Factors influencing smartphone brand loyalty a case study of apple in vietnam Factors influencing smartphone brand loyalty a case study of apple in vietnam
Background of the Study
In recent years, the global economy has experienced significant turbulence and transformation, particularly following the recession triggered by the COVID-19 pandemic As economies recover, they are progressing at varying rates, with the International Monetary Fund (IMF) forecasting a moderation in global economic growth from the current rate of 3.2 percent.
In 2023, global economic growth is projected to slow to 2.7 percent due to persistent inflation, geopolitical tensions, and disruptions in supply chains, according to the IMF Central banks worldwide have raised interest rates in an attempt to curb inflation, though results have been mixed Additionally, shifting trade policies and regional conflicts pose further challenges, with the Ukraine conflict intensifying energy shortages in Europe and destabilizing global commodity markets Major economies like the United States and China are also grappling with issues such as inflation and regulatory pressures on technology giants, complicating the landscape for multinational companies operating across various markets.
The mobile industry is a dynamic sector within the global economy, with GSMA Association projecting that unique mobile subscribers will reach 5.7 billion by 2025, representing approximately 70% of the world’s population This growth is driven by increased smartphone penetration, the expansion of 5G services, and a rising demand for mobile internet Additionally, mobile operators are diversifying their offerings to include financial services and entertainment solutions, supported by significant investments in 5G technology that promise faster speeds and enhanced security However, the industry faces challenges such as regulatory constraints, national security issues, and the necessity for substantial infrastructure investments.
Apple Inc., founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne in Cupertino, California, is a leading technology company known for its groundbreaking products like the iPhone, iPad, Mac computers, and Apple Watch In 2023, Apple continues to innovate with new features and designs, emphasizing the seamless integration of software and hardware for an enhanced user experience Its services, including the App Store, Apple Music, iCloud, and Apple Pay, have rapidly diversified its revenue streams With a market capitalization surpassing $2 trillion, Apple plays a pivotal role in the global tech industry, setting standards for quality, design, and customer loyalty.
Vietnam's economy has demonstrated impressive resilience and growth despite global economic challenges, with a GDP increase of 8.5 percent in 2022, fueled by strong manufacturing, export activities, and robust domestic consumption, according to the World Bank The nation has emerged as an appealing destination for foreign direct investment, particularly in the electronics and manufacturing sectors.
Vietnam's mobile industry plays a vital role in its economy, driven by a young and tech-savvy population that has led to a significant increase in smartphone usage Statista projects that the number of smartphone users in Vietnam will rise to 43.4 million by 2025, up from 36.2 million in 2020 This growth is fueled by the availability of affordable smartphones and improved internet access Additionally, the government’s dedication to digital transformation, as outlined in its national strategy, aims to strengthen the country's digital infrastructure and promote economic development.
Vietnamese consumers demonstrate distinct behaviors and preferences shaped by cultural, economic, and social influences With a median age of approximately 32 years, the population is predominantly young and shows a significant affinity for technology and digital services This demographic is becoming increasingly internet-savvy, actively engaging on social media platforms like Facebook and Zalo.
Vietnamese consumers are increasingly influenced by digital platforms like Instagram, which shape their purchasing decisions through online reviews and social media influencers (Ngo, 2023) When selecting mobile phones, they prioritize brand reputation, product quality, price, and after-sales service A growing trend towards premium and mid-range smartphones indicates an increase in purchasing power and a desire for high-quality products Additionally, brand loyalty is significant, with many consumers favoring established brands known for reliable user experiences and consistent innovation.
Apple Inc has established a strong foothold in Vietnam, recognizing it as a vital market for its products, especially iPhones The company targets the increasing demand for premium smartphones by appealing to the country's young and tech-savvy demographic With a comprehensive distribution network that includes authorized resellers and online platforms, Apple's products, particularly the iPhone, are highly popular among Vietnamese consumers The company's marketing strategies highlight the premium quality, innovative features, and seamless ecosystem integration of its devices, effectively resonating with local audiences Additionally, Apple invests in localized marketing campaigns and promotions to enhance its brand presence and foster a deeper connection with consumers in Vietnam.
Understanding the factors influencing brand loyalty towards Apple smartphones in Vietnam is essential, despite Apple's strong market presence and the growth of the mobile industry Brand loyalty plays a vital role in Apple's business strategy, driving repeat purchases, enhancing customer retention, and fostering positive word-of-mouth referrals Key factors affecting brand loyalty include perceived product quality, brand image, customer satisfaction, and brand trust However, the unique cultural, economic, and social context of Vietnam requires a localized approach to these influences, as Vietnamese consumers exhibit distinct behaviors and preferences that may affect their loyalty to Apple differently than in other markets.
This research provides an in-depth analysis of the factors influencing brand loyalty towards Apple smartphones in Vietnam, aiming to enhance Apple's marketing strategies and customer engagement to align with Vietnamese consumer preferences Furthermore, it contributes to the academic literature on brand loyalty in emerging markets, offering valuable insights for both researchers and industry practitioners.
Research Question and Objectives of the Study
The primary aim of this study is to investigate the factors influencing smartphone brand loyalty, specifically focusing on Apple in the context of the Vietnamese market
To achieve this, the research question is formulated to guide the study and ensure it addresses the critical aspects of brand loyalty The research question is as follows:
"What are the key factors influencing brand loyalty towards Apple smartphones among consumers in Vietnam?"
To provide a comprehensive understanding of the main research question, a sub- question is formulated:
“How do these factors impact brand loyalty towards Apple smartphones among consumers in Vietnam?"
This study aims to explore the key factors influencing brand loyalty towards Apple smartphones among Vietnamese consumers By identifying these critical elements, it will assess their impact on consumer loyalty within the Vietnamese market, providing a comprehensive understanding of what drives loyalty to Apple in Vietnam.
This research will explore the influence of brand attributes, including perceived quality and brand image, on cultivating customer loyalty among Apple users in Vietnam Ultimately, it aims to offer strategic recommendations for Apple Inc to enhance its brand presence and loyalty in the region.
13 intended to enhance its brand loyalty so as to maintain all Vietnamese customers according to findings from this study.
Scope of Research
This research investigates the factors influencing brand loyalty among Apple smartphone users in Vietnam, specifically examining the connections between brand trust, perceived product quality, brand image, customer satisfaction, and brand loyalty While the study's focus on a single brand and country limits the generalizability of the findings, it allows for a deeper understanding of the elements driving loyalty to the Apple brand in the Vietnamese market.
Research philosophy
This paper adopts a positivist research philosophy, which posits that reality exists objectively and can be measured independently of our perceptions This approach is suitable for examining the relationships between critical variables influencing smartphone brand loyalty By employing quantitative research methods, we aim to generate scientifically valid and potentially generalizable findings to address our research question regarding brand loyalty.
Positivism emphasizes that knowledge should be derived from the study of phenomena through measurable scientific methods, particularly through hypothesis testing According to Bryman (2012), positivism strongly advocates for scientific approaches, highlighting experimentation and observation to understand causal relationships and make predictions This framework is particularly beneficial for research areas, like brand loyalty, that lack well-established hypotheses and objective connections between variables.
In addition, positivistic research involves hypothesis testing Hypotheses are stated prior to analysis, and then tested using data As Saunders et al (2009) say, it involves
“statistical testing such that conclusions can be drawn concerning whether the
The article discusses the support for 14 hypotheses and emphasizes the quantification of uncertainty in inferences It suggests that, under specific and somewhat unrealistic assumptions, this uncertainty can be managed and acknowledged Consequently, the positivistic approach to hypothesis testing is posited to yield more reliable and valid conclusions compared to qualitative methods, at least in theory.
In a predominantly qualitative field of brand loyalty research, more positivist- quantitative research is crucial
This paper adopts a positivist approach, presenting and testing hypotheses in a structured manner The survey instrument mirrors the data analysis, with a questionnaire crafted to mechanically assess brand loyalty and its significant correlates The linear analysis methodology ensures that the results are statistically robust and generalizable, regardless of their nature.
This paper adopts a positivist research philosophy to enhance the understanding of brand loyalty among researchers and practitioners in the cell phone and communication products sector in Vietnam.
Research flowchart
This research involves a 10-step process to investigate the chosen topic:
1 Identify and refine the research topic: Conduct literature reviews and analysis to identify potential research topics and narrow down to a specific, focused area of inquiry
2 Develop a strong theoretical foundation: Study existing literature and theoretical frameworks relevant to chosen topic to identify existing knowledge gaps and potential contributions of the research
3 Define research objectives, scope, and methodology: Clearly define the objectives, scope, and research methods employed to address research questions This includes specifying the type of research (e.g., quantitative, qualitative, mixed methods), data collection methods (e.g., surveys, interviews, observations), and data analysis techniques
4 Formulate a research model: Develop a hypothetical model that visually represents the relationships between variables under investigation, including independent, dependent, and moderating or mediating variables
5 Design and pilot test research instruments: Create research instruments, such as surveys or interview guides, based on the research model and existing literature Pilot test these instruments with a small sample to ensure clarity, validity, and reliability
6 Data collection: Implement chosen data collection methods to gather data from participants This may involve online surveys, in-person interviews, observations, or other methods
7 Data cleaning and preliminary analysis: Clean and prepare the collected data for analysis Conduct preliminary analysis to assess the reliability of measures and address issues like multicollinearity if using multiple independent variables
8 Data analysis: Analyze the data using appropriate statistical techniques or qualitative analysis methods to test research hypotheses and answer research questions
9 Interpret results: Analyze and interpret the findings of the study, drawing conclusions about the relationships between variables and the implications for chosen research area
10 Develop proposals and solutions: Based on my findings, formulate recommendations, proposals, or solutions to address the research problem or contribute to the existing knowledge base.
Research organization
This paper contains five chapters as introduction, literature review and hypothesis development, methodology, results and discussion, conclusions and recommendations
Introduction chapter consists of background of the study, objectives of the study, contribution of the study, research flowchart, research organization and definition of terms
Literature review chapter presents concept of brand loyalty, brand trust, brand image, product quality and customer satisfaction
The research methodology chapter examines the various research methods employed in this study, detailing the operational definitions of research variables and the design of measurement tools It also covers the pilot testing of the research, sample size considerations, types of data, data collection techniques, and data analysis methods The findings from this analysis will be elaborated upon in Chapter IV.
Results and discussion chapter present results related to descriptive analysis and mean comparison, reliability analysis, measurement model and structural equation model
The Conclusions and Recommendations chapter summarizes the research findings and offers constructive suggestions for businesses based on the analysis results It also addresses the limitations of the study and highlights opportunities for future research.
Theoretical Background
2.1.1 Extending the Theory of Planned Behavior (TPB)
The Theory of Planned Behavior (TPB), developed by Ajzen in 1991, serves as a comprehensive framework for understanding human behavior, particularly in predicting intentions and actions across various domains TPB posits that an individual's behavior is influenced by their behavioral intentions, which are shaped by three key factors: attitudes toward the behavior, subjective norms, and perceived behavioral control This theory has been widely applied and adapted in consumer behavior studies to forecast purchasing intentions and brand loyalty.
The Theory of Planned Behavior (TPB) highlights the significance of attitudes, subjective norms, and perceived control in shaping consumer loyalty to Apple products This study explores brand loyalty as a consistent pattern of purchasing and endorsing Apple, focusing on how psychological and social factors influence this commitment.
Attitudes toward behavior significantly influence consumer loyalty to Apple products, as individuals evaluate their experiences positively or negatively based on perceived quality, brand trust, and post-purchase satisfaction When consumers view Apple products as high-quality and the brand as trustworthy, they are more likely to cultivate a favorable attitude, leading to increased loyalty.
Subjective norms play a crucial role in influencing consumer behavior, particularly in the context of purchasing Apple products These norms encompass the perceived social pressure from friends, family, and online communities, such as Facebook or Tuoi Tre Online, regarding Apple Groups like “Hoi iPhone Viet” and “Cong dong nguoi dung Apple Viet Nam” amplify this social pressure, fostering brand loyalty through the social approval or disapproval of fellow Apple enthusiasts.
Perceived behavioral control refers to an individual's perception of how easy or difficult it is to perform a specific behavior For Apple enthusiasts, this concept can encompass factors such as their financial capability to invest in newer, pricier Apple products and the convenience of having an Apple service center nearby High perceived behavioral control in these areas can foster a stronger sense of loyalty and a longer-lasting relationship with the brand.
By incorporating brand loyalty variables such as brand image and trust into the Theory of Planned Behavior (TPB), we can better understand the factors influencing consumer behavior towards Apple The strong bond Apple has cultivated with its customers through years of exceptional service and innovation significantly shapes the attitudes of Apple enthusiasts and their subjective norms Additionally, Apple's extensive service network, round-the-clock online support, and informative blog contribute to a heightened sense of perceived behavioral control among its users.
This theoretical framework supports the study's goals by establishing a strong basis for analyzing the factors that drive brand loyalty among Apple users in Vietnam It facilitates the exploration of the interplay between attitudes, social influences, and perceived control, which collectively shape loyalty behaviors, providing essential insights for academic research and practical marketing strategies.
Brand loyalty has long been a focus for academics and professionals, with Oliver defining it as a strong commitment to consistently repurchase a preferred product or service, regardless of external influences or marketing efforts This concept is vital for businesses, as loyal customers often deliver greater value than new ones through increased purchase frequency and positive word-of-mouth.
Brand loyalty consists of two key dimensions: behavioral and attitudinal Behavioral loyalty is demonstrated through repeat purchasing actions, while attitudinal loyalty reflects a consumer's emotional connection and commitment to the brand (Dick & Basu, 2015).
2.1.3 Theoretical perspectives on brand loyalty
Theoretical perspectives on brand loyalty can be categorized into behavioral and attitudinal loyalty According to Jacoby and Chestnut (1978), brand loyalty can be operationalized using a behavioral, attitudinal, or hybrid method
Brand loyalty encompasses both attitudinal and behavioral components, with attitudinal loyalty reflecting customers' stated preferences and commitment, while behavioral loyalty focuses on the frequency of repeat purchases A composite approach that integrates these two aspects offers a more comprehensive understanding of brand loyalty As noted by Basu & Dick (1994), the behavioral definition alone fails to capture the nuances of how loyalty develops and evolves The correlation between customers' relative attitudes and their repeat patronage is crucial in determining overall loyalty In the case of Apple, this duality is significant, as it highlights not only purchasing behaviors but also the emotional connections and advocacy that customers have for the brand.
Behavioral loyalty refers to customers' actual actions, including repeat purchases and purchase volume (Jacoby & Chestnut, 1978) It is measured through quantifiable metrics such as purchase history and retention rates For Apple in Vietnam, fostering behavioral loyalty could involve encouraging existing customers to upgrade more frequently to the latest iPhone models or to continue utilizing Apple services.
Attitudinal loyalty refers to the psychological commitment and positive attitude a consumer holds toward a brand, as highlighted by Chaudhuri & Holbrook (2001) This loyalty can be measured through a consumer's readiness to recommend the brand, engage in positive word of mouth, and exhibit overall brand advocacy For instance, Apple showcases attitudinal loyalty through the strong emotional connections some consumers have with the brand, evident in their participation in brand communities and their willingness to pay a premium for perceived superior quality and innovation.
Factors Influencing Brand Loyalty
Brand loyalty is the ongoing preference and repeated purchasing of a specific brand by consumers, distinguishing it from competitors (Oliver, 1999) This loyalty is vital for businesses since loyal customers tend to spend more and promote the brand through positive word-of-mouth (Reichheld, 1993) Key factors influencing brand loyalty can be grouped into three categories: Perceived Product Quality, Brand Image, and Customer Satisfaction.
Brand trust is the consumer's confidence that a brand will consistently meet their expectations, influenced by the brand's ability to fulfill their needs and aspirations This trust is essential for fostering brand loyalty, as it reduces the perceived uncertainty regarding a customer's future interactions with the brand.
Trust in Apple in Vietnam stems from its consistent provision of high-quality products, innovative technology, and robust customer support The company has established itself as a reliable choice for Vietnamese consumers by maintaining a strong reputation for security and privacy.
H1: Brand Trust positively influences Brand Loyalty
Perceived product quality refers to how consumers evaluate a product's excellence and superiority, significantly influencing brand choice and loyalty This perception is closely linked to customer satisfaction and trust, both of which enhance brand loyalty.
Apple's commitment to high-quality products significantly enhances brand loyalty among consumers Research indicates that users who perceive their smartphones as high quality demonstrate greater loyalty to the Apple brand In Vietnam, Apple's substantial investment in cutting-edge technology, premium materials, and exceptional design has contributed to a strong perception of quality among consumers This high perceived quality is a crucial factor driving brand loyalty for Apple.
H2a: Product Quality has a positive impact on Brand Trust
H2b: Product Quality has a positive impact on Brand Loyalty
Brand image refers to consumer perceptions and attitudes towards a brand, shaped by associations with attributes like quality, popularity, and social status, as well as the impact of marketing activities (Keller, 1993) A positive brand image fosters trust and loyalty by creating emotional connections with consumers and establishing barriers against competitors (Aaker, 1996).
Apple's brand image is synonymous with modernity and exclusivity, cultivated through strategic advertising and high-quality products In Vietnam, Apple is perceived as a premium brand associated with high social status and advanced technology, making it highly valued among consumers This research operates under the assumption that such perceptions significantly influence consumer behavior.
H3a: Brand Image positively influences Brand Trust
H3b: Brand Image positively influences Brand Loyalty
Customer satisfaction measures how well a product's performance aligns with a buyer's expectations, as noted by Kotler and Keller (2012) When customers are highly satisfied, it often leads to repeat purchases and positive word-of-mouth, ultimately fostering brand loyalty, according to Oliver (2006).
Apple's high customer satisfaction in Vietnam can be attributed to its commitment to product quality, user experience, and exceptional customer service The company's emphasis on developing integrated, user-friendly products, coupled with effective after-sales support, significantly enhances customer loyalty and satisfaction.
H4a: Customer Satisfaction positively influences Brand Trust
H4b: Customer Satisfaction positively influences Brand Loyalty.
Research Model
Figure 1: The proposed reasearch model
The proposed research model illustrated in Figure 1 aims to assess the relationship between key factors influencing Brand Loyalty, specifically focusing on Perceived Product Quality, Brand Image, Customer Satisfaction, and Brand Trust.
The Operational Definition and Measurement Design
In structural equation modeling (SEM), variables are categorized into two types: exogenous and endogenous Endogenous variables are influenced or predicted by other factors within the model, while exogenous variables stand alone, not being predicted or explained by any other variables.
2011) The following is the operational definition variable for this study:
Endogenous variables using are this study are Brand Loyalty and Brand Trust They were measured based on five points Likert’s Scale and presented as follow:
Table 1: Dimensions and indicators of Brand Loyalty (BL)
1 BL1 I am likely to purchase another Apple smartphone in the future
2 BL2 I would recommend Apple smartphones to my friends and family
3 BL3 I have a strong preference for Apple over other smartphone brands
4 BL4 I am willing to pay a premium for Apple products because of my loyalty to the brand
Table 2: Dimensions and indicators of Brand Trust (BT)
1 BT1 I trust that Apple products will consistently meet my expectations
2 BT2 I feel well-informed about Apple's commitment to quality and customer satisfaction
3 BT3 Apple maintains a consistent level of quality across its product range
4 BT4 Apple's commitment to ethical business practices positively impacts my trust
Exogenous variables using are this study are Perceived Product Quality, Brand Image and Customer Satisfaction They were measured based on five points Likert’s Scale and presented as follow:
Table 3: Dimensions and indicators of Perceived Product Quality (PQ)
1 PQ1 Apple smartphones have advanced and high-quality hardware
2 PQ2 The operating system of Apple smartphones is efficient and user-friendly
3 PQ3 The performance of Apple smartphones meets or exceeds my expectations
4 PQ4 Apple smartphones rarely experience technical or privacy issues
Table 4: Dimensions and indicators of Brand Image (BI)
1 BI1 The brand image of Apple is prestigious and esteemed (Le Tan,
2 BI2 The Apple brand is associated with a sense of luxury yet trendy
3 BI3 Apple is known for its innovative and cutting-edge technology
4 BI4 Apple is perceived as environmentally conscious and responsible
Table 5: Dimensions and indicators of Customer Satisfaction (CS)
1 CS1 I believe Apple smartphones offer good value for the price
2 CS2 I am satisfied with the customer service provided by
3 CS3 The design of Apple smartphones aligns with my personal style preferences
4 CS4 I am satisfied with the overall functionality of my
Data Collection Procedure
The following steps will be taken in order to collect primary data from participants:
Step 1: The primary research tool for this study was a survey questionnaire It was created based on earlier research and adjusted in accordance with adviser recommendations and proposals to guarantee the accuracy and effectiveness of the data collection tool
Step 2: The survey questionnaire was distributed to the respondents together with letters of introduction and reference outlining the amount of time needed to fill it out
Step 3: The researcher uses convenience sampling to gather responses to an online survey questionnaire.
Population, Sample size and Sampling Techniques
For the primary data, the sample size of was chosen by applying the formula given by (Comrey, 1973) and (Bove, 2006): n= 5*m Where n = sample size; m = Number of included questions
With m = 25, the sample size of this study was determined as: n = 5*25 = 125
This research required a minimum of 125 respondents, ultimately gathering data from a sample size of 242 individuals through convenience sampling The researcher distributed questionnaires within several Facebook groups dedicated to Apple and iPhone enthusiasts, including "Hoi iPhone Viet" with approximately 94,000 members, "Cong dong nguoi dung Apple Vietnam" with around 27,000 members, and "Yeu Apple – cong dong nguoi dung yeu thich san pham Apple," which has about 100,000 members The findings confirm that the collected data accurately represents the Apple consumer base in Vietnam.
Data Collection Technique
Data collection is crucial for gathering the information needed to meet research objectives, which are formulated as hypotheses answering specific research questions that require empirical testing Employing suitable data collection methods is essential, and techniques such as questionnaires play a significant role in this process.
The researcher gathered primary data from respondents with attitude toward Apple Smartphone Brand Loyalty through a survey consisting of two parts:
Part 1: This section includes detailed information about the respondents' profiles, such as gender, age, education, and monthly income
Part 2: This section contains questions regarding customers' perceptions of factors influencing their brand loyalty The content of this part is based on the theoretical framework presented in Chapter II
The researcher accumulate data and measures the perception of respondents using the five points Likert’s Scale as described in the table below:
Table 6: Likert’s Five Points Rating Scale
Verbal Interpretation (For Overall Satisfaction)
Data Analysis Technique
The data collected from the questionnaires will undergo coding, capturing, and editing For data analysis, we will utilize the Statistic Package for Social Science (SPSS) software version 26 and Partial Least Square (Smart PLS version 3.0) The subsequent steps for data analysis and the techniques employed will be detailed accordingly.
Descriptive statistics, as defined by Lind, Marchal, and Wathen (2005), are essential methods for organizing, summarizing, and presenting data effectively Raw data, like population census figures or weekly earnings of computer programmers, can be overwhelming and lack significance By employing statistical techniques, this unstructured data can be transformed into valuable, informative formats that enhance understanding and decision-making.
This analysis involves interpreting data obtained from questionnaire responses The results of data processing can be presented using tables, graphs, pie charts,
29 pictograms, and calculations such as mode, mean, median, percentiles, averages, standard deviations, and percentages
3.5.2 Reliability and Content Validity Analysis
To evaluate the reliability of the measurement scale, Cronbach’s alpha will be utilized This analysis focuses on the consistency of individual items within the questionnaire A Cronbach’s α value exceeding 0.7 signifies a high level of reliability.
A value between 0.5 and 0.7 suggests acceptable internal consistency, while a value below 0.35 indicates the item should be removed (Joseph F Hair, 2010)
Validity, as defined by Malhotra (2002), is the degree to which differences in scale scores genuinely represent true distinctions among objects rather than random errors Ensuring validity means that the measurement tool accurately captures the intended concept Content validity specifically relates to how well a measurement reflects a particular domain of content, necessitating the development of items that embody the meanings of each dimension In this study, both reliability and validity analyses are performed across all three research models.
The comparing mean test, commonly referred to as Student’s T-test and ANOVA, is utilized to assess significant differences between two or more averages The T-test is particularly effective for analyzing demographic characteristics, such as gender, in relation to customer survey responses In contrast, the Analysis of Variance (ANOVA) is employed to compare means across more than two groups, measuring the variance among group means against the average variance within groups (H.-Y Kim, 2014) Specifically, one-way ANOVA is used to determine significant differences between demographic factors and customer responses.
According to Henseler, Ringle, and Sinkovics (2009), reflective measurement models should be assessed for reliability and validity Composite reliability (CR) is used to
Internal consistency reliability is measured on a scale from 0 to 1, with higher values indicating greater reliability For exploratory research, values between 0.60 and 0.70 are considered acceptable, while values from 0.70 to 0.90 are satisfactory for more advanced studies Values exceeding 0.95 may indicate that all indicator variables are measuring the same phenomenon, potentially compromising construct validity Conversely, values below 0.60 suggest inadequate internal consistency reliability.
Validity assessment involves two key subtypes: convergent validity and discriminant validity Convergent validity reflects that a group of indicators represents a single underlying construct, which is shown through unidimensionality According to Henseler et al (2009), the average variance extracted (AVE) should be utilized as a measure, with an AVE value of 0.5 or higher signifying adequate convergent validity.
High outer loadings on a construct indicate that the related indicators have significant commonality, effectively reflecting the construct A general guideline suggests that outer loadings should ideally be 0.70 or above Indicators with loadings ranging from 0.40 to 0.70 may need to be reconsidered for removal due to their potential impact on content validity, while those with loadings falling below 0.40 should always be eliminated.
Discriminant validity was evaluated through the Fornell-Larcker criterion and the Heterotrait-Monotrait (HTMT) ratio According to the Fornell-Larcker criterion, the square root of the Average Variance Extracted (AVE) for each construct must exceed its highest correlation with any other construct Additionally, the HTMT ratio should remain below 0.85 to confirm discriminant validity.
Descriptive Analysis and Mean Comparison
This study utilized structured questionnaires to gather data on the profiles of usable participants, or consumers Table 7 illustrates the distribution frequency of sample structure features, while the subsequent descriptions highlight the general characteristics of the participants.
Trade School/ College University Above University
Gender Rely on result from table 7 There was not a significant difference between women and men respondent percentages, with women (57.4%) and men (42.6%)
Age The largest age group was 18 – 25 (36.4%), followed by 35 -50 (21.9%), 26 -
35 and Above 50 have the same number (17.4%)
Education The research participants were mostly of university level (44.6%), above university (26.0%), trade school/college (19.4%) and under high school (9.9%)
Household Income Income representation was equally divided between those Household earning less 10 million VND (12.0%) to those earning more than 100 million VND (16.5%)
Independent sample T-test and one-way Anova were used to compare mean between different demographic characteristics and consumers’ responses
Table 8: T-test results by genders
Demographic Characteristic N Mean Std t p-value Gender Female 139 3.8381 0.49897 -1.44 0.149
The analysis of brand loyalty reveals no statistically significant difference between male (N=3, M=3.9345, SD=0.52855) and female (N=9, M=3.8381, SD=0.52855) customers, with a t-value of -1.44 and a p-value of 0.149, which exceeds the 0.05 threshold Therefore, we conclude that brand loyalty is comparable across genders.
Table 9: Analysis of Variance between Brand Loyalty and Profile
Demographic Levene Statistic Sig F-value P value
According to the data presented in Table 9, all p-values exceed 0.05, indicating that there is no statistically significant difference in brand loyalty when analyzed across various educational levels, income levels, and age groups Consequently, a post hoc test is deemed unnecessary in this context.
Statistical analysis indicates that demographic factors such as gender, age, education, and income do not significantly influence brand loyalty among Apple consumers in Vietnam Instead, variables related to product quality, brand image, and customer satisfaction play a more crucial role in determining brand loyalty.
Reliability Analysis
To assess the internal consistency of each factor's indicators, the most commonly employed techniques include item-total correlation, which measures the correlation between a factor and its variables, and the calculation of Cronbach’s α value As noted by Nunnally and Bernstein, these methods are essential for ensuring the reliability of measurement instruments.
According to Cronbach's α guidelines set by 1978 and Joseph F Hair (2006), a minimum value of 0.65 and ideally not less than 0.700 is required for internal validity (Lee & Kim, 1999) In this study, all variables demonstrated a Cronbach's α greater than 0.7, with the lowest adjusted item-total correlation exceeding 0.3, indicating that each variable is both reliable and internally consistent.
Table 11: Reliabilities among the variables
Variable Items Cronbach’s α Lowest item-
Highest Cronbach’s α if item deleted
Measurement model
To ensure the reliability and validity of items measuring abstract concepts, it is essential to analyze their internal consistency This analysis was conducted using three different measures, including Cronbach’s alpha and composite reliability, as shown in Table 12.
35 reliability, and average extracted variance (AVE) (Fornell,1981) CR values above 0.7 are considered acceptable for research purposes
All constructs exhibit factor loadings predominantly exceeding 0.7, demonstrating strong measurement validity However, brand loyalty shows slightly lower loadings for items BL1 (0.690) and BL3 (0.620), which remain within an acceptable range.
According to J.F Hair (2006), a Composite Reliability (CR) value greater than 0.700 and an Average Variance Extracted (AVE) value above 0.500 are essential for assessing construct validity In this analysis, all constructs exhibit CR values significantly exceeding 0.7, demonstrating strong internal consistency Additionally, each construct's AVE values are above 0.5, confirming that over 50% of the variance in the indicators is effectively explained by the respective latent constructs.
Table 12: Standardized factor loadings, CR and AVE of the model
Average variance Extracted (AVE) Perceived
Discriminant validity is assessed through the latent variable correlation matrix, where the diagonal elements represent the square root of the Average Variance Extracted (AVE), while the off-diagonal elements indicate correlations among the measures, as shown in Table 13 (Liaw, 2017) The diagonal values exceeded the off-diagonal values, confirming the distinctiveness of all constructs (Fornell, 1981) Additionally, reliability and validity tests confirmed that the survey items were sufficiently valid and reliable for subsequent analyses.
Table 13: The latent variable correlation matrix: discriminant validity
Variables BI BL BT CS PQ
Structural equation model
Table 14: Results for Structural equation model
Path Coefficients T - value P - value Hypothesis Hypothesis support
Figure 2: The result of research model
Figure 2 and table 14 present the results of the structural model and the standardized path coefficient indicated effect among the constructs of the model
Customer Satisfaction (CS) -> Brand Trust (BT): This path yields a coefficient of 0.376 and an associated t-value of 5.095, p < 0.001, indicating the existence of significant positive relationship between Customer Satisfaction and Brand Trust
Customer Satisfaction (CS) -> Brand Loyalty (BL): This path yields a coefficient of 0.250 and an associated t-value of 3.278, p = 0.001, confirming the positive relationship between Customer Satisfaction and Brand Loyalty as well
The relationship between Brand Image (BI) and Brand Trust (BT) shows a coefficient of 0.033, with a t-value of 0.522 and a p-value of 0.602, indicating that Brand Image does not have a significant impact on Brand Trust.
The relationship between Brand Image (BI) and Brand Loyalty (BL) shows a coefficient of 0.122, with a t-value of 1.586 and a p-value of 0.113, indicating that Brand Image does not have a significant impact on Brand Loyalty.
Product Quality (PQ) -> Brand Trust (BT): This path yields a coefficient of 0.233 and an associated t-value of 3.514, p < 0.001, showing a positive association between Product Quality and Brand Trust
Product Quality (PQ) -> Brand Loyalty (BL): This path yields a coefficient of 0.135 and an associated t-value of 1.927, p = 0.055, showing a marginally significant positive association between Product Quality and Brand Loyalty
The R-squared values indicate that the model accounts for 28.3% of the variance in Brand Trust (BT) and 25.5% in Brand Loyalty (BL) This suggests that four exogenous variables significantly influence Brand Trust, while three exogenous variables impact Brand Loyalty.
Summary
The research investigates brand loyalty towards smartphones, specifically focusing on Apple users in Vietnam It explores the interconnections among brand trust, perceived product quality, brand image, customer satisfaction, and brand loyalty The study analyzes consumer profiles and the impact of these factors on loyalty, providing actionable insights for smartphone companies to enhance customer loyalty and ensure long-term success.
To examine the research hypothesis, this research used evaluation of Partial Least Square The results of data analysis from chapter IV can be seen in Table:
Table 15: The Hypothesis Analysis Results
H1 Brand Trust positively influences Brand Loyalty Not Supported
H2a Perceived Product Quality positively influences Brand
H2b Perceived Product Quality positively influences Brand
H3a Brand Image positively influences Brand Trust Not Supported
H3b Brand Image positively influences Brand Loyalty Not Supported
H4a Customer Satisfaction positively influences Brand Trust Supported
H4b Customer Satisfaction positively influences Brand
Findings
Our findings support several predictions from the theoretical model, revealing that product quality significantly influences brand trust and loyalty Specifically, the path coefficient for product quality on brand trust is β = 0.233 (T = 3.514), indicating statistical significance at the 1 percent level In contrast, the coefficient for product quality on brand loyalty is β = 0.135 (T = 1.927), which is significant at the 5 percent level This indicates that while Vietnamese consumers value the quality of Apple products, leading to brand loyalty, the primary impact of quality is mediated through trust.
Customer satisfaction plays a crucial role in determining brand loyalty, with a significant positive impact on brand trust (β = 0.376, T = 5.095, p < 0.01) and brand loyalty (β = 0.250, T = 3.278, p < 0.01).
In my analysis, brand image does not show a statistically significant relationship with trust or brand loyalty in the Vietnamese market The coefficient for brand image's effect on trust is β = 0.033, with a T value of 0.522, while its effect on brand loyalty is β = 0.122, with a T value of 1.586, both indicating no significant difference from zero This suggests that perceived quality and actual product satisfaction have a more substantial influence on brand trust and loyalty than general perceptions of brand image.
Unfortunately, we are unable to pick up a strong direct effect of brand trust on brand loyalty The path coefficient linking these two variables in the model is β = 0.165 with
The findings indicate that with a T value of 2.291 and a p value of 0.113, the simplistic measure of Apple brand trust does not significantly influence brand loyalty This lack of statistical significance suggests that other factors may play a more critical role in determining brand loyalty.
Unobserved or omitted variables that influence brand trust can significantly impact brand loyalty This suggests that the relationship between brand trust and loyalty may be more intricate and potentially indirect.
Conclusions
This study offers important insights into the factors influencing brand loyalty for Apple smartphones in Vietnam It highlights that quality and customer satisfaction are key elements in fostering trust and loyalty towards the brand These findings are particularly relevant for shaping Apple's brand strategy and customer engagement efforts in the Vietnamese market.
Consumer perception of product quality significantly influences brand trust, making it essential for Apple to maintain and enhance its ability to deliver superior products Trust plays a crucial role in fostering long-term customer relationships, and Apple must prioritize quality and innovation to meet evolving customer expectations Additionally, while the relationship between product quality and brand loyalty is strong, it is slightly less impactful than trust; thus, providing high-quality products is vital for securing customer loyalty and encouraging repeat purchases.
Customer satisfaction is essential for fostering brand trust and loyalty Apple should prioritize high-quality customer service, an intuitive user experience, and robust post-sales support By enhancing customer satisfaction, Apple can effectively cultivate a loyal customer base, as satisfied customers are more likely to remain committed to the brand.
This study revealed that brand image does not directly influence brand trust and loyalty in the Vietnamese market Consumers prioritize the functional aspects of products and their own self-fulfillment over the overall brand image Therefore, maintaining a positive brand image is still essential for businesses.
Apple should focus on enhancing product quality and customer satisfaction as key strategic priorities, rather than solely relying on brand image campaigns for resource investment.
Recent findings indicate a lack of empirical evidence supporting the direct influence of brand trust on brand loyalty This suggests the presence of other moderating factors that may affect the relationship between trust and loyalty, implying that the effect of trust may not be straightforward Future research should explore additional variables that could mediate or moderate this connection to gain a deeper understanding of how brand trust impacts loyalty.
To enhance brand loyalty in Vietnam, Apple must focus on delivering high-quality products and ensuring exceptional customer satisfaction These factors are crucial for fostering strong customer relationships and retention While brand image and trust are important, they serve more as supportive elements rather than the primary drivers of loyalty in this specific market context.
Recommendations
Our study highlights potential strategies for Apple and other smartphone manufacturers to enhance brand loyalty We recommend specific approaches for Apple to consider, along with broader strategies that can be implemented by other companies in the industry.
To ensure perceived product quality, Apple and its competitors must prioritize the maintenance and enhancement of their offerings Apple should continue to innovate and utilize premium materials to bolster the quality of its technology and reliability Similarly, rivals must invest in research and development to produce high-quality products Regular updates and improvements, along with stringent quality control measures, are essential for fostering brand loyalty through superior quality.
In terms of customer satisfaction, it is paramount for firms to offer exceptional customer service Apple, for example, can offer AppleCare, Apple Store service, and
Apple should enhance its customer service by leveraging data analytics and maintaining consistent personal engagement, guiding customers in making informed purchase decisions and resolving issues with their products Competitors should also prioritize investing in customer service, as developing strong capabilities in this area is crucial for delivering high-quality, high-margin products, alongside technological advancements.
Apple and other smartphone manufacturers can cultivate a loyal customer base and justify their premium pricing by focusing on high product quality and customer satisfaction This strategy not only enhances their profitability but also positions them to achieve significant returns in a competitive and mature industry.
Contribution of the study
This study examines the factors influencing brand loyalty for Apple iPhones in Vietnam, addressing existing literature gaps identified in previous research It aims to enhance understanding of brand loyalty dynamics in the rapidly evolving and under-explored Vietnamese smartphone market.
By focusing on Apple, a prominent global brand, it can offer valuable insights into how consumers in emerging economies interact with established brands
This article examines the key factors influencing brand loyalty towards Apple in Vietnam, contributing to the understanding of consumer behavior in the smartphone market It explores the unique interplay of perceived product quality, brand image, and customer satisfaction within the Vietnamese context.
Identifying the key factors behind Apple's brand loyalty in Vietnam can significantly enhance the company's marketing strategy, enabling it to better connect with Vietnamese consumers and strengthen their loyalty.
Understanding the factors that drive brand loyalty to a dominant player like Apple can significantly inform the marketing strategies of competing smartphone brands in Vietnam By leveraging insights into consumer preferences and behaviors, these competitors can create targeted approaches to attract and retain customers in the Vietnamese market.
The findings are highly relevant for Apple and other smartphone brands in shaping effective customer relationship management (CRM) strategies Since loyalty levels and their drivers vary among different customer groups, comprehending these drivers is essential for companies to create CRM strategies that cater to specific customer needs and strengthen relationships.
Limitations and future research
This study is limited by its focus solely on Apple users in Vietnam, which may restrict the applicability of its findings to other markets or brands To gain a more comprehensive understanding of smartphone brand loyalty, future research should consider a broader range of brands and countries.
One significant limitation of our study is the reliance on self-reported data, which can introduce reporting biases, including social desirability bias, where respondents may provide answers they believe are more socially acceptable Additionally, recall bias may occur if participants inaccurately remember their past behaviors or experiences These biases can distort the relationships between the variables of interest To enhance the validity of future research, it is recommended to employ diverse data collection methods, such as observational studies or experiments, to cross-validate findings and develop more objective measures of smartphone brand loyalty, including actual purchasing behaviors and customer retention rates.
The findings of this study are based on a convenience sample of potential Vietnamese Apple users, which may introduce biases that limit the generalizability of the results Convenience sampling is often criticized for its potential sampling bias, as it may not accurately represent the broader population Although the sample reflects the demographic of those surveyed, the characteristics of easily accessible participants may differ significantly from the general population, potentially leading to misleading conclusions.
Convenience sampling may be affected by self-selection bias, as individuals with a greater interest in the survey, like Apple users, are more inclined to participate This bias restricts the ability to generalize findings to the entire population of Apple users in Vietnam and beyond.
The smartphone industry evolves rapidly, making the factors influencing brand loyalty discussed in this article potentially outdated To stay relevant, future research must adapt to ongoing industry changes and consumer preferences Additionally, exploring brand loyalty towards smartphone brands in the context of artificial intelligence and augmented reality will be essential for understanding emerging trends.
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APPENDIX 1 QUESTIONAIRE (English Version) Hello everyone!
This survey is for the purpose of researching the topic of "Survey on brand loyalty of Apple in Vietnam"
Brand loyalty refers to a customer's commitment to repurchase a product or service from a specific brand despite available alternatives This loyalty is crucial for businesses as it boosts sales, lowers marketing expenses, and enhances profitability Apple exemplifies strong brand loyalty, being a leading electronic brand globally, renowned for its high-quality products like the iPhone, iPad, and MacBook, along with exceptional design and customer satisfaction.
In order to measure smartphone brand loyalty of Apple in Vietnam, this survey is divided into 6 parts, including:
Each section will consist of short multiple-choice questions I kindly request you to spend 4-5 minutes completing this survey seriously and objectively
All information gained from this survey will be used for research and analysis purpose only
Thank you for your participation!
1 Do you own an iPhone before?
☐ Yes (Move to the next part)
☐ No (Remove from the questionaire)
3 Household Monthly Income (including your family members' income or any others types of income):
B Factors affecting customer loyalty to the Apple brand in Vietnam
These factors are measured on a scale of 5, from Strongly disagree (1 point) to Strongly agree (5 points) Please mark one of the boxes in each question Thank you!
Disagree Neutral Agree Strongly agree
1 Apple smartphones have advanced and high-quality hardware
2 The operating system of Apple smartphones is efficient and user- friendly
Apple smartphones meets or exceeds my expectations
4 Apple smartphones rarely experience technical or privacy issues
Disagree Neutral Agree Strongly agree
Apple is prestigious and esteemed
2 The Apple brand is associated with a sense of luxury yet trendy
3 Apple is known for its innovative and cutting-edge technology
4 Apple is perceived as environmentally conscious and responsible
Disagree Neutral Agree Strongly agree
1 I believe Apple smartphones offer good value for the price
2 I am satisfied with the customer service provided by Apple
3 The design of Apple smartphones aligns with my personal style preferences
4 I am satisfied with the overall functionality of my
Disagree Neutral Agree Strongly agree
1 I trust that Apple products will consistently meet my expectations
2 I feel well-informed about Apple's commitment to quality and customer satisfaction
3 Apple maintains a consistent level of quality across its product range
4 Apple's commitment to ethical business practices positively impacts my trust
Disagree Neutral Agree Strongly agree
1 I am likely to purchase another
Apple smartphone in the future
Apple smartphones to my friends and family
Apple over other smartphone brands
4 I am willing to pay a premium for Apple products because of my loyalty to the brand
KHẢO SÁT VỀ MỨC ĐỘ TRUNG THÀNH VỚI THƯƠNG HIỆU APPLE TẠI VIỆT NAM
Xin chào mọi người! Chúng tôi tiến hành khảo sát này để nghiên cứu về mức độ trung thành của người tiêu dùng đối với thương hiệu Apple tại Việt Nam.
Lòng trung thành thương hiệu (Brand loyalty) thể hiện mức độ khách hàng sẵn sàng mua lại sản phẩm của một thương hiệu, bất chấp sự tồn tại của các lựa chọn khác Đây là yếu tố quan trọng giúp doanh nghiệp tăng doanh số, giảm chi phí marketing và nâng cao lợi nhuận Apple, một trong những thương hiệu điện tử hàng đầu thế giới, nổi bật với các sản phẩm như iPhone, iPad và MacBook, được đánh giá cao về chất lượng, thiết kế và trải nghiệm người dùng.
Nhằm đo lường mức độ trung thành với thương hiệu của điện thoại Apple (Iphone) tại Việt Nam, bài khảo sát này được chia làm 6 phần, bao gồm:
Phần 1: Hồ sơ khách hàng
Phần 2: Chất lượng sản phẩm
Phần 3: Hình ảnh thương hiệu
Phần 4: Trải nghiệm của người dùng
Phần 5: Niềm tin vào thương hiệu
Phần 6: Lòng trung thành đối với thương hiệu
Bài khảo sát này bao gồm các câu trắc nghiệm ngắn gọn Xin hãy dành 4-5 phút để hoàn thành một cách nghiêm túc và khách quan.
Mình xin cam kết tất cả thông tin thu được từ cuộc khảo sát này sẽ chỉ được sử dụng riêng cho mục đích nghiên cứu và phân tích
Cảm ơn mọi người đã tham gia khảo sát!
1 Anh/ Chị đã từng sở hữu điện thoại Apple iPhone chưa?
☐ Rồi (Đưa đến phần tiếp theo của biểu hỏi)
☐ Chưa (Loại khỏi biểu hỏi)
A Thông tin người được khảo sát:
3 Mức thu nhập hàng tháng của hộ gia đình Anh/Chị? (bao gồm thu nhập của các thành viên khác trong gia đình hoặc các nguồn thu nhập khác)
☐ Từ Trung học phổ thông trở xuống
B Những yếu tố ảnh hưởng đến lòng trung thành của khách hàng với thương hiệu Apple taji Việt Nam
Những yếu tố này được đo lường bởi 5 mức độ, từ mức độ Hoàn toàn không đồng ý
(1 điểm) đến Hoàn toàn đồng ý (5 điểm) Anh/Chị vui lòng đánh dấu vào một trong các ô trong mỗi câu hỏi Cảm ơn Anh/Chị!
1 Điện thoại thông minh của Apple có phần cứng tiên tiến và chất lượng cao
Hệ điều hành của điện thoại thông minh Apple hiệu quả và thân thiện với người dùng
Hiệu suất của điện thoại thông minh
Apple đáp ứng hoặc vượt quá mong đợi của tôi
4 Điện thoại thông minh Apple hiếm khi gặp sự cố kỹ
59 thuật hoặc vấn đề về bảo mật
STT Câu hỏi Hoàn toàn không đồng ý
Bình thường Đồng ý Hoàn toàn đồng ý
1 Hình ảnh thương hiệu của Apple là uy tín và danh giá
2 Thương hiệu Apple gắn liền với sự sang trọng nhưng thời thượng
3 Apple được biết đến với công nghệ đổi mới và tiên tiến
4 Apple được coi là có trách nhiệm và thân thiện với môi trường
3 Trải nghiệm của người dùng
STT Câu hỏi Hoàn toàn không đồng ý
Bình thường Đồng ý Hoàn toàn đồng ý
1 Tôi tin rằng điện thoại thông minh
60 của Apple có giá trị tốt so với giá tiền
2 Tôi hài lòng với dịch vụ khách hàng của Apple
3 Thiết kế của điện thoại thông minh
Apple phù hợp với sở thích phong cách cá nhân của tôi
4 Tôi hài lòng với chức năng tổng thể của điện thoại thông minh Apple của tôi
4 Niềm tin vào thương hiệu
STT Câu hỏi Hoàn toàn không đồng ý
Bình thường Đồng ý Hoàn toàn đồng ý
1 Tôi tin rằng các sản phẩm của Apple sẽ luôn đáp ứng kỳ vọng của tôi
2 Tôi cảm thấy được thông báo đầy đủ về cam kết chất lượng và sự hài lòng của khách hàng của
3 Apple duy trì mức độ chất lượng nhất quán trên toàn bộ dải sản phẩm của mình
4 Cam kết của Apple đối với các hoạt động kinh doanh có đạo đức tác động tích cực đến sự tin tưởng của tôi
5 Lòng trung thành đối với thương hiệu
STT Câu hỏi Hoàn toàn không đồng ý
Bình thường Đồng ý Hoàn toàn đồng ý
1 Tôi có khả năng sẽ mua một chiếc điện thoại thông minh
Apple khác trong tương lai
2 Tôi sẽ giới thiệu điện thoại thông minh Apple cho bạn bè và gia đình của mình
3 Tôi có sự ưu tiên mạnh mẽ đối với
Apple hơn các thương hiệu điện
