Vietnamese consumers’ brand loyalty in fast moving consumer goods

1
INTRODUCTION
1. Choosing a topic
In terms of theory, many scholars have pointed out that brand loyalty leads
to important consequences. Consumers will place their trust in the brand,
protect the brand against negative information, and encourage others to buy the
brand. Additionally, consumers buy the brand again and refuse to buy
competing brands.
In practical terms, maintaining a loyal consumer brings numerous benefits
to enterprises, including: (1) stabilizing sales volume and revenue, (2) reducing
business expenses, (3) protecting brand, (4) the negligence or error of
enterprises would be more accepted and ignored.
In Vietnam, the reception and research, especially in application of the
theory of building brand loyalty proceed slowly and mostly just at the point of
summarizing the theory, the studies of foreign countries and practical
experience. Therefore, the author suggests that the implementation of the
subject: "Research the brand loyalty of consumers in Vietnam in fast-moving
consumer goods (FMCG) category", with the approach from consumer
perspective in order to build the scientific basis for Vietnam enterprises in
building and developing consumer loyalty that is a matter of urgency all aspects
of theory and practice.
2. Objectives and research tasks
— Firstly, completing the scale to measure the brand loyalty of consumers
in FMCG category in Vietnam.
— Secondly, exploring the factors that influence the brand loyalty of
consumers in FMCG category in Vietnam.
— Thirdly, determining the relationship of each factor with the brand
loyalty of FMCG of Vietnam consumers.
— Fourthly, proposing a number of solutions to maintain and strengthen
the brand loyalty of Vietnam consumers in FMCG category.
3. Subject and the scope of research

Subject: Due to the number of items and brands in the FMCG category
is very much so in the framework of the thesis, it can not research all of these.
Therefore, the thesis focuses on two types of fast - moving consumer goods in

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the market that are bottled water and shampoo. Other items can be studied by
similar methods. Thus, the subject of study of the thesis include:
— The brand loyalty and fidelity scale with brand fast - moving consumer
goods (bottled water and shampoo)
— The factors that influence the brand loyalty of Vietnam consumers for
fast moving consumer goods.
The scope of research
— Focus on studying two types of FMCG products are bottled water and
shampoo.
— Respondents are people who bought products, have decision to buy the
product, and / or influence the decision to buy the product. They are consumers
whose ages are over 18 living and working in Hanoi and Ho Chi Minh City.
— Duration of the study is conducted in 2012.
4. Research methodology
The author builds research model, the scope of the concepts in model, and
scale for factors in the model based on scale and models that tested in India.
The author conducts interviews with consumers in Hanoi and Ho Chi Minh City
(sample size 758 elements). Based on the interviews, the author uses SPSS
software to analyze the factors (EFA) and Cronbach Alpha to keep the
meaningful and reliable changes. The author then conducts testing to evaluate
the fit of the model as well as the impact of each factor to the brand loyalty of
consumers in Vietnam.
5. The scientific and practical meaning of thesis
In terms of theory
The thesis built and tested the models of factors affecting the brand

loyalty in FMCG category of Vietnam consumers.
— The thesis built the system of scales for brand loyalty and factors
affecting brand loyalty in the context of Vietnam for the FMCG category.
In terms of practical
— The thesis has measured the brand loyalty of Vietnam consumers for
two typical types of products of FMCG category: shampoo and bottled water.
— The results of the thesis indicated the level of impact and rate of impact
of each factor affecting the brand loyalty for two types of FMCG: shampoo and
bottled water.
—


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— The thesis detected the differences in the extent of the impact of factors
to brand loyalty between two types of FMCG: shampoo and bottled water.

loyalty is more sustainable, more deeply psychological. In addition, the definition
also recognizes that consumers can not only be loyal to a brand but also with a set
of brands in a product category. This is consistent with the fast moving consumer
goods category, when the involvement of consumers is relatively low and buyers
based on the list of brands, not just to a single brand. Within the scope of this
thesis, the author uses the definition of Oliver to identify the brand loyalty’s
consumers.

6. Volume and structure of the thesis
The dissertation consists of an introduction, four chapters: general
studies, research context, research methodology, research results and

conclusions, recommendations. All contents are presented in 120 pages,
including 25 tables and 11 charts, drawings.
CHAPTER 1: LITERATURE RESEARCH
ON BRAND LOYALTY
1.1. General information about the consumers’ brand loyal
1.1.1. The concept of consumer brand loyalty
The researchs have ever shown that there are three approaches to the
consumer brand loyalty: (1) the behavior, (2) the attitude, and (3) the complex
mixture of behavior and attitude.
According to behavioral approach, the brand loyalty is a response bias
behavior of consumers in chosing a brand between many different brands and
this behavior shows in a period of time. This approach is only interested in
repeat buying behavior of consumers and consider it as a sign of loyalty. The
definitions do not pay attention to the decision-making process of consumers
and do not distinguish between true loyalty with simple repeat buying behavior.
In addition, the definition only focuses on the result that is buying behavior
without clarifying the reasons for such behavior.
According to attitudinal approach, brand loyalty is the bias tendency of
consumers to the brand as a result of the psychological processes. It includes
preferred attitude and commitment of consumers to the brand. The definitions pay
attention to developments in psychology and awareness of the consumer so that
explain their brand buying behavior. However, definition’s limitation is to exclude
actual purchasing behavior of consumers.
Oliver (1999) defines that brand loyalty is a deeply held commitment to
rebuy or repatronize a preferred product/service consistently in the future, thereby
causing repeatitive same brand or same brand-set purchasing, despite situational
influences and marketing efforts having the potential to cause switching behavior.
This definition distinguishes the superficial engagement with the brand and the

1.1.2. Classification of the brand loyalty’s consumers

In this section of the thesis, the author gives four classifications for brand
loyalty of the foreign scholars, here are two typical ways:
— Classifying by the level of loyalty: switchers/price sensitive;
satisfied/habitual buyers; satisfied buyer with switching costs; likes the brand;
and committed buyers.
— Classifying by expression: attitudinal loyalty; resistance to competing
offers; propensity to be loyal; and complaining behavior. The dissertation uses
this classification to analyze brand loyalty.
1.2. Measuring the brand loyalty of consumers
1.2.1. Measuring based on behavior
The brand loyalty is measured by the repeat purchasing behavior. One of
the most popular measurement methods is: repeat purchasing rate, percentage of
purchasing rate, and quantity of purchased brand. In addition, usual brand
buying behavior is also seen as indicators of loyalty.
1.2.2. Measuring based on attitude
The measurement method for attitudinal loyalty can be divided into 5
groups as follows: plan to purchase or attitude toward buying action,
preference, commitment, word of mouth, and the ability to purchase.
1.2.3. Combination measurement
This method combines attitudinal measures and behavioral measures. In
addition, this method also measures loyalty through preference about brand and
product, repeat purchasing behavior, and brand changing behavior.


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In summary, measuring loyalty solely based on behavior or attitude
reveales many shortcomings. Therefore, the author selects measurement that

coordinate both attitude and behavior for using in this study.
1.3. The model of factors affecting brand loyalty
1.3.1. The model of Punniyamoorthy and Raj (2007)
Two scholars have studied the factors affecting brand loyalty with print
products in India and withdrew the model as follows:
Involvement
Functional value

The model has the following limitations
Repeat purchasing behavior may have a cause and a consequence of
fidelity. According to cause perspective, repeat buying a brand will create the
loyalty in terms of behavior but has not reflected the attitudinal allegiance.
According to Oliver (1999), the true brand loyalty includes the loyalty to the
behavior and attitudes. Therefore, in the study model of the author, factor of
repeat purchasing behavior is only considered as in terms of the consequence of
loyalty.
1.3.2. The model of Gounaris and Stathakopoulos (2004)

Emotional value

Price wothiness
Brand loyalty

Two scholars assert that the factors affecting the brand loyalty consist of
three groups: (1) Consumer drivers: risk aversion, and variety seeking, (2)
Brand drivers: brand reputation, and the availability of substitute brands (3)
Social drivers: Social group influence, and peers’ recommendation.
The model has the following limitations:
In the model, the kind of brand loyalty mentioned by two scholars that
belong to behavioral group. Thus, Gounaris and Stathakopoulos ignore

component of attitudinal loyalty of consumer. As a result, the kinds of fidelity
of the model do not fully reflect the necessary components of true brand
loyalty.

Social value

Brand trust

1.3.3 The model of Ki-Joon Back and Sara C. Parks (2004)
Satisfaction

Brand
commitment

Repeat purchase

Figure 1.3: The model of Punniyamoorthy and Raj
Resource: Punniyamoorthy. M, and Raj. M., 2007, An empirical model for brand loyalty
measurement, Journal of Targeting, Measurement and Analysis for Marketing 15, 222-233

The model is based on the stages of loyalty that based on the shift in
attitude (cognitive - affective - conative) was launched in 1997 by Oliver. In
particular, cognitive brand loyalty focuses on performative aspects of brand;
emotional loyalty directs to the affective brand loyalty, the conative brand
loyalty appears when consumers focus on the desire to purchase brand repeatly,
and the behavioral brand loyalty is to commit repeat buying action.
The model has the following limitations:
It is not suitable for low involvement products. For products with low
involvement, consumer usually form attitudes before and use it to screen the
required information, or accept available information. A different approach to

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explain that consumers will buy brands/products based on limited knowledge of
it, then they judge it based on usage. Attitude is thus formed through the lessons
learned from behavior. With the above two approaches, the sequential steps in
the model will not fit with products that have low involvement.
1.4. Explaining the factors in the model affecting brand loyalty
In the thesis, the author explains all the factors that appear in the three
models described in Section 1.3. In this summary, the author focuses on brief
explanation of the factors included in the research model of the authors.
1.4.1. The involvement
The brand involvement is understood as the attention of consumers to a
brand and create a motivation that promote consumers in making appropriate
decisions in a particular situation. This means that for each product category,
consumers tend to care about this brand instead of another brand.
1.4.2. Perceived value
The perceived value of consumers includes: functional value, social value
and emotional value. In particular, the functional value is the utility derived
from the product's quality and performance of the functions that are expected of
the product. Social value is the utility derived from association of product with
one or a certain social group. Emotional value is the utility obtained from the
product’s ability to arouse emotional state of the consumer.
1.4.3. The satisfaction
This is the state that consumers achieve when characteristics of the
product or the product itself meet the consumer's expectations.
1.4.4. Brand trust
This is the state that a consumer is willing to "trust" in the possibility that
the brand will perform the functions committed to consumers. To form this
"trust", consumers base on their experience in the past and previous interactions

between them and the brand.
1.4.5. Barnd commitment
Brand engagement is seen as related to attitude and defined as "a
promise or engagement of an individual to choose one brand within the product
category".

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1.5. The research model of the author
Involvement
Functional value

Emotional value
Brand loyalty

Price worthiness
-

Social value

Loyalty about attitude
Complain behaviour
Loyal trend
Reject competitive
products

Brand trust

Satisfaction

Brand commiment

CHAPTER 2: RESEARCH CONTEXT OF BRAND LOYALTY IN
FMCG IN VIETNAM
2.1. FMCG and the role of brand loyalty
2.1.1. FMCG Concept
In this section, the author mentions some of concepts of fast moving
consumer goods.
2.1.2. Classifying FMCG
The author introduces some of classifications of fast moving consumer
goods


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2.1.3. The role of brand loyalty of consumers in the FMCG sector
The author presents the reasons for the necessity of brand loyalty in FMCG
sector.

respondents were interviewed. Through the results of this study, the original
scales are adjusted and they are called the adjusted scale. The complete scale
consists of 24 items of the question for the independent variables and 19 items
of the question for the dependent variables.
3.2. Designing questionnaire
The questionnaire is organized into three main parts (Part 1: client profile,
Part 2: information about the factors that influence brand loyalty, and Part 3:
information about their brand loyalty). The questions in sections 2 and 3 are
translated from the original scale (by foreign scholars developed above) and
adjusted to suit the style and culture of Vietnam.

3.3. Research sample
3.3.1. Overall research
Comprehensive study of this research is the Vietnamese consumers. They
are the decision makers in choosing and buying the brand/product; have
significant influence on the decision to buy the brand/product; or directly use
the brand/product.
3.3.2. Research sample
The sample is selected by random sampling method, combined norms for
each area that consumers living in Hanoi; with HCM city, due to small number
of samples so the author decides not to apply for each area.
3.4. Implementing data collection
To achieve the sample size based on the structure is determined after
removing the sample that lack much information or poor quality or surplus
compared to the norm, the author decides to use the 1,000 questionnaires and
control samples through the process of interviewing clients. Interviews are
conducted with respondents in the major commercial centers in Hanoi and Ho
Chi Minh City.
3.5. Data Analysis

2.2. FMCG market in Vietnam
2.2.1. Overview of the market and FMCG brands in Vietnam
The author presents the basic information about the business situation of the
groups: family care, personal care, beverage, food, dairy in Vietnam.
2.2.2. Bottled water and shampoo market in Vietnam
The author describes the competitive situation of the two types of
products: bottled water and shampoo in Vietnam market.
2.3. The research model is used and research hypotheses
2.3.1. The research model
Based on the analysing results of the research context, the author identifies
the research model of thesis that is the model presented in Section 1.5.

2.3.2 Research hypotheses
Based on the research model, the author raises the hypotheses about the
relationship of each factor to the brand loyalty.
CHAPTER 3: RESEARCH METHODOLOGY
3.1. Formation of scales
To measure the brand loyalty and the factors that influence the brand
loyalty, the author uses the scales of scholars Rundle-Thiele (2005), and
Punniyamoorthy and Raj (2007). The author uses Likert scale of 5 grades to
assess the extent of the respondents with each issue (in which 1 - strongly
disagree and 5 - strongly agree).
Due to the differences in culture and level of socio - economic
development, so the scales may have been built in developed countries that are
not really suitable for Vietnam market. Therefore, the original set of scales
should be adjusted and supplemented through pilot interviews. The interview is
conducted for 24 consumers meeting the criteria of selecting for respondents.
The aim is to evaluate and test the suitability of the wording, the syntax used in
the questions to ensure the consistency, clearing and not misleading when

3.5.1. Descriptive analysis
The thesis uses descriptive analysis method of frequency with study
variables and descriptive analysis method of cross table between individual
variables (age, gender, ...) with the remaining behavior variables.
3.5.2. Test the independent factors
Factor analysis is to identify the main factors axis (both cause and result).
Test the variables in each factor axis by means of Cronbach alpha testing,


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correlative regression to remove variables that have no statistical significance in
the model.
3.5.3. Exploratory factor analysis (EFA)
3.5.3.1. Exploratory factor analysis with bottled water product
a. KMO & Bartlett's Test
The author has taken 25 observed variables to analyse to determine the
underlying group of elements that influence to brand loyalty. The test results in
Table 3.1 shows that KMO index = 0.823 is quite high. In addition, Bartlett's
test results confirms the observed variables are correlated with each other with
statistical meaning at the 0.05 level. Therefore, factor analysis method is
appropriate method to analyze the model in the next step.
Table 3.1: KMO and Barlett’s Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Approx. Chi-Square
Bartlett's Test of
df
Sphericity
Sig.

.823
5932.14
381
.000

a. Analysis of factors affecting brand loyalty
Based on the result of the total of explained variance, we can draw 7
factors of elements based on Eigenvalues criteria > 1 from the 25 observed
variables. The total explained variance is equivalent to 73% (> 50%).
Table 3.2: The total explained variance

Component
1
2
3
4
5
6
7
8
9

Initial Eigenvalues
%
%
Total
Variation Cumulation
3.215
13.726
13.726
2.644
11.528
25.254
2.473
10.849
36.103
2.286
9.841
45.944
1.837
9.657

55.601
1.602
8.912
64.513
1.475
8.463
72.976
.709
3.266
76.242
.684
2.784
79.026

Extraction of total loading
%
%
Total
Variation Cumulation
3.215
13.726
13.726
2.644
11.528
25.254
2.473
10.849
36.103
2.286
9.841

45.944
1.837
9.657
55.601
1.602
8.912
64.513
1.475
8.463
72.976

The results of rotated factor matrix identify: factor 1 (includes variables
CK4, CK1, and CK2) that is named brand commitment. Factor 2 includes
variables HL1 so the author names this factor as satisfaction. Factor 3 (includes
variables CN2, CN3, and CN1) is named as functional value. Factor 4 (includes
variables TC2, TC1, and TC3) is named as brand trust. Factor 5 (includes two
variables GC1, GC2) is named as price worthiness. Factor 6 (includes two
variables XH1, XH2) is named as social value. Factor 7 (includes three variables
QT1, QT3, QT4) is named as involvement.
Table 3.3: Rotated factor matrix
Factor
1
2
3
4
5
6
7
Factor 1
CK4 I will not change my preference though

.822
my close friend introduces a different brand
CK1 I love this brand
.769
CK2 My preference for this brand will not be
.683
easy to change
CK3 To change my preference for this brand,
.451
I will need to be careful in consideration
Factor 2
HL1 In general, when using this brand, I
.795
believe that I am pleased
Factor 3
CN2 I often select products with good
.783
quality standards
CN3 I often select products that ensure stable
.736
quality
CN1 I like the style of this product
.612
Factor 4
TC2 I trust in this brand
.746
TC1 I can say that this brand is honest and
.728
sincere
TC3 This brand never make me disappointed

.689
Factor 5
GC1 This brand is value for money
.865
GC2 This brand has reasonable price
.749
GC3 This brand is economical
.304


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1
Factor 6
XH1 Using this product will improve how
the others acknowledge me
XH2 I usually choose the brand that present
how am I
XH3 I proud of using this brand.
Factor 7
QT1 I always watch the brand that is
important when buying this product
QT3 Choosing the suitable product is very
important with me
QT4 I am very interested in the problems
arising when choosing this type of product
QT2 These products have different names,
the different quality

QT5 The purchase of this product is very
important with my life

2

Factor
3
4
5

6

7

.812
.758
.257
.658
.635
.624
.336
.254

b. Analysis of brand loyalty
The table of the total variances shows 19 observed variables that can draw
4 factor s based on Eigenvalues criteria > 1.
The result of rotated factor matrix shows: factor 1 (includes variables TT1,
TT2, TT3, TT4 and TT5) is named as “attitudinal loyalty”. Factor 2 (includes
variables TT6, TT7, TT10 and TT11) is named as “complaining behavior”.
Factor 3 (includes variables TT12, TT13 and TT14) is named as “propensity to be

loyal ”. Factor 4 (includes variables TT15, TT16 and TT19) is named as
“resistance to competing offers”.
3.5.3.2. Exploratory factor analysis with shampoo product
In this section, the author conducts Exploratory factor analysis with
shampoo product
3.5.3.3. Analysis of cronbach alpha
3.5.3.3.1. Analysis of cronbach alpha with bottled water product

Table 3.7: The test results of measuring scale for factors that influence the
brand loyalty of bottled water products

Item-Total Statistics
Corrected Cronbach's
Scale
Scale
Mean Variance Item-Total Alpha if
if Item if Item Correlation
Item
Deleted Deleted
Deleted
Cronbach’s Alpha = 0.714
Involvement
QT1 I always watch the brand that is
13.27
4.051
.512
.634
important when buying this product
QT3 Choosing the suitable product is
12.94

3.749
.577
.612
very important with me
QT4 I am very interested in the
problems arising when choosing this 14.05
4.376
.486
.675
type of product
— The factor "involvement" values Cronbach’s Alpha = 0,714. Variables QT1,
QT3 and QT4 have coefficient of “Cronbach‘s Alpha if Item Deleted” that is
smaller than the coefficient of general Cronbach‘s Alpha. Therefore, the three
observed variables (QT1, QT3, and QT4) are good scale, correlated closely to
measure "involvement" of consumers.
Similarly, we have:
— Three variables CN1, CN2, and CN3 measure “functional value”.
— Two variables XH1 and XH2 measure “social value”.
— Two variables GC1 and GC2 measure “price worthiness”.
— Three variables TC1, TC2, and TC3 measure “brand trust”.
— Three variables CK1, CK2 and CK4 measure “brand trust”.
— Five variables TT1, TT2, TT3, TT4, TT5 measure “attitudinal loyalty”.
— Four variables TT6, TT7, TT10 and TT11 measure “complaining
behavior”.
— Three variables TT12, TT13 and TT14 measur “propensity to be loyal”.
— Three variables TT15, TT16 and TT19 measure the behaviour of
“resistance to competing offers”.
3.5.3.3.2. Analysis of cronbach alpha with shampoo product
In this section, the author presents the content of analysis of cronbach
alpha with shampoo product.

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independent variables that is not much and the variables in the model are
accepted.

3.5.4. Testing the research model
3.5.4.1. Correlative regression analysis
a. Regression analysis of bottled water product
Table 3.9 shows the value of adjusted R2 coefficient is 0.581. This
suggests that the model’s compatibility with the observed variables is
reasonable and the dependent variable of "attitudinal loyalty" is explained quite
well by 7 independent variables in the model. Durbin-Watson coefficient = 1.83
shows that the model does not violate when using multiple regression methods
and allows us to accept the hypothesis that doest not have linear relation in the
model. Thus, the multiple regression model satisfies the conditions to evaluate
and test the suitability for drawing results.
Table 3.9: Result of multiple linear regression analysis – attitudinal loyalty
Model

R

R2

Adjusted R2

Se

Durbin-Watson

1

.768a

.589

.581

.80030656

1.830

Analysing coefficient R2 similar to "complaining behavior", "propensity
to be loyal", and action of "resistnace to competing offers” of consumers shows
that the compatibility of the model with the independent variables is reasonable
and the dependent variable of "complaining behavior", "propensity to be loyal",
and action of "resistance to competing offers” of consumers is explained quite
well by 7 independent variables in the model.
Table 3.10 shows the value F = 45.530, value sig = 0.000 that means this
relationship ensures the reliability with acceptable level of 5%. Thus, we can
conclude that the independent variables affecting "attitudinal loyalty" of
consumers and multiple linear regression models are suitable with data sets and
can be used.
Table 3.10: Analysis of variance ANOVAa - attitudinal loyalty

1

Model

Regression
Remainder
Total

Total square
233.291
398.385
631.676

df

Average
F
Sig.
7
33.327 45.530 .000b
622
.640
629

Magnification coefficient of variance (VIF) of the independent variables in
the model are < 2 (table 3.11) that demonstrate the multicollinearity of the

Table 3.11: Coefficient of sample regression model - attitudinal loyalty
Not
Standardized
Collinear
standardized
coefficient
statistics

coefficient
Model
t
Sig.
Standard
B
Beta
Acceptance VIF
error
(Constant)
.001
.032
1.833 .057
Involvement
.055
.038
.054 2.031 .031
.705 1.417
Social value
.071
.036
.070 2.374 .015
.774 1.291
Functional value
.197
.039
.196 4.703 .000
.696 1.437
1
Satisfaction

.212
.037
.211 6.068 .000
.727 1.375
Brand commitment
.241
.035
.241 7.186 .000
.841 1.189
Price worthiness
.126
.033
.126 2.735 .007
.893 1.120
Brand trust
.273
.034
.273 10.225 .000
.891 1.123
With similar analysis, we have value F of "complaining behavior",
"propensity to be loyal”, and "resistance to competing offers", and have the
multicollinearity of the independent variables that are not significant and the
variables the model are accepted. Thus, multiple linear regression models fit
data sets and can be used.
b. Regression analysis of shampoo product
In this article, the author conducts similar analysis with shampoo product.
3.5.4.2. Test the parameters in the model by t test
a Test the parameters in the model of bottled water product
Results of regression analysis shows that the independent variables are
affecting the "attitudinal loyalty" of consumers. However, the sig. value of the

constant is 0.057 (> 0.05), the author decides to remove the constant from the
regression equation. The relationship between the dependent variable
"attitudinal loyalty" with 7 independent variables are presented in the following
equation :
Y1

=

0.055 X1 + 0.197 X2 + 0.071 X3 + 0.126 X4 +
0.212 X6 + 0.273 X7 + 0.241 X8


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(Note: Y1: attitudinal loyalty; X1: involvement; X2: functional value; X3:
social value; X5: price worthiness; X6: satisfaction; X7: brand trust; X8: brand
commitment)
Sig. value of the independent variables are less than 0.05 so the author
decided to retain this variable in the regression equation. The regression
equation shows that the standardized beta coefficients are > 0 or independent
variables positively impact to the "attitudinal loyalty". This result confirms the
hypothesis H1, H5, H13, H17, H21, H25, and H29 in research model are
accepted and tested accordingly.
Similarly we have the following results:

The author describes the result of the research sample by gender, age,
occupation.

Y2 =

0.046 X1 - 0.266 X2 - 0.075 X3 - 0.128 X5 0.285 X6 - 0.121 X7 - 0.179 X8

(Note: Y2: Complaining behaviour)
This result confirms the hypothesis H2, H6, H14, H18, H22, H26, and H30
in research model are accepted and tested accordingly.
Y3 =

0.045 X1 + 0.198 X2 + 0.062 X3 + 0.086 X5 +
0.219 X6 + 0.225 X7 + 0.236 X8

(Note: Y3: Propensity to be loyal)
This result confirms the hypothesis H3, H7, H15, H19, H23, H27, and
H31 in research model are accepted and tested accordingly.
Y4 =

0.043 X1 + 0.197 X2 + 0.066 X 3+ 0.141 X5 +
0.214 X6 + 0.218 X7 + 0.227 X8

(Note: Y4: Resistance to competing offers)
This result confirms the hypothesis H4, H8, H16, H20, H24, H28, and H32
in research model are accepted and tested accordingly.
b. Test the parameters in the model of shampoo product
In this section, the author presents the process of testing the parameters in
the model of shampoo product.
CHAPTER IV: RESEARCH RESULT
4.1. The result describes the brand loyalty
4.1.1. Research sample results

4.1.2. The brand loyalty of Vietnam consumers for bottled water products
Calculation results are presented in Table 4.4 as follows:
Table 4.4: Loyalty to the brand of bottled water products
Attitudinal Complaining Propensity Resistance to
loyalty
behaviour to be loyal competing offers
N

Valid

734

749

756

731

Lack
24
9
2
27
Average
3.8295
2.2150
3.2591
2.9321
Standard deviation
.45101

.58386
.63266
.61636
Skewness
.263
.247
-.194
.118
Standard deviation
.096
.091
.091
.096
Skewness
Kurtosis
.766
-.229
-.407
.029
Standard deviation
.191
.183
.182
.192
Kurtosis
Attitudinal loyalty. Vietnamese consumer’s attitudinal loyalty with brand
of bottled water products is quite high. In addition, the data element in terms of
overall look has high similarity.
Complaining behavior. Vietnamese consumers have the level of
implementation of complaining behavior about brand of bottled water is quite

low. The answering choices of consumer are focused.
Propensity to be loyal. Vietnamese consumers have the level of
propensity to be loyal to brand of bottled water is medium. The answering
choices of consumers are quite dispersed.
Resistance to competing offers. Vietnamese consumers have level of
rejection of competitive product with bottled water product is average. The
answering choices of consume are quite dispersed.
4.1.3 The brand loyalty of Vietnam consumers for shampoo product
In this section, the author presents the result of the brand loyalty of
Vietnam consumer with shampoo product.


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4.1.4. Comparing the level of brand loyalty of Vietnam consumer between
bottled water and shampoo

Analysis coefficient R2, F test, and VIF result shows the compatibility of
the research model.

Vietnam consumer has the level of attitudinal loyalty with the brand of
shampoo product category that is higher than the brand of bottled water product
category. Similarly, the ability of Vietnam consumer implements complaining
behavior about the brand of bottled water product is lower than shampoo
product. In addition, the propensity to be loyal with the brand of shampoo is
higher than bottled water brands. Consumer has stronger response to refuse the
competitive products for shampoo product.

4.2.3.2. The level of influence of each factor to the brand loyalty
a. Bottled water product

4.2. Scale result, EFA and regression analysis
4.2.1. Scale result
4.2.1.1. Scale with bottled water product
The scales are presented in Section 3.6.2.1 that are valid for measuring the
dependent and independent variables in the model.
4.2.1.2. Scale with shampoo product
The scales are presented in Section 3.6.2.2 that are valid for measuring the
dependent and independent variables in the model.
4.2.2. EFA result
4.2.2.1. EFA result of bottled water product
There are seven factors that affect Vietnam consumer’s loyalty for brand of
bottled water product.
4.2.2.2. EFA result of shampoo product
There are eight factors that affect Vietnam consumer’s loyalty for brand of
shampoo product.
4.2.3. Result of regression analysis
4.2.3.1. The suits of model
a. Bottled water product
Analysis coefficient R2, F test, and VIF result shows the compatibility of
the research model.
b. Shampoo product

— Attitudinal loyalty affects the most from the factor brand trust, followed
by brand commitment, satisfaction, functional value; price worthiness; social
value; and finally the involvement;
— Complaining behavior is influenced the most from satisfaction, followed
by the functional value; brand commitment; price worthiness; brand trust; social

value, and finally the involvment.
— Propensity to be loyal is affected the most from brand commitment;
followed by the brand trust; satisfaction; functional value; price worthiness;
social value; and finally the involvement.
— Resistance to competing offer is affected the most from brand
commitment; followed by the brand trust; satisfaction; functional value; price
worthiness; social value; and finally the involvement.

b. Shampoo product
In this section the author presents the result of the impact of each factor to
the brand loyalty of shampoo product.
4.2.3.3. Comparing the impact of each factor to the brand loyalty between
bottled water and shampoo product
a. Attitudinal loyalty
Result of regression analysis indicates that the independent variables have
a strong impact on "attitudinal loyalty" of Vietnam consumer for two types of
products that are bottled water and shampoo. Specifically, these factors include:
brand trust, brand commitment, satisfaction, and functional value. However,
there are differences in the level of impact of each factor on the brand loyalty of
each item.
b. Complaining behavior
The result shows that these factors have a strong impact on “complaining
behavior” of Vietnam consumer for bottled water and shampoo product. These
include: satisfaction, functional value, brand commitment, price worthiness, and
brand trust. Similarly, the level of impact of each factor to the brand loyalty of
each item is different.


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c. Propensity to be loyal
The order of level of impact from high to low to the propensity to be loyal
is not the same for the two types of product. Meanwhile, for bottled water
product, the factor of brand commitment has the biggest impact, followed by
the factors such as brand trust, satisfaction, and functional value. For shampoo
product, brand trust has the biggest impact, followed by the factor such as
satisfaction, functional value, and brand commitment.
d. Resistance to competing offers
We also find that differences in the impact level of factors to behavior of
resistance to competing offers of this two types of product. For bottled water,
the factor of brand commitment has the most impact, followed by the factors
such as brand trust, satisfaction, functional value, and price worthiness. For
shampoo product, the factor of brand trust has the most impact, followed by
satisfaction, functional value, brand commitment, and involvement.

reflects the client's interest for the use of the product. Or it can be said that the
functional quality of the product will be necessary condition for the consumer
forming their loyalty to brand in two product categoriess.

CHAPTER V: CONCLUSIONS AND RECOMMENDATIONS

5.1. Conclusions
Different impact level of each factor to the brand loyalty of Vietnam
consumers for two types of products as bottled water and shampoo suggested
for enterprises an priority order in investing resources on various issues.
Specifically, the investment to ensure satisfaction, building and maintaining the
brand trust as well as brand commitment; ensuring functional value will have
much influence on the brand loyalty of Vietnam consumer. On the other hand,

the investment to raise the level of caring, the social value of the brand, and
emotional value (for bottled water) are less likely to affect the brand loyalty of
Vietnam consumers.
The difference in scale system between products of bottled water and
shampoo reflect a different concept and response of Vietnam consumers for two
products.
The functional value has important influence on the brand loyalty of
Vietnam consumers for both products of bottled water and shampoo. This result

The small degree of affecting of social value that consumers perceive to
the brand loyalty for two types of products of bottled water and shampoo
showing that the demand of self-expression is not high when using two types of
products. This is quite reasonable when bottled water is popular product that is
widely used at low prices. Shampoo is used primarily in family. Consumers can
pay attention to social value of shampoo in case they use shampooing service at
the baber shops or spa.
Satisfaction, brand trust, and brand commitment have strong influence on
brand loyalty. It will be three important factors that enterprises need to care.
The functional value of the product may play a key role that brings satisfaction
to consumers using these two types of products. This suggests that enterprises
should ensure to provide good products. However, besides that they should not
neglect other aspects such as the convenience of shopping or emotional value
(with shampoo) because they also contribute to the overall satisfaction of
consumers with brand/product.
5.2. Recommendations
To build the brand loyalty of Vietnam consumers for bottled water
products, enterprises need to pay attention to the factors that influence such as
the functional value, satisfaction, brand commitment, brand trust, price
worthiness, social values, and involvement.
To build trust of consumer, the prerequisite is that quality of product and

service must be good. In addition, businesses need to be honest and transparent
with their consumers. Honesty and transparency can be formed from the prestige
of the business, consistency in words and actions, listening, respecting
psychology, preferences and interests of the consumers .... Besides, businesses can
use the form of promotions, discounts, or free trial products ... for the consumers
know the brand and products and thereby building trust with them.
To ensure consumer’s satisfaction with products and brands, businesses
need to create convenient communication channels for consumers. For example,


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using social networking tools or creating multiple points for interacting with
consumers (free gifts in cinemas, trade centers, ... and thereby receiving
feedback from consumers). Additionally, businesses can conduct periodic
surveys to detect issues that need to improve, change or emerging requirements
of their consumers. The patron programs or loyal consumer will increase
consumer’s engagement with the brand more.