The influence of brand equity on customer purchase decision: A case study of Co

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM

BANKING UNIVERSITY OF HO CHI MINH CITY

TRAN THI HONG DAO

THE INFLUENCE OF BRAND EQUITY ON

CUSTOMER PURCHASE DECISION:

A CASE STUDY OF CO.OPMART

BACHELOR THESIS

FACULTY OF BUSINESS ADMINISTRATION

CODE: 7340101

SUPERVISOR: PH.D NGUYEN VAN THUY

HCMC, September 2021

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIETNAM

BANKING UNIVERSITY OF HO CHI MINH CITY

TRAN THI HONG DAO

THE INFLUENCE OF BRAND EQUITY ON

CUSTOMER PURCHASE DECISION:

A CASE STUDY OF CO.OPMART

BACHELOR THESIS

FACULTY OF BUSINESS ADMINISTRATION

CODE: 7340101

SUPERVISOR: PH.D NGUYEN VAN THUY

HCMC, September 2021

DECLARATION

I hereby declare that this study entitled “The influence of brand equity on

customer purchase decision: A case study of Co.opmart” is my original work

prepared under the guidance of my advisor Nguyen Van Thuy (Ph.D). I would like

also to confirm that all the sources of materials used in this study are duly

acknowledged.

I am responsible for my study.

Signature

Trần Thị Hồng Đào

ACKNOWLEDGE

First of all, I would like to thank my advisor Ph.D Nguyen Van Thuy for his

valuable guidance and motivation throughout the process of completing my thesis.

His encouragement and comments had significantly enriched and improved my

thesis. It would be no exaggeration to say that this research would not have been

completed today without his rock steady guidance and moral support.

Secondly, I sincerely thank my family for allowing and supporting me to

spend my free time on this project work and thus have helped me in completing the

project work successfully.

Finally, I would like to thank my friends who always support me during the

time I study in university.

TABLE OF CONTENTS

CHAPTER 1 : OVERALL OF THESIS ..............................................................1

1.1. Research problem......................................................................................1

1.2. Objectives of the study..............................................................................3

1.3. Subject and scope of the study ..................................................................3

1.4. Research methodology ..............................................................................3

1.5. Organization of the study ..........................................................................4

1.6. Summary ...................................................................................................5

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

2.1. The basic of concepts................................................................................6

2.1.1. The concept of brand equity...............................................................6

2.1.2. Brand equity theory............................................................................7

2.1.3. The concept of customer behavior.....................................................9

2.1.4. The concept of purchase decision ......................................................9

2.2. Previous studies.......................................................................................12

2.3. Research model and hypothesis..............................................................28

2.3.1. Research model ................................................................................28

2.3.2. Hypothesis........................................................................................29

2.4. Summary .................................................................................................34

CHAPTER 3 : RESEARCH METHODOLOGY ..............................................35

3.1. Research design.......................................................................................35

3.1.1. Research process..............................................................................35

3.1.2. Focus group......................................................................................36

3.1.3. Formal research................................................................................38

3.2. Modified the scale of factors influencing customer purchase decision at

Co.opmart..............................................................................................................39

3.2.1. The scale of brand awareness...........................................................39

3.2.2. The scale of brand association .........................................................40

3.2.3. The scale of brand loyalty................................................................41

3.2.4. The scale of perceived quality .........................................................42

3.2.5. The scale of pricing policy...............................................................43

3.2.6. The scale of customer purchase decision.........................................44

3.3. Statistical analysis...................................................................................45

3.3.1. Test validity by Cronbach’s Alpha ..................................................45

3.3.2. EFA (Exploratory factor analysis) ...................................................46

3.3.3. Regression analysis and hypothesis testing .....................................47

3.4. Summary .................................................................................................47

CHAPTER 4 : RESULTS AND DISCUSSION................................................48

4.1. Sample descriptions ................................................................................48

4.1.1. Retail brands are chosen during the Covid - 19 pandemic ..............48

4.1.2. The way of shopping during the Covid - 19 pandemic....................49

4.1.3. Gender..............................................................................................50

4.1.4. Age ...................................................................................................50

4.1.5. Occupation .......................................................................................51

4.1.6. Frequency visiting Co.opmart..........................................................51

4.1.7. Spending at Co.opmart.....................................................................52

4.1.8. Product purchase ..............................................................................53

4.2. Cronbach’s Alpha....................................................................................54

4.2.1. Evaluating brand awareness scale....................................................54

4.2.2. Evaluating brand association scale ..................................................54

4.2.3. Evaluating brand loyalty scale .........................................................55

4.2.4. Evaluating perceived quality scale...................................................56

4.2.5. Evaluating pricing policy scale ........................................................57

4.2.6. Evaluating purchase decision scale..................................................57

4.3. Result of exploratory factor analysis (EFA) ...........................................59

4.3.1. Factor analysis for independent variable .........................................59

4.3.2. Factor analysis for dependent variables...........................................61

4.4. Correlation analysis.................................................................................62

4.5. Test of regression analysis......................................................................63

4.6. Purchase decision based on demographic profile ...................................66

4.6.1. Purchase decision based on gender..................................................66

4.6.2. Purchase decision based on age .......................................................67

4.6.3. Purchase decision based on occupation ...........................................68

4.6.4. Purchase decision based on frequency visiting Co.opmart..............69

4.6.5. Purchase decision based on spending ..............................................69

4.7. Summary .................................................................................................70

CHAPTER 5 : CONCLUSION AND RECOMMENDATION ........................71

5.1. Conclusion...............................................................................................71

5.2. Recommendation.....................................................................................72

5.2.1. Co.opmart should focus on perceived quality to attract customers.72

5.2.2. Co.opmart should focus on pricing policy to attract customers.......73

5.2.3. Co.opmart should focus on brand awareness to attract customers ..73

5.2.4. Co.opmart should focus on brand association to attract customers.74

5.3. Contribution of the study ........................................................................74

5.4. Limitations and directions for future researches.....................................75

5.5. Summary .................................................................................................76

REPERENCES...................................................................................................77

APPENDIX........................................................................................................84

LIST OF FIGURES

Figure 2.1: Brand equity model (Aaker, 1991)...........................................................8

Figure 2.2: Customer buying decision process (Phillip Kotler, 2003) .....................11

Figure 2.3: A model of purchase decision, Beyene & Feyisa (2021).......................13

Figure 2.4: A model of consumer purchase decision, Syed, Kazi, Zohir, Ishtiak &

Nurul (2020)......................................................................................................14

Figure 2.5: A model of purchase intention, Rungsrisawat & Sirinapatpokin (2019)

...........................................................................................................................14

Figure 2.6: A model of purchase behavior, Muhammad & Arshia (2019)...............15

Figure 2.7: A model of purchase decision, Rocky Simon Hia (2017)......................16

Figure 2.8: A model of purchase decision, Maulik & Ashish (2017).......................17

Figure 2.9: A model of consumer purchase decision, Muhammad & Sameen (2016)

...........................................................................................................................18

Figure 2.10: A model of consumer purchase decision, Naeem, Qurat-ul-ain, Umer,

Amna & Muniba (2016)....................................................................................19

Figure 2.11: A model of customer purchase decision, Ulas & Javad (2016) ...........19

Figure 2.12: A model of purchase intention, Ren - Fang Chao & Ping - Chu Liao

(2016)................................................................................................................20

Figure 2.13: A model of purchase intention, Cristina, Valentín-Alejandro, Oscar &

Jean-Pierre (2015).............................................................................................21

Figure 2.14: A model of consumer behavior, Nguyen Truong Son (2008)..............22

Figure 2.15: Research model.....................................................................................28

Figure 3.1: Research process.....................................................................................36

LIST OF TABLES

Table 2.1: Previous studies summary .......................................................................22

Table 2.2: Factors identified in the literature that impact of branding on customer

purchase decision ..............................................................................................26

Table 2.3: Synthesize the hypotheses of the current study .......................................33

Table 3.1: Statistics of participants in the focus group .............................................37

Table 3.2: Encode the brand awareness scale ...........................................................40

Table 3.3: Encode the brand association scale..........................................................41

Table 3.4: Encode the brand loyalty scale ................................................................42

Table 3.5: Encode the perceived quality scale ..........................................................43

Table 3.6: Encode the pricing policy scale ...............................................................44

Table 3.7: Encode the purchase decision scale .........................................................44

Table 4.1: Respondents who choosing retail brands.................................................48

Table 4.2: The way of shopping................................................................................49

Table 4.3: Distribution of respondents by gender.....................................................50

Table 4.4: Distribution of respondents by age ..........................................................50

Table 4.5: Distribution of respondents by occupation ..............................................51

Table 4.6: Frequency visiting Co.opmart..................................................................51

Table 4.7: Distribution of respondents by spending at Co.opmart ...........................52

Table 4.8: Distribution of respondents by product purchase ....................................53

Table 4.9: Result of the reliability assessment of brand awareness..........................54

Table 4.10: Result of the reliability assessment of brand association ......................54

Table 4.11: Result of the reliability assessment of brand loyalty .............................55

Table 4.12: Result of the reliability assessment of brand loyalty after removing BL4

...........................................................................................................................55

Table 4.13: Result of the reliability assessment of perceived quality.......................56

Table 4.14: Result of the reliability assessment of pricing policy............................57

Table 4.15: Result of the reliability assessment of purchase decision......................57