Summary of dissertation in business administration research on factors affecting the brand loyalty of vietnamese consumers towards garment products of garment 10 corporation

VIETNAM ACADEMY OF SOCIAL SCIENCES GRADUATE ACADEMY OF SOCIAL SCIENCES DAO THI HA ANH RESEARCH ON FACTORS AFFECTING THE BRAND LOYALTY OF VIETNAMESE CONSUMERS TOWARDS GARMENT PRODUCTS

VIETNAM ACADEMY OF SOCIAL SCIENCES

GRADUATE ACADEMY OF SOCIAL SCIENCES

DAO THI HA ANH

RESEARCH ON FACTORS AFFECTING THE BRAND LOYALTY OF VIETNAMESE CONSUMERS TOWARDS GARMENT PRODUCTS OF GARMENT 10 CORPORATION

Major: Business administration

Code: 9.34.01.01

Summary of dissertation in business administration

HANOI - 2021

THE DISSERTATION WAS COMPLETED AT THE GRADUATE ACADEMY OF SOCIAL SCIENCES

Science instructor 1: Assoc Prof PhD Tran Thi Minh Chau

2: PhD Ha Van Tuan

Reviewer 1: Assoc Prof PhD Tran Huu Cuong

Reviewer 2: Assoc Prof PhD Vu Huy Thong

Reviewer 3: Assoc Prof PhD Tran Minh Tuan

The dissertation will be defended in front of the Academy level Dissertation Evaluation Committee hold at the Graduate Academy of Social Sciences - Vietnam Academy of Social Sciences

-At:… o’clock date …… month …… 202

The dissertation can be found at:

- National Library of Vietnam

- The library of the Graduate Academy of Social Sciences

INTRODUCTION

1 Urgency of the subject:

Changes in the business environment in the context of globalization and fierce competition coupled with the rapid development of information technology have enhanced customer awareness and power over enterprises Therefore, businesses that want long-term success must not only perfect and improve their marketing activities, but also maintain and strengthen consumer confidence and satisfaction and retain existing customers, find new customers by clearly identifying and controlling the factors that affect consumer loyalty to the business Since the more loyal customers to the brand, the less businesses will have to pay for marketing costs The garment industry plays an important role in the country's industrial development strategy, especially when it helps create jobs for many workers To adapt to the intellectualization trend that leads

to higher product requirements and bigger market competition, Vietnamese garment enterprises need to strengthen customer loyalty

as a weapon to compete with foreign brands such as: Camel, Lacoste, Luis Vuiton, Yyes Sant Laurien especially when the Covid-19 epidemic is still happening quite complicatedly in the world, the investment in building loyalty for domestic customers is an urgent content

Garment 10 is one of the leading garment brands in Vietnam and

is present in many parts of the world with a history of more than 70 years In recent years, the Corporation has focused on investing in these factors in order to strengthen and develop consumers' brand loyalty, investing in quality, product design, and distribution channels, applying many promotion policies,… and achieved certain

results in terms of growth in revenue, profit, frequency of second and third repurchases increased, domestic brand reputation also increased However, objectively, the number of loyal customers Garment 10 brand is not commensurate with its potentials and strengths Therefore, it is necessary to have in-depth studies to properly assess the importance and impact level of the factors affecting Garment 10’s brand loyalty of consumers, thereby proposing solutions to consolidate and develop the brand loyalty of consumers to Garment 10's garment products in the coming time

For the above reasons, the graduate student has chosen the topic

"Research on factors affecting the brand loyalty of Vietnamese

consumers towards garment products of Garment 10 Corporation" as

research subject in this dissertation

2 Research objective and tasks:

2.1 Research objective:

The objective of the research is to identify and evaluate the impact level of factors affecting the brand loyalty of Vietnamese consumers to garment products of Garment 10 Corporation, thereby proposing solutions to consolidate, maintain and enhance the brand loyalty of Vietnamese consumers towards Garment 10’s garment products

of consumers for Garment 10’s products

- Perform preliminary investigation of issues related to factors

affecting Garment 10’s consumer loyalty to provide appropriate results for a formal investigation of factors affecting consumer loyalty of consumers towards Garment 10 products

- Study the general brand loyalty rating system

- Take survey and assess the current situation of consumer loyalty to May 10 branded products

- Propose solutions to consolidate and enhance Garment 10’s brand loyalty

3 Subject and scope of research

3.1 Main subject of the topic:

The research subject in this dissertation are: factors affecting the brand loyalty of consumers towards garment products of Garment 10 and the solution to reinforce and enhance brand loyalty for this unit

3.2 Scope of reserach

- In space: Study in Hanoi, Ho Chi Minh City, Quang Ninh, Hai Duong, Hai Phong

- In time:

For secondary data: The author collects data from 2015 to 2019,

and then proposes solutions and recommendations to strengthen and develop consumer brand loyalty to 2025, with a vision to 2035

For primary data: The author collects data through consumer

interview between March and July 2019

- In content: The dissertation focuses on the factors affecting the brand loyalty of Vietnamese consumers to the garment products of Garment Corporation 10 under two approaches: Loyalty determined

by internal factors and loyalty determined by customer factors Target customers are those who have purchased and used Garment 10 garments more than twice

4 Research methods

In the process of studying the topic, the graduate student has used

a combination of many research methods, both qualitative and quantitative, including the following methods: (i) Statistical and descriptive methods; (ii) Methods of synthesis, analysis, comparison; (iii) In-depth interview and group discussion method; (iv) Method of observation at fashion stores and questionnaire investigation; (v) Data processing methods: Data encrypt; Scale test, discovering factor analysis, confirmatory factor analysis, SEM structure model

5 New contributions to the science of the thesis

Theroretically:

- The dissertation contributes to clarify the relationship between the level of trust, consumer satisfaction on policies of products, prices, store environment, promotion programs (marketing-mix activities) of enterprises and consumers’ brand loyalty

- The dissertation has built a research model to evaluate the factors affecting the consumers’ brand loyalty exclusively for the garment sector, namely, garment products at Garment 10 Corporation

- The dissertation applies criteria for factors affecting the consumers’ brand loyalty based on inheritance from a number of domestic and international studies; however, the author has some necessary adjustments to suit the research context at Garment 10 Corporation

In terms of practice:

- The dissertation analyzes and shows the experience of consolidating and enhancing the brand loyalty of some major garment brands in the country and all over the world, thereby drawing lessons

on research issues for Garment 10 Corporation, general garment brands

- The dissertation adds a number of research documents on the

factors affecting the consumers’ brand loyalty for researchers, especially domestic researchers, who are interested in factors with Vietnamese nature and do in-depth researches in the garment sector

in Vietnam

- Proposing a method to solve problems in a relatively new trend

to maintain and develop the consumer loyalty to garment products of Garment 10 Corporation

- Identifying factors that affect consumer trust, satisfaction and brand loyalty to products of Garment 10 Corporation, thus helping managers thoroughly understand that which factors form internal factors of enterprises and factors relating to consumers From that, they have a more general perspective as well as goals and decisions

on business strategy for the long-term stability and development of enterprises

6 Scientific and practical significance of the dissertation 6.1 Scientific significance

The dissertation contributes to modifying the model of factors affecting the brand loyalty of Vietnamese consumers for garment products through qualitative and quantitative analysis

6.2 Practical significance

- The dissertation adds one more research document studying on factors affecting the brand loyalty of consumers for researchers, especially domestic researchers who are interested in the affecting factors related to Vietnamese nature, in-depth research works in the garment industry in Vietnam

- The research results of the dissertation are valuable references for practical agencies in the implementation of policies to support the development of a key economic sector like the garment industry in Vietnam or develop policies to promote development of garment

businesses, including policies to support businesses in developing their brands

- The dissertation suggests and plans strategic direction, marketing solutions suitable for Garment 10 Corporation in particular, and garment companies in general in the consolidation and development of brand loyalty of Vietnamese consumers towards Garment 10 products

7 Structure of the dissertation

The dissertation consists of 5 chapters as follows:

Chapter 1: Overview of researchs related to factors affecting the

brand loyalty

Chapter 2: Theoretical basis of factors affecting the brand

loyalty of consumers for garment products

Chapter 3: Research model and research methods

Chapter 4: Research results

Chapter 5: Solutions to consolidate and develop the brand

loyalty of the consumers towards Garment 10 in particular and garment enterprises in general

Chapter 1 OVERVIEW OF RESEARCHES RELATED TO THE TOPIC 1.1 Results of research on factors affecting garment brand loyalty

Researching customer loyalty to garment products is a topic that many researchers are interested in because of the reason that this is

an area related to taste for a product that is fashionable and has a wide coverage for everyone In addition, it also has an important position and role in the retail market, even in the economy

In general, in terms of nature, factors affecting garment brand loyalty can be divided into two research groups on factors including: (i) factors having direct impact, namely: the research work of Alice Nthenya Mutuku (2010); Joshi Gaurav, Anwariya Anurag (2015); Rahil Khoei (2014) These works focus on research, analysis and evaluation of factors that directly affect brand loyalty (ii) factors

having indirect impact through intermediate variables, namely: the

research works of Pham Van Tuan (2014); Pham Lan Huong (2015); I˙rem Erdog˘mus¸ Is¸ıl Bu¨deyri-Turan (2012); group of authors Ruzica Brecic, Maja Stracenski Kalauz, Alica Grilec Kauric (2016); Jitka Novotova (2018); Yasir Ali Soomro (2019); Ice cream Z.K

Zhang; Sasa Wang; Sesia J Zhao (2015)

1.2 The research results on the relationship between internal factors of the business and brand trust, satisfaction and consumer loyalty

(i) The relationship between internal factors of the business and

brand trust and brand loyalty of consumers by Pan-Jin Kim (2017); Javad Golzari, Farshid Movaghar (2015)

(ii) The relationship between internal factors of the business and

consumer’s brand loyalty and satisfaction is typical with research by Norsyaheera Abd Wahaba, Lailatul Faizah Abu Hassanb, Siti Asiah

Md Shahidc, Siti Noorsuriani Maon (2016 )

(iii) The relationship between internal factors of the business and consumer’s brand trust, satisfaction and brand loyalty is typical with research by Venter, R Chinomona, T Chuchu (2016); Christie Lynn Jones (2008); Muhammad Ziaulla et al (2014)

1.3 General assessment about research situation and research gap

1.3.1 General assessment about research situation

In general, foreign and domestic research works seek to identify the factors that influence garment brand loyalty Most of the research results of the above works have a high consensus that the factors affecting the customer's garment brand loyalty are constituted by the group of factors within the enterprise - group of factors directly related to customers Since fashion items are unique items, it is short-life, seasonal, decisive to continue loyalty by their own emotions, income, preferences, desires and by their favorite business's marketing strategies that give them a sense of trust and satisfaction

1.3.2 Gap in research

Firstly, about garment brand loyalty: The domestic and foreign studies that give many concepts, characteristics and assessments of factors affecting brand loyalty are still general and researched based

on different perspectives However, there are no studies that have shown the concept of brand loyalty for garment products Therefore, the dissertation tries to synthesize the concept of garment brand loyalty from the perspectives of previous researchers

Secondly, about factors affecting brand loyalty Each author

presents many different factors, however, the author is based on the model of Norysyaheera Abd Wahaba (2016), Venter et al (2016) Because the socio-economic conditions and the development level of each market at different times are very diverse, the influencing factors are not representative to research for the garment market in Vietnam and dedicated to Garment 10 Corporation Therefore, the author needs to rely on qualitative research - group discussions, in-depth interviews with experts, sales managers, sales staff as well as representatives of some consumers, preliminary quantification to come up with a brand loyalty model that matches the actual situation

of Garment 10 brand loyalty in the Vietnamese market

Thirdly, previous studies have drawn different conclusions about the relationship between internal factors and garment brand trust, satisfaction and brand loyalty In the research results presented above, many studies have not shown the direct and indirect relationship of internal factors (marketing - mix) with brand loyalty through facotrs of satisfaction and belief

Chapter 2 THEORETICAL AND PRACTICAL BASIS OF FACTORS AFFECTING BRAND LOYALTY OF THE CONSUMER

TOWARDS GARMENT PRODUCTS

2.1 Overview of brand loyalty

2.1.1 Concept of brand loyalty

2.1.2 Classification of brand loyalty

2.1.3 The stages to develop brand loyalty

2.2 Brand loyalty to garment products

2.2.1 Garment products

2.2.2 Brand loyalty to garment products

2.2.3 Evaluating garment brand loyalty

2.2.4 Impact of brand loyalty on enterprise’s activities

2.3 Factors affecting garment brand loyalty

2.3.1 The concept of factors influencing consumers' brand

loyalty towards garment products

2.3.2 Factors affecting garment brand loyalty

The dissertation presents the factors affecting garment brand loyalty, including factors within the business (products, prices, store environment and promotion) and typical factors belonging to customers such as their beliefs and satisfaction At the same time, the dissertation also shows the relationship between internal factors and factors belonging to customers

2.4 Experiences in strengthening and developing brand loyalty of garment enterprises

2.4.1 Experiences of a number of domestic garment enterprises 2.4.2 Experience of a number of foreign garment enterprises 2.4.3 Some lessons learned for Garment 10 Corporation