.
Brand awareness is a key factor in establishing a strong presence in consumers' minds and is essential to building brand equity (Aaker, 1991; Keller, 1993) It signals quality and commitment, helping customers become familiar with a brand and increasing the likelihood of consideration at the point of purchase, ultimately driving sales and brand loyalty.
Aaker (1991) identified various levels of brand awareness, from simple recognition to brand dominance, where the brand is the only one recalled by consumers He described brand awareness as the potential buyer's ability to recognize and recall a brand within a specific product category Keller (1993) further divided brand awareness into two key dimensions: brand recall and recognition Brand recall refers to consumers' ability to retrieve a brand from memory when prompted by mentions of the product category or the needs it fulfills, while brand recognition is crucial for in-store decision-making, often playing a more significant role when consumers are making quick purchase decisions.
Brondoni (2001) argued that level of awareness become a critical factor when competitors‟ offers are related to a condition of direct comparability and other factors of
Brand awareness is a crucial component of brand equity, as it ensures consumers think of the brand when considering products or services, thereby increasing the likelihood of repeated purchases Customer-based brand equity is achieved when customers possess a high level of awareness and familiarity with the brand, coupled with strong, positive, and unique brand associations in their memory Therefore, boosting brand awareness is essential for strengthening overall brand equity and fostering customer loyalty.
H1: Brand awareness has a positive effect on brand equity
Brand association refers to the information nodes linked to a brand in consumers' memory, shaping the brand's meaning and perception The favorability, strength, and distinctiveness of these associations are key dimensions of brand knowledge that influence consumer responses These dimensions are critical in building brand equity, as they create a differential and memorable experience for customers, enhancing brand value and recognition.
Brand association is widely recognized as the most important dimension of brand equity, encompassing product attributes, customer benefits, uses, users, lifestyles, product categories, competitors, and nations (Aaker, 1991) These associations help consumers process and retrieve information, creating meaningful connections with the brand Additionally, brand associations provide consumers with reasons to choose the brand and foster positive attitudes and feelings, enhancing overall brand value (Aaker, 1991) According to Rio et al (2001), effective brand associations are crucial for building and managing strong brand equity.
Generally, brand association is what customers hold in their mind about a brand related to
18 their needs and demands (Wood 1998) In this respect, high brand equity implies that consumers have strong positive associations with respect to the brand Thus, the following hypothesis is posited:
H2: Brand association has a positive effect on brand equity
Brand loyalty is a vital element of brand equity, indicating the likelihood that customers will remain committed to a specific brand According to Aaker (1991), brand loyalty reflects the tendency of consumers to stick with a brand despite changes in price or product features, underscoring its importance in maintaining a strong market position.
Javalgi and Moberg (1997) defined brand loyalty consistent with behavioral, attitudinal, and choice perspectives
The behavioral perspective on brand loyalty focuses on the frequency of consumer purchases for a specific brand, highlighting observable purchasing behavior In contrast, the attitudinal perspective emphasizes consumer preferences and attitudes towards brands, capturing underlying motivations and emotional connections The choice perspective centers on the reasons for purchasing and the factors influencing consumer decisions These diverse definitions of brand loyalty have been empirically studied across three main categories: behavioral approach, attitudinal approach, and multi-domain approach, providing a comprehensive understanding of consumer loyalty (Rundle-Thiele & Bennett, 2001).
Brand loyalty is also conceptualized based on an attitudinal perspective
Chaudhuri and Holbrook (2001) highlighted that attitudinal brand loyalty involves a dispositional commitment to the unique value associated with a brand From an attitudinal perspective, Yoo and Donthu (2001) define brand loyalty as the consumer's consistent tendency to prefer and favor a specific brand based on their positive attitudes and emotional connection This form of loyalty emphasizes the psychological attachment and perceived worth that drive repeat purchases and long-term brand advocacy Understanding these aspects is crucial for developing effective branding strategies that foster genuine customer loyalty and enhance brand equity.
19 being loyal to a main brand, which is determined by the intention to buy the brand as a first choice
Brand loyalty, as defined by Aaker (1991), is a measure of the attachment customers feel towards a brand Oliver (1997) emphasizes that brand equity involves a deep commitment to repurchasing a preferred product or service consistently in the future, influenced by situational factors and marketing efforts that can lead to switching behavior Therefore, brand loyalty is considered a crucial dimension of brand equity, forming the basis for our hypothesis.
H3: Brand loyalty has a positive effect on brand equity
Perceived quality is a central element of the CBBE framework, emphasizing the customer's perception of a product's overall superiority rather than its actual quality It reflects how consumers view a product or service in relation to its intended purpose and alternatives, making it a critical competitive advantage Today, many companies leverage customer-driven quality as a strategic tool to enhance customer satisfaction and create value by consistently fulfilling customer needs and preferences for quality.
According to Kotler (2000), there is a strong link between customer satisfaction, product and service quality, and overall company profitability Perceived quality adds value to a brand by providing consumers with a compelling reason to choose it, differentiating the brand from competitors, enabling premium pricing, and establishing a solid foundation for brand strength.
20 extension (Aaker, 1991) Marketers across all product and service categories have gradually recognized the importance of perceived quality in brand evaluations (Morton,
H4: Perceived quality has a positive effect on brand equity
RESEARCH METHOD
Research methodology
This research adopted Quantitative method, included:
- Secondary data: literature review, articles, research papers, books, etcs
The research follows Quantitative approach to conduct customer survey Primary data will be collected for analyzing and coming up with findings in the later section.
Quantitative approach
Malhotra and Birks (2006) introduce quantitative research is a research manner which seeks to quantify data; especially, it employees some form of statistical analysis
Indeed, Parasuraman (1991) argue quantitative research is a form of conclusive research involving large representative samples and fairly structured data collection procedures
Quantitative research involves large-scale questionnaires and structured observations in conclusive studies, providing numerical data for analysis According to Veal (2006), it includes statistical analysis that relies on numerical evidence to draw conclusions or test hypotheses This approach is essential for obtaining objective, measurable insights in research projects.
22 relatively large numbers of people and to utilize computer to analysis the data to be sure of the reliability of the results.
Questionnaire design
The questionnaire survey aims to gather empirical evidence and assess the brand equity of Trung Nguyen Coffee from the customer’s perspective Designed to directly collect data from customers, the survey uses simple, clear, and easily understandable language to ensure accurate responses The questionnaire features concise and straightforward statements that prevent confusion and facilitate reliable data collection, making it an effective tool for measuring brand perception and loyalty.
The questionnaire is divided into two sections: the first gathers demographic information about Trung Nguyen Coffee customers, while the second assesses brand equity, focusing on key dimensions such as brand awareness, brand associations, brand loyalty, and perceived quality.
The 5-points Likert scale is applied to measure in the questions about brand equity and its dimensions mentioned above According to Cooper et al (2006), the likert scale, which was developed by Rensis Likert, is the most commonly used variation of the summated rating scale It comprises statements expressing either a favorable or an unfavorable attitude toward the object of interest Respondents are asked to indicate their level of agreement with a given statement by the way of a 5-point scale ranging from
The survey scale ranges from “Strongly Disagree” to “Strongly Agree,” with “Neither Agree nor Disagree” positioned in the middle This five-point Likert scale includes: 1) Strongly Disagree, 2) Disagree, 3) Neither Agree nor Disagree, 4) Agree, and 5) Strongly Agree, allowing respondents to express varying degrees of agreement or disagreement.
The questionnaire was initially designed in English The original English version was then translated into Vietnamese Back-translation is necessary in this study because
In the Vietnamese market, English is not widely spoken or understood by customers To ensure accuracy and clarity, the questionnaire was carefully translated from English to Vietnamese, with both versions compared to maintain the meaning of each item Necessary refinements were made to the Vietnamese version to enhance comprehension and cultural relevance, ensuring the questionnaire effectively captures the targeted responses and aligns with SEO best practices for multilingual research.
Understanding the concepts of scaling and measurement is essential for marketing researchers to accurately identify what they want to learn from their target respondents (Malhotra & Birks, 2006) Measurement, as defined by Summers (1970), involves assigning numbers to observations or responses based on specific rules, enabling precise data collection and analysis in marketing studies.
Malhotra and Birks (2006) define measurement as the process of assigning numbers or symbols to objects based on specific pre-established rules The development of clear operational definitions for the concepts being measured is crucial for accurate data collection Adhering to well-defined rules ensures that measurement is reliable and valid, making it a vital aspect of the research process in marketing Clear operational definitions help marketing researchers accurately quantify abstract concepts and maintain consistency in their measurements.
Theory plays an important role in measurement; there can be no measurement without theory (Malhotra and Birks, 2006)
Parasuraman (1991) emphasizes that the initial step in developing a reliable marketing measurement is to design an appropriate response scale capable of accurately capturing respondents' data Malhotra and Birks (2006) further highlight that effective scaling is essential for ensuring data quality and meaningful analysis in marketing research.
“considered an extension of measurement” Scaling involves creating the answering from the respondents and measured the objects located are In this project, likert scale has been
The Likert scale is a widely used rating tool for questionnaire measurement, as it requires respondents to express their level of agreement or disagreement with a series of statements about the stimulus objects (Miller and Salkind, 2002) It is particularly effective for measuring respondents' attitudes toward a product because it is easy to construct, administer, and understand In this study, data on brand equity dimensions and six selected promotional activities were collected through a survey questionnaire The detailed measurement approach will be outlined in the following table.
The measurement scale is detailed in Table 3.1 The questionnaire was carefully designed to assess all constructs of the conceptual model, supporting the testing of research hypotheses These questions were developed based on established theoretical frameworks, as outlined in Appendix A, ensuring their validity and relevance for the study.
I can recognize Trung Nguyen Coffee quickly among other competing brands
BAW2 Some characteristics of Trung Nguyen
Coffee come to my mind quickly
I am familiar with Trung Nguyen Coffee and know what it‟s logo look like
BAW4 When refer to premium roasted coffee,
I think of Trung Nguyen Coffee first
Association BAS1 Trung Nguyen Coffee is a premium coffee brand
Trung Nguyen Coffee has very unique brand image, compared to competing brands
BAS3 I like and trust the company, which creates Trung Nguyen Coffee
I am impressed with Trung Nguyen Coffee‟s customers for the same interest of using Trung Nguyen Coffee
BAS5 I‟d like to be Trung Nguyen Coffee‟s customer because I like its style
I‟d like to be Trung Nguyen Coffee‟s customer because I like its advertisements
PQU1 Trung Nguyen Coffee‟s products have very good tastes
Trung Nguyen Coffee‟s products are diverse and very well designed and decorated
PQU3 Trung Nguyen Coffee‟s employees work quickly and neatly
PQU4 Trung Nguyen Coffee‟s employees are courteous and professional
Trung Nguyen Coffee shops have nice and reasonable decoration and interior design
PQU6 Trung Nguyen Coffee shops have good and modern facilities
PQU7 Trung Nguyen Coffee shops have relaxed and friendly atmosphere
PQU8 Trung Nguyen Coffee‟s quality is well worth for money
PQU9 I highly appreciate Trung Nguyen
Coffee brand for its quality
BLO1 Trung Nguyen Coffee is always my first choice
BLO2 I consider myself to be loyal to Trung
I will go to other coffee brands if Trung Nguyen Coffee closed or has no seats for available
I will say good things about and recommend Trung Nguyen Coffee for my friends and my relatives
BLO5 I will go to Trung Nguyen Coffee more often
BLO6 I will buy many of other products of
BEQ1 I like Trung Nguyen Coffee 5 points
Trung Nguyen Coffee is a prestige brand for high quality and good services
Trung Nguyen Coffee is the leading brand in premium roasted coffee market in Vietnam
Even if another coffee brand has the same products, style and features as Trung Nguyen Coffee, I would prefer to buy Trung Nguyen Coffee
If there is another coffee brand as good as Trung Nguyen coffee, I would prefer to buy Trung Nguyen coffee
Sampling
The first step in this study is selecting the appropriate population, which refers to the complete set of units of analysis under investigation (Davis, 2000) This research specifically focuses on examining the impact of brand equity dimensions on Trung Nguyen, aiming to understand how various aspects of brand value influence consumer perception and business performance within this brand.
This study examines the brand equity of Trung Nguyen Coffee within the Ho Chi Minh City market Conducted as an empirical analysis, the research aims to test the proposed theoretical model in a real-world setting The target population consists of Vietnamese customers of Trung Nguyen Coffee in Ho Chi Minh City, a major commercial hub, providing valuable insights into consumer perceptions and brand strength in this vibrant urban environment.
Next step is estimating the sample size The sample size in this study is 258
According to Gorsuch (1983) and Hatcher (1994), a minimum subject-to-variable ratio of at least 5:1 is recommended for Exploratory Factor Analysis, with higher ratios being preferable In this study, with 30 variables and a sample size of 258, the ratio exceeds 8:1, indicating a robust sample for analysis Comfrey and Lee (1992) suggest evaluating sample size suitability based on a scale where 50 is very poor, 100 is poor, 200 is fair, and 300 is good Therefore, the sample size of 250 in this study is considered appropriate and adequate for the research objectives.
This study employs convenience sampling due to constraints in time, budget, and human resources, making it the most suitable method Convenience sampling relies on selecting easily accessible participants, allowing researchers to efficiently reach their target objects This approach facilitates data collection by focusing on subjects that are readily available to the investigators.
Moreover, the population in this study is unknown, so Convenience Sampling is the most feasible.
Pilot test
The data gathering stage begins with pilot testing, which involves a trial run of the research techniques and instruments to identify potential weaknesses and ensure effective data collection Cavana et al (2001) emphasize that questionnaires should be piloted with a sample representative of the target population to assess clarity and relevance In this study, a pilot test was conducted with 20 participants to evaluate the comprehensibility and significance of the questions, with all respondents informed about the study's purpose and assured of anonymity before participating.
The questionnaire features simple and clear language, ensuring customers can easily understand and respond without confusion Its multiple-choice format enhances convenience, quick completion, and encourages respondents' willingness to participate Overall, the well-designed questionnaire is considered qualified, paving the way for the subsequent stage of the research.
Data collection
This survey targets Trung Nguyen Coffee customers in Ho Chi Minh City, utilizing both printed and online questionnaires to gather responses efficiently Printed questionnaires are distributed directly to customers and collected immediately after completion, ensuring quick data collection An online version with identical questions is sent via email to broaden reach and convenience Additionally, the snowball sampling method enhances the sample size by encouraging respondents to share questionnaires within their social networks, including friends, family, and classmates, thereby increasing diversity and representativeness of the data.
The questionnaires were sent to total number of about 300 people, and collection of data was conducted in two weeks
The research is mainly conducted at four office building Saigon Trade Center, Saigon Center, Bitexco Financial Tower, Centec Tower in Hochiminh City
The sources of secondary data are from published articles, books, research papers, web pages and online newspapers, etc.
Data analysis
Data analysis involves summarizing and reorganizing data through interconnected procedures, primarily using statistical methods Raw data collected is analyzed to extract meaningful insights, often with the support of specialized software In this research, the Statistical Package for the Social Sciences (SPSS) is utilized to effectively analyze business data and generate accurate statistical results.
SPSS 20.0 software was utilized for data analysis, making it an ideal choice for beginners in quantitative research Known for its user-friendly interface, SPSS provides an accessible starting point for learning more advanced statistical packages, particularly in business research applications.
Center, 2009) The data collected from the survey was tested using statistical techniques such as:
Descriptive statistics are essential for transforming raw data into meaningful insights by summarizing key factors within a dataset They provide valuable information through frequencies, measures of central tendency such as mean, median, and mode, and measures of dispersion like variance and standard deviation This process helps in effectively describing and understanding the characteristics of a dataset in various contexts.
Reliability testing often involves using Cronbach’s alpha, a coefficient that measures how well the items in a survey or test are positively correlated, indicating internal consistency (Cavana et al., 2001) This coefficient ranges from 0 to 1, with higher values reflecting greater reliability According to Bryman, a Cronbach’s alpha of 0.8 or higher is generally considered acceptable, ensuring that the measurement items reliably assess the intended concepts.
Cramer (1990) However, according to Nunnally (1978), the value of 0.6 and above is acceptable, especially for initial investigations
Factor analysis is a statistical technique that examines how respondents complete opinion items to identify which items belong to specific factors or clusters (Cavana et al., 2001) This method simplifies complex data by reducing dimensions to better understand underlying patterns In this study, factor analysis is used to identify the key factors that influence customer-based brand equity, helping businesses understand what drives consumer perceptions and brand value.
Regression analysis assesses how multiple independent variables impact a dependent variable measured on an interval scale In this study, it was used to determine the extent to which various dimensions of brand equity explain the overall brand equity from the customer's perspective By analyzing these relationships, the regression model reveals the proportion of variance in brand equity accounted for by its different dimensions, providing valuable insights into customer-driven brand strength.
DATA ANALYSIS & DISCUSSIONS
Respondent demographic profile
Demographic questions offer valuable insights into Trung Nguyen Coffee’s customer base by highlighting key factors such as gender, age, profession, and income This data identifies potential customer segments and helps tailor marketing strategies to target specific demographic groups effectively Understanding these demographic characteristics enables Trung Nguyen Coffee to better meet the needs and preferences of its diverse clientele, ultimately enhancing customer engagement and loyalty.
Moreover, based on this information, the research also compares the different opinions between subgroups
300 questionnaire surveys were delivered to respondents in Ho Chi Minh City
Among 300 surveys, there were 238 surveys got back and valid After the process of editing data, a total of 238 valid questionnaire surveys were collected and analyzed by
Table 4.1 above shows the information about the percentage of male and female respondents who participated in the questionnaires survey It represents that there have
41.6% of male and 58.4% female respondents who took part in the questionnaires
According to table 4.1 also, there have 9.24% of respondents are below 20 years old, 77.73% within 21-35 years old, 11.77% who around 36-50 years old and 1.26% who are above 50
The largest occupational group in this dimension is officers, accounting for over 50.84% of the sample, as they work in departments, offices, and similar settings and are capable of earning an income independently Workers with jobs related to the research area represent a significant portion, making up 38.24% of the total In contrast, students constitute a small percentage of the overall sample, representing only 1.26%.
According to the data, none of Trung Nguyen Coffee’s customers are employed in the "other" job category, which accounts for 9.66% This indicates that the target customer base of Trung Nguyen Coffee predominantly belongs to specific employment sectors, highlighting their focus on a particular demographic profile.
Coffee are middle-class consumer groups, officers and workers, the sample is highly representative to the population of this study
The data on Trung Nguyen Coffee’s customer income levels reveals that the largest segment, accounting for 43.28%, earns between 10 million to 20 million VND per month, primarily comprising professionals and officers Customers earning less than 5 million VND monthly represent the smallest group at only 13.44%, indicating lower income segments have a smaller presence among the brand's clientele Additionally, 27.31% of customers earn between 5 million and 10 million VND per month, reflecting a moderate income group This distribution highlights Trung Nguyen Coffee’s appeal mainly to middle-income consumers within the Vietnamese market.
Most of people from this group are workers Finally, there is about 15.97% of customers in this research has the income of more than 20 million VND
4.1.2 Central tendencies measurement of construct
Descriptive statistics provide a clear overview of sample characteristics and quantitatively summarize the features of collected data As shown in Table 4.2, the minimum and maximum scores, along with mean and standard deviation for each factor, confirm that the data were correctly administered without invalid responses The mean offers an estimate of the central tendency of the data distribution, while the standard deviation measures data variability; a low standard deviation indicates data points are close to the mean, whereas a high standard deviation reflects a wider spread of values.
N Minimum Maximum Mean Std Deviation
The brand awareness (BAW) aims to measure the strength of the presence of Trung Nguyen Coffee brand in customers‟ minds
The brand association (BAS) measures the meaning of the brand for consumers
The perceived quality (PQU) dimension evaluates customer perceptions and satisfaction regarding the overall quality of Trung Nguyen Coffee Brand loyalty (BLO) assesses customers’ commitment to repurchasing and consistently patronizing Trung Nguyen Coffee in the future Brand equity (BEQ) represents the value customers assign to the brand, measured by their level of agreement with specific statements on a 1 to 5 scale Collectively, these dimensions help understand customer perceptions, loyalty, and the brand’s market value.
“strongly disagree” to “strongly agree”.
Evaluation and refinement of measurement scale
Zikmund (2003) defines reliability as the degree to which measures are free from errors, as a consequence, yield consistent result
This study utilizes SPSS software to conduct a reliability analysis, assessing the consistency of key variables such as brand awareness, brand association, perceived quality, and brand loyalty These independent variables are analyzed to determine their influence on the dependent variable, which is brand equity Ensuring the reliability of these constructs is crucial for accurate measurement of brand performance and consumer perception The results highlight the importance of these factors in building and maintaining strong brand equity, providing valuable insights for marketers and brand managers seeking to optimize their brand strategies.
The Cronbach‟s Alphas were computed to modify the internal reliability of measuring instruments For this research, reliability test includes 238 respondents
As the following information, the research will clarify more specific about Cronbach‟s Alpha for the actual test
Brand awareness demonstrates strong internal consistency, with a Cronbach’s alpha of 0.809, exceeding the acceptable threshold of 0.6, as shown in Table 4.3 This high reliability score confirms the measurement set's internal consistency, indicating that the four factor items within this dimension are closely related and reliably assess brand awareness.
Since removing any items does not increase Cronbach's alpha, this indicates that the scale is well-designed and reliable Therefore, the scale effectively measures the brand awareness dimension, ensuring its suitability for accurate assessment.
Brand association Table 4.3 also explains that the Cronbach‟s alpha for brand association is 0.876 which is greater than 0.6, means brand association has the high category of reliability
Since no item removal can enhance Cronbach’s alpha, it confirms that this scale is well-designed and reliable Therefore, it effectively represents the brand awareness dimension, ensuring accurate measurement and consistency across the dataset.
The perceived quality of the brand is supported by a high Cronbach's alpha of 0.915, indicating excellent internal consistency and reliability of the measurement This suggests that the four items assessing perceived quality are closely related and effectively capture the intended construct, reinforcing the credibility of the findings.
The component “PQU2” exhibits the lowest corrected item-total correlation among the scale items The overall Cronbach’s Alpha for the entire scale is 0.915, indicating high internal consistency Removing “PQU2” from the scale would slightly increase the Cronbach’s Alpha to 0.924, suggesting an improvement in the scale’s reliability Therefore, excluding this item may enhance the overall consistency of the measurement instrument.
“PQU2”, value of the new Cronbach‟s alpha will be 0.924
Brand loyalty Table 4.3 explains that the Cronbach‟s alpha for brand loyalty is 0.880 which is greater than 0.6; that means brand loyalty has the high category of reliability
The scale demonstrates strong reliability, as no item deletion results in an increase in Cronbach’s alpha, indicating it is well-designed The factor items are sufficiently representative to effectively measure brand loyalty, ensuring the scale's validity and consistency for accurate assessment.
Table 4.3 indicates that the Cronbach’s alpha for brand equity is 0.877, exceeding the threshold of 0.6, which confirms that the brand equity scale demonstrates high reliability This suggests that the measurement instrument is consistent, and no items need to be removed from the scale to improve its reliability.
This study aimed to evaluate how customer-based brand equity dimensions influence Vietnam’s coffee brand equity, with Trung Nguyen Coffee serving as a key example A factor analysis was performed on responses from 238 participants in Ho Chi Minh City to identify underlying factors and reduce the 25 questionnaire items into essential components, simplifying the analysis of complex correlations To ensure data suitability for factor analysis, the study employed the Kaiser–Meyer–Olkin (KMO) measure of sampling adequacy and Bartlett’s Test of Sphericity, confirming the robustness of the dataset.
To ensure proper factor analysis, it is essential that the KMO value is at least 50%, and Bartlett's Test of Sphericity is statistically significant at the 5% level Additionally, factor loadings should have a maximum absolute value exceeding 0.5, and according to Jabnoun and Al-Tamimi (2003), the difference between the highest and lowest loading factors for any item must be at least 0.3 Finally, the model should explain a total variance of 50% or more to meet the criteria for effective factor analysis. -Master factor analysis with expert tips and boost your SEO-driven content clarity—[Learn more](https://pollinations.ai/redirect/draftalpha)
4.2.2.1 EFA results for measurement scales of independent factors
After completing the reliability testing of the measurement scale, factor analysis was conducted to assess the validity of the independent variables Principal component analysis with varimax rotation was used to derive the final factors, ensuring clearer factor loadings The factor analysis process was repeated multiple times to address issues such as low loadings and cross-factor loadings of variables, thereby enhancing the validity and robustness of the measurement model.
In the first rotated round, 25 items are grouped into 5 components Variable
“PQU2” is deleted because of its cross-factor loadings The 24 remaining variables are taken to the second round of rotation and still grouped into 5 components The variable
"Due to its cross-factor loadings, the variable 'PQU3' was eliminated, leaving 23 variables for the third round of testing After applying rotation, these variables were grouped into four distinct components, with 'BAW3' being removed due to its low loading The remaining 22 variables were subjected to a final factor analysis, resulting in a conclusive grouping defined in the tables below."
The final result of factor analysis for independent variables shows the KMO at 0.923 (>0.600) and the Bartlett‟s test of Sphericity is significant (sig =0.000