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Develop Brand Meaning to Build Strong Customer-
Based Brand Equity in International Market
--- The case of Trung Nguyen Coffee in Japanese Market---
Tables of Contents
Acknowledgements ............................................................................ Error! Bookmark not defined.
Abstracts .................................................................................................................................... iii
Tables of Contents ................................................................................................................................ i
List of Figures ..................................................................................................................................... iv
List of Tables ...................................................................................................................................... v
Chapter 1. Introduction .................................................................................................................. 1
1.1 Research Background .................................................................................................. 1
1.2 Organization Background ............................................................................................ 2
1.3 Research Aim and Objectives ...................................................................................... 6
1.4 Research Approach ...................................................................................................... 6
1.5 Research Implementations ......................................... Error! Bookmark not defined.
1.6 Research Structure ....................................................................................................... 8
Chapter 2. Literature Review ......................................................................................................... 9
2.1 Brand and Products ...................................................................................................... 9
2.2 Brand Equity .............................................................................................................. 10
2.3 Customer based brand equity (CBBE) ....................................................................... 10
2.4 Study model ............................................................................................................... 10
ii
2.5 Hypothesis Development ........................................................................................... 14
2.6 Summary .................................................................................................................... 14
Chapter 3. Methodology .............................................................................................................. 15
3.1 Research process ........................................................................................................ 15
3.1.1 Preliminary research .................................................................................................... 15
3.1.2 Official research ........................................................................................................... 15
3.2 Scale measurement ..................................................................................................... 15
3.2.1 Measuring brand awareness ......................................................................................... 15
3.2.2 Measuring brand impression ........................................................................................ 16
3.2.3 Measuring the perceived quality .................................................................................. 16
3.2.4 Measuring the brand loyalty ........................................................................................ 17
3.3 Data analysis .............................................................................................................. 17
3.4 Summary .................................................................................................................... 17
Chapter 4. Results and Discussion............................................................................................... 18
4.1 Data Description ........................................................................................................ 18
4.2 Testing the scale ......................................................................................................... 19
4.2.1 Testing by Cronbach Alpha ......................................................................................... 22
4.2.2 Testing the scale through exploratory factor analysis EFA ......................................... 24
4.3 Multiple linear regression analysis ............................................................................ 26
4.3.1 Considering the correlation matrix among variables in the model .............................. 26
4.3.2 Assessing and testing the appropriateness of the model .............................................. 26
4.3.3 Meaning of regression coefficients in the model ......................................................... 27
4.4 Differences in evaluating components of brand equity ............................................. 27
4.5 Summary .................................................................................................................... 28
Chapter 5. Conclusions and Recommendation ............................................................................ 30
5.1 Conclusion ................................................................................................................. 30
5.2 Recommendation ....................................................................................................... 33
5.2.1 Building the brand: It is necessary to occupy consumer’s trust ................................... 33
5.2.2 Brand Maintenance ...................................................................................................... 33
References Error! Bookmark not defined.
Appendix 1 Error! Bookmark not defined.
Appendix 2 Error! Bookmark not defined.
Abstracts
In recent years, building a brand is not just drawing people’s awareness and customer’s demand
to its company, it is also the establishment a system including combination of commitment and
imagery in their awareness together with transmission and implementing of the commitment. In the
competitive environment, one of the most important goals is to become customer’s favourite. That
is the reason why a good brand strategy plays the role of orienting the company to plan to achieve
the most competitive advantages – in the eyes of consumers.
In the situation of Vietnam joining the world economy, Trung Nguyen has stood out as a typical
phenomenon in building brand for agricultural product as well as for the world coffee. However,
Trung Nguyen coffee with the process of building and realizing the brand strategy has been through
ups and downs, drawn a strong brand meaning. This dissertation provides the insight-view of the
brand meaning of Trung Nguyen Coffee in purpose of building its strong customer-based brand
equity in international market. In order to achieve the study purpose, an exclusive literature review
is presented. Moreover, the quantitative and qualitative researches are selected and data collected
are analyzed using factor analysis and linear regression equation with supports of SPSS Software.
The results of this study enables Trung Nguyen Coffee to perceive the necessity of building their
brand and proper investing in brand equity. On the other hand, through the survey, Trung Nguyen
Coffee can know how international customers, Japanese people in this case, feel about its coffee
products. As well, it helps the other coffee producers perceive the international market towards
coffee products regarding customer based brand equity.
iv
List of Figures
Figure 2-1 Relationship between brand and product ...................................................................... 9
Figure 2-2 CBBE model ................................................................................................................ 10
Figure 2-3 Measurement components of brand equity (CBBE) ................................................... 11
Figure 2-4 Aaker’s model ............................................................................................................. 12
Figure 2-4 CBBE pyramid ............................................................................................................ 13
List of Tables
Table 3-1 Brand awareness measurement ..................................................................................... 15
Table 3-2 Brand impression measurement .................................................................................... 16
Table 3-3 Measuring the perceived quality ................................................................................... 16
Table 3-4 Measuring brand loyalty ............................................................................................... 17
Table 4-1 Gender inventory of the sample .................................................................................... 18
Table 4-2 Age inventory of the sample ......................................................................................... 18
Table 4-3 Quantity of customer inventory according to market ................................................... 19
Table 4-4 EFA results of scale measurement in case of brand awareness .................................... 19
Table 4-5 EFA results of scale measurement in case of perceived quality ................................... 20
Table 4-6 EFA results of scale measurement in case of brand loyalty ......................................... 20
Table 4-7 EFA results of scale measurement in case of brand impression before eliminated ...... 21
Table 4-8 EFA results of scale measurement in case of brand impression after eliminated......... 21
Table 4-5 Cronbach Alpha results of measuring brand awareness ............................................... 22
Table 4-6 Cronbach alpha results of brand impression measurement .......................................... 23
Table 4-7 Cronbach Alpha results of perceived quality measurement ......................................... 23
Table 4-8 Cronbach alpha results of brand loyalty measurement ................................................. 24
Table 4-9 EFA results in brand equity measurement .................................................................... 24
Table 4-10 The correlation matrix among BA, BI, PQ and BL .................................................... 26
vi
Table 4-11 Criteria for evaluating the suitability of the model ..................................................... 26
Table 4-12 Testing the suitability of the model ............................................................................ 27
Table 4-13 Statistics of each variable in the equation ................................................................... 27
Table 4-14 Statistical results according to market ........................................................................ 27
Table 4-15 Test of average of two overall .................................................................................... 28
Chapter 1. Introduction
1.1 Research Background
Building and developing the brand is the vital issue of all companies (Brian et al., 2011).
Many Vietnamese companies have tried so hard and have gained customer’s trust; however,
many others have got trouble building their own brands (Nguyen and Nguyen, 2011). One of
the problems that they have got in this issue is they do not recognize the role of brand equity,
components to measure brand equity, as well as the role of promotion tools such as
advertising, promotion sales, public relations(Rosenbaum and Wong, 2009). During the
process of building the brand for a company, promotion tools are often used by marketers.
But how these tools affect the customer-based brand equity in building the brand is not fairly
cared in Vietnam.
Brand equity plays an important role in building and developing the brand. A famous
brand in the market means that consumers perceive the value from that brand. There have
been researchers in marketing in the world studying about the customer based brand equity in
early 1990s, in literature (Aaker, 1991; 1997; Keller, 1993; 2001; Yoo and Donthu, 2000;
Boo et al., 2009; and Kim, 2012). Based on these researches, for consumer goods this matter
has also been studied in Vietnam. Nguyen et al. (2003) proposed a model of components of
brand equity, and the effect of attitude to promotion in general (advertising and promotion
sales) to components of brand equity. From which measurement scales for components of
brand equity and attitude scales for promotion are built.Rosenbaum and Wong (2009)
explored how the return-on-marketing framework and its customer equity drivers (value,
brand, and relationship) can be combined with service quality (SERVQUAL) measures to
help managers develop strategies for high- and low-ethnocentric Vietnamese customers.Le
2
(2009) captured customer-based brand equity from four aspects: brand awareness, brand
associations, perceived quality, and brand loyalty. This study provides insight view to
understand the relationships among these four aspects of customer-based brand equity, and
examine how they impact on brand equity itself in the Vietnamese laptop industry.
Although brand equity has been received more and more attention,its development by
Vietnamese companies is still remain as a new issue. Therefore in this research, measurement
model on brand equity is used to measure the brand equity of Trung Nguyen Coffee in
international market.
1.2 Organization Background
Brand vision of Trung Nguyen Coffee Corporation is as following:
Brand vision:To become a major force in boosting the Vietnamese economy; to uphold
stability of the national economy; to partake in the establishment of a Great Vietnam, with
hopes of discovering and conquering new ideals.
Brand mission:Creating the leading brand is carried out by bringing to everyone drinking
coffee a source of creative inspiration and pride of Trung Nguyen style that is rich in
Vietnamese culture.
Target customer: All people that have coffee demand and passion in the world
Main product:Diversified category products
Market:All over the world
Purpose:Connecting and developing people love and have coffee passion in the world
Goal: Leading coffee company in Vietnam and conquering the world market
Target: Moving from width to depth; investment in field and system development to give
domestic and international franchise
1.2.1 Determine the competitive environment
Determination of the competitive situation on the market: general competition between
brands in the same industry can be said to be very strong it is a vital element of a brand.
Trung Nguyen Coffee is no exception to this situation, in the face of challenges from local
competitors as Vinacafe or Nestle etc and international brands such as Food Empire
Holadings or Star bucks etc somewhat secondary raw also encountered certain difficulties.
However, Trung Nguyen has always maintained a certain position on the market, or in other
words, in the hearts of consumers called Trung Nguyen Coffee with the value that it brings in
other words it is "brand of Vietnam”. An advantage that helps Trung Nguyen Coffee to stand
on is the quality of the product market. It has confirmed its instant coffee quality and
consumer-tested. With coffee made from beans, its products are well suited with people who
enjoy the Vietnamese coffee, and quickly grasp customer needs and made many coffee
products with many different flavours, bold flavour Vietnam.
Describe the customer's product selection: Trung Nguyen Coffee with a variety of
different products in accordance with the preferences of each consumer objects such as: Is the
G7 instant coffee 3 in 1, Coffee G7 Hoa Tan Black, G7 Coffee Cappuccino, Coffee G7 2 in
1, ground coffee powder, coffee dissolved Passiona, Coffee 777, etc. In addition secondary
raw product depending on the purpose for, such as soft drinks, anti sleepy etc or it is possible
to takeover every time and still enjoy the coffee taste familiar.
Determine the value of the brand to bring to the market. When it comes to Trung Nguyen
Coffee, it is originally referred to a neutral flavour of raw coffee product with motion, G7
4
instant coffee, the café's central to what it brings in her weaving a significant difference in the
hearts of consumers. With what high raw confirmed both in terms of quality as well as its
reputation in the domestic market and markets of 53 countries where the resources provided
Middle raw always have a strong position in the hearts of consumers used, even in the
country Japan a cultural basis of tea "tea ceremony".
1.2.2 Target customers
It has products, which fit most each consumer and always aim to serve all consumers both
at home and abroad. For instance, instant coffee is a product consumers do not need high-tech
format, which was purchased for use for usability. So, if the price of quality to convince
consumers those emotional factors will contribute to the purchase decision. Particularly in the
battle between the G7 and the NesCafé, by familiar, cultural understanding of Indigenous
consumers, thereby actively implement "the game" and forcing the opponent to "play" their
way. National spirit and cultural factors is a "powerful" great marketing. Trung Nguyen
Coffee has a wide distribution channel systems: determine the soluble coffee product is a
highly useful item. There is an advantage to help the Trung Nguyen Coffee to stand on is the
quality of the product market. It is possible to note that localizing the global universal values,
Trung Nguyen are serving to pursue in order to create an image of Trung Nguyen, which is
both familiar local global to bring Vietnamese brand to users in the world. Moreover, Trung
Nguyen Coffee always have to pay attention and set a goal of customer service and
satisfaction to date a strong position in the market and in the hearts of consumers. It is not
only in serving quality coffee beans, for the delicious coffee as "top" the world needs more
technology, but also serving more music, machinery and equipment (including display coffee
processing machinery and modern payment cards). It is also attached extra programs to
encourage the use of coffee (as a reward, bonus, prize draw, etc.) blends bit text, more
participation of the people who drink coffee to enjoy, create, disseminate the values of
culture and human spirit introduced to the world.
1.2.3 The core of the brand
The core values are essential and long-term is the belief of an organization. Core value
system is the main driving force to promote any affiliate members working across the
enterprise together, business links with customers, partners, and society at large. Trung
Nguyen's core values are as following:
1. From innovative sources: this is evident through the Trung Nguyen Coffee with its
slogan of “from creative sources”. Trung Nguyen Coffee that is inspired and
influenced invents from the idea and offshore resources for success.
2. Develop and brand protection: Trung Nguyen Coffee pays great attention to the
construction, development and brand protection during their activities to reach a
Vietnamese coffee brand globally.
3. For consumer-based brand equity: For the company, demands and tastes of the
customer has always been the principle of all action strategies. Trung Nguyen
Coffee quickly grasps the needs of the customers, so that gives them the flavor. It
is the source of innovative ideas and success.
4. Causing a successful partnership: During operation, the Trung Nguyen Coffee is
always interested in building sustainable relationships with partners based on
reputation and harmony of interests.
5. Development of human resources powerful: With large human resources, Trung
Nguyen Coffee always pays attention to the development of human resources to be
able to create new resources towards the overall success of the company.
6
6. Take effective foundation: not only focus on the completion of the proposed
strategy, Trung Nguyen Coffee always gets effective platform in all its business
activities from which to help companies achieve competitive advantage online.
7. To contribute to community building: Trung Nguyen Coffee benefits not only the
interests of consumers and partners, but also the society. Building the strong brand
of coffee not only benefit farmers, Dak Lak coffee growing region and also
contribute to the branding of agricultural products in Vietnam.
1.3 Research Aim and Objectives
The main objectives are as followings:
1. To build the measurement scale with components of brand equity of Trung Nguyen
Coffee in international market
2. To evaluate the relations between perceived quality and other components of brand
equity of Trung Nguyen Coffee in international market
3. To differentiate the evaluation of customers and owners in regards of brand equity
in international market comparing to domestic market
1.4 Research Approach
The subject of research focuses on the Trung Nguyen Coffee brand. Product used for the
subject are those quite famous one in the international market and used widely by consumers.
The research is carried out as follows:
The research carried out in Japan through two steps: preliminary qualitative research (only
for measurement of components of brand equity) and the official quantitative research. The
preliminary research is realized by group discussion among Trung Nguyen Coffee users. The
quantitative research is realized by interviewing directly the users in the market. Objects of
the research are 3 groups of customers and restaurant owners, below 30, from 30 to 50 and
above 50 year old living in Japan. Cronbach’s Alpha coefficient of reliability method and
exploratory factor analysis are used through SPSS to check the scales and the multiple
regression analysis to check the model and hypothesis of the research. In order to recognize
the differences between customer’s evaluations of brand equity in international market
comparing to the domestic market, the research carried out in Vietnam as well.
1.5 Research Significances
The subject provides practical meanings to Trung Nguyen Coffee manufactures,
promotion and advertising companies that are relevant to coffee products, consumer goods,
as well as to people who care about this matter. Specific meanings are as follows:
First of all, this research is to affirm again the scales available for brand equity of
consumer goods in international markets. This helps these scales to be applied in consumer
goods manufactures, promotion and advertising companies to do market research on brand
equity of fast moving consumer goods. From which the market research and advertising,
promotion are built with higher effectiveness to make the brand equity increased. Secondly
results of the research help strategic product developer to recognize the components of brand
equity and thus, it is useful for decision making to strengthen the brand meanings to build
strong customer-based brand equity in international market.Thirdly this research can be
reference for people who care about the differences in consumer’s perspectives in regards of
8
brand equity between international and domestic markets to promotion a suitable strategy for
building brand equity abroad.
1.6 Research Structure
There are five chapters in the thesis.
Chapter 1:introduces about the overview of the subject.
Chapter 2: presents the theory foundations on brand and brand equity, customer based brand
equity as well as building the theory model,
Chapter 3: presents the methods to check the scales and theoretical model together with
proposed hypothesis.
Chapter 4: exhibits the information analysis methods and the results of the research.
Chapter 5:summarizes the main results of the research, contribution theoretically and in
practical managing as well as proposes the recommendation for to develop strong brand
meaning in international market.
Chapter 2. Literature Review
An overview of the thesis is given in chapter 1. Chapter 2 presents brand theories and
brand equity which has been developed in the world and in Vietnam as well as theoretical
model used in this study.
2.1 Brand in the flat world
2.2 Global Branding
2.2.1 Experiences
2.2.2 Develop Vietnamese brands to be global
2.3 Brand and Products
Figure 2-1 Relationship between brand and product
10
2.4 Brand Equity
2.5 Customer based brand equity (CBBE)
2.6 Study model
Figure 2-2CBBE model
Brand knowledge
(1) Awareness
(2) Image
Response and brand
relations
(3) Response
(4) Relations
Customer based
brand equity
(CBBE)
Figure 2-3 Measurement components of brand equity (CBBE)
Brand Image
- Efficiency
- Image
Brand awareness
- Awareness
- Reminiscence
Response to the
brand:
-Assessment
-Emotion
BRAND
EQUITY
CBBE
Results :
- Higher price
- The resilient of price
- Market share
- Extension of brand
- Cost
- Revenue
Relationship with brand
(Brand resonance):
- Behaviour loyalty
- Attitude adherence
- Community consciousness
-dynamic commitmnets
12
Figure 2-4 Aaker’s model
BRAND
EQUITY
Brand
awareness
Perceived
quality Brand
association
s
Loyalty to
the brand
Other
brand
equity
Bring value to the
company
-Enhanced effectiveness
and efficiency of
marketing programs
-Loyalty to the brand
-Price/Revenue
-Extension of the brand
-Commercial lever
-Competitive advantage
Bring value to
customers:
- Increased innovation/
processed information.
- Increased trust in the
decision of buying
- Increased satisfaction
when using.
Figure 2-5 CBBE pyramid
Resonance
Judgments Feelings
Performance Imagery
Salience
Cheerfulness,
excitement, safety,
society accepted and
self-esteem
Features of user
profiles, buying and
usage situations
Resonance
Judgments Feelings
Performance Imagery
Salience
Relationship
Relationship between
customer and brand?
Response
Customer’s response?
Meaning
What is the brand?
Identity
Who is the brand?
Minor and primary
characteristics, trustworthiness
of products, effectiveness of
service, and sympathy in design
and price
Quality, trustworthiness, catering
andtranscendence
Behavioural loyalty, attitudinal attachment,
sense of community and active engagement
Identified products and
demands
14
2.7 Hypothesis Development
2.8 Summary
Chapter 3. Methodology
Theoretic foundations are given to us in Chapter 2 and research model is proposed. In
chapter 3 research methods are introduced to adjust the scales, check research model and
proposed hypotheses. There are two main parts in this chapter: first of all the research design
is presented, secondly scales for definitions of research and how to adjust them are shown.
3.1 Research strategy
3.2 Research paradigm and design
3.2.1 Qualitative research
3.2.2 Quantitative research design
3.3 Research process
Research is realized through 2 steps: preliminary and official research
3.3.1 Preliminary research
3.3.2 Official research
3.4 Scale measurement
3.4.1 Measuring brand awareness
Table 3-1Brand awareness measurement
Variable Question
BA_1 I know Trung Nguyen Coffee
BA_2 I can easily differentiate Trung Nguyen Coffee from others
BA_3 I can easily recognize Trung Nguyen Coffee among others
16
BA_4 Characteristics of Trung Nguyen Coffee can come quickly to me
BA_5 I can quickly remember and recognize logo of Trung Nguyen
BA_6 In general, when talking about Trung Nguyen Coffee, I can easily imagine it.
3.4.2 Measuring brand impression
Table 3-2 Brand impression measurement
Variable Question
BI_1 There are many product diversities of Trung Nguyen Coffee
BI_2 Trung Nguyen Coffee always released the new product
BI_3 Trung Nguyen Coffee has good distribution channel
BI_4 The Trung Nguyen Coffee staffs have service style very professionally
BI_5 The product package is very beautiful
BI_6 The Trung Nguyen Coffee store/cafeteria is clean
BI_7 The Trung Nguyen Coffee store/cafeteria is convenient
BI_8 The price of Trung Nguyen Coffee product is appropriate
3.4.3 Measuring the perceived quality
Table 3-3 Measuring the perceived quality
Variable Question
PQ_1 Trung Nguyen Coffee is bold and intense in flavour
PQ_2 Trung Nguyen Coffee is long lasting aromas
PQ_3 Trung Nguyen Coffee is high quality of preservation
PQ_4 In absolutely believe in quality of Trung Nguyen Coffee brand
PQ_5 Customers are satisfied with the product quality of Trung Nguyen Coffee
PQ_6 Customers are satisfied with the services of Trung Nguyen Coffee
PQ_7 Guarantees of the product quality of Trung Nguyen Cofee are realized
PQ_8 Response to customer’s demands of Trung Nguyen Coffee are closely implemented
3.4.4 Measuring the brand loyalty
Table 3-4Measuring brand loyalty
Variable Question
BL_1 I consider myself as the loyal customer of Trung Nguyen Coffee
BL_2 I will buy products of Trung Nguyen Coffee brand if they give me satisfaction
BL_3 Trung Nguyen Coffee will be my first choice
BL_4 I will wait for Trung Nguyen Coffee if it is not available
BL_5 I am loyal to Trung Nguyen Coffee brand
3.5 Data analysis
3.6 Ethical Issues
3.7 Summary
18
Chapter 4. Results and Discussion
In this chapter content as follows will be presented: sample information, assessment of
Cronbach Alpha reliability of scale and EFA, testing of the theoretical model, the relationship
between brand loyalty and other factors in the model, analysis of importance of factors that
create the brand, and finally the analysis and assessment on differences of the importance.
SPSS 11.5 for Windows is used as a main tool for analysis.
4.1 Data Description
Table 4-1Gender inventory of the sample
Gender Frequency Percent Valid
percent
Cumulative
percent
Female 161 60.8 60.8 60.8
Male 104 39.2 39.2 100
Total 265 100 100
Table 4-2Age inventory of the sample
Age Frequency Percent Valid
percent
Cumulative
percent
Below 30 129 48.7 48.7 48.7
30-50 113 42.6 42.6 91.3
Above 50 23 8.7 8.7 100
Total 265 100 100
Table 4-3Quantity of customer inventory according to market
Market Frequency Percent Valid
percent
Cumulative
percent
In Vietnam 127 47.9 47.9 47.9
In Japan 138 52.1 52.1 100
Total 265 100 100
4.2 Preliminary evaluation of the scale
Table 4-4 EFA results of scale measurement in case of brand awareness
Variable Factor 1
BA_1 0.777
BA_2 0.758
BA_3 0.774
BA_4 0.762
BA_5 0.78
BA_6 0.838
Variance extracted 61.15%
Eigenvalue 3.669
Cronbach alpha 0.871
20
Table 4-5 EFA results of scale measurement in case of perceived quality
Variable Factor 1
PQ_1 0.505
PQ _2 0.618
PQ _3 0.851
PQ _4 0.862
PQ _5 0.631
PQ _6 0.807
PQ _7 0.679
PQ _8 0.875
Variance extracted 59.22%
Eigenvalue 3.707
Cronbach alpha 0.833
Table 4-6 EFA results of scale measurement in case of brand loyalty
Variable Factor 1
BL_1 0.877
BL_2 0.807
BL_3 0.586
BL_4 0.831
BL_5 0.821
Variance extracted 65.12%
Eigenvalue 2.256
Cronbach alpha 0.653
Analyzing the results impressive brand:
Table 4-7 EFA results of scale measurement in case of brand impression before
eliminated
Variable Factor 1
BI_1 0.567
BI_2 0.727
BI_3 0.781
BI_4 0.569
BI_5 0.409
BI_6 0.652
BI_7 0.564
BI_8 0.546
Variance extracted 55.71%
Eigenvalue 1.159
Cronbach alpha 0.4198
Table 4-8 EFA results of scale measurement in case of brand impression after
eliminated
Variable Factor 1
BI_1 0.539
BI_2 0.731
BI_3 0.797
22
BI_4 0.575
BI_6 0.728
BI_7 0.588
BI_8 0.552
Variance extracted 61.43%
Eigenvalue 1.943
Cronbach alpha 0.534
4.3 Testing the scale
4.3.1 Testing by Cronbach Alpha
A. Measuring brand awareness (BA)
Table 4-9Cronbach Alpha results of measuring brand awareness
Scale BA:Alpha= .796
Observed
variables
Medium scale
if eliminating
variables
Variance if
eliminating
variables
Item – total
correlation
Cronbach’s
alpha if
eliminating
variables
BA_1 18.02 10.76 0.49 0.78
BA_2 18.20 10.41 0.52 0.77
BA_3 17.97 10.55 0.58 0.76
BA_4 18.15 10.32 0.57 0.76
BA_5 17.95 10.57 0.53 0.77
BA_6 17.89 10.33 0.63 0.75
B. Brand impression measurement(BI)
Table 4-10Cronbachalpharesults of brand impression measurement
Scale BI: Alpha= .818
Observed
variables
Medium scale
if eliminating
variables
Variance if
eliminating
variables
Item – total
correlation
Cronbach’s
alpha if
eliminating
variables
BI_1 18.02 21.17 0.56 0.79
BI_2 17.43 19.66 0.59 0.79
BI_3 18.09 20.98 0.54 0.80
BI_4 18.26 22.53 0.55 0.80
BI_6 17.03 20.84 0.59 0.79
BI_7 17.07 21.37 0.59 0.79
C. Perceived quality measurement (PQ)
Table 4-11Cronbach Alpha results of perceived quality measurement
Scale PQ: Alpha= .8765
Observed
variables
Medium scale
if eliminating
variables
Variance if
eliminating
variables
Item – total
correlation
Cronbach’s
alpha if
eliminating
variables
PQ_1 23.09 40.75 0.47 0.88
PQ_2 22.72 38.56 0.61 0.86
PQ_3 23.28 36.74 0.64 0.86
PQ_4 23.20 37.79 0.64 0.86
PQ_5 23.41 35.93 0.67 0.86
PQ_6 23.32 36.23 0.70 0.85
PQ_8 23.49 36.88 0.65 0.86
24
D. Brand loyalty measurement (BL)
Table 4-12Cronbachalpha results of brand loyalty measurement
Scale BL: Alpha= .725
Observed
variables
Medium scale
if eliminating
variables
Variance if
eliminating
variables
Item – total
correlation
Cronbach’s
alpha if
eliminating
variables
BL_1 14.54 6.22 0.49 0.68
BL_2 14.90 6.14 0.51 0.67
BL_3 14.53 6.46 0.45 0.69
BL_4 14.64 6.62 0.50 0.67
BL_6 14.98 6.73 0.48 0.68
4.3.2 Testing the scale through exploratory factor analysis EFA
Table 4-13EFA results in brand equity measurement
Observed
variables
Factor
(1)PQ (2)BI (3)BA (4)BL
BA_1 0.26
0.11 0.59 (0.15)
BA_2 0.19
(0.00) 0.64 0.04
BA_3 0.04
0.02 0.73 0.14
BA_4 0.01
0.02 0.74 (0.10)
BA_5 0.07
0.02 0.69 0.10
BA_6 0.12
0.14 0.75 0.02
BI_1 0.12
0.72 0.03 (0.06)
BI_2 0.51
0.53 (0.03) (0.06)
BI_3 0.34
0.55 0.08 (0.03)
BI_4 0.10
0.73 0.14 (0.02)
BI_6 0.20
0.70 0.10 (0.03)
BI_7 0.21
0.69 (0.04) (0.01)
BI_8 0.32
0.54 0.02 (0.15)
PQ_1 0.56
0.05 0.13 (0.02)
PQ_2 0.62
0.27 0.18 0.01
PQ_3 0.66
0.23 0.19 0.05
PQ_4 0.74
0.08 0.13 (0.01)
PQ_5 0.76
26
0.17 0.06 0.01
PQ_6 0.75
0.19 0.11 0.00
4.4 Multiple linear regression analysis
4.4.1 Considering the correlation matrix among variables in the model
Table 4-14The correlation matrix among BA, BI, PQ and BL
BA BI BL PQ
BA Pearson correlation 1.000 0.004 0.310 0.350
Coefficient Sig (2-tailed) - 0.944 0.000 0.000
BI Pearson correlation 0.004 1.000 0.078 0.472
Coefficient Sig (2-tailed) 0.944 - 0.208 0.000
BL Pearson Correlation 0.310 0.078 1.000 0.655
Coefficient Sig (2-tailed) 0.000 0.208 - 0.000
PQ Pearson correlation 0.350 0.472 0.655 1.000
Coefficient Sig (2-tailed) 0.000 0.000 0.000 -
4.4.2 Assessing and testing the appropriateness of the model
Table 4-15Criteria for evaluating the suitability of the model
Model R R2 Adjusted R
2 Estimated standard error
1 0.80 (a) 0.63 0.63 0.44
Table 4-16Testing the suitability of the model
Model Sum of
squares df Mean square Testing F Sig.
Regression 87 3 29
151 .000(a) Balance 50 261 0.192
Total 137 264
4.4.3 Meaning of regression coefficients in the model
Table 4-17Statistics of each variable in the equation
Variable
Non-standardized regression
coefficient
Standardized
regression
coefficient
Value Meaning of t
B Std. Error Beta t Sig.(P)
Regression
constant 0.23 0.22 1.05 0.30
BA 0.20 0.05 0.17 4.35 0.000
BI 0.43 0.04 0.43 11.36 0.000
BL 0.47 0.03 0.57 14.40 0.000
4.5 Differences in evaluating components of brand equity
Table 4-18Statistical results according to market
Components
of BE Market Sample Average
Standard
deviation
BA In Vietnam 127.00 3.69 0.65
In Japan 138.00 3.53 0.62
BI In Vietnam 127.00 3.93 0.64
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In Japan 138.00 3.77 0.76
PQ In Vietnam 127.00 3.62 0.76
In Japan 138.00 3.04 0.86
BL In Vietnam 127.00 3.84 0.65
In Japan 138.00 3.61 0.76
Table 4-19Test of average of two overall
Component
L- Test t test
F Sig. t Sig.(2tailed)
BA Equal assumed variances 0.38 0.54 2.10 0.04
Unequal assumed variances 2.09 0.04
BI Equal assumed variances 1.59 0.21 1.83 0.07
Unequal assumed variances 1.84 0.07
PQ Equal assumed variances. 4.64 0.03 5.75 0.00
Unequal assumed variances 5.78 0.00
BL Equal assumed variances 4.43 0.04 2.64 0.01
Unequal assumed variances 2.66 0.01
4.6 Summary
Hypothesis Statement Test results
H1
Brand equity for Trung Nguyen Coffee
has 4 components: brand awareness,
brand impression, perceived quality and
brand loyalty
Accepted
H2
The higher the brand awareness, the
greater quality perceived customers
have Accepted
H3
The more positive the brand impression,
the greater the perceived quality
customers have Accepted
H4 The higher the brand loyalty, the greater
the quality perceived customers have
H5
H5a
There are differences in evaluating
components of brand equity of Trung
Nguyen Coffee in international market. Accepted
H5b
There are differences in evaluating
brand impression from customers and
owners of international market Not accepted
H5c
There are significant differences in
evaluating perceived quality of
customers and owner in international
market
Accepted
H5d
There are differences in evaluation of
perceived quality of customers and
owners in international market Accepted
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Chapter 5. Conclusions and Recommendation
5.1 Conclusion
Trung Nguyen Coffee is a magical success in building brand in Vietnam. Within 5 years,
from a small factory in Buon Ma Thuot, Trung Nguyen has been available in everywhere in
the country and reached out to developed countries nowadays. In the situation of Vietnam
joining the world economy, Trung Nguyen has stood out as a typical phenomenon in building
brand for agricultural product as well as for the world coffee. Dang Le Nguyen Vu, a young
businessman, has used humane philosophy and mankind’s knowledge for social, economic,
technical, geographic, cultural conditions of Vietnam to build the soul of a brand which is
considered a physical phenomenon reflecting in people’s mind, the Trung Nguyen soul.
However in today situation, when the brand is developed quickly and widely, an important
part in the company’s survival, maintain and developing the brand has so much to do, old
problems which Trung Nguyen may not recognize their existence needs to be solved,
otherwise people only talk about Trung Nguyen’s past.
According to the results of the research, perceived quality, brand awareness, and brand
loyalty affect directly and positively to the whole customer based brand equity. Among them,
effects of perceived quality and brand loyalty are quite strong. Consequently managing staff
need to focus resources of the company to enhance the quality of products and create
customer’s loyalty in building the brand equity. In the coffee market with lots of competition,
the key to success is to create a brand with high quality and the unique brand image. These
are the reasons that make customers buy the brand; next is the efforts to build the loyalty to
the brand, which leads to the purchase of the products. The results of the research deny the
direct and positive relationship between the brand awareness and the brand equity, indicating
that a purely coffee brand is the one that is easy to be remembered or recognized. That does
not guarantee the success for the brand in the Japan coffee market. However among brand
awareness with perceived quality, brand impression and brand loyalty there is a direct
relationship, which is in the same direction with the factors. Therefore brand awareness may
affect the whole brand equity through perceived quality, brand impression and brand loyalty.
The results indicate that components that create the brand equity have the organic relations
with each other. One or more factors may not affect directly the brand equity but they may
affect indirectly to the process of building the brand equity through effects of other factors.
Therefore in the process of building the coffee brand in Japan, though lots of resources are
focused to build the quality, loyalty and brand impression, brand awareness should not be
underestimated or eliminated.
The results of this studywill enable Trung Nguyen Corporation to perceive the necessity of
building their brand and proper investing in brand equity.On the other hand, through the
survey, Trung Nguyen Corporation can know how international customers, Japanese people
in this case, feel about its coffee products. As well, it helps the other coffee producers
perceive the international market towards coffee products regarding customer based brand
equity. Consumers are usually interested in perceived quality when they decide to purchase
goods or services especially when they buy food and drink products. Quality must be priority.
Quality of instant coffee is complicated because it depends on coffee drinking habit of
consumers. This involves well understanding the target customer’s needs and wants about
Trung Nguyen coffee. Offering a wide variety of choices with high quality that matches the
consumer’s preference will enable Trung Nguyen Corporation to gain advantages over its
competitors.Improving the quality of goods will increase customer satisfaction and loyalty
since quality is a major driver of customer satisfaction and loyalty. Constantly satisfying
32
customers is the best way to retain existing customers and attract more potential customers.
However, consumer’s preference can be changed over time, it is necessary for Trung Nguyen
Corporation to regularly conduct surveys in order to predict the possible changes and
problems with low customer satisfaction. The difference opinions of Trung Nguyen coffee
product quality shows that satisfying coffee drinkers is not an easy task. Customer’s
preference of drink products is not concrete like consumer goods. Trung Nguyen Corporation
needs to perceive more the target customers’ need and want. Producing high quality product
is not enough, especially in a market where customers have many choices. Trung Nguyen
Corporation must make sure that their customers comprehend their coffee product benefits
through marketing efforts. Customers must be known which kind of Trung Nguyen coffee
product meets their preference. On the other hand, as Keller (1998) asserted that quality must
be perceived by customers.
The last thing that the study wants to mention is the power of brand awareness. Brand
awareness has been referred to in different approaches, but there are not studies focusing on
the impact of brand awareness on the relationship of perceived quality and customer
satisfaction of instant coffee in international market. The result of this study consolidated the
impact of brand awareness on this relationship. It means that consumers might take brand
awareness into consideration when buying instant coffee. Even though when the perceived
quality is not equal customer expectation, customers may buy the product because of their
awareness of the brand. In this case, apparently it is the brand of the company. Trung Nguyen
Corporation is one of the Vietnamese famous brands, which has had good impression on
international customers as the first Vietnamese company competing directly against a large
international competitor.This is a key strength of Trung Nguyen Corporation to gain
advantages over competitors.
5.2 Recommendation
5.2.1 Building the brand: It is necessary to occupy consumer’s trust
According to the General Director of Trung Nguyen Coffee Corporation, Dang Le Nguyen
Vu, right from being born, it has been set a great goal by Trung Nguyen, which is to conquer
the global market. To make a global brand, the key matter is the quality of the product which
is able to satisfy the rigorous requirements of consumers. However creating a mark in
customer for a brand takes more than just the quality. When consumers make decision of
purchasing a product, they not only expect their practical request to that product to be
satisfied, but also want themselves to be more comfortable, more luxurious, happier and at
higher level. The additional part is called the personal value of consumers when using an
identified product. Because of the difference of a brand compared to a normal product, many
people decide to spend a large amount of money to own the famous branding fashion product
with the hope of having their individual foothold in the community. Thus within the process
of building and developing the brand, the product quality is not purely seen as the production
quality, not just the practical quality, more importantly it is the quality that is perceived by
consumer. Therefore Vietnamese brands in large and Trung Nguyen Coffee in particular want
to get trust and affection of international consumer, international enterprises must seek for the
differences, excellence in the product quality, especially the additional value and what is
perceived through product quality.
5.2.2 Brand Maintenance
In recent years, there have been many Vietnamese brands acquired by the overseas
corporation and they have to change their names and owners for instance the trade affair in
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which Highlands Coffee bought 100 % of share of Pho 24 and then 50% total amount of
share was sold to Joillibee (Philippines); Lotte Corporation (Korea) has become the largest
shareholder of Bibica Bakery corporation with the ownership over 38% of shares etc.
Through those examples, it can be seen that creating a brand that is able to leave a good
impression in consumer’s mind is very difficult, keeping the brand to be sustainable and
develop over time is even more difficult. What makes Vietnam not yet possible to build a
global brand though Vietnam has joined integrated, had competitive advantages and lots of
ambition? Thanh Nien newspaper had a talk with Mr. Dang Le Nguyen Vu, Chairman of
Trung Nguyen corporation, who has said that coffee has every element to become the global
trademark, but until now, Vietnamese coffee in general and Trung Nguyen in particular have
not made the dream come true, have not carried the country’s image to the world by their
trademark.
There is a very special characteristic in coffee, which is the global connection that not
many industries have. Coffee is the “old” regeneration, the more we do, the more spirals
there are, not to mention it is connected to tourism, processing industry etc. It is now the No.
2 in the world on coffee production. This is the capacity and also the advantage. If it was
determined, the exporting value of 10 -20 billion USD for coffee is not a great deal. Or
among thousands of cities in the world, if it had a coffee city, it would be very unique,
attracting and very beneficial. Buon Ma Thuot has every element to be able to do it. There are
a billion of people who consume coffee. If the “holy land” coffee city could be done it,
marketing would be reasonably realized, immediately it would be positioned all over the
globe. Then coffee industry, coffee planner, people who live around, exporting or in general
the whole economy would benefit from it. In reality, there is rarely the internal and
international connection which has never been done like the coffee city ideal as above.
Reality shows that many people, many countries have been successful from an interesting
idea and pursuing after it. Why would not be Vietnam?
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