Global and Stochastic Analysis
Vol. 5 No. 6 Special Issue 2018
MUK PUBLICATIONS
RESEARCH ON CONSUMER BEHAVIOR OF WINE IN VIETNAM
HA NAM KHANH GIAO, PHAM NGOC DUONG AND TRAN NGOC TU
Abstract: This study was conducted to find the factors affecting the consumers
choice of wine in HoChiMinh City, Vietnam. The multiple regression model was
not statistically significant for finding the relationship between the factors and
the amount of Money spent on wine, so discriminant analysis method was used to
evaluate the contribution of factors to the differentiation between consumers
group presented by average number of bottles consumed per month. The Symbolic
benefit factor turned out to be the strongest, followed by Enjoyment benefit factor
and Utilitarian & Experiential benefit factor. The findings make an attempt to
provide some suggestions for wine marketers in Vietnam market.
Introduction
In general, the consumption of wine in Vietnam, as well as in other Asian countries
such as China or Hong Kong, is rising. Over the past two years, the demand for
wine in Vietnam was high for many reasons. Although the price of a bottle of wine
is possibly higher than that of a carton of beer, there have been more and more
affluent consumers changing their preferences and making the consumption of wine
increased due to their belief in health benefits of drinking wine). Second, the living
standards have improved, and high-income Vietnamese like to spend a large
proportion of their money in restaurants and hotels. Consequently, a lot of companies
aim to serve wine to these consumers, as they represent a stable consumption base.
Thirdly, many people follow Western lifestyles, and believe that wine illustrates
their knowledge of modern lifestyles as the country increasingly integrates with the
rest of the world. (Euromonitor International, 2010).
Vietnamese alcohol market is a profitable one because alcohol is designed as
one of the fundamental parts of socializing in Vietnamese culture and most of
Vietnamese men drink. During weekdays, Vietnamese people may go out to drink
at bars, pubs or restaurants with their friends after work. Some invite their friends
to drink with their families at home on weekends. In addition, younger generations
including young women are now more open about drinking; for them, it can be
seen as another way of socializing. Moreover, as they have become more independent,
dynamic and can make more money themselves, drinking alcoholic products has
become more common in their lives (Euromonitor International, 2010).
There are two types of wine regarding the quality in the wine environment in
Vietnam. Low quality wine is widely sold through street shops and supermarkets.
High quality wine is mainly distributed through restaurants, hotels and sold at
Keywords: consumer behavior of wine; symbolic benefit; utilitarian benefit; experiential benefit;
enjoyment benefit
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HA NAM KHANH GIAO, PHAM NGOC DUONG AND TRAN NGOC TU
high prices to the consumers with good knowledge of wine. The fact is that, the
preference for foreign brands has long-existed in Vietnam. The most popular countries
for wine are France and Chile, followed by Italy, Spain, Germany, Australia, New
Zealand, South Africa, America, Chile and Argentina. France is considered the
best choice for Vietnamese consumers, who hold French wine in very high regard,
Chilean and Australian one is becoming increasingly popular.
Glass bottle is the dominant packaging format for wine, accounting for 95% of
sales in imported wine and local industrial wine. This is the traditional packaging
format, as it protects the quality and flavor of the wine. Wine in glass bottles is
sold in both on- and off-trade channels in Vietnam. The Vietnamese consumers are
facing many types of wine from local non-grape wine to imported wine with very
high prices. These wines also vary in the region of origin, packaging and quality.
Moreover, wine is quite a complicated product, and the perception of wine quality
of the consumers is much diversified. So far, the wine producers, importers and
distributors have not invested much in marketing and communication activities.
The information about the products is mostly presented on the website of the
importers or distributors. Though there are many wine fairs in Vietnam every
year, the main target audiences of these events are importers and distributors, not
the end consumers. This study will explore and evaluate a proper model for the
wine consumption of Vietnamese people.
Literature Review
Consumer behavior includes all of the activities of buyers, ex-buyers and potential
buyers from pre-purchase deliberation to post-purchase evaluation, and from
continued consumption to discontinuance. It extends from the awareness of a want,
through the search for and evaluation of possible means of satisfying it, and the act
of purchase itself, to the evaluation of the purchased items in use, which directly
impacts upon the probability of repurchase (Alba et al. 1991).
There are various consumers models which help in the understanding of
consumer behavior. The Economic Model, Psychological Model and Sociological
Model are quite simple. The Economic Model assumes that consumers follow the
principle of maximum utility based on the law of diminishing marginal utility. The
Psychological Model explains the causes which lead to purchases and decisionmaking based on the hierarchy of needs. The Sociological Model is concerned with
the society, in which consumer buying behavior is influenced by groups. The
Pavlovian Learning model, Howard Sheth Model, Engel-Blackwell-Kollat Model,
Nicosia Model are more complicated. The Pavlovian Learning Model suggests that
human behaviors are based on some central concepts: the drives, stimuli, cues,
responses and reinforcements which determines human needs and need satisfying
behavior. The Howard Sheth Model is slightly complicated and shows that consumer
behavior is a complex process and concepts of learning, perception and attitudes
influencing consumer behavior. The Engel-Blackwell-Kollat Model consists of four
components: Information processing, Central control unit, Decision process,
Environmental influences. The Nicosia Model explains the consumer behavior on
the basis of four fields.
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RESEARCH ON CONSUMER BEHAVIOR OF WINE IN VIETNAM
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Input, Process, Output Model (Schiffman & Kanuk 2004) describes the consumer
decision-making process as three distinct but interlocking stages: the input stage,
the process stage and the output stage. These stages are depicted in the simplified
model of consumer behavior. The input stage influences the consumers recognition
of product needs and consists of two major sources of information: the firms
marketing efforts (the product itself, its price, where it is sold and its promotion)
and the external socio-logical influences on the consumer families, friends, neighbors,
other informal and noncommercial sources, social class (classes), and cultural and
sub-cultural memberships). The process stage focuses on how consumers make
decisions. The inherent psychological factors in each individual (motivation,
perception, learning, personality, and attitudes) affect how the external inputs
from the input stage influences the consumer recognition of a need, pre-purchase
search for information, and evaluation of alternatives. The experience gained through
evaluation of alternatives, in turn, affects the consumer existing psychological
attributes. The output stage consists of two closely related post-decision activities:
purchase behavior and post-purchase evaluation. Taking into account the fact that
there has been no research on this field so far in Vietnam, the Input, Process,
Output model is selected to be the fundamental to form the conceptual framework
of the study.
The exploration of consumer motivation then uses a consumer-focused research
project to explore wine drinkers own views on why they drink and a range of
symbolic and experiential factors will be explored, including historical tradition,
situation (including the importance of food), cultural factors, self-image, enjoyment
and relaxation.
The discipline of consumer behavior developed with a focus on the utilitarian
dimension of consumption that is, the distinct physical and functional benefits
provided by a product. Its methods tended to concentrate on consumers cognitive
processes, particularly information gathered and processed as determinants of
consumption behavior. This includes, for instance, the stream of work based on
Fishbein and Ajzens theory of reasoned action (Ajzen & Fishbein 1980; Fishbein
& Ajzen 1975), subsequently applied to wine by Thompson and his colleagues
(Thompson & Vourvachis 1995; Thompson et al. 1994). In this interpretation, the
consumers are seen to be very much cognitive analysts of precise functional benefit,
weighing up the pros and cons of various product alternatives before buying the
most cost-effective in the circumstances.
Two challenges to this unidimensional approach were developed. The first,
stemming from a psychological perspective, came from the work of Dichter (1964),
later developed by Levy (1981) and then others. This approach focused on the
symbolic meaning of consumer goods and thus how we use products to convey
messages about ourselves. Symbolic consumption as a paradigm has produced
substantial bodies of research into, and explication of, consumption behavior. It
was suggested by Richins (1994) that the symbolic use of consumption can be split
by separating representations of interpersonal ties from identity and self-expression.
In the early 1980s, a second paradigm was developed which contrasted utilitarian
with experiential and hedonic consumption (Hirschman & Holbrook 1982 Holbrook
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HA NAM KHANH GIAO, PHAM NGOC DUONG AND TRAN NGOC TU
& Hirschman 1982). This interpretation was developed in a series of research papers
to show that experiential processes (fun, amusement, sensory stimulation, excitement
and enjoyment) were closely linked to the consumer engagement with the products.
It was also suggested that sensory cues are likely to be non-verbal and affective
rather than reducible to words a factor which is particularly relevant to wine
consumption, where sensation rather than language may frame the drinker
engagement with the products (Solomon, 1990).
This triadic approach to consumption (utilitarian, symbolic and experiential)
is regularly used in consumer research at present. It has been noted that there are
cultural differences in the relative importance of the three purposes of consumption
(Wong & Ahuvia 1998). Nevertheless, as a broad approach to consumption, it has
both some validity and some acceptance, so that we can use these three approaches
the utilitarian, symbolic and experiential as means of analyzing consumption
purpose. Drinking wine in solitude may focus much more on the pure pleasure in
the taste, whereas drinking in public may be primarily concerned with conveying
messages to other people (Groves et al. 2000).
One can conceptualize how this tripartite analysis works as applied to wine in
Figure 1. Wine consumption tends to be weighed away from the utilitarian, but
otherwise potentially equally concentrated on the experiential and symbolic
categories, or possibly tending towards one or other of them depending on the
precise situation of consumption.
There is an increasing interest in the consumption and social meaning of food
and drinks in the discipline of marketing. There was a qualitative research covering
symbolic, experiential and utilitarian purposes. Enjoyment, situational factors,
personal historical context, and lifestyle-related issues appeared to be crucial.
Additionally, cognitive dimensions, aesthetics, and memory-related factors are also
significant although previously, these have been less noted by researchers (Steve &
Utilitarian benefits
Wine
Experiential benefits
Symbolic benefits
Figure 1: A purposive analysis of wine consumption
Source: Steve, 2006
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RESEARCH ON CONSUMER BEHAVIOR OF WINE IN VIETNAM
115
Simone 2008). The themes they collected when asking people questions about why
they drink wine can be summarized in Table 1.
Regarding the Marketing efforts of wine producers, country of origin and grape
varieties are the most important wine attributes (Areni 1999). Besides, when asked
which wine bottle attribute was the most important one to their purchase decision,
respondents considered price per bottle as the most important, followed by grape
varietals and brand names.
Table 1
Why do people drink wine
Utilitarian
-
Experiential
As lubrication
For better health
Because of alcohol
dependency
For refreshment
As a digestive aid
-
For the taste and smell
It goes with food
For an aesthetic experience
For relaxation
To aid socializing
For exploring and to gain
a challenge
To try something new
For the impact of alcohol
To create or recall a
memory
Because it is sensual
Symbolic
-
From habit and cultural
background
For religion and secular ritual
Because it is natural product
To celebrate
For social acceptance
Due to peer pressure
As a result of promotion or
hype
To establish status
Source: Steve & Simone, 2008
Using the Input, Process, Output consumer behavior model, adapting Steve &
Simones research (2008) and taking into account Vietnamese consumers lifestyle,
this study proposes a conceptual framework in Figure 2.
Marketing efforts of the wine producers or distributors consist of the 4Ps of
marketing mix (Product, Price, Place and Promotion). The Utilitarian (physical)
benefits of wine will include the healthy and refresh characteristics of wine. On the
other hand, the Experiential benefits and Symbolic benefits deal with the emotional
aspects of the wine drinkers. The Experiential benefits embrace the enjoyment and
situational facets of wine drinking. In addition, the Symbolic benefits describe the
importance of ritual, the historical perspective and the image of the wine drinkers.
Marketing efforts
Utilitarian benefits
Experiential benefits
Money
spent on
Wine
Symbolic benefits
Figure 2: Conceptual framework
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HA NAM KHANH GIAO, PHAM NGOC DUONG AND TRAN NGOC TU
All of these concepts and dimensions will be used to measure the relationships
between them and wine consumption level through the amount of money spent on
wine (Steve 2006), see Table 2.
Table 2
Concept operationalization and measurement scales
Concept
Dimension
Element
Measurement Scale
Coding
Marketing
efforts
Product
Country of Origin
Grape Varieties
Interval (5-level Likert)
Interval (5-level Likert)
Interval (5-level Likert)
Nominal
Nominal
ME_COU
ME_GRA
ME_PRI
ME_PLA
ME_COM
Interval (5-level Likert)
Interval (5-level Likert)
Interval (5-level Likert)
Interval (5-level Likert)
ME_PAC
UB_HEA
UB_REF
EB_ALC
Interval (5-level Likert)
EB_DIV
Interval (5-level Likert)
Interval (5-level Likert)
Interval (5-level Likert)
Interval (5-level Likert)
Interval (5-level Likert)
Interval (5-level Likert)
Interval (5-level Likert)
Interval (5-level Likert)
Interval (5-level Likert)
Interval (5-level Likert)
Nominal
EB_TAS
EB_SOC
EB_FOO
EB_REL
SB_RIT
SB_FAM
SB_MEM
SB_LIF
SB_SEL
SB_STA
MS_PRI
Nominal
MS_BOT
Price
Place
Promotion
Communication
channel
Packaging
Utilitarian Healthy
benefits
Refreshness
Experiential Enjoyment
benefits
Symbolic
benefits
Money
spent
on wine
Alcohol effect
Diversity &
intellectual
challenge
Taste
Situation
Social drinking
Wine and food
Relaxation
The importance of ritual
The history
Family tradition
perspective
Memory
Image
Lifestyle
Self-image
Status
Average purchase price per bottle
Average bottles consumed
per month
Data Analysis
General Descriptive Information
The relevant target population of focus to the study is the wine drinkers in Ho Chi
Minh City. The geographic area is wide-spread, and the officially legal alcohol
consumption age of Vietnam is over 18, which is a very long range as well. This
study implements the non-probability sampling method. Moreover, wine, somehow,
is still a a luxurious thing in Vietnam. So, the target population is mostly in
economic class B (household monthly income US$500- US$999) and class A
(household monthly income US$1,000 and above), and the convenience sampling
method is used. The respondents for personally administered survey are selected in
the supermarkets, department stores, alcohol shops and restaurants. Meanwhile,
the email-administered survey targets friends and colleagues.
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RESEARCH ON CONSUMER BEHAVIOR OF WINE IN VIETNAM
117
Because the population is unknown, this study uses the proportion technique
to derive the sample size (Zikmund 2000). There were 450 questionnaires that were
delivered. The received responses are 414, equivalent to 92%. Some of the respondents
had never drunk wine and were, therefore, excluded from the analysis of this research.
The data were cleaned and the invalid responses were removed. Finally, there were
386 valid cases chosen for the data analysis.
The percentage of male is 82.4%, while the percentage of female is 17.6%. In
terms of respondents age, the most common group was between 20 29 years of
age (77%), while 14%, 5%, 3%, 1% and 0.3% are of people aged between 30-39,
under 20, 40-49, 50-59 and over 60 respectively. Regarding the average monthly
income of the respondents, the groups of 3 4.5 million and 4.5 7.5 million are
the most common with 38% and 35%, respectively, the others are under 3 million
(10%), 6 9 million (9%) and over 9 million (8%).
Factors Influencing of Wine Consumption
The process of assessment and refinement of measurement scale is implemented
through two steps using SPSS software. The first step is exploratory factor analysis
(EFA) and Cronbachs alpha to assess unidimentionality and reliability (Hair et al.
1998). The second step is EFA with all scales together to assess convergent validity
and discriminant validity. Then, the four new variables of Symbolic, Utilitarian &
Experiential, Marketing Effort and Enjoyment are used in the regression analysis.
The regression failed to produce significant results as the Adjusted R Square was
too small (0.034) (Table 3).
Table 3
Multiple Regression result
Model Summary
Model
1
R
R Square
Adjusted
R Square
Std. Error of
the Estimate
.209a
.044
.034
2.80967
a. Predictors: (Constant), Enjoyment benefit factor, Marketing effort factor, Symbolic benefit factor,
Utilitarian & Experiental benefit factor
ANOVAb
Model
1
Regression
Residual
Total
Sum of Squares
df
Mean Square
F
Sig.
137.061
3007.716
3144.777
4
381
385
34.265
7.894
4.341
.002a
a. Predictors: (Constant), Enjoyment benefit factor, Marketing effort factor, Symbolic benefit factor,
Utilitarian & Experiental benefit factorb. Dependent Variable: Money spent calculated
Therefore, another analysis method had to be used to test the hypotheses. The
dependent variable (Money spent on wine) is measured by Average bottles per
month (MS_BOT) and Average price per bottle (MS_PRI). These observation
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HA NAM KHANH GIAO, PHAM NGOC DUONG AND TRAN NGOC TU
variables are measured in nominal scale. So, the suitable data analysis method is
Discriminant Analysis (Hair et al, 1998). The conceptual framework is split into
two frameworks to verify the relationship between the factors and the dependent
variables. The two new conceptual frameworks are described in Figure 3 and
Figure 4.
Marketing effort factor
Utilitarian & Experiential benefits factor
Average bottles
consumed per
month
Enjoyment benefits factor
Symbolic benefits factor
Figure 3: Adjusted conceptual framework 1
Marketing effort factor
Utilitarian & Experiential benefits factor
Average pri ce per
bottle
Enjoyment benefits factor
Symbolic benefits factor
Figure 3: Adjusted conceptual framework 2
Discriminant analysis for adjusted conceptual frameworks
The Average bottles per month was input to SPSS Discriminant Analysis as grouping
variable, and the three factors were being used as independents. The result of the
analysis is listed in Table 4.
In the Tests of Equality of Group Means, the Marketing effort factor was not
statistically significant (Sig. = 0.113 > 0.05). Therefore, this factor would have
been removed from the discriminant equation.
Table 4
Discriminant analysis result - Average bottle consumed per month
Tests of Equality of Group Means
Symbolic benefit factor
Utilitarian & Experiential benefit factor
Marketing effort factor
Enjoyment benefit factor
Wilks
Lambda
F
df1
df2
Sig.
.835
.953
.969
.944
12.458
3.076
2.016
3.704
3
3
3
3
189
189
189
189
.000
.029
.113
.013
Summary of Canonical Discriminant Functions Eigenvalues
Function
1
2
3
Eigenvalue
% of Variance
Cumulative %
Canonical Correlation
.215a
.019a
.003a
90.6
8.0
1.4
90.6
98.6
100.0
.421
.136
.058
a. First 3 canonical discriminant functions were used in the analysis.
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RESEARCH ON CONSUMER BEHAVIOR OF WINE IN VIETNAM
119
Wilks Lambda
Test of Function(s)
Wilks Lambda
Chi-square
df
Sig.
.805
.978
.997
40.747
4.155
.641
12
6
2
.000
.656
.726
1 through 3
2 through 3
3
Standardized Canonical Discriminant Function Coefficients
Function
Symbolic benefit factor
Utilitarian & Experiential benefit factor
Marketing effort factor
Enjoyment benefit factor
1
2
3
.881
-.002
.018
.290
-.232
.086
1.021
-.159
-.344
1.158
-.226
-.276
Canonical Discriminant Function Coefficients
Function
Symbolic benefit factor
Utilitarian & Experiential benefit factor
Marketing effort factor
Enjoyment benefit factor
(Constant)
1
2
3
.850
-.002
.017
.261
.000
-.224
.084
.992
-.143
-.039
-.332
1.125
-.219
-.249
.272
Unstandardized coefficients
Classification Statistics
Classification Resultsa,b
Money spent on
wine - Average
bottle per month
Cases Selected Original
Count
%
Cases Not Selected
Original
Count
%
Less than 1
1 - 4
5 - 8
More than 8
Less than 1
1 - 4
5 - 8
More than 8
Less than 1
1 - 4
5 - 8
More than 8
Less than 1
1 - 4
5 - 8
More than 8
Less
than 1
Predicted Group Membership
5 - 8
More
than 8
132
33
1
5
95.7
75.0
20.0
83.3
130
38
4
9
95.6
86.4
100.0
100.0
138
44
5
6
100.0
100.0
100.0
100.0
136
44
4
9
100.0
100.0
100.0
100.0
0
0
0
0
.0
.0
.0
.0
0
0
0
0
.0
.0
.0
.0
0
0
0
0
.0
.0
.0
.0
1
0
0
0
.7
.0
.0
.0
a. 74.1% of selected original grouped cases correctly classified.
b. 70.5% of unselected original grouped cases correctly classified.
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Total
138
44
5
6
100.0
100.0
100.0
100.0
136
44
4
9
100.0
100.0
100.0
100.0
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HA NAM KHANH GIAO, PHAM NGOC DUONG AND TRAN NGOC TU
In the Test of Function(s), only the functions 1 through 3 had the Sig. value =
0.000 < 0.05, so the discriminant function 1 was statistically significant. Using the
Canonical Discriminant Function Coefficients, we have the Discriminant equation
for the conceptual framework 1 as follows:
D1 = 0.85 * SYM_FAC 0.02 * UE_FAC + 0.261 * ENJ_FAC
where:
SYM_FAC: Symbolic benefit factor.
UE_FAC: Utilitarian & Experiential benefit factor.
ENJ_FAC: Enjoyment factor.
According to the classification result, 74.1% of selected original grouped cases
was correctly classified and 70.5% of unselected original grouped cases was correctly
classified. This result shows that the discriminant analysis result is acceptable.
In its turn, the Average price per bottle was input to SPSS Discriminant
Analysis as grouping variable, and the three factors were used as independents.
The result of the analysis showed that there was no factor and discriminant function
that was statistically significant (Sig. > 0.05). Consequently, the adjusted conceptual
framework 2 was not supported.
From the discriminant analysis result, there were three factors that statistically
significantly contribute to the differentiation of the average bottle consumed per
month: Symbolic benefit factor, Enjoyment benefit factor and Utilitarian &
Experiential benefit factor. The Marketing effort factor did not have sufficient
statistical evidence of contributing to the differentiation of the dependent variable.
Symbolic benefit factor had the strongest contribution to the differentiation
between groups of wine consumption. Symbolic benefit had a positive impact on
levels of wine consumption; consumers seemed to pay more attention to symbolic
values, such as lifestyle, family tradition, and self-image while drinking wine than
other elements. The second factor contributing to the differentiation was the
Enjoyment benefit factor; this was created by three elements from the original
Experiential benefit concept. In short, the way the consumers enjoy life with wine,
such as matching them with food, the taste and the relaxation effect, is important
to wine consumers. The last factor contributing to the differentiation was the
combination of Utilitarian & Experiential benefits. However, the contribution level
was weaker than two factors above. Although the Healthy benefit and Social drinking
aspect of wine were stated in the responses of the open question, they were proved
not to be as important as the previous two factors.
Conclusions
Generally, the study helps to define and measure the factors influencing the consumer
behaviors of wine in HoChiMinh City. The result of discriminant analysis based on
the Average bottles consumed per month was statistically significant and quite
interesting. The Symbolic benefit factor turned out to be the dominant contributor
to the differentiation between consumer groups. Besides, Enjoyment benefit factor
contributed to the differentiation of the consumer groups but in a weaker level.
Utilitarian & Experiential benefit factor also contributed to the differentiation of
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RESEARCH ON CONSUMER BEHAVIOR OF WINE IN VIETNAM
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Average bottles consumed per month to a certain extent. The last factor, Marketing
effort was proved not to contribute to the differentiation of consumer groups, this
fact was also supported by the answers of the open question that there is surprisingly
little communication activity and wine information in Vietnam.
The most important finding in this study might best serve the integrated
marketing communication aspect. The result proved that the symbolic benefit
factor played the most crucial role for Vietnamese wine consumers. This fact can
be a foundation for a totally new marketing concept of wine. Currently, wine is
marketed mostly by product features and packaging. From now on, marketers
should focus more on the emotional benefits of wine, especially the symbolic benefits,
which consist of the lifestyle, the family tradition, the importance of ritual, the selfimage and the memory. Based on these concepts, marketers can build touching
communication messages and advertising campaigns for wine.
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HA NAM KHANH GIAO: ASSOCIATE PROFESSOR DOCTOR, DIRECTOR OF THE INSTITUTE OF APPLIED ECONOMICS,
UNIVERSITY OF FINANCE AND MARKETING, VIETNAM
PHAM NGOC D UONG: PHD., LECTURER AT UNIVERSITY OF F INANCE AND MARKETING, VIETNAM
TRAN NGOC T U: PHD CANDIDATE AT UNIVERSITY OF FINANCE AND MARKETING, VIETNAM
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