Factors influencing brand equity: A case study of Bank for investment and development of Vietnam (BIDV), 2021

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF

VIETNAM

BANKING UNIVERSITY OF HO CHI MINH CITY

NGUYEN AU VUONG

FACTORS INFLUENCING BRAND EQUITY: A CASE STUDY OF BANK

FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (BIDV)

GRADUATE THESIS

MAJOR: BUSINESS ADMINISTRATION

CODE: 272757960

HO CHI MINH CITY, 2021

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF

VIETNAM

BANKING UNIVERSITY OF HO CHI MINH CITY

NGUYEN AU VUONG

FACTORS INFLUENCING BRAND EQUITY: A CASE STUDY OF BANK

FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (BIDV)

GRADUATE THESIS

MAJOR: BUSINESS ADMINISTRATION

CODE: 272757960

SUPERVISOR

Dr. PHAM HUONG DIEN

HO CHI MINH CITY, 2021

DECLARATION

I hereby declare that this is my own research work, the research results presented

in the thesis are honest and objective. The sources of information cited in this thesis

are clearly indicated.

I am responsible for my thesis

Signature

Nguyễn Âu Vương

ACKNOWLEDGE

I want to express my sincere thanks to my family and friends who have supported

and encouraged me throughout studying and implementing this thesis.

Nextly, I would like to express my sincere thanks and deep gratitude to my

supervisor, Dr.Pham Huong Dien. Her encouragement and comments had

significantly enriched and improved my work. Without her motivation and

instruction, the thesis would have been impossible to be done effectively. Once

again, I would like to sincerely thank Miss Dien.

Finally, I would like to thank all my friends when I was working on this thesis,

who always encouraged and helped me when I faced difficulties.

CONTENTS

CHAPTER 1: INTRODUCTION............................................................................... 1

1.1 Research Statement ...............................................................................................1

1.2 Research Objectives..............................................................................................2

1.3 Research Questions...............................................................................................3

1.4 Research Subjects and Scope ................................................................................3

1.5 Research Methodology..........................................................................................3

1.6 Research Significance ...........................................................................................4

1.7 Expected Contribution ..........................................................................................4

1.8 Thesis Outline .......................................................................................................4

Summary of Chapter 1 ................................................................................................5

CHAPTER 2: LITERATURE REVIEW................................................................... 6

2.1 Basic Concepts.....................................................................................................6

2.1.1 Concept of brand ...........................................................................................6

2.1.2 Composition and function of the brand .........................................................8

2.1.3 Concept of brand equity.................................................................................9

2.1.4 Measure of brand equity ..............................................................................10

2.1.5 Brand equity of the commercial bank..........................................................11

2.1.6 Benefits of brand equity for commercial banks...........................................12

2.2 Theoretical Models on Equity Brand ..................................................................13

2.3 Previous Research ...............................................................................................15

2.3.1 Studies on Brand Equity ..............................................................................15

2.3.2 Studies on Corporate Social Responsibility and Brand Equity...................19

2.4 Research Model and Hypotheses........................................................................25

2.4.1 Research Model ...........................................................................................25

2.4.2 Hypotheses...................................................................................................27

Summary of Chapter 2 ..............................................................................................32

CHAPTER 3: METHODOLOGY............................................................................ 33

3.1 Research Process.................................................................................................33

3.2 Research Steps ....................................................................................................34

3.3 Research Method.................................................................................................37

3.4 Research Design..................................................................................................38

3.4.1 Sample size...................................................................................................38

3.4.2 Sampling method..........................................................................................38

3.4.3 Scale formulation.........................................................................................38

3.4.4 Questionnaire Design ..................................................................................42

3.4.5 Data collection.............................................................................................43

3.5 Data Analysis ......................................................................................................43

3.5.1 Descriptive statistics....................................................................................43

3.5.2 Scale test ......................................................................................................43

3.5.3 Regression analysis......................................................................................45

Summary of Chapter 3 ..............................................................................................45

CHAPTER 4: RESULT............................................................................................ 47

4.1 Sample Description .............................................................................................47

4.2 Scale Reliability Testing .....................................................................................50

Brand awareness scale .........................................................................................50

Brand loyalty scale ...............................................................................................50

Satisfaction scale ..................................................................................................50

Perceived quality scale .........................................................................................50

Corporate social responsibility scale ...................................................................50

4.3 Exploratory Factor Analysis ...............................................................................53

4.3.1 Factor analysis for the independent variable..............................................53

4.3.2 Factor analysis for the dependent variable .................................................55

4.4 Correlation Analysis............................................................................................57

4.5 Regression Analysis............................................................................................57

4.6 Testing differences based on Controlled Variables ............................................61

4.6.1 The differences in gender.............................................................................61

4.6.2 The differences in age ..................................................................................63

4.6.3 The differences in occupation......................................................................63

4.6.4 The differences in income ............................................................................64

4.6.5 The differences in frequency ........................................................................65

Summary of Chapter 4.............................................................................................. 69

CHAPTER 5: IMPLICATIONS............................................................................... 70

5.1 Conclusion...........................................................................................................70

5.2 Implications.........................................................................................................70

5.3 Limitations and future research...........................................................................74

APPENDIX 1: FOCUS GROUP DISCUSSION ..................................................... 87

APPENDIX 2: QUESTIONNAIRE SURVEY ........................................................ 89

APPENDIX 3: DATA ANALYSIS RESULT ......................................................... 94

LIST OF ACRONNYMS

Acronnyms Meaning

ANOVA Analysis of Variance

BAW Brand awareness

BL Brand loyalty

BE Brand equity

BIDV BANK FOR INVESTMENT AND

DEVELOPMENT OF VIETNAM

CSR Corporate social responsibility

CRM Customer Relationship Management

CBBE Consumer-Based Brand Equity

EFA Exploratory Factor Analysis

EVFTA European-Vietnam Free Trade Agreement

KMO Kaiser-Mayer-Olkin

PQ Perceived quality

SIG. Significance level

SPSS Statistical Package for the Social Sciences

SAT Satisfaction

VIF Variance inflation factor

LIST OF FIGURES

NUMBER NAME PAGE

Figure 2.1 Brand Equity Model 14

Figure 2.2 Brand Equity Model 15

Figure 2.3 Proposed research model 27

Figure 3.1 Research Process 34

LIST OF TABLES

NUMBER NAME PAGE

Table 2.1 Previous studies summary 22

Table 2.2 Factors identified in the literature that impact brand

equity

24

Table 2.3 Summarize the author's hypotheses and expectations 32

Table 3.1 Measurement scale of observed variables 35

Table 3.2 Coding the variables of the scale 41

Table 4.1 Sample descriptions 51

Table 4.2 Scale Reliability Testing 53

Table 4.3 Synthesize Cronbach’s Alpha of each variable 55

Table 4.4 Factor analysis for the independent variable 56

Table 4.5 Factor analysis for the dependent variable 58

Table 4.6 Pearson correlation analysis 59

Table 4.7 Model summary 60

Table 4.8 ANOVA analysis 60

Table 4.9 Coefficients Analysis for Independent Variables 61

Table 4.10 Summary of hypothesis testing results 63

Table 4.11 One-way analysis of variance by gender 63

Table 4.12 Post Hoc test by gender 64

Table 4.13 One-way analysis of variance by age 65

Table 4.14 One-way analysis of variance by occupation 66

Table 4.15 One-way analysis of variance by income 66

Table 4.16 One-way analysis of variance by frequency 67

Table 4.17 Post Hoc test by Frequency 68

ABSTRACT

This thesis aims to explore the demographic characteristics and determine the

factors influencing the brand equity BIDV. This study is based on a literature review

on brand, brand equity, and commercial bank brand equity. This study combines

both qualitative and quantitative research methods. The qualitative research carried

out a literature review and discussion group analysis to determine the factors

influencing brand equity. In the quantitative research, the author collects survey

questionnaire data from 350 customers who have used products/services at BIDV.

Based on the research results, five factors influence brand equity BIDV: brand

awareness, brand loyalty, satisfaction, perceived quality, and corporate social

responsibility. The brand loyalty factor has the most decisive influence on the BIDV

bank's brand equity, and the satisfaction factor has the weakest factor.

From the study results, several governance implications have been proposed to

improve and enhance the brand equity BIDV.

Keywords: Brand Awareness, Brand Loyalty, Perceived Quality, Satisfaction,

Corporate Social Responsibility, BIDV