Luận văn thạc sĩ UEH key factors influence brand trust and brand loyalty, a study on smartphone

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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Truong Hong Ky

KEY FACTORS INFLUENCE BRAND TRUST

AND BRAND LOYALTY

A STUDY ON SMARTPHONE CONSUMERS

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------

Truong Hong Ky

KEY FACTORS INFLUENCE BRAND TRUST

AND BRAND LOYALTY

A STUDY ON SMARTPHONE CONSUMERS

ID: 22110033

MASTER OF BUSINESS (Honours)

SUPERVISOR: Dr. Tran Ha Minh Quan

Ho Chi Minh City – Year 2014

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Acknowledgement

I would like to express my sincere gratitude to my supervisor, Dr Tran Ha Minh

Quan for the valuable supervision, the support and encouragement he gave me.

I would like to express my gratitude to my ISB class friends for thesis support and

direction. Your encouragement, friendly guidance and critical comments have

greatly contributed to this thesis.

Finally, I would like to thank all of the respondents without whom, this research

would have been difficult to make.

Truong Hong Ky

July, 2014

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Abstract

In each industry, there is a competition between companies to win customers’ trust and make

them become loyal. Customers, after getting the satisfaction of the product/service they

consume, come to ask for value, belief, social status and life style orientation that

company/brand makes.

When do customers become more loyal to the brand? The most important reason is that

product or service meets their expectation and demand. More than that, brand has to come

with distinctive message and build a social status that customers need to fulfill their self￾defining.

This study is conducted to find out the key factors affect brand loyalty and brand trust. This

context of this research is technology equipment smartphone. The factors found have

explaind how customers maintain loyalty with smartphone product. The results indicate all

dependent factors : (1) Brand Identity (BI), (2) Brand Identification (BID), (3) Customer

Satisfaction (CS) have significant impact on dependent variavles (4) Brand Trust (BT) and

(5) Brand Loyalty (BL). Brand Trust also has strong impact on Brand Loyalty.

The last part of this study gives some recommendation to brand executives and marketing

practitioners to gain trust and win loyalty of customers.

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Tables Of Content

1. Research Formulation 1

1.1 Background 1

1.2 Research Problem 3

1.3 Research Objective 4

1.4 Research Scope 4

1.5 Significance 4

1.6 Structure Of Thesis 4

2. Literature Review 5

2.1 Brand and Brand Loyalty 5

2.2 Brand Trust 7

2.3 Customer Satisfaction 8

2.4 Brand Identity and Brand Identification 9

2.4.1 Kapferer’s Brand Identity vs Brand Image 9

2.4.2 Brand Identity in other research journal 10

2.4.3 Brand Identification 11

2.5 Research Model and Hypothesis 12

3. Research Method 17

3.1 Research Process 17

3.2 Measurement Scale 20

3.3 Data Analysis Method 21

3.3.1 Source of Data Summary 21

3.3.2 Sampling 22

3.3.3 Data Analysis Method 22

4. Research Result And Discussion 24

4.1 Descriptions of Sample 24

4.2 Measurement Scale Assessment 28

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4.3 Exploratory Factor Analysis 30

4.3.1 EFA Analysis results for measurement scales of independent factors

(Brand Identity, Brand Identification, Customer Satisfaction) 31

4.3.2 EFA Analysis results for measurement scales of dependent factor

(Brand Trust, Brand Loyalty) 33

4.4 Multi-Linear Regression Analysis for hypothesis testing. 34

4.4.1 Checking Regression Assumptions 35

4.4.2 Hypothesis Testing 38

4.4.2.1 Testing hypothesis on the impact of

independent factors on Brand Trust 39

4.4.2.2 Testing hypothesis on the impact of

independent factors on Brand Loyalty 40

4.5 Discussion 42

4.5.1 Regression analysis result 42

4.5.2 Brand Identity Finding 42

4.5.3 Brand Identitfication Finding 43

4.5.4 Customer Satisfaction Finding 43

4.5.5 Brand Trust Finding 43

4.6 Summary 44

5. Conclusions and Implications 45

5.1 Research Overview 45

5.2 Key finding 45

5.3 Managerial Implication 46

5.4 Contribution of the study 47

5.4.1 Contribution of theory 47

5.4.2 Contribution to practical 47

5.5 Limitation 47

Reference 49

Appendix

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LIST OF TABLE

Table 1: List of Hypothesis 15

Table 2: Summary of the concept studied 16

Table 3: Descriptive Statistics of Sample 21

Table 4: Description Table 26

Table 5: Reliability Analysis Results 28

Table 6.1: Correlation Matrix 31

Table 6.2: EFA Analysis for independent variables after running 31

Table 6.3: Total Variance Explained for independent factors 32

Table 6.4: Rotated Component Matrix for independent variables 32

Table 7.1: EFA Analysis for dependent variables after running 33

Table 7.2: Total Variance Explained for dependent factors 33

Table 7.3: Rotated Component Matrix for dependent variables 34

Table 8: Collinearity Statistics for two dependent variables 35

Table 9.1: Multiple Regression result with dependent Brand Trust 39

Table 9.2: Research Result of what positively influence Brand Trust 40

Table 9.3: Multiple Regression result with dependent Brand Loyalty 40

Table 9.4: Research Result of what positively influence Brand Trust 42

LIST OF FIGURE

Figure 1: Proposed Research Model 16

Figure 2: Research Process 19

Figure 3.1: Gender 24

Figure 3.2: Age 25

Figure 3.3: Degree 25

Figure 3.4: Job Position 25

Figure 3.5: Income 26

Figure 3.6: Brand Used 26

Figure 4.1: Normality of the residuals 37

Figure 4.2: Histogram 38

Figure 5 : Research Regression Result 44

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