(Luận văn) the effects of marketing communication on brand equity

MINISTRY OF EDUCATION TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY
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HUỲNH KIM PHỤNG

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THE EFFECTS OF MARKETING
COMMUNICATON ON BRAND
EQUITY
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Major: Business Administration

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Major Code: 60.34.05

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Supervior: Dr. TRẦN HÀ MINH QUÂN

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Ho Chi Minh City - 2011


TABLE OF CONTENT

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ACKNOWLEDGEMENTS……………………………………………………….1

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ABSTRACT………………………………………………………………………..2

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BACKGROUND…………………………………………….3

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CHAPTER 1.

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Introduction…………………………………………………………………3
Research Objectives………………………………………………………...4

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1.1.

Research methodology and scope…………………………………………..4

1.4.

Managerial implications……………………………………………………5

1.5.

Structure of the research report……………………………………………..5

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1.3.

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LITERATURE REVIEW AND RESEARCH MODEL….7

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CHAPTER 2.

Introduction…………………………………………………………………7

2.2.

Brand equity…………………………………………………………………7

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2.2.1. Brand awareness……………………………………………………...7

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2.2.2. Perceived quality……………………………………………………..8

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2.2.3. Brand loyalty…………………………………………………………8

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2.2.4. Brand Association……………………………………………………8
The elements of marketing communication…………………………………9

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2.3.

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2.3.1. Advertising Spending……………………………………………….10

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Research Model…………………………………………………………….12

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2.3.3. Sales Promotion…………………………………………………….11

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2.3.2. Field Support Activities…………………………………………….11


2.5.

Summary…………………………………………………………………...13

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CHAPTER 3.

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3.2.

RESEARCH METHODOLOGY…………………………15

Introduction………………………………………………………………..15
Research design……………………………………………………………15

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3.2.1. Research methodology……………………………………………...15

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3.2.2. Research process……………………………………………………17

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3.2.3. Questionnaire Structure……………………………………………..18

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3.3.

Measurement scale development…………………………………………..19

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3.3.1. Measurements of brand awareness…………………………………19

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3.3.2. Measurements of perceived quality………………………………...20

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3.3.3. Measurements of brand loyalty…………………………………….20
3.3.4. Measurements of attitudes toward advertising spending…………..21

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3.3.5. Measurements of attitudes toward field support activities………...21

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3.3.6. Measurements of attitudes toward sales promotion………………..22

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3.4.

Field work………………………………………………………………….23

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3.4.1. Researched brands………………………………………………….23

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3.4.2. Sample……………………………………………………………...23
Summary…………………………………………………………………..24

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3.5.

Introduction………………………………………………………………..28

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4.1.

RESEARCH RESULTS…………………………………...28

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CHAPTER 4.


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4.2.

Sample Characteristics…………………………………………………….28

4.3.

Measure reliability check………………………………………………….28

4.4.

Exploratory factor analysis (EFA)…………………………………………31

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4.5.

Examination research model by multiple regression………………………36

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4.5.1. Examination the effects of advertising spending, field support

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activities and sales promotion on brand awareness……………………………….36

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4.5.2. Examination the effects of advertising spending, field support

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activities and sales promotion on perceived quality………………………………37

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4.5.3. Examination the effects of advertising spending, filed support

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activities and sales promotion on brand loyalty…………………………………..39

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Summary…………………………………………………………………...41

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CHAPTER 5.

DISCUSSION AND CONCLUSION……………………..43

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Introduction………………………………………………………………..43

5.2.

Marketing communication elements and building brand equity………….43

5.3.

Limitation and future research…………………………………………….45

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5.1.

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REFERENCES ………………………………………………………………….46

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APPENDIX

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TABLE

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Table 3.1: Research progression…………………………………………………..16

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marketing communication and brand equity………………………………………13

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Table 2.1: Structural model – Relationship between some key elements of

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Table 3.2: Research process……………………………………………………….17

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Table 3.3: Measurement scales for brand awareness……………………………..19

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Table 3.4: Measurement scales for perceived quality……………………………..20

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Table 3.5: Measurement scales for brand loyalty…………………………………20

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Table 3.6: Measurement scales for attitudes toward advertising spending……….21

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Table 3.7: Measurement scales for attitudes toward field support activities……..22

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Table 3.8: Measurement scales for attitudes toward sales promotion……………..22

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Table 4.1: Sample Characteristics…………………………………………………28

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Table 4.2: Cronbach’s Alpha coefficient for the used measurement scales……….30

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Table 4.3: Total Variance Explained – elements of marketing communication…..32
4.4:

Rotated

Component

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Matrix(a)

elements

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marketing

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communication…………………………………………………………………….33

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Table 4.5: Total Variance Explained – elements of brand equity…………………33

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Table 4.6: Rotated Component Matrix(a) – elements of brand equity…………….34

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Table 4.7: New Variables Computed……………………………………………...35
4.8:

Model

Summary

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Marketing

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Table

Communication

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Brand

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Awareness…………………………………………………………………………37

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Table 4.9: ANOVA (b) – Marketing Communication and Brand Awareness……37
4.10:

Coefficients

(a)

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Communication

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Brand

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Table

Quality……………………………………………………………………………..39

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Table 4.11: Model Summary – Marketing Communication and Perceived

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Awareness…………………………………………………………………………37


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Table

4.12:

ANOVA

(b)

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Quality……………………………………………………………………………..39

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Table 4.13: Coefficients (a) – Marketing Communication and Perceived

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Quality……………………………………………………………………………..39

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Table 4.14: Model Summary – Marketing Communication and Brand

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Loyalty……………………………………………………………………………..41

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Table 4.15: ANOVA (b) – Marketing Communication and Brand Loyalty………41
4.16:

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Table

Coefficients

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(a)

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Brand

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Loyalty……………………………………………………………………………..41

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Table 4.17: Hypothesis and research results………………………………………42

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(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

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ACKNOWLEDGMENTS

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The author would like to thank Dr Tran Ha Minh Quan for his instructions and

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valuable comments during the research. I also would like to thank Mr Dang Huu

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Phuc who gave meaningful advice for processing data.

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ABSTRACT

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The objective of this paper is to investigate the relationship between selected

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elements of marketing communication and brand equity of in the body lotion

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category. The selected set includes three key elements from each of marketing

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factors. They are advertising spending, field support activities and sales promotion

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from communication. Plus, awareness, perceived quality and brand loyalty are from
brand equity. With the concrete measurement, the study surveys body lotion users

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in HCMC. The results show that to selected component of brand equity of body

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lotion category, advertising spending and field support activities response a positive

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side, whereas sales promotion have a negative impact.
These findings provide insights for doing strategy of marketing communication

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activities generating and managing brand equity.

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(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

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CHAPTER 1. BACKGROUND

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1.1.

Introduction

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Brand equity is very important as it is a source of sustainable competitive

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advantages of a brand. The brand owning strong equity increases a chance for the

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brand to be selected, purchased more frequently and so the loyalty to the brand is

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higher, Pitta and Katsanis (1995).

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Moreover, brand equity has strong relationship with marketing communication.
From various study, importance of brand equity are witnessed

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According to Rajh 2005, brand equity is very important because it has many

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benefits for companies. Bharadwaj et al., (1993) and Hoffman (2000) find that

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brand equity could be considered as a source of sustainable competitive advantage

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while Pitta and Katsanis (1995) discover that there is the positive relationship

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between brand equity and brand loyalty. It means that the brand owning strong

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equity increases a chance for the brand to be selected, purchased more frequently

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and so the loyalty to the brand is higher. Aaker and Keller (1990) also find other

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benefits related to brand extension such as strong brand equity of the brand

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enhances possibility of brand extension to other product categories. It allows
companies to use established brand name to drive consumers to enter new product

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categories.

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In relation to marketing mix, various studies (Barwise, 1993; Farquhar et al., 1991;
Keller, 1993; Keller, 1998; Pitta and Katsanis, 1995; Simon and Sullivan, 1993;

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Smith and Park, 1992; Yoo et al., 2000) find that brand equity is one of the sources
to increase efficiency of marketing communication programs. Brand equity also

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elasticity of consumers to price increases. Brand equity has positive relationship

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brand equity increases elasticity of consumers to price reductions and decreases

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Brand equity also impact elasticity of consumers to price change. More precisely,

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increases willingness of consumers to pay premium price for a specific brand.


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Page 4 of 52

with willingness of stores (distribution channel) to collaborate and provide support

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for the brand. Brand equity reduces the company vulnerability to marketing

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activities of the competition and their vulnerability to crises.

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Although of understanding importance of brand equity, managers have not invested

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in creation brand equity properly in the body lotion category which is growing in

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Vietnam market.Top two giant advertisers Unilever and Beiersdorf are competing
in advertising spending, sales promotion, etc. However, they have not hadany

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research to investigate the relationship between elements of marketing

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communication and brand equity for this category. In the last two years, the

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managers have frequently used sales promotion to improve their sales performance

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in the short-term. They may ignore to analysis whether sales promotion can

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deteriorate brand equity in the long-term. In addition, they don’t have clear

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communication strategy to enhance brand equity. Therefore, it’s necessary to

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explore the relationship between elements of marketing communication and

Research objectives

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1.2.

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dimensions of brand equity.

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The purpose of this research is to explore impacts of factors of marketing
communication on brand equity’s elements. This has been one of hottest topics in

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management today in Vietnam emerging market where building brand equity plays

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an important role for giant advertisers’ communication strategy.The research also

and brand equity

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provides a starting point for further research on relationship between marketing mix

Research methodology and scope

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1.3.

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Nielsen Market Retail Audit 2010)

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biggest sales contribution, up to 80% of sales on each key brand (Source AC

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The research is conducted in the dynamic market, HCMC in which there is the


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Key brands are defined as brands with satisfying one of following criteria:

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 The brand is the market leading in the body lotion category or

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 The brands have long heritage in Vietnam market and have influence on the

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market or

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 The brand have been active in marketing activities like adverting, promotion,

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etc or

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 The brands that have high chance of consideration when making buying

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decision

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This study is conducted by two steps: (1) qualitative study and (2) quantitative

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study.

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Qualitative study is conducted through analyzing secondary data and in-depth

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interview with some current users and brand managers in cosmetic companies. This
step helps to (1) confirm key drivers of marketing communications (2) adjust and

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fine tune the measurement scales.

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Quantitative study is conducted through face-to-face interview at consumers’

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houses. The second step p is to (1) re-confirm the components and the measurement
scales and (2) test the research model. Cronbach’s alpha, Exploratory Factor

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Analysis (EFA) and multiple regression methods are used to analyze collected data

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in this step
Managerial implications

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Findings of the research will help managers have in-depth understanding about

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Structure of the research report

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1.5.

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effective marketing communication strategy

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decrease brand equity of the body lotion market. Hence, brand managers can design

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elements of marketing communication and role of each element to increase or


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This paper comprises five chapters. Chapter 1 introduces the background of the

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study. Chapter 2 presents the literature review on brand, brand equity and the

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research model and hypotheses. Chapter 3 explains research methodology and

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measurement scales. Chapter 4 presents data analysis process and results of the

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study. Chapter 5 summarizes the key findings, discussion, managerial implications,

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limitations of the research and recommendations for future research.

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om
l.c
an

Lu
n

va

y
te

re

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity


(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 7 of 52

CHAPTER 2. LITERATURE REVIEW AND RESEARCH MODEL

t
to

2.1.

Introduction

ng
hi

This chapter reviews literature to establish a theoretical framework for the research.

ep

do

The concept of brand equity and common elements of marketing communication

w

are presented in the part. The research model is developed to investigate the

n

ad

lo

relationship between elements of marketing communication and factors of brand
equity. Hence, it helps marketing managers to design marketing strategies more

u
yj
th

effectively

yi

Brand equity

pl

2.2.

n
ua
al

Brand equity is defined as a set of assets and liabilities linked to the brand, which

n

va

add value to or subtract value from a product in its relationship with customers.

fu

According to the proposal formulated by Aaker (1991, 1996) brand equity is a

m
ll

multidimensional concept. It comprises of perceived quality, brand awareness,

n
oi

brand loyalty, brand associations, and other proprietary assets. Other researchers

t
ha

also share these dimensions as Aaker. For example, Shocker and Weitz (1998)

z

suggest brand loyalty and brand association, Keller (1993) recommends brand

z
j
ht

vb

knowledge, including brand awareness and brand image. And Lasscar et al., (1995)
suggest five elements of brand equity (1) perceived quality, (2) perceived value, (3)

m

k

brand image, (4) trustworthiness, and (5) commitment to the brand.

ai
gm
om
l.c

2.2.1. Brand awareness

It relates to the strength of the brand node or trace in memory, as reflected by

Lu

an

consumer’s ability to identify the brand under different conditions (Rossiter and

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

y
te

consumers correctly generate the brand from the memory.

re

brand as having been seen or heard previously. Brand recall requires that

n

performance. Brand recognition requires that consumers correctly discriminate the

va

Percy 1987). Brand awareness includes brand recognition and brand recall


(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 8 of 52

2.2.2. Perceived Quality

t
to
ng

Zeithaml (1988) defines perceived quality as “the consumer’s [subjective]

hi

judgment about a product’s overall excellence or superiority” (p.3). These

ep

do

judgments may be influenced by personal product experiences, unique needs and

w

consumption situations. High perceived quality indicates that consumers recognize

n

ad

lo

the differentiation and superiority of the brand through the long-term experience
related to the brand. Zeithaml also identifies perceived quality as a component of

u
yj
th

brand value; hence, high perceived quality would drive a consumer to choose the

yi

brand rather than other competing brands. Therefore, to the degree that brand

pl

quality is perceived by consumers, brand equity will increase.

n
ua
al

2.2.3. Brand Loyalty

va

n

Oliver (1997) defines brand loyalty as “a deep held commitment to rebuy or

fu

m
ll

repatronize a preferred product or service consistently in the future, despite

n
oi

situational influences and marketing efforts having the potential to cause switching

t
ha

behavior” (p.392). Brand loyalty makes consumers purchase a brand routinely and

z

resist switching to another brand. Therefore, to extend that consumers are loyal to

z
j
ht

k

m

2.2.4. Brand Association

vb

the brand, brand equity will increase

ai
gm

Aaker (1991) defines brand associations as “anything linked in memory to a brand”

om
l.c

and brand image as “a set of [brand] associations, usually in some meaningful way”
(p.109). Brand association which result in high brand awareness, are positively

Lu

an

related to brand equity because they can be a signal of quality and commitment and

n

favorable behavior for the brand.

va

they help a consumer consider a brand at the point of purchase, which leads to

comparison with consumer market, the body lotion brands have high level of

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

y
te

re
Considering Vietnamese consumers behaviors with female target group – in


(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 9 of 52

branding, similar buying process and consumption of product. With all those

t
to

reasons mentioned, we recognize three common components of brand equity: (1)

ng

brand awareness, (2) perceived quality and (3) brand loyalty. High brand equity can

hi
ep

help to explain that consumers can know about the brand, recognize the brand from

do

other brands perceive high quality and loyal to the brand in the body lotion

w

n

category

ad

lo
In theresearch scope, this study will not investigate how each component of brand

u
yj
th

equity increase brand equity. Yoo et al (2000) and other researchers find that brand

yi

name, brand loyalty, perceived quality, and brand awareness/associations are

pl

positively related to brand equity.

n
ua
al

Many researchers suggest that brand equity is a strategic aspect of marketing

va

n

management and can be created, maintained and intensified by strengthening on of

m
ll

fu

it components (Leuthesser, 1998, Farquhar, 1989, Nomem, 1996). Elements of

n
oi

marketing communication have impact on brand equity

t

ha

This study focuses on exploring how marketing communication increase or

z

decrease brand equity. Hence, the following part of this chapter concentrates on

z
j
ht

vb

theoretical framework on marketing communication
The elements of marketing communication

k

m

2.3.

ai
gm

Learning from previous qualitative researches in Beierdoft company, there are three

om
l.c

main key components of the marketing communication which have frequently been
used by almost big cosmetic companies in Vietnam in order to build brand equity:

Lu

an

(1) advertising spending; (2) field support activities; and (3) sales promotion.

equity. Knowing how certain marketing activities increase or decrease brand equity

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

y
te

relationship between factors of marketing communication and elements of brand

re

represent the most often used marketing actions. Thus, it’s enough to express

n

do not cover the full marketing activities of cosmetic companies in Vietnam they

va

Therefore, this research concentrates on these elements. Although these variables

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 10 of 52

will enable marketing managers to develop effective marketing program. Managers

t
to

need to promote brand-building activities and decrease or avoid brand-hurting

ng

activities (Yoo et al., 2000)

hi
ep
do

2.3.1. Advertising Spending

w

n

Advertising by definition is any paid form of non-personal communication of ideas

lo

ad

or products on both traditional media (TV, Press, Radio, Cinema, Out-of-home)

u
yj
th

and non-traditional media (Internet). Jobber (2001) and some studies (Maxwell,
Chay and Tellis, Simon and Sullivan, Boulding et al.) indicates that advertising

yi

pl

spending is good for building brand awareness because it can aim at a mass

n
ua
al

audience quickly, repetition of advertising means that a brand positioning concept
can be effectively communicated, advertising also can be used to aid the sales effort

va

n

through legitimizing a company and its products, however, advertising is

m
ll

fu

impersonal and has limited capability to close the sale.

n
oi

The positive effect of advertising spending on brand equity was found in the

t
ha

research of Simon and Sullvian (1993). The dollar amount spent on advertising has

z

positive effects on brand equity and its components (Cobb-Walgren et al., 1995).

z
vb

j
ht

In Vietnam market, two giant companies Unilever Vietnam and P &G have heavily

k

m

invested in advertising spending in the past ten years.Thousands of million USD

ai
gm

has been poured into advertising to build up their brands in the emerging market
(Source Kantar Media, 2010). This also proves that advertising spending is one of

om
l.c

key drivers of building up brand equity effectively in Vietnam

Lu

an

Yoo et al. (2000) find the positive relationship between advertising spending and

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

y
te

 H1: Advertising spending positively affects brand awareness

re

the brand. Therefore,

n

brand loyalty because it reinforces brand-related associations and attitudes toward

va

brand loyalty. Shimp (1997) find that the advertising spending positively related to


(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 11 of 52

 H2: Advertising spending positively affects brand loyalty

t
to

H3: Advertising spending positively affects perceived quality of the brand.

ng
hi

2.3.2. Field support activities

ep

do

Field support activities are efforts to provide face-to-face technical supports to

w

consumers by cosmetic firms through market visit, meeting scheme, with the

n

ad

lo

intention of making a sale. Since these activities are personal contacts, question can

u
yj
th

be answered and objective overcome, relationships can be built because of its
personal nature. This two-way communication will help sales forces to identify

yi

consumers on premises and design better messages in communication. Sales

pl

n

ua
al

materials can help sales persons to explain about products of benefits and create
atmosphere at shops effectively. Hence, they also contribute to create brand

va

awareness and raise the perceived quality, and finally consumers could apply the

n
m
ll

fu

product properly to get good result and become loyal to the brand. Thus, we can
assume that field support activities have a good impact on aspects of brand equity.

n
oi

Therefore,

t
ha

z

 H4: Field support activities conducted for the brand positively affects brand

z
j
ht

vb

awareness

k

m

 H5: Field support activities conducted for the brand positively affects brand

ai
gm

loyalty

perceived quality of the brand.

an

Lu

2.3.3. Sales promotion

om
l.c

 H6: Field support activities conducted for the brand positively affects

especially money off. Beyond this, these incentives can be easily copied and

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

y
te

may harm brand equity if marketing Managers use some incentives excessively,

re

to Jobber (2001), incentives help to push sales in the short term quickly; however, it

n

trade that are designed to stimulate purchase of the identified products. According

va

Sales promotion by definition is an effort to provide incentives to consumers and/or


(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 12 of 52

counteracted by competitors (Aaker, 1991). Regular sales promotion would

t
to

communicate low-quality brand image in the long term. Furthermore, Shimp, 1997

ng

believe that sales promotion do not prolong enough to generate brand association in

hi
ep

the long-term comparing with other efforts. In addition, consumers may confuse

do

about the correct price. The gap between expected and observed prices may

w

n

question about the brand quality. The consumers can perceive brands as poor

lo

ad

quality. This may unfavorably influence on consumer brand choice decisions. Also,

u
yj
th

sales promotion may cause switching brands among users because they are
appealed by the benefits provided by sales promotion. When the sales promotion

yi

pl

ends, they will lose interests in the brand and switch another brand. Yoo et al.

n
ua
al

(2000) suggest that manager should focus on advertising spending to develop brand
equity instead of offering price promotion.The following hypotheses are proposed:

va
n

establish

fu

m
ll

 H7: Sales promotion negatively affects brand awareness.

n
oi

 H8: Sales promotion negatively affects brand loyalty.

t
ha

z

 H9: Sales promotion negatively affects perceived quality of the brand.

z

Research model

j
ht

vb

2.4.

k

m

The main goal of the research is to explore the relationship between some key

ai
gm

elements of the marketing communication and the components of brand equity. The
above literature review indicates the direct relationship between marketing
efforts

and

brand

equity.

The

elements

om
l.c

communication

of

marketing

an

simplified research model is summarized in Table 2.1.

Lu

communication and components of brand equity are grouped separately. The

n

va

y
te

re

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity


(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 13 of 52

t
to

Table 2.1: Structural model – Relationship between some key elements of
marketing communication and brand equity

ng
hi

ep

H1(+)

do

Advertising
Spending

Brand
Awareness

w
n

H4(+)

lo
ad

H7(-)

u
yj
th

H2(+)

yi
pl

n
ua
al

Field
Support
Activities

Brand
Loyalty

H5(+)

Brand Equity

va

H8(-)

n
m
ll

fu
H3(+)

Perceived
Quality

z

H9(-)

t
ha

z
j
ht

vb

Sales
Promotion

n
oi

H6(+)

k

m

Summary

ai
gm

2.5.

om
l.c

This chapter goes through the literature review for both the concept of brand equity

Lu

an

and key elements of marketing communication. Three common components of

communication and common components of brand equity are explained. This

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

y
te

is also defined by which the relationship between key elements of marketing

re

spending, (2) Field support activities and (3) sales promotion. The structural model

n

identified. Three key elements of marketing communication are (1) advertising

va

brand equity: (1) brand awareness, (2) perceived quality and (3) brand loyalty are


(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 14 of 52

chapter also discusses on how each selected element of marketing communication

t
to

potentially affect each common component of brand equity, through that the

ng

relationships are hypothesized.The next chapter presents the research method used

hi
ep

to

validate

the

measures

and

to

test

the

hypotheses

do
w
n
ad

lo
yi

u
yj
th
pl
n
ua
al
n

va
m
ll

fu
t
ha

n
oi
z
z
j
ht

vb
k

m
ai
gm
om
l.c
an

Lu
n

va

y
te

re

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity


(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 15 of 52

CHAPTER 3.

t
to
ng

3.1.

RESEARCH METHODOLOGY

Introduction

hi
ep

The purpose of this chapter is to explain the research methodology which was used

do

to develop scales for measuring researched concepts and examine the hypotheses.

w

n

This chapter introduces (1) research design, (2) Measurement scale development,

lo

ad

and (3) field work

u
yj
th

3.2.

Research design

yi

pl

3.2.1. Research methodology

n
ua
al

This study was conducted through two steps: (1) qualitative study and (2)

va

quantitative study. Quantitative study was conducted through analyzing secondary

n

data and in-depth interview with regular consumers and brand managers. The

fu

m
ll

purpose of this step is to (1) confirm the key elements of marketing communication

n
oi

(2) adjust and fine tune the measurement scales. This step is conducted in Mar-

t
ha

May in HCM City. The procedure for qualitative research is: (1) Personal contact

z

was made firstly through telephone calls and emails. (2) After having the

z
j
ht

vb

acceptance from them, the interview was conducted in an open-ended questions,
thus the interviewees can answer as much as they can. (3) After the interview,

m

k

emails or informal meeting were often used for solving unclear information which

ai
gm

was collected during the interview. Besides, brand managers are interviewed to

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l.c

obtain more useful information. Quantitative study is conducted using face-to-face
interview technique at consumers’ houses in Jun - Aug in HCM city. Cronbach’s

Lu

an

alpha, Exploratory Factor Analysis (EFA) and multiple regression methods were

n

va

used to analyze data collected in this step. The research progression is showed in

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te

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Table 3.1.

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Page 16 of 52

Table 3.1: Research progression

t
to
ng

Step Methodology

hi
ep
do

1

Qualitative

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n

Quantitative

collection

Time

Location

Secondary data

Mar-Apr 2011

HCM City

In-depth interview

May 2011

HCM City

Face-to-face interview

Jun-Aug 2011

HCM City

technique

ad

lo

2

Data

yi

u
yj
th
pl
n
ua
al
n

va

m
ll

fu
t
ha

n
oi
z
z
j
ht

vb
k

m
ai
gm
om
l.c
an

Lu
n

va

y

te

re

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(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 17 of 52

3.2.2. Research process

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to
ng

The process of this study is structured in Table 3.2

hi
ep

Table 3.2: Research process

do
w
n

Literature review and
conceptual framework

ad

lo

Draft measurement
scales

u
yj
th

In-depth interviews

yi

Finalize
measurement scales

pl
n
ua
al
n

(n = 170)

va

Quantitative study

m
ll

fu
Eliminate variables that have low Item-Total
Correlation coefficients. Check Cronbach’s
alpha coefficients.

t
ha

n
oi

Cronbach’s alpha

z
z
vb

j
ht

k

m

EFA

Test convergent and discriminate validity.
Eliminate variables that have low EFA
loadings. Check eigen values and extraction
Sums of Squared Loadings

ai
gm

om
l.c

Multiple Regressions

n

va

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te

re

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

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Test the effects of key elements of marketing
communication on brand equity. Test

hypotheses. Check the fitness of the multiple
regression equation (r2). Test of the
significance level of r2 using F-test. Test of the
significance level of each regression
coefficient using t-test.


(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 18 of 52

Cronbach’s alpha. To measure reliability coefficient for the items of each

t
to

component, Cronbach’s alpha was calculated. When reliability coefficient achieved

ng

.70, the cut-off level of reliability recommended for theory testing research

hi
ep

(Nanullyand Bernstein, 1994). According to Yoo et al (2000), because of

do

parsimony purpose, the item that did not contribute to the reliability significantly

w

n

was eliminated.

ad

lo
Exploratory Factor Analysis (EFA). EFA is the common name of group of

u
yj
th

procedures mainly used to reduce and recap data. EFA is a complex, multi-step

yi

process. Fabrigar et al., (1999) recommend using principle component analysis if

pl

the purpose of this analysis is to reduce the information in many variables into a set

n
ua
al

of weighted linear combinations of those variables. Basically, the extraction of

n

va

principal components amounts to a variance maximizing (varimax) rotation of the

fu

original variable space. This type of rotation is called variance maximizing as the

m
ll

criterion for the rotation is to maximize the variance (variability) of the “new”

n
oi

variable while minimizing the variance around the new variable (Advanced

t
ha

statistical analysis using SPSS, SPSS inc., 2000). Based on these theories,

z

exploratory factor analysis was conducted by using varimax rotation technique with

z
j
ht

vb

principle component analysis extraction method.

k

m

The objective of using EFA is to test convergent and discriminate validity and

ai
gm

eliminate variables that have low EFA loadings. Eigen values and extraction sums

should retain only components with eigenvalues greater than 1.

om
l.c

of squared loading must be checked for EFA. According to Kaiser (1960), we

Lu

an

Multiple Regression. Multiple regression was used to test hypotheses in the

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

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te

3.2.3. Questionnaire Structure:

re

regression coefficient using t-test.

n

the significance level of r2 using F-test, test of the significance level of each

va

research model. We check the fitness of the multiple regression equation (r2), test of


(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

Page 19 of 52

Questionnaire is divided four parts including scanning respondents, measure

t

to

elements of marketing communication which are advertising spending, field

ng

support activities and sales promotion, measure dimensions of brand equity defined

hi
ep

as brand awareness, perceived quality and brand loyalty and respondent’s

do

demographic information

w
n

Measurement scale development

ad

lo

3.3.

u
yj

th

The set of measurement scales were developed based on (1) the literature review in
Chapter 2, and (2) recommendations from other authors (Yoo et al., 2000; Martin,

yi

pl

2000). All items were measured on 5-points Linkert-type scales, with anchors of 1

n
ua
al

= strongly disagree and 5 = strongly agree. The first set of measurement scales
(draft measurement scales) was developed and taken to in-depth interviews.

va

n

Measurement scales are adjusted based on the consumer market and the body lotion

fu

m
ll

market. Based on in-depth interviews with regular consumers and brand managers

n
oi

in cosmetic companies, the draft measurement scales are adjusted and fine-tuned to

t
ha

final measurement scale. The following part of this paper is to explain in more

z

details about the final measurement scales developed

z
j
ht

vb

3.3.1. Measurements of brand awareness

m

k

The brand awareness (BA) will be measured by four observed variables (BA1 to

ai

gm

BA4) which are the four factors contribute to the awareness of the brand. The full

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te

(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity(Luận.văn).the.effects.of.marketing.communication.on.brand.equity

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BA4 The characteristics of X can come to me very quickly

n

BA3 I can easily distinguish X from other body lotion brands

va

BA2 I can recognize X among other competing brands

an

BA1 I am aware of X

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Table 3.3: Measurement scales for brand awareness

om

l.c

list of variables used in this research for brand awareness can be found in Table 3.3.