The effect of communication media on dimensions of brand equily

Abstract This study is aimed to explore the relative impact of social media and traditional media on customer-based brand equity dimensions in three groups of product market such as food

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-

Cao Thi Hang

THE EFFECT OF COMMUNICATION MEDIA

ON DIMENSIONS OF BRAND EQUITY

ID:22110016

MASTER OF BUSINESS (Honours)

SUPERVISOR: Le Nguyen Hau

Ho Chi Minh City – Year 2014

Abstract

This study is aimed to explore the relative impact of social media and traditional media

on customer-based brand equity dimensions in three groups of product market such as foods (Cocacola, Nescafe, Vinamilk), banking (ACB, Techcombank, Vietcombank) and electronics (Samsung, Sony, Toshiba) It then tests the impact of dimension of customer-based brand equity on purchase intention

The study was conducted through two steps including preliminary research and formal research Preliminary research employed focus group discussion while formal research is

quantitative research technique with a sample of 228 cases The Model used in this study based

on the previous researches and qualitative study to identify factors in brand value chain

The results show that both of traditional media and social media have a strong impact

on dimensions of brand equity (brand awareness, brand association) Social media have a stronger impact on brand awareness and brand association compared to traditional media Additionally, brand awareness have no direct relationship with purchase intention In this research, there is no difference between firm created social media and user generated social media, these concept combined with each other

Chapter 1: Introduction 9

1.1 Background 9

1.2 Research problem 11

1.3 Research objectives 12

1.4 Scope 12

1.5 Research Structure 13

Chapter 2: Literature Review 14

2.1 Theoretical background 14

2.1.1 The concept of Social Media Marketing 14

2.1.2 Traditional Communication 15

2.1.3 Brand Equity and Customers-based Brand Equity 16

2.1.4 Concept of Brand Value Chain 19

2.2 A Brief Review of Previous Study 20

2.3 Research hypotheses and Model 21

Chapter 3: Research Method 25

3.1 Study Design 25

3.1.1 Research Method 25

3.1.2 Research process 26

3.2 Scale Development 28

3.2.1 Firm created social media 28

3.2.2 User generated Social Media 29

3.2.3 Traditional Media 30

3.2.4 Brand Awareness 30

3.2.5 Brand Association 31

3.2.6 Brand Attitude 31

3.3.7 Purchase Intention 32

3.3 Pilot Study (N=100) 33

3.3.1 Firm created Social Media 34

3.3.2 User generated Social Media 35

3.3.3 Traditional media 35

3.3.4 Brand awareness 35

3.3.5 Brand associations 35

3.3.6 Brand attitude 36

3.3.7 Purchase intention 36

3.4 Main Study 37

3.4.1 Brand name for research 37

3.4.2 Sample size and sample method 38

3.4.3 Data collection Method 38

Chapter 4 Research Result 40

4.1 Reliability Analysis 40

4.2 EFA analysis 41

4.2.1 EFA group 1 42

4.2.2 EFA group 2 43

4.2.3 EFA group 3 45

4.3 CFA Analysis 47

4.3.1 Social Media 47

4.3.2 Brand Association 49

4.3.3 Brand Awareness 49

4.3.4 Research Model 50

4.4 Research Model Testing 52

4.4.1 The saturated model 52

4.4.2 Testing Theoretical Model 56

4.4.3 Testing Competitive model 59

4.4.4 BOOTSTRAP analysis for Theoretical Model (Refined) 62

4.4.5 Hypothesis testing 63

Chapter 5: Conclusions, Implication and Limitation 66

References 69

Appendix 73

LIST OF FIGURES

Figure 2.1: Brand Value Chain

Figure 2.2 Research Model

Figure 3.1: Research Process

Figure 4.1: CFA for Social Media

Figure 4.2: CFA for Brand Association

Figure 4.3: CFA for Brand Awareness

Figure 4.4: Theoretical Model

Figure 4.4: Competitive model

Figure 4.5: SEM for The saturated model

Figure 4.6: CFA for Theoretical Model

Figure 4.7: CFA for Theoretical Model (Refined)

Figure 4.8: CFA for Competitive model

LIST OF TABLES

Table 3.1: The measurement of scales

Table 3.2: Firm created Social Media Scale

Table 3.3: User generated Social Media Scale

Table 3.4: Traditional Media Scale

Table 3.5: Brand awareness Scale

Table 3.6: Brand Association Scale

Table 3.7: Brand Attitude Scale

Table 3.8: Purchase Intention Scale

Table 3.9: Reliability analysis of all items (Pilot test)

Table 3.10: Reliability analysis Brand awareness, Brand association and Purchase intention (after deleted unsatisfied items)

Table 4.1: Cronbach’s alpha of all items (Main study)

Table 4.2: Pattern Matrixa

Table 4.3: Pattern Matrixa

Table 4.4: Pattern Matrix – after deleted variance with unsatisfied

Table 4.5: Factor Matrixa

Table 4.6: Covariance

Table 4.7: SEM for Scale - Covariances: (Group number 1 - Default model)

Table 4.8: Composite reliability and Variance extracted for Scale

Table 4.9: Briefly result of scale measuring

Table 4.10: SEM statistics

Table 4.11: Theoretical Model - Covariance

Table 4.12: SEM statistics for Theoretical Model (Refined)

Table 4.13: Theoretical Model (Refined) - Regression Weights (Unstandardized)

Table 4.14 - SEM statistics Competitive model

Table 4 15 - Competitive model - Regression Weights

Table 4.16: Bootstrap Result

Table 4.17: Bootstrap Result

CHAPTER 1: INTRODUCTION

1.1 Background

The rapid growth in the popularity of social media platforms (such as Youtube, social network, etc.) in recent years has raised the question of whether this phenomenon has reduced marketers’ control of brand management (Berthon et al 2007) Moreover, consumers are increasingly using social media sites to search for information and turning away from traditional media, such as television, radio, and magazines (Mangold and Faulds 2009); cited in Schivinski & Dąbrowski (2013) According to Burmann and Arnhold, 2008, the Internet and Web 2.0 have empowered proactive consumer behavior in the information and purchase process

Based on the latest survey of the development of the Internet, social media, digital and mobile phones in Asia, Vietnam known as "the most interesting markets in Asia" The percentage of Internet users over total population is 34% (higher than the world average is 33%) In 2012, Vietnam has added 1.59 million new users (wearesocial.net, 2012)

Additional, social networking, digital devices and mobile phone VN is growing astonishingly, internet users in Vietnam increased by 5% since late 2011 35% of mobile Internet users access social media content over the phone This is also one of facilities which helps social media of enterprise reach more target customers (wearesocial.net, 2012)

The strong development of social networks create trends in the advertising in Social networks Advertising on social networks become a trend in over the world, they predicted that advertising on social networks will bring more than $ 8 billion in revenue in 2015 This makes

the enterprise pay attention to this channel of communication, and social media plays an important role in marketing strategy (wearesocial.net, 2012)

Potential of communication via social media will be increased strongly in the future because internet in Vietnam gets more impressed development in near time For example, Da Nang installed nearly 400 Wi-Fi post cover through this province, ensuring 10,000 peoples can access at the same time in September 2013 In Vietnam, Da Nang city is the fourth city with free Wi-Fi coverage, after Hoi An, Ha Long and Hue (vnexpress.net, 2013) Ho Chi Minh City tended to set up free Wifi on bus for attracting more people use bus

Along with the development of internet with high speed internet and increase quickly

of mobile devices that makes Social Media become popular more than any marketing tool Additionally, consumers are turning away from traditional media such as TV, radio, or magazines and increasingly using social media to search for information (Mangold and Faulds, 2009)

The advantage of social media is two-way interoperability on widespread but rarely the communication tools can reach before that Therefore, brand communication not only created solely by company, but also generated by users on Social Media communication This creates opportunities for enterprise do social activities not only widely but also deeply Social media not only allows companies convey the message to the target customers but also build stronger relationships with them There are different effects between firm-created and users-generated

in Social Media This research will examine effect size of social media and traditional media

on dimensions of brand equity Social media include firm-created and user-generated in Social Media Then, this study will test the impact of dimensions of brand equity on purchase intention

1.2 Research problem

Keller (1991) stated that advertising can affect brand equity through brand association, perceived quality and use experience While view of Hoch & Ha (1986), advertising influences consumers’ perceptions of the products when they experience it, Farquhar (1989) proved that advertising can make positive brand evaluation and attitude readily accessible in memory (cited

in Simon & Sullivan, 1993) In sum, the literature review demonstrates that advertising

(marketing communications) as one of the sources driving brand equity

Stephen and Galak, 2009 (cited in Bruhn et al, 2012) investigated how social media and traditional media affect sales They demonstrate that both social and traditional media have strong effects on marketing performance However, the authors reveal that the effect of traditional media is stronger than the effect of social media

There have been a number of researchers who are interested in social media and try to analysis its effects on business These results helps management level in over the world get more knowledge to understand more about Social Media However, most of researchers come from other countries, so the results have a little bit different from Vietnam context There are some studies analysis effect of communication on brand equity in Vietnam but they do not research particular communication method of marketing communication strategy such as social media or traditional media This make social media role is underestimated

Based on these issues, this research will answer the research question below:

 Does Social Media replace Traditional Media in Marketing Communication Strategy?

 How effect size of each Social Media and Traditional Media affect to dimensions of Customer-based brand equity creation

 Whether differently effect of firm-created and users-generated in Social Media on the metrics of brand equity?

 In addition, this study provides a framework for the future study deeply about relationship Social Media, Traditional Media in Customer-based brand equity

1.3 Research objectives

Research objectives of this study are as follows:

 To identify dimensions of customer-based brand equity

 To measure effect size of brand-based Social Media compare with Traditional of marketing communication on metrics of brand equity

 Measure how does each communication way contribute in Brand Value chain

1.4 Scope

This thesis will examine how different effect size of social media and traditional media

on dimension of brand equity Respondent for this study who accessed one of tools of social media such as Blog, News / PR, Video, Social Network, YouTube, some websites, so on and received communication campaign through traditional tools such as TV, radio, magazine, newspaper in service and production industry Regarding social media tool, this study spend most focus on Social networks because of the large number of social networks users For traditional media tools, this research will pay more attention on TV, newspaper and magazine because of their popularity

The survey will conduct in Ho Chi Minh City, the brands in survey are belong three industrial such as banking, electronics and foods

1.5 Research Structure

This thesis have five sections:

 The first section is introduction structure This sections give brief overview of the main reason led to research, this describes practical information about Vietnam context

 The second section describes theoretical background and give a brief review of previous study Then, building theoretical model and the hypotheses

 In the third section a methodology is presented to appraise measurement scale, research model and hypotheses proposal

 In the fourth section will present result of scale, research model and hypotheses testing along with research results

 Conclusions, implication and limitations are shown in the final section

CHAPTER 2: LITERATURE REVIEW

This chapter will present some theories related to seven main concepts as social media marketing, traditional communication, brand equity and customers-based brand equity, brand awareness, brand association, brand attitude Based on these concepts, the hypothesis and research model will be built The research model aim to evaluate the effect of communication media on dimensions of customers-based brand equity This chapter included three parts: 1 Theoretical background, 2 A Brief Review of Previous Study, 3 Research hypotheses and Model

2.1 Theoretical background

2.1 Social Media Marketing

Firm-created Social Media

Social Media is as new social environment based on Web 2.0 services such as Blog, News / PR, Video, Social Network, etc Social media is a spread communication process (Viral, Copy and spread) from one person to another with the same interest Social Media is not a mass communication, because it based on three factors such as participation, connection and relationship Social media is two ways communication; it is interactive and highly filtered

Social media are changing the way that information is passed across societies and around the world The rapid spread of blogs, social networking sites, and media-sharing technology (such as YouTube), aided by the proliferation of mobile technology, is also changing the conditions in which the United States conducts military operations (Thomas, Mayfiel, 2009)

Use-generated social media

Social Media is a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0 and that allow the creation and exchange of User Generated Content (Kaplan & Haenlein, 2010)

As cited in Schivinski & Dąbrowski (2013), the growth of online brand communities including social networking sites, has supported the increase of user-generated social media communication (Gangadharbatla 2008) User-generated content is a rapidly growing vehicle for brand conversations and consumer insights (Christodoulides et al, 2012)

User-generated content can greatly enhance customer satisfaction, loyalty, and/or delight The expansion of customer roles to encompass seller roles not only reinforces the emotional bonds between seller and customer and among customers, but also makes it a more relational exchange because customers actively participate in creating value for other customers, customers become advocates for sellers in interactions with other customers and non-customers (Sashi, 2012)

2.1.2 Traditional Communication

Traditional media such as television, newspapers, radio, and magazines, are one way, static broadcast technologies For instance, the magazine publisher is a large organization that distributes expensive content to consumers, while advertisers pay for the privilege of inserting their ads into that content If audiences disagree with something they read in the newspaper, they can’t send the editorial staff instant feedback New web technologies have made it easy for anyone to create and most importantly distribute their own content A blog post, tweet, or YouTube video can be produced and viewed by millions virtually for free Advertisers don’t have to pay publishers or distributors huge sums of money to embed their messages; now they can make their own interesting content that viewer will flock to (Zarrella, 2009)

2.1.3 Brand Equity and Customers-based Brand Equity

Brand Equity

Brand equity is the added value endowed on products and services it may be reflected

in the way consumers think, feel, and act with respect to the brand, as well as in the prices, market share, and profitability the brand commands for the firm (Kottler & Keller, 2009)

According to Aaker (1991) (in Schivinski & Dabrowski, 2013), brand equity can

be 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 to that firm’s customers”

As cited in Chieng & Goi (2011), there are two principal and distinct perspectives that are brand equity – financial and customer based The first perspective of brand equity is from

a financial market’s point of view where the asset value of a brand is appraised (Farquhar et al

1991, Simon and Sullivan 1990) Customer-based brand equity is evaluating the consumer’s response to a brand name (Keller 1993, Shocker et al 1994)

Customers-based brand equity

The basic premise with customer-based brand equity is that the power of a brand lies in the minds of consumers and what they have experienced and learned about the brand over time (Keller, 1993)

Customer-based brand equity can be defined as the differential effect that brand

knowledge has on consumer response to the marketing of that brand (Keller, 1998)

Keller (2003) and Keller and Lehmann (2003) suggest that customer mindset measures can be summarized by five key dimensions that include brand awareness, associations, attitudes, attachment, and activity Aaker (1991) proposes a brand equity model which consists

of the four mindset measures of brand loyalty, brand awareness, perceived quality, and brand associations

Brand Awareness

Brand awareness is related to the strength of the brand in memory, as reflected by consumers' ability to identify various brand elements (i.e., the brand name, logo, symbol, character, packaging, and slogan) under different conditions Brand awareness relates to the likelihood that a brand will come to mind and the ease with which it does so given different type of cues The breath of brand awareness concerns the range of purchase and usage situations where the brand element comes to mind The breadth of brand awareness depends to a large extent on the organization of brand and product knowledge in memory (Keller, 1998)

Brand awareness provides the anchor to which other associations can be linked Recognition provides the brand with a sense of familiarity and people like the familiar In the absence of motivation to engage in attribute evaluation, familiarity may be enough Brand awareness can be a signal of substance (Aaker, 1991)

Brand associations

According to Kotler and Keller (2006) (cited in Chieng & Goi, 2011), Brand associations consist of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes

Brand association is any mental linkage to the brand Brand associations may include product attributes, customer benefits, uses, life-styles, product classes, competitors and

countries of origins The brand position is based upon associations and how they differ from the competition An association can affect the processing and recall of information, provide a point of differentiation, provide a reason to buy, create positive attitudes and feelings and serve

as the basis of extensions (Aaker, 1992)

Brand associations can be classified into three major types of increasing scope: 1) attributes, 2) benefits, and 3) attitudes Attributes are those descriptive features that characterize

a product or service, Benefits are the personal value and meaning that consumers attach to the product or service, Consumers’ brand attitudes generally depend on specific considerations concerning the attributes and benefits of the brand (Dickson 1994, Keller 1993)

The success of a marketing program is reflected in the creation of favorable brand associations The strength of brand associations depends on how the information enters consumer memory and how it is maintained as a part of the brand image

Brand attitude

According to Mitchell and Olson (1981), brand attitude is defined as a “consumer’s overall evaluation of a brand” Brand attitude is frequently conceptualized as a global evaluation that is based on favorable or unfavorable reactions to brand-related stimuli or beliefs (Murphy and Zajonc 1993) and is cited as a central component to be considered in consumer-based brand equity and relational exchanges (Lane and Jacobson 1995; Morgan and Hunt 1994) Multi attribute attitude models (Ajzen and Fishbein 1980) postulate that the overall evaluation of a brand is a function of the beliefs about specific attributes of the brand/product

Purchase Intention

Purchase intention can be defined as individual’s intention to buy a specific brand individuals who want to buy a specific brand which they has chosen for themselves after certain evaluation; there are variables by which we can measure purchase intention for instance consider the brand for purchasing and expecting to purchase the brand in the future (Laroche and Zhou, 1996; Laroche and Sadokierski, 1994; MacKenzie and Belch, 1986)

2.1.4 Concept of Brand Value Chain

The brand value chain is a structured approach to assessing the sources and outcomes

of brand equity and the manner by which marketing activities create brand value The brand value chain assumes that the value of a brand ultimately resides with customers (Keller and

Lehmann, 2003)

According to the model, the first step in value creation is when an investment in marketing activity affects the customer mind set or brand knowledge; the second step is when the mind set or knowledge, in turn, affects market performance and the different benefits accrued by the brand; Finally, the third step is when market performance affects shareholder value The model also includes a set of “filters” or moderator variables that impact the transfer

or flow of value between stages of the model

Figure 2.1: Brand Value Chain (Source: Keller and Lehmann (2001))

2.2 A Brief Review of Previous Study

Brand value chain (Keller and Lehmann, 2003) is an important tool for managers, company can develop and measure of Brand Equity Some researchers use concept of consumer-based brand equity to develop their studies For example, Bruhn, Schoenmuller & Schafer (2012) develop model to evaluate effect of Social Media and Traditional Media on Brand Equity The model mainly base on Brand Value chain (Keller and Lehmann, 2003) The model have 3 steps, first step is communication source, they separate Social Media and traditional media in this step, the second step is consumer mindset and finally is consumer behavior Then they tested model in 3 industries such as tourism, telecommunication and pharmaceutical

In the research of Schivinski & Dabrowski (2013) also chose the concept of brand equity based on consumer perceptions They built research model to test the effects of firm-

created and user-generated social media communication on brand equity, brand attitude, and brand purchase intentions They checked directly relationship between social media and brand equity not only measure it effect to dimensions of brand equity In this research did not mention

to traditional media effect

The model that Bruhn, Schoenmuller & Schafer (2012) developed adapt with the content of this study, so we use this model for research Compare with the previous study model, this study will cut off brand image and add more brand association It make this study

model similar with brand value chain concept of Keller and Lehmann (2001)

2.3 Research hypotheses and Model

This research model was built on brand value chain of Keller and Lehmann's (2003) as

a conceptual framework The brand value chain takes account of different levels of effect caused by marketing mix efforts However, the traditional brand value chain only focuses on company-controlled marketing communication (Aaker, 1991; Keller and Lehmann, 2003) Therefore, it does not consider the impact of the worldwide exchange of consumer information

on social media platforms To suitable with developing and changing of communication channel, Bruhn et al (2012), Schivinski et al (2013) added social media into marketing communication as separating input Social media is two ways communication because it allow users who can create and exchange content with each other (Kaplan & Haenlein, 2010) In social media communication, the information is created by customer which play important role This is not only interaction between customer and company, but also between customer and customer Therefore, to evaluate exactly how each communication source affect to Brand Equity, study need to separate social media into firm-created and user-generated In sum, communication input will be considered as three channels, it include firm-created social media,

user-generated social media and traditional media

Compare with model of Bruhn et al (2012), this study replace Brand Image concept with Brand Association, it make this study model similar with Brand Value Chain concept of Keller and Lehmann (2001) was shown below

Figure 2.2 Research Model

There are some researches of relationship between communication and customer-based brand equity Based on view of Yoo, Donthu, and Lee 2000, brand communication positively affects brand equity as long as the message creates a satisfactory customer reaction to the product in question compared to a similar non-branded product (cited in Schivinski & Dabrowski, 2013) According to Sawyer (1981), a number of communication effects have been attributed to well-known and liked brands (cited in Keller, 2002) Marketing communication may also be helpful in increasing user and usage imagery attributes Word of mouth and other social influences also play an important role, especially for user and usage imagery attributes (Keller 1993).Brand awareness should be an important goal of the marketing communications efforts of a firm as it has a number of important functions (Macdonald & Sharp, 2003) Keller,

2001 stated that customers or prospect can also have contact with brand through marketer controlled communication (cited in Brunello, 2013)

Traditional media and Firm-created social media are information come from company Company create this to send message to customer This information fully controlled by firm They always expect to transfer a positive communication Therefore, this study assumed have

a positive effect of traditional media and firm-created media on brand awareness, brand association and Brand attitude

H1 Traditional media communication has a positive influence on brand awareness

H2 Firm-created social media communication has a positive influence on brand

awareness

Regarding the effect of user-generated social media communication on awareness, it has to be acknowledged that information were generated by users on social media not affected controlled by company Therefore, user-generated social media communication can be either positive or negative influences Both forms of positive and negative content convey information about a brand that can be particularly useful for consumers in terms of purchase decisions Hence, positive as well as negative brand-related user-generated content on social media platforms can lead to a high level of satisfaction with this form of brand-based communication and therefore are expected to increase the awareness of a brand – regardless of whether the content reflects the brand positively or negatively So hypothesis will be:

H3. User-generated social media communication has a positive influence on brand awareness

Brand associations which result in high brand awareness, they can be a signal of quality and commitment and they help a buyer consider the brand at the point of purchase, which leads

to a favorable behavior for the brand (Yoo et al, 2000) Brand awareness involves linking the brand to different associations in memory (Keller, 2003) Therefore, consumers must first be

aware of a brand to later have a set of brand associations (Aaker, 1991) In sum, this study assumed have a positive effect of brand awareness on brand association

H4 Brand awareness has a positive influence on brand association

Study assume this overall positive effect on brand attitude when weighting the impact

of brand awareness However, the strength of this relationship should be influenced by the positive or negative of user-generated social media communication These considerations result

in the following hypotheses:

H5 Brand association has a positive influence on brand attitude

Study further expect the path via brand attitude to have a strong influence on purchase intention, as brand attitude is considered to be a good indicator for behavioral intention (Wang, 2009) The behavioral intention to purchase is a psychological variable, which is identified as

an intervening variable between attitude and actual behavior (Miniardet al., 1983) According

to the attitude-behavior hypothesis, attitudes have a positive effect on purchase intention (Eagly and Chaiken, 1993) Thus, then following hypothesis will follow:

H6 Brand attitude positively influences brand purchase intention

CHAPTER 3: RESEARCH METHOD

Chapter 2 presented the theoretical background of the research concept, research models, and authors of studies This chapter aims to introduce research methods for measuring, adjusting and evaluating research concepts, testing theoretical models and hypotheses This chapter includes four main parts:

 Study Design

 Scale measuring of research concepts

 Result of Pilot study

 Introduction main study

3.1 Study Design

3.1.1 Research Method

This study was conducted by two steps as Pilot study and Main study

Pilot study was conducted with two methods of qualitative and quantitative Qualitative research was used to explore, adjust scale about semantic aspect It ensure respondents understand the question or questions not change meaning after translated and add more variables that measure study concept (if need) This step increase suitability level in the context

of Vietnam Qualitative research is conducted via focus group discussions Discussions group have five peoples who were in charge of communication and advertising for company

Quantitative research was used to assess reliability and validity of scale and adjust them for suitable with Vietnamese consumers This study will conducted via direct interviews with questionnaires Samples size for quantitative in pilot research about N = 100, and was selected

by convenience sampling method In this step, unsatisfied questionnaires will be reduced from

30 to 27

Main study were performed by quantitative methods Quantitative research is conducted via direct interviews through questionnaire Collected data was used to test theoretical model and hypothesis This study collected 228 cases Collected data were analyzed firstly by two methods: Reliability, EFA analysis After Reliability and EFA analysis, factors were extracted into group These groups will be evaluated by CFA (confirmatory factor analysis), SEM (Structural equation modeling) and Bootstrap analysis

3.1.2 Research process

Figure 3.1: Research Process

3.1.2.1 Step 1: Scale Development

Table 3.1: The measurement of scales

The measurement of scales

Firm created

Social media Satisfied with firm created social media

Schivinski &

Dąbrowski (2013) Meet my expectation

Compare with other company

User generated

Social media Satisfied with user generated social media

Meet my expectation Compare with other company

Traditional Media Satisfied with traditional media Bruhn,

Schoenmuller

& Schafer (2012) Meet my expectation

Compare with other company

Lee (2000) Association of brand with product category

Memorize the symbol/ logo Familiality

Hear about the brand

Aaker, D (1996) Know what the brand stand for

Have an opinion about the brand

There are reasons to buy Has a personality

Brand is interesting Have a clear type of customer Differrent from competing brand

(2000) Good reputation

Satisfaction Interest

Purchase Intention Possible to buy Grewal et al(1998)

Seriously consider to buy

3.1.2.2 Step 2: Pilot study

Due to the differences in culture and level of economic development, the scale developed in other countries may not be really suitable for Vietnam market, the scales should

be adjusted through focus group discussions (qualitative research) (Nguyen & Nguyen, 2011) Based on results of this first draft scale will be adjusted to the second draft scale

The second draft scale will be assessed by quantitative research with sample size n =

100 This scale is adjusted via Reliability Analysis with Cronbach alpha and Corrected Total Correlation index Variables will be rejected if Corrected Item-Total Correlation <0.3

Item-3.1.2.3 Step 3: Main Study

This study was used to evaluate and adjust theoretical models Collected data will be analyzed firstly by two methods: Reliability, EFA analysis After Reliability and EFA analysis, factors are extracted into group These groups will be evaluated by CFA (confirmatory factor analysis), SEM and Bootstrap analysis

3.2 Scale Development

As presented in Chapter 2, there are 7 concepts in this study This is (1) traditional Media, (2) Firm created social media, (3) user generated social media, (4) Brand Awareness, (5) Brand association, (6) Brand attitude, (7) Purchase intention

3.2.1 Firm created social media

Firm created social media is denoted as FIR with 3 variables, from FIR1 to FIR3 Variables are used to measure customer feedback when they receive advertising information

These advertising are created by company via Social Media Qualitative research shown that

each question is clear They can answer questions and each question present level of receiving

advertising that are created by the company via Social Media Variables of this scale is

measured by 7 points Likert scale

Table 3.2: Firm created Social Media Scale

1 I am satisfied with the company’s social media communications for X FIR1

2 The level of the company’s social media communications meets my expectations FIR2

3 Compared with other companies, this company’s social media for X performs well FIR3

3.2.2 User generated Social Media

User generated social media is denoted as USE with 3 variables, from USE1 to USE3

Variables are used to measure customer feedback when they receive advertising information

These advertising are created by users via Social Media Qualitative research shown that each

question is clear They can answer questions and each question present level of receiving

advertising that are created by users via Social Media Variables of this scale is measured by 7

points Likert scale

Table 3.3: User generated Social Media Scale

4 I am satisfied with the social media communications by users about X USE1

5 The level of the social media expressed by users about X meets my expectations USE2

6 Compared with other users of other brands, X performs well USE3

3.2.3 Traditional Media

Traditional Media is denoted as TRA with 3 variables, from TRA1 to TRA3 Variables are used to measure customer feedback when they receive advertising information via Traditional Media Qualitative research shown that each question is clear They can answer questions and each question present level of receiving advertising via Traditional Media Variables of this scale is measured by 7 points Likert scale

Table 3.4: Traditional Media Scale

7 I am satisfied with the traditional media campaigns of X TRA1

8 The level of the traditional media campaigns of X meets my expectations TRA2

9 Compared with traditional media campaigns of other brands, X perform well TRA3

3.2.4 Brand Awareness

Brand Awareness is denoted as AWA with 7 variables, from AWA1 to AWA7 Variables are used to measure level of customer awareness with brand Awareness mean that customer can know and remember brand name They can recognize symbol, characteristic of brand and discriminate this brand with other brands Qualitative research shown that each question is clear They can answer questions and each question present level of awareness Variables of this scale is measured by 7 points Likert scale

Table 3.5: Brand awareness Scale

10 I easily recognize X AWA1

11 Several characteristics of X instantly come to my mind AWA2

12 I easily memorize the symbol/logo of X AWA3

13 I have a very clear picture of X AWA4

14 I know what this brand stands for AWA5

15 Have you heard of this brand AWA6

16 I have an opinion about this brand AWA7

3.2.5 Brand Association

Brand Association is denoted as ASS with 7 variables, from ASS1 to ASS7 Variables are used

to measure level of customer association with brand Qualitative research shown that each question is clear They can answer questions and each question present level of association Variables of this scale is measured by 7 points Likert scale

Table 3.6: Brand Association Scale

17 X provides good value for the money ASS1

18 There are reasons to buy this brand over competitors ASS2

19 This brand has a personality ASS3

20 This brand is interesting ASS4

21 I have a clear image of the type of person who would use X ASS5

22 X is different from competing brands ASS6

23 X is basically the same as competing brands ASS7

3.2.6 Brand Attitude

Brand Attitude is denoted as ATT with 4 variables, from ATT1 to ATT4 Variables are used to measure customer attitude with brand Variables of this scale is measured by 7 points Likert scale

Table 3.7: Brand Attitude Scale

Brand attitude Short Name

24 I have a pleasant idea of brand ATT1

25 X has a good reputation ATT2

26 I associate positive characteristics with ATT3

27 I fully trust on the information that X conveyed ATT4

3.3.7 Purchase Intention

Brand Attitude is denoted as PUR with 3 variables, from PUR1 to PUR3 Variables are used to measure level of purchase decision of customer Variables of this scale is measured by

7 points Likert scale

Table 3.8: Purchase Intention Scale

28 It is possible that I will buy X in the future PUR1

29 I will seriously consider purchasing PUR2

30 It is highly likely that I will buy X PUR3

3.3 Pilot Study (N=100)

Table 3.9: Reliability analysis of all items (Pilot test)

Item Key words of items

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted Firm created social media (FIR): Cronbach's Alpha = 0.81

FIR1 Satisfied with the company’s social media

communications for X 0.669 0.731

FIR2 Company’s social media communications meets

my expectations 0.784 0.611

FIR3 Compared with others, X performs well 0.541 0.855

User generated social media (USE): Cronbach's Alpha = 0.886

USE1 Satisfied with the social media by users about X 0.803 0.816

USE2 X meets my expectations 0.771 0.846

USE3 Compared with others, X performs well 0.763 0.853

Traditional media(TRA): Cronbach's Alpha = 0.869

TRA1 Satisfied with the traditional media of X 0.741 0.825

TRA2 X meets my expectations 0.807 0.768

TRA3 Compared with others, X perform well 0.708 0.855

Brand awareness (AWA): Cronbach's Alpha = 0.815

AWA1 I easily recognize X 0.495 0.8

AWA2 Several characteristics of X come to my mind 0.693 0.765

AWA3 I easily memorize the symbol/logo of X 0.629 0.777

AWA4 I have a very clear picture of X 0.756 0.756

AWA5 I know what this brand stands for 0.579 0.788

AWA6 Have you heard of this brand 0.588 0.786

AWA7 I have an opinion about this brand 0.252 0.853

Brand associations (ASS): Cronbach's Alpha = 0.827

ASS1 X provides good value for the money 0.672 0.787

ASS2 There are reasons to buy this brand over

competitors 0.747 0.773

ASS3 This brand has a personality 0.774 0.769

ASS4 This brand is interesting 0.707 0.783

ASS5 I have a clear image of the type of person who

would use X 0.666 0.789

ASS6 X is different from competing brands 0.579 0.803

ASS7 X is basically the same as competing brands 0 0.893

Brand attitude (ATT): Cronbach's Alpha = 0.861

ATT1 I have a pleasant idea of brand 0.748 0.805

ATT2 X has a good reputation 0.718 0.818

ATT3 I associate positive characteristics with 0.688 0.83

ATT4 I fully trust on the information that X conveyed 0.675 0.836

Purchase intention (PUR): Cronbach's Alpha = 459

PUR1 It is possible that I will buy X in the future 0.471 0.014

PUR2 I will seriously consider purchasing 0 0.775

PUR3 It is highly likely that I will buy X 0.459 -.014a

3.3.1 Firm created Social Media

Cronbach’ alpha of firm created social media in reliability analysis is 0.81 Corrected Item-Total Correlation index is higher than 0.3, FIR3 is the smallest with a value of 0.541 (Compared with other companies, this company's social media for X performs well) Because Cronbach’ alpha is higher than 0.6 and item-total correlation is higher than 0.3, two index of

this concept are satisfied with requirement Thus, three variables of this scale are remained for main study

3.3.2 User generated Social Media

Cronbach’ alpha of user generated social media in reliability analysis is 0.886 (higher than 0.6) Corrected item-total correlation index are higher than 0.3, USE3 is the smallest with

a value of 0.763 (Compared with other users of other brands, X performs well) Because two indexes are satisfied with requirement, three variables of this scale are remained for main study

3.3.3 Traditional media

Cronbach’ alpha of traditional media in reliability analysis was 0.869 (higher than 0.6) and Corrected Item-Total Correlation index are higher than 0.3, TRA3 is the smallest with a value of 0.708 (Compared with other users of other brands, X performs well) Because two indexes are satisfied with requirement, three Variables of this scale are remained for main study

3.3.4 Brand awareness

Cronbach’ alpha of brand awareness in reliability analysis was 0.815 (higher than 0.6) However, corrected item-total correlation index of AWA7 (I have an opinion about this brand) with a value of 0.252 <0.3, this variance is not satisfied, it need to be deleted The result of reliability analysis present on Table 3.9, it shown that Cronbach alpha increase from 0.815 to 0.853 after deleted AWA7, other six items of this scale are remained for main study

3.3.5 Brand associations

Cronbach’ alpha of brand association in reliability analysis was 0.827 However, corrected item-total correlation index of ASS7 (X is basically the same as competing brands)

with a value of 0.00<0.3, this variable is not satisfied, it need to be deleted The result of reliability analysis present on Table 3.9, it shown that Cronbach alpha increase from 0.827 to 0.893 after deleted ASS7, other six items of this scale are remained for main study

3.3.6 Brand attitude

Cronbach’ alpha of brand attitude in reliability analysis was 0.861(higher than 0.6) Corrected item-total correlation index are higher than 0.3, ATT4 is the smallest with a value of 0.675 (I fully trust on the information that X conveyed) Because two indexes are satisfied with requirement, fourth variables of this scale are remained for main study

3.3.7 Purchase intention

Cronbach’ alpha of purchase intention in reliability analysis was 0.459 (lower than 0.6), this index is low and not reach requirement Corrected item-total correlation index of PUR2 (I will seriously consider purchasing) with a value of 0<0.3, this Variables is not satisfied, it need

to be deleted The result of reliability analysis present on Table 3.9, it shown that Cronbach alpha increase from 0.459 to 0.775 after deleted ASS7, other two items of this scale are remained for main study

Table 3.10: Reliability analysis Brand awareness, Brand association and Purchase intention (after deleted unsatisfied items)

Item Key words of items

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted Brand awareness: Cronbach's Alpha = 853

AWA1 I easily recognize X 566 842

AWA2 Several characteristics of X instantly come to my mind 743 807

AWA3 I easily memorize the symbol/logo of X 639 828 AWA4 I have a very clear picture of X 779 801 AWA5 I know what this brand stands for 549 844 AWA6 Have you heard of this brand 561 842

Brand associations: Cronbach's Alpha = 893

ASS1 X provides good value for the money 702 876 ASS2 There are reasons to buy this brand over competitors 757 867 ASS3 This brand has a personality 780 864 ASS4 This brand is interesting 707 876 ASS5

I have a clear image of the type of person who would use

X

.678 880 ASS6 X is different from competing brands 660 883

Purchase intention: Cronbach's Alpha = 775

PUR1 It is possible that I will buy X in the future 637

PUR3 It is highly likely that I will buy X 637

3.4 Main Study

3.4.1 Brand name for research

The tested brand include three groups (banking, foods and electronics) divide by characteristics of product Respondent will pick up a random brand to complete questionnaire

X brand in survey include:

 Group 1: Cocacola, Nescafe, Vinamilk

 Group 2: Samsung, Sony, Toshiba

 Group 3: ACB, Techcombank, Vietcombank

The quantitative approach will be used in collecting data through a questionnaire survey The questionnaire base on the impact of communication media on dimensions of brand equity and answer all of hypotheses

3.4.2 Sample size and sample method

 Sample method

The model and hypotheses were tested using data from customers who access one of the Social Media Tools such as Blog, News / PR, Video, Social Network, YouTube, some websites, etc

Data were collected using convenience sampling method with a structured questionnaire and non-probability through face-to-face interviews and sending questionnaire via email, telephone Participants survey who are living in Ho Chi Minh City

Communication via direct and indirect ways will be used in data collection method This is the percentage of each way

 Mail (10% survey) This is the easy way to collect data It is saving time and cost in collection process I can approach with many peoples in the short time

 Personal (85% survey) Both of personal and telephone channel have to spend more time than mail but collected data will be better Respondent will receive a checked questionnaire with paper

 Telephone (5% survey)

Chapter conclusion

This chapter presented the research method This was performed to assess research concepts in research models of brand equity Research method is conducted with 2 steps Pilot Study and Main Study

Pilot Study were performed in 2 steps qualitative and quantitative Group discussions were used for qualitative and interviews were used for quantitative with sample size n = 100 Main Study is quantitative research, this step used direct interviews with sample n = 228

CHAPTER 4 RESEARCH RESULT

Chapter 3 presented research methodology to evaluate scale and research model The purpose

of chapter fourth is presenting the result of scale, research model and hypotheses testing This chapter include three parts: 1 Testing reliability and validity of scale by Cronbach alpha and EFA analysis; 2 Testing scale by CFA (confirmatory factor analysis) 3 Testing hypotheses by AMOS software

(analysis of moment structure)

4.1 Reliability Analysis

Table 4.1: Cronbach’s alpha of all items (Main study)

Item Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted Firm created social media: Cronbach's Alpha = 0.83

FIR1 Satisfied with the company’s social media

communications for X 0.71 0.754

FIR2 Company’s social media communications meets my

expectations 0.803 0.653

FIR3 Compared with others, X performs well 0.577 0.87

User generated social media: Cronbach's Alpha = 0.892

USE1 Satisfied with the social media by users about X 0.788 0.846

USE2 X meets my expectations 0.792 0.842

USE3 Compared with others, X performs well 0.783 0.85

Traditional media: Cronbach's Alpha = 0.866

TRA1 Satisfied with the traditional media of X 0.738 0.818

TRA2 X meets my expectations 0.774 0.785

TRA3 Compared with others, X perform well 0.723 0.831

Brand awareness: Cronbach's Alpha = 0.858

AWA1 I easily recognize X 0.623 0.839

AWA2 Several characteristics of X come to my mind 0.721 0.82

AWA3 I easily memorize the symbol/logo of X 0.708 0.823

AWA4 I have a very clear picture of X 0.735 0.818

AWA5 I know what this brand stands for 0.591 0.844

AWA6 Have you heard of this brand 0.512 0.857

Brand associations: Cronbach's Alpha = 0.892

ASS1 X provides good value for the money 0.707 0.874

ASS2 There are reasons to buy this brand over competitors 0.74 0.869