the influence of brand equity on the intention of buying local brand footwear a case of ananas

VIET NAM NATIONAL UNIVERSITY HO CHI MINH CITY University of Economic and Law THE INFLUENCE OF BRAND EQUITY ON THE INTENTION OF BUYING LOCAL BRAND FOOTWEAR A CASE OF ANANAS PREPARED

VIET NAM NATIONAL UNIVERSITY HO CHI MINH CITY

University of Economic and Law

THE INFLUENCE OF BRAND EQUITY ON THE

INTENTION OF BUYING LOCAL BRAND FOOTWEAR

A CASE OF ANANAS

PREPARED FOR MARKETING RESEARCH

LECTURER: LE THI HAI YEN

70514

NOVEMBER 1, 2023

3.2.4 Brand ÁSSOCIAfIOTIS L2 Q20 112012111212 1111111101101 111111111111 111g HH Hy rệt 7 3.2.5 Other Proprietary Brand Ás§€f§ 0 1002212 v11 HH ke 7

TABLE OF TABLES

Table I Respondents CharacteristicRespondents CharacfeT1SfIC 5- «<2 12 Table 2 Brand Equity and Purchasing Ïnt€rnfIOT - 55+ 5+ + S3 xxx sex 13 Table 3 Brand AwWaT€TI€S6 sư HH vớ 13

Table 5 Perceived (QuaÌÏIfy - - sọ h HH gn n ggin 17

Table 7 Other proprletary DrarncÌ 4SSGS - 5 5 sọ ng ng vn rưy 21 Table 8 Sơme Information abouf ÀT18114§ - s55 + xe vn ng ngư 27

Figure 13 I'm interested in the events or promotions ofthe Ananas shoe brand 20

1 Introduction

Customers perceive global brands as reliable and trustworthy which results in their stronger and stronger position It is challenging for local brands to compete with global brands As a result, consumers rely on heuristics, or mental shortcuts, to make decisions, even if they are not aware of them Branding is one of the most powerful heuristics available to consumers (Leighton & Bird, 2014)

In recent years, the Vietnamese footwear market has been dominated by foreign brands However, a number of Vietnamese sneaker brands have emerged that offer affordable products with eye-catching designs and comparable quality to foreign brands These brands are challenging the dominance of foreign brands by focusing on product quality and value According to a report at the 2019 Leather and Footwear Industry Summary Conference and data from Statista, Vietnam is the second-largest footwear producer in the world, but it mainly focuses on manufacturing for major brands The phrase "Made in Vietnam" is often seen on shoes from foreign brands such as Nike and Adidas, which is a testament to the production capability and quality of shoes made in Vietnam However, Vietnamese domestic shoe brands have difficulty building a comparable brand awareness, and are often labeled as "durable and reliable” rather than trendy

While the demand for footwear among Vietnamese consumers is steadily increasing, there remains a gap in the availability of domestic products A positive development in recent years is the domestic footwear market undergoing a revolution, witnessing increased substantial investments from local brands From startups to well-established names such as Biti’s, Ananas, Dong Hai, Mot, etc these local footwear brands, with their enthusiasm and progressive mindset, are reshaping the perception of "Made in Vietnam" products among Vietnamese consumers

According to Wood (2000), brands play a crucial role in consumer marketing by conveying the primary differentiators between competitive offerings Brand equity stands out as a pivotal factor for any business, as a strong brand asset can attract potential customers, retain their loyalty, and ultimately generate more profits through repeated

purchases Thus, it is essential to investigate the factors influencing consumer behavior in this dynamic landscape

2 Research Objectives and Research Question

The aim of this research is to bridge this gap and delve into the relationship between brand equity and consumer purchase imtention within the context of Vietnamese local footwear brands, with a specific focus on the case study of Ananas Shoes By doing so, this study endeavors to shed light on the factors that influence consumers’ decisions in this evolving market, ultimately providing valuable insights that can guide local brands in their quest to compete effectively and establish themselves in the hearts and minds of Vietnamese consumers

Research Question: How does brand equity contribute to and influence the purchasing intention of consumers when considering local footwear brands in Vietnam?

Detailed research question:

Q1: What are dimensions of brand equity that influence consumers’ purchase intention towards local footwear brands in Vietnam?

Q2: How do these factors influence consumers’ purchase intention towards local footwear brands in Vietnam?

3 Theoretical base

3.1 Brand

A brand is a fundamental construct that includes elements like a name, term, symbol, or design, either individually or in combination Its central purpose is to delineate the products and services of a particular seller or group of sellers from those offered by competitors (M Ahmed, 2021) Brands act as a bridge between producers and consumers, assisting in the differentiation of similar products, creating confidence in the quality of the products, and guiding producers in establishing what they produce to maintain customer loyalty and product quality

Brands play a crucial role in shaping a company's marketing strategy, both for self- promotion and for the advertisement of their products and services They influence customers’ buying motives and confer a significant competitive advantage by investing resources in maintaining and improving their quality and reputation The American

iv

Marketing Association Dictionary (2011) defines a brand as "the name, term, design, symbol, or any other feature that identifies one seller's product as distinct from those of other sellers.”

3.2 Brand Equity and Purchase Intention

Brand equity, an idea that has gained popularity since the 1980s, includes a number of viewpoints Previous research has classified brand equity into three major dimensions:

“customer-based’ (Aaker, 1991), ‘financial’ (Simon and Sullivan, 1993) According to Aaker (1991), brand equity is a collection of brand assets and liabilities associated with a brand, its name, and symbol, which either improve or subtract from the value a product or service delivers to a firm and its customers

Consumer-based brand equity is defined primarily using cognitive psychology and information economics This area of study is prmarily concerned with cognitive psychology, specifically memory structure (Aaker 1991; Keller 1993) Brand awareness, brand associations, perceived quality, brand loyalty, and unique brand assets such as patents, trademarks, and channel partnerships are among the key elements of brand equity identified by Aaker (1991)

While the first four characteristics represent user perceptions and responses, unique brand assets, on the other hand, have no direct impact on consumer-based brand equity Keller (1993) defines consumer-based brand equity as the varying impact of brand knowledge

on customer responses to marketing efforts, and investigates it primarily through the lens

of consumer psychology In essence, a brand holds positive or negative value based on how consumers react to its marketing compared to a generic product These reactions influence consumers’ preferences, intentions, and ultimately, their purchasing decisions, emphasizing the critical role of consumer perception in brand equity

Brand equity, as evidenced by various studies, plays a vital role in consumer preferences and purchase decisions Research by Vinh (2016) highlights that perceived quality, brand association, and brand loyalty positively influence overall brand equity, except for brand awareness Notably, perceived quality and brand loyalty significantly impact purchasing decisions This suggests that consumers tend to favor brands that are associated with high

quality and have strong customer loyalty The components of brand equity, including perceived quality and brand loyalty, are causally linked to purchase intentions (Khan, Rahman, Hoe, & Chen, 2015) In summary, a positive brand image and strong loyalty can drive consumers to choose a particular brand

Moreover, studies have shown that brand equity has a significant impact on various aspects of a business, such as market share, long-term financial performance, stock prices, mergers and acquisitions, and competitive advantages A strong brand equity contributes to improved consumer preference, purchase intention, loyalty, and even higher stock returns (Cobb-Walgren et al., 1995; Agarwal & Rao, 1996) A brand's role, therefore, extends beyond recognition; it serves as a valuable asset that can be leveraged for financial gain Overall, brand equity is a multi-aspect concept, including brand awareness, perceived quality, brand loyalty, and other proprietary brand assets

3.2.1 Brand Awareness

Brand awareness is a key component of brand equity, with support from Aaker in 1996, Shahrokhi in 1998, and Tong and Hawley in 2009 It represents a consumer's ability to recognize a brand, even when the connection to the product category 1s weak Shahid (2017) underlines brand awareness’ influence on purchasing decisions Increasing brand awareness boosts the likelihood of a brand being considered, impacting purchase intentions, even when other brand associations are absent

3.2.2 Brand Loyalty

Brand loyalty, a critical aspect of consumer behavior, can be elaborated based on research findings Rubini (2010) defined brand loyalty as the tendency of consumers to make repeated purchases within a specific product category This loyalty not only fosters higher profit margins and price positioning but also enhances overall revenue generation for businesses Further supporting this idea, Yupingliu (2007) provides evidence that loyal consumers exhibit a strong attachment to their preferred brand, often sticking with their choice even in the presence of promotional incentives and competitive offermgs This commitment underscores the enduring nature of brand loyalty Additionally, brand loyalty

is linked to consumer satisfaction, when consumers exhibit brand loyalty, it signifies their

vi

contentment with the brand's offerings, which can lead to enhanced customer retention and long-term profitability for businesses

3.2.4 Brand Associations

Brand association, as articulated by Aaker (1991), plays a crucial role in enhancing the attractiveness of a brand This idea includes a vanity of factors, such as how useful a brand is to consumers and how well it fits into their lifestyles These distinctive characteristics work together to give a product or brand its distinct identity and personality Brand associations can come together to create a consistent brand mage when they are carefully arranged and controlled Therefore, these long-standing brand connections have a big impact on customer purchase intentions

3.2.5 Other Proprietary Brand Assets

Severi et al (2014) indicates that proprietary brand assets, extending beyond existing literature, have a favorable influence on local brand footwear purchases Such proprietary assets may include unique design elements, limited edition releases, and exclusive collaborations that differentiate a brand in the highly competitive footwear market These are just a few examples of how a brand may stand out in the brutally competitive footwear market thanks to its proprietary assets These distinctive qualities increase a brand's appeal and have a significant impact on local consumers, encouraging positive purchase intentions The understanding of how distinctive and cutting-edge brand components contribute to a brand's success in attracting and retaming local customers in the footwear industry is further strengthened by this alignment with brand equity research

4 Research Method

vii

4.1.Research Design

This study employed a descriptive research design, which allowed for a comprehensive exploration of the influence of brand equity on consumer purchase intentions within the local footwear industry, with a specific focus on Ananas Shoes A descriptive design was chosen to provide an in-depth understanding of consumer perceptions and_ their relationship with brand equity dimensions

4.2 Data Collection and Instrument

Primary data will be collected through online surveys The survey instrument employs a five-point likert-type scale to measure respondents' perspectives on brand equity dimensions and purchasing intentions

The survey was structured into 3 distinct parts, each with a specific focus

e PART 1: Some information about Ananas: This section provides a brief overview

of the Ananas, and aims to determine how much the respondents already know about Ananas by asking if they are familiar with the brand

e PART 2: Main questions: This section aims to provide valuable insights into how consumers perceive and engage with the Ananas brand across various dimensions

of brand equity

e PART 3: Respondent's information: This section collected basic demographic data

to gain insight into the characteristics of the respondents

4.3 Population and Sampling

The target population consists of UEL students engaging with Ananas_ shoes Convenience sampling will be used to select a representative sample of at least 30 participants

4.4 Data Analysis

Data analysis was conducted using statistical software, including PSPP version 2.0 and Excel The Likert-scale responses were processed to compute descriptive statistics, including means and standard deviations, etc to provide insights of the data

5 Results:

viii

3.1 Respondents

In this study, demographic information about the respondents provides valuable context for understanding the survey results The survey was conducted with students from the University of Economics and Law (UEL) and focused on their gender, academic year, and monthly income B

Below is a discussion of the demographic characteristics of the respondents:

lable 1 Respondents CharacteristicRespondents Characteristic

Table 1, Item 1, which related to the gender distribution of the respondents, shows that the majority 29 (54.71%) were females, while 24 (45.29%) were females This indicates

that there was a relatively equal distribution of questionnaires between the two genders in our study

Regarding their academic progress/age, Item 2 reveals that the majority of the respondents, 28 (52.83%), are in their junior year of university Additionally, 5 (9.43%) are freshmen, 10 (18.86%) are in sophomore year, and 8 (15.08%) are in their senior year This implies that the majority of consumers in the study are undergraduates Item 3, which refers to the monthly income of the respondents, shows that 22 (41.5%), had a monthly income less than 3 million VND Furthermore, 21 (39.62%) had incomes

in the range of 3 million VND to 5 million VND, and 10 (18.88%) had incomes above 5 mil VND This suggests that the monthly income levels of the majority of consumers in the study area were below 5 million VND

5.2 Brand Equity and Purchase Intention

Hoàn toàn đồng ý Đồng ý Trung lap Không đồng ý

Figure 1 I easily recognize the logo of the Ananas shoe brand

Variable 1 (BA1) has a mean score of 3.81 and evaluates the brand recognition of Ananas’s logo This indicates that, on average, respondents easily recognize the logo of Ananas wherever they go

xi

Tôi thường xuyên nhìn thấy quảng cáo của thương hiệu giày

Figure 2 I often see advertisements for the shoe brand Ananas

Variable 2 (BA2) has a mean score of 2.98 and measures the advertising exposure of Ananas This indicates that advertising efforts are needed if Ananas want to increase their brand awareness

Brand awareness plays a pivotal role in influencing purchasing intention not only for Ananas but for local brand footwear in general High brand recognition is a valuable asset for local brands, and the industry as a whole can benefit from increased advertising efforts to further enhance their market position and appeal to consumers seeking local brand footwear options

5.2.2 Brand Association

BAsl {I feel comfortable wearing Ananas shoes 3.62 BAs2 |I Eel that Ananas shoes suit my fashion style 3.72 Ananas products are hand sewn, so I feel they’re very

Tôi cảm thấy thoải mái khi đi giày Ananas

30

Hoàn toàn đồng ý Đồng ý Trung lập Không đồng ý

Figure 3 I feel comfortable wearing Ananas shoes

Variable 1 (BAs1) displays a mean score of 3.62, evaluating the comfort level of Ananas products On average, respondents find wearing Ananas shoes comfortable

Tôi cảm thấy giày Ananas phù hợp với phong cách thời trang

Figure 4 I feel that Ananas shoes suit my fashion style

Variable 2 (BAs2) records a mean score of 3.72, assessing the compatibility of Ananas products with their customers' fashion styles This suggests that Ananas products align well with their customers’ fashion preferences

xiii