Dissertation summary: Components of brand equity: The case of binh thuan dragon fruit

MINISTRY OF EDUCATION AND TRADING
UNIVERSITY OF ECONOMICS OF HO CHI MINH CITY

---------NGUYEN VIET BANG

COMPONENTS OF BRAND EQUITY:
THE CASE OF BINH THUAN DRAGON
FRUIT

Major: Commercial Business
Code: 62.34.01.21

SUMMARY OF ECONOMIC DOCTORAL THESIS

HCM City, 2015


The reasearch was completed at:
University of Economics ò Ho Chi Minh City

Scientific instructor:

Ph.D. Ngo Thi Ngoc Huyen
Assoc.Prof.Ph.D. Le Tan Buu

Reviewer
1.
2.
3.

The thesis will be protected in front of Thesis scoring council at

the University of Economics of Ho Chi Minh City at
…..hour…..day….month…..year
……..


PUBLISHED SCIENTIFIC WORKS
Nguyen Viet Bang (Coauthor), 2014, “Components
of Brand Equity: The Case of Binh Thuan Dragon Fruit”,
Journal of Economic Development, No. 285, pp. 61 – 82.
1. Nguyen Viet Bang (Coauthor), 2014, “Components of
Brand Equity: The Case of Binh Thuan Dragon Fruit”, Journal
of Economic Development, No. 222, pp. 142 – 160.
2. Nguyen Viet Bang (Coauthor), 2014, “Components of
brand equity of Binh Thuan Dragon fruit”, Science &
Technology Development, Vol 17, No Q2, pp. 85 – 94.
3. Nguyen Viet Bang, 2015, “Impact among components
of dragon fruit’s brand equity in Binh Thuan”, Economy and
Forecast Review, Special Issue, March 2015, pp. 60 – 62.
4. Nguyen Viet Bang, 2015, “To enhance the brand of
Binh Thuan Dragon Fruit”, Economy and Forecast Review,
Special Issue, May 2015, pp. 86 – 88.


1
CHAPTER 1: RESEARCH OVERVIEW
1.1. PROBLEM STATEMENT
Dragon fruit is a specialty ranked 1st out of 11 types of
Vietnamese fruit with competitive advantage acknowledged by
Ministry of Agriculture and Rural Development at the conference
held in HCM City on June 7 2004. The fruit features high economic

efficiency and considerably raises farmers’ income in general, and in
Binh Thuan Province in particular, it helps restructure agricultural
crops and change the face of rural districts.
Dragon fruit yield and price during the past years has risen
rapidly. Yet, uneven quality and size of dragon fruit, technology
packaging and preservation is too simple to reduce the time of
preserve fruit. So consumer perceptions of quality of Binh Thuan
dragon fruit is low. In addition, lax control of food sanitation from
production to consumption stages, and irrational brand marketing
programs prevent this product from creating a vivid image in
consumers’ mind and intense loyalty toward the product, accounting
for its low value. So It is time to built and develop Binh Thuan
dragon fruit brand. However, building and developing brand, the
manager need to understand brand equity (Keller and Lehmann,
2006), it mean that the manager can understand the role of brand
equity and its conponents; how to measure them (Tho and Trang,
2011).
1.2.

RESEARCH QUESTION AND OBJECTIVE
Research objective: (i) explore the components of Binh Thuan

dragon fruit brand equity; (ii) to measure the effect of components of
Binh Thuan dragon fruit brand equity to overall brand equity; and the


2
effect of components of Binh Thuan dragon fruit brand equity
together; (iii) to suggest some policy for Development Research
Center of Binh Thuan dragon fruit trees, Binh Thuan dragon fruit

Association to increase Binh Thuan dragon fruit brand equity.
Research question:
1.3.

RESEARCH SUBJECT AND DELIMITATIION OF
THE SCOPE

1.3.1.

Research subject
Research subject: Binh Thuan dragon fruit brand equity and

it’s components.
The respondents of this survey are direct consumers and
retailers Binh Thuan dragon fruit.
1.3.2.

Delimitations of the scope
Approach theoretical study: There are two principal and

distinct perspectives that have been taken by academics to study
brand equity – financial and customer based (Lassar et al, 1995).
Thus, author conducted research brand equity approach in view of
the consumer in this study.
The space: interview directly the respondents in HCMC and
Binh Thuan province.
The time: indepth interviews is done from 11/2012 to
12/2013, the prestest survey is done from 12/2013 to 01/2014; main
survey is done from 02/2014 to 06/2014.
1.4.

METHODOLOGY

1.5.

NEW CONTRIBUTIONS OF THE THESIS
Firstly, the result of the research show that: Binh Thuan dragon

fruit brand equity have 05 components: (i) brand awareness, (ii)
brand association, (iii) perceived quality, (iv) brand loyalty, (v)


3
perceived safety and 05 components directly affect on brand equity
accepted at 0.05 significance level. Thus, compared with model of
brand equity of Aaker (1991, 1996), Binh Thuan dragon fruit brand
equity have another component is perceived safety which is a new
component of this research.
Secondly, This research have two approaches (combines both
direct consumer and indirect consumer, retailer) to measure the
effect of components of Binh Thuan dagron fruit brand equity on the
overall brand equity; and the effect of these components together.
1.6.

STRUCTURE OF THESIS
The research have 05 chapter: chapter 1: Research Overview;

chapter 2: Literature Review; Chương 3: Research Design; Chapter
4: Research Result; and Chapter 5: Conclusion and Research Implied

CHAPTER 2: LITERATURE REVIEW
2.1.

LITERATURE REVIEW

2.1.1.

Brand

2.1.2.

Brand Equity

Aaker (1996) suggests that brand equity is a set of brand assets
and liabilities linked to a brand name and symbol, which add to or
subtract from the value provided by a product or service”. While
Keller (1993) defined brand equity as “the differential effect of brand
knowledge on consumer response to the marketing of the brand”.
There are two principal and distinct perspectives that have been
taken by academics to study brand equity – financial and customer
based (Lassar et al, 1995): (i) Financial approach to brand equity
refers to brand equity as a viable asset for manufacturers, (ii)


4
Customer approach to brand equity refers to brand equity as a set of
brand assets and liabilities linked to a brand, its name and symbol,
that add to or subtract from the value provided by a product or
service to a firm and/or to that firm’s customers (Aaker, 1991, 1996).
2.1.3.

Components of brand equity based on consumer

Aaker (1991, 1996) suggests that brand equity can be measured
by the following four components: (i) brand awareness; (ii)
perceived quality; (iii) brand associations; and (iv) brand loyalty;
Keller (1993) explains that brand equity itself is consumer’s
knowledge of that brand which comprises brand awareness and
brand image.
2.2.

THEORETICAL FRAMEWORK
Among several brand equity models in the literature, we have

chosen that constructed by Aaker (1991, 1996) due to its being most
cited (Atilgan et al., 2005) and siutable for the research brand equity
based on customer. And the quantitative research results show that
Binh Thuan dragon fruit brand equity have 05 components: (i) brand
awareness, (ii) brand association, (iii) perceived quality, (iv) brand
loyalty, (v) perceived safety.
Brand Equity
As defined by Aaker (1991, 1996), brand equity is a set of brand
assets and liabilities linked to a brand, its name and symbol, that add
to or subtract from the value provided by a product or service to a
firm and/or to that firm’s customers. Overall, most of the previous
studies imply that brand equity reveals choices based on consumer’s
will and affection for a brand among a set of other competing brands
(Davis & Doughlass, 1995). Thus, Binh Thuan dragon fruit brand
equity is that reveals choices based on consumer’s will and affection

5
for a brand among a set of other competing brands. That is also a
highlight that comprehensively explains brand equity as a result of
corporate marketing efforts to build positive awareness and
behaviors toward the brand as well as for intangible value that leads
to consumers’ choices.
Brand Awareness
Brand awareness is “the ability for a buyer to recognize or recall
that a brand is a member of a certain product category” (Aaker,
1991; Keller, 1998). Thus, brand awareness of Binh Thuan dragon
fruit is the ability for a buyer to recognize or recall that a brand is a
member of a certain product category through shape, color, flavor,
logo and can recognize Binh Thuan dragon fruit with the other. And
the authors propose H1 as given below:
H1: Brand awareness directly affects brand equity (+)
Brand Association
Aaker (1991) defines brand associations as “anything linked in
memory to a brand”. Thus, brand associations of Binh Thuan dargon
fruit represents associations of consumers in shape, color, taste,
safety of Binh Thuan dragon fruit when mentioning Binh Thuan
dragon fruit. Hypothesis H2 is constructed as follows:
H2: Brand associations directly affect brand equity (+).
Perceived Quality
Perceived quality is “the consumer's judgment about a product's
overall excellence or superiority'” (Zeithaml, 1988). So, Perceived
quality of Binh Thuan dragon fruit is the consumer's judgment about
Binh Thuan dragon fruit's overall excellence. Thus, it can be
hypothesised that:
H3: Perceived quality directly affects brand equity (+)

6
Brand Loyalty
Brand loyalty is a deeply held commitment to rebuy or
repatronize a preferred brand consistently in the future (Chaudhuri
and Holbrook, 2001).
There are two brand loyalty approaches which are based on: (i)
consumer’s behavior; and (ii) consumer’s attitude (Chaudhuri and
Holbrook, 2001; Kabiraj and Shanmugan, 2011). The first approach
views brand loyalty as a behaviour which is operationalised in the
terms of repeat purchase, or purchase frequency, or share of purchase.
The second appoarch views brand loyalty as an attitude and the
operationalises this as perference, commitment, buying intention,
and recommendation willing. This study explores consumer’s brand
loyalty on the basis of attitudinal perspective. Thus, H4 can be
formed as below:
H4: Brand loyalty directly affects brand equity (+)
Perceived Safety
Perceived safety represents subjective perception of consumers
about the safety of the product for their health (Kim, 2012). Thus,
Perceived safety of Binh Thuan dargon fruit represents subjective
perception of consumers about the safety of the product from
producing to harvesting, processing, preserving and distributing fruit.
Thus, H5 can be formed as below:
H5: Perceived safety directly affects brand equity (+)
The effect of brand equity’s conponents
Consumer loyalty to the brand when they have knowledge that
brand (Saleem et al, 2015); the characteristics of the brand to be
created in their minds (Tho and Trang, 2011); the brand has high

quality compared to other brands in a competitive set (Tho et al,


7
2011); and safety (Roosen, 2003; Kim, 2012; Fontes et al, 2013). So
customer intend to buy the dragon fruit when they recognize this
brand; easily associate with it; and think that it has high quality and
safety. Thus, H6, H7, H8, H9 can be formed as below:
H6: Brand awareness directly affects brand loyalty (+);
H7: Brand associations directly affects brand loyalty (+);
H8: Perceived quality directly affects brand loyalty (+);
H9: Perceived safety directly affects brand loyalty (+).
Brand associations is the result in high brand awareness (Yoo et
al, 2000) and the associations are stronger when customers are based
on many experiences or exposures to communications (Yoo et al,
2000; Yoo and Donthu, 2001). So, customers associate to the Binh
Thuan dargon fruit when they must recognize this brand; and think
that it has high quality and safety. Thus, H10, H11, H12 can be formed
as below:
H10: Brand awareness directly affects brand associations (+);
H11: Perceived quality directly affects brand associations (+);
H12: Perceived safety directly affects brand associations (+).
And consumers only think that Binh Thuan dragon fruit are more
higher quality than others products when they feel it safety and they
can recognize it. Hence, the author suggest the following hypotheses:
H13: Brand awareness directly affects perceived quality (+);
H14: Perceived safety directly affects perceived quality (+).
Product safety is a factor which consumers desire in agricultural
products when they decide to consume them (Grunert, 2005).
However, customers only judge the the safety of products when they

can recognize the brand of this products. Hence, the author suggest
the following hypotheses:


8
H15: Brand awareness directly affects perceived safety (+).
And there are the different between customers and retailers about
needs and expectations (Fairhurst and Fiorito, 1990; Quan, 2006;
Huong and Lin, 2011). So there are the different between customers
and retailers about the components of brand equity. Thus, H16 can be
formed as below:
H16: there are the difference of regression conefficients
(beta) in the model’s brand equity when approaching consumers and
retailers.

Picture 2.6. Proposed Model and Hypotheses
(Source: Authors’ design)


9
CHAPTER 3: RESEARCH DESGIN
3.1

RESEARCH PROCESS
This study use a mix method research approach, incroporating

both qualitative and quatitative research. Qualitative research
featured indepth interviews and focus groups. Next, pilot study is
conducted with 144 respondents, based on direct interviews by
means of questionnaires to evaluate the consistency and scale

structure. Main study is conducted with 781 respondents direct
interviews by means of questionnaires to test the research model and
hypotheses.
3.2.

QUANTITATIVE RESEARCH

3.2.1. Quantitative research desgin
Indepth interviews
Interview

method:

the

interviews

are

conducted

by

conversations between author and experts on the topic of Binh Thuan
dragon fruit brand equity and its components. The interview
processes are written on paper.
Data analysis: The collected data is aggregated to determine the
components of Binh Thuan dragon fruit brand equity; adjust the
observed variables to measure the concepts research (brand equity
and its components).

Focus groups
Focus group method: Focus groups are conducted by seminars
on the topic of Binh Thuan dragon fruit brand equity and its
components. Focus group processes are written on paper.
Data analysis: The collected data is aggregated to determine the
components of Binh Thuan dragon fruit brand equity; adjust the
observed variables which has changed the word to suit the mind of


10
consumers and retailers use to measure brand equity and its
components.
3.2.2. Quantitative research results
3.2.2.1. Indepth interviews results
The results show that: (i) brand equity have 05 components:
brand awareness, brand association, perceived quality, brand loyalty,
and perceived safety; 30 observed variables used to measure brand
equity and its components.
3.2.2.2. Focus group with consumers results
The results show that: (i) brand equity also have 05 components:
brand awareness, brand association, perceived quality, brand loyalty,
and perceived safety; 30 observed variables which has changed the
word to suit the consumer’s mind use to measure brand equity and its
components.
Brand Awareness: 05 Items
AW1: I am aware of Bình Thuận dragon fruit; AW2: I know the
specific characteristics of the Binh Thuan dragon fruit; AW3: I can
distinguish Binh Thuan dragon fruit from other types; AW4: I am
aware of the design of its logo; AW5: Briefly, when referring to Binh
Thuan dragon fruit, I can easily conceive of it.

Brand Association: 06 items
AS1: When mentioning dragon fruit, I immediately associate it
with Binh Thuan one; AS2: When mentioning Binh Thuan dragon
fruit, some external characteristics of Binh Thuan dargon fruit come
to my mind quickly; AS3: When mentioning Binh Thuan dragon
fruit, I picture the one with a thick peel and long-term preservation;
AS4: When mentioning Binh Thuan dragon fruit, I picture the one
with very tasty, sweet and pure flavor; AS5: When mentioning Binh


11
Thuan dragon fruit, I picture the one with high nutritional value;
AS6: When mentioning Binh Thuan dragon fruit, I picture the one
with safe for your health.
Perceived Quality QL: 06 items:
QL1: The shape and colour of Binh Thuan dragon fruit is so
beautiful; QL2: Binh Thuan dragon fruit is tasty, sweet and pure
flavor; QL3: Binh Thuan dragon fruit offers high nutritional value;
QL4: Binh Thuan dragon fruit can be long-term preserved; QL5:
Compared to other brands of dragon fruit, Binh Thuan dargon fruit is
of very high quality; QL6: Binh Thuan dargon fruit is the best brand
in its product class.
Brand Loyalty LO: 04 items
LO1: I always think of Binh Thuan brand when I want dragon
fruit; LO2: I will not buy any other brands if Binh Thuan dragon fruit
is not available at fruit stores; LO3: I will purchase Binh Thuan
dragon fruit in the future; LO4: I will introduce Binh Thuan dragon
fruit to other consumers.
Perceived Safety SA: 05 items:
SA1: I think Binh Thuan dragon fruit is safe for your health;

SA2: I feel secure when I consume Binh Thuan dragon fruit; SA3: I
think Binh Thuan dragon fruit is produced with pesticides standard;
SA4: I think Binh Thuan dragon fruit is preliminary treatment and
packing standard; SA5: I think Binh Thuan dragon fruit has
preservation process standard.
Brand Equity: 04 items
BE1: It makes sense to buy Binh Thuan dragon fruit instead of
any other brand, even if they are the same; BE2: Even if another
brand has same features as Binh Thuan dragon fruit, I would prefer


12
to buy Binh Thuan dragon fruit; BE3: If there is another brand as
good as Binh Thuan dragon fruit, I prefer to buy Binh Thuan dragon
fruit; BE4: If another brand is not different from Binh Thuan dragon
fruit in any way, it seems smarter to purchase Binh Thuan dragon
fruit.
3.2.2.3. Focus group with retailers results
The results show that: (i) brand equity also have 05 components:
brand awareness, brand association, perceived quality, brand loyalty,
and perceived safety; 30 observed variables which has changed the
word to suit the retailer’s mind use to measure brand equity and its
components.
Brand Awareness: 05 Items
AW1: Customers of our store are aware of Binh Thuan dragon
fruit; AW2: Customers of our store know the specific characteristics
of the Binh Thuan dragon fruit; AW3: Customers of our store can
distinguish Binh Thuan dragon fruit from other types; AW4:
Customers of our store am aware of the design of its logo; AW5:
Briefly, when referring to Binh Thuan dragon fruit, Customers of our

store can easily conceive of it.
Brand Association: 06 items
AS1: When mentioning dragon fruit, Customers of our store
immediately associate it with Binh Thuan one; AS2: When
mentioning Binh Thuan dragon fruit, some external characteristics of
Binh Thuan dargon fruit come to our customers mind quickly; AS3:
When mentioning Binh Thuan dragon fruit, Customers of our store
picture the one with a thick peel and long – term preservation; AS4:
When mentioning Binh Thuan dragon fruit, Customers of our store
picture the one with very tasty, sweet and pure flavor; AS5: When


13
mentioning Binh Thuan dragon fruit, Customers of our store picture
the one with high nutritional value; AS6: When mentioning Binh
Thuan dragon fruit, Customers of our store picture the one with safe
for their health.
Perceived Quality QL: 06 items:
QL1: The shape and colour of Binh Thuan dragon fruit is so
beautiful; QL2: Binh Thuan dragon fruit is tasty, sweet and pure
flavor; QL3: Binh Thuan dragon fruit offers high nutritional value;
QL4: Binh Thuan dragon fruit can be long – term preserved; QL5:
Compared to other brands, Binh Thuan dargon fruit is of very high
quality; QL6: Binh Thuan dargon fruit is the best brand in its product
class.
Brand Loyalty LO: 04 items
LO1: Customers of our store always think of Bình Thuận brand
when they want dragon fruit; LO2: Customers of our store will not
buy any other brands if Bình Thuận dragon fruit is not available at
fruit stores; LO3: Customers of our store will purchase Bình Thuận

dragon fruit in the future; LO4: Customers of our store will introduce
Bình Thuận dragon fruit to other consumers.
Perceived Safety SA: 05 items:
SA1: Customers of our store think Binh Thuan dragon fruit is
safe for their health; SA2: Customers of our store feel secure when
Customers of our store consume Binh Thuan dragon fruit; SA3:
Customers of our store think Binh Thuan dragon fruit is produced
with pesticides standard; SA4: Customers of our store think Binh
Thuan dragon fruit is preliminary treatment and packing standard;
SA5: Customers of our store think Binh Thuan dragon fruit has
preservation process standard.


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Brand Equity: 04 items
BE1: It makes sense to buy Binh Thuan dragon fruit instead of
any other brand, even if they are the same; BE2: Even if another
brand has same features as Binh Thuan dragon fruit, customers of
our store would prefer to buy Binh Thuan dragon fruit; BE3: If there
is another brand as good as Binh Thuan dragon fruit, customers of
our store prefer to buy Binh Thuan dragon fruit; BE4: If another
brand is not different from Binh Thuan dragon fruit in any way, it
seems smarter to purchase Binh Thuan dragon fruit.
3.2. PILOT STUDY
Pilot study is conducted with 144 respondents (72 consumers
and 72 retailers), based on direct interviews by means of
questionnaires to evaluate the consistency and scale structure.
The results show that: All of 30 items which measure 06 concept
research (brand equity and its components) are satisfies value
conditions in reliability analysis through Cronbach’s Alpha and

exploratary factor analysis.
3.3. MAIN STUDY
Sampling and data collection: the main study is conducted with
850 respondents (600 consumers and 250 retailers), based on direct
interviews. Main survey use convience sampling.
Data analysis: Collected data regarding Bình Thuận dragon fruit
consumers and retailers are evaluated by means of Cronbach’s
Alpha, Explanatory Factor Analysis (EFA), Confirmatory Factor
Analysis (CFA) and Structural Equation Modeling (SEM)


15
CHAPTER 4: RESULT OF THE RESEARCH
4.1. SURVEY CONSUMER RESULTS
4.1.1. The sampling
At the end of the data collection period, a total of 566 usable
questionnaires were obtained.
4.1.2. The statistical results
4.1.3. The reliability analysis results
Results of reliability analysis through Cronbach’s Alpha: The
results achieved from Cronbach’s Alpha test demonstrate that the
scales’s reliability is ensured. Such as: Cronbach’s Alpha of AW is
0.868; Cronbach’s Alpha of AS is 0.890; Cronbach’s Alpha of QL is
0.864; Cronbach’s Alpha of LO is 0.834; Cronbach’s Alpha of SA is
0.835; and Cronbach’s Alpha of BE is 0.817.
4.1.4. The Explanatory Factor Analysis (EFA) results
The EFA result of 05 components of Binh Thuan dragon fruit
brand equity: EFA results suggest that 26 observed variables are
drawn into 4 factors. Such as: AS1, AS2, AS3, AS4, AS5, AS6:
brand association AS (variance = 15.01%); QL1, QL2, QL3, QL4,

QL5, QL6: Perceived Quality QL (variance = 11.64%); AW1, AW2,
AW3, AW4, AW5: brand awareness AW (variance = 12.79%); 05
biến SA1, SA2, SA3, SA4, SA5: perceived safety SA (variance =
11.64%); LO1, LO2, LO3, LO4: brand loyalty LO (variance =
9.64%).
The EFA result of Binh Thuan dragon fruit brand equity: EFA
results suggest that 04 observed variables are drawn into 1 factor:
BE1, BE2, BE3, BE4: brand equity BE (variance = 71.91%).
4.1.5.

The Confirmatory Factor Analysis (CFA) results


16
All of 30 items which measure 06 concept research are satisfies
value conditions in CFA. Such as: AW have Pc = 0.869 and Pvc =
0.571; AS have Pc = 0.890 and Pvc = 0.575; QL have Pc = 0.865 and
Pvc = 0.516; LO have Pc = 0.834 and Pvc = 0.557; SA have Pc = 0.835
and Pvc = 0.503; BE have Pc = 0.870 and Pvc = 0.626.
4.1.6.

Results of Model and Hypotheses Testing

Results of Model Testing: The results of estimation of
theoretical model presented in picture 4.8 show that χ2 = 378.744, df
= 265; Cmin/df = 1.022 with p – value = 0.373 (> 0.05). So the
model research is matching data collected from market.

Picture 4.8 Results of Model Testing
(Source: Authors’ calculations)

17
Results of Hypotheses Testing: Table 4.12 demonstrates the
results of the hypotheses testing (from H1 to H15), which indicate that
all of the hypotheses are accepted at 0.05 significance level.
Table 4.12. Results of Hypotheses Testing
Estimate

P

Label

SA

<--

AW

0.284

***

Supported H15

QL

<--

SA

0.370

***

Supported H14

QL

<--

AW

0.082

0.001

Supported H13

AS

<--

QL

0.657

***

Supported H11

AS

<--

SA

0.490

***

Supported H12

AS

<--

AW

0.258

***

Supported H10

LO

<--

AS

0.270

***

Supported H7

LO

<--

SA

0.557

***

Supported H9

LO

<--

AW

0.202

***

Supported H6

LO

<--

QL

0.598

***

Supported H8

BE

<--

LO

0.231

***

Supported H4

BE

<--

SA

0.587

***

Supported H5

BE

<--

AW

0.273

***

Chấp nhận H1

BE

<--

QL

0.599

***

Supported H3

BE

<--

AS

0.208

***

Supported H2

(Source: Authors’ calculations)
4.2.

SURVEY RETAILER RESULTS

4.2.1.

Sampling

At the end of the data collection period, a total of 215 usable
questionnaires were obtained.
4.2.2.

The statistical results

4.2.3.

The reliability analysis results


18
Results of reliability analysis through Cronbach’s Alpha: The
results achieved from Cronbach’s Alpha test demonstrate that the
scales’s reliability is ensured. Such as: Cronbach’s Alpha of AW is
0.864; Cronbach’s Alpha of AS is 0.878; Cronbach’s Alpha of QL is
0.874; Cronbach’s Alpha of LO is 0.858; Cronbach’s Alpha of SA is
0.864; and Cronbach’s Alpha of BE is 0.876.
4.2.4.

The Explanatory Factor Analysis (EFA) results

The EFA result of 05 components of Binh Thuan dragon fruit
brand equity: EFA results suggest that 26 observed variables are
drawn into 4 factors. Such as: QL1, QL2, QL3, QL4, QL5, QL6:
perceived quality QL (variance = 14.64%); AS1, AS2, AS3, AS4,
AS5, AS6: brand association AS (variance = 14.55%); SA1, SA2,
SA3, SA4, SA5: perceived safety SA (variance = 12.87%); AW1,
AW2, AW3, AW4, AW5: brand awareness (variance = 12.78%);
LO1, LO2, LO3, LO4: brand loyalty LO (variance = 10.33%).
The EFA result of Binh Thuan dragon fruit brand equity: EFA
results suggest that 04 observed variables are drawn into 1 factor:
BE1, BE2, BE3, BE4: brand equity BE (variance = 72.85%).
4.2.5. The Confirmatory Factor Analysis (CFA) results
All of 30 items which measure 06 concept research are satisfies
value conditions in CFA. Such as: AW have Pc = 0.864 and Pvc =
0.561; AS have Pc = 0.878 and Pvc = 0.545; QL have Pc = 0.874 and
Pvc = 0.537; LO have Pc = 0.858 and Pvc = 0.602; SA have Pc = 0.865

and Pvc = 0.562; BE have Pc = 0.877 and Pvc = 0.642.
4.2.6. Results of Model and Hypotheses Testing
Results of model Testing: The results of estimation of
theoretical model presented in picture 4.20 show that χ2 = 399.952,


19
df = 390; Cmin/df = 1.026 with p – value = 0.353 (> 0.05). So the
model research is matching data collected from market.

Picture 4.20. Results of Model Testing
(Source: Authors’ calculations)
Results of Hypotheses Testing: Table 4.30 demonstrates the
results of the hypotheses testing (from H1 to H15), which indicate that
all of the hypotheses are accepted at 0.05 significance level.
Table 4.30. Results of Hypotheses Testing
Estimate

P

Label

SA

<--

AW

0.679

***

Supported H15

QL

<--

SA

0.335

***

Supported H14


20
Estimate

P

Label

QL

<--

AW

0.241

0.015

Supported H13

AS

<--

QL

0.234

0.002

Supported H11

AS

<--

SA

0.237

0.008

Supported H12

AS

<--

AW

0.219

0.015

Supported H10

LO

<--

AS

0.216

0.016

Supported H7

LO

<--

SA

0.322

***

Supported H9

LO

<--

AW

0.273

0.003

Supported H6

LO

<--

QL

0.183

0.020

Supported H8

BE

<--

LO

0.203

0.028

Supported H4

BE

<--

SA

0.272

0.002

Supported H5

BE

<--

AW

0.264

0.002

Supported H1

BE

<--

QL

0.312

***

Supported H3

BE

<--

AS

0.260

0.002

Supported H2

(Source: Authors’ calculations)
4.3.

RESULTS OF THE DIFFERENCE OF REGRESSION

COEFFICIENTS (BETA) IN MODEL’S BRAND EQUITY
(APPROACH CONSUMERS AND RETAILERS)
The results show that: there are the difference of regression
conefficients (beta) in the model’s brand equity when approaching
consumers and retailers. Such as: For the consumers, perceived
quality and perceived safety are 02 conponents of brand equity
which are the most effect on overall brand equity; for the retailers,
there are not difference effect of 05 components of brand equity on
overall brand equity. Thus, H16 is supported.


21
Table 4.35. Results of the difference of regression coefficients (beta)
in model’s brand equity (approach consumers and retailers)
Consumer
BE <- LO

β4 = 0.231

BE <- SA

β5 = 0.587

BE <- AW

β1 = 0.273

BE <- QL

β3 = 0.599

BE <- AS

β2 = 0.208

Retailer

β4 = β1, β2;
β4 < β3, β5
β5= β3;
β5 > β1, β2, β4
β1 = β 2, β 4;
β1 < β3, β5
β3= β5;
β3 > β1, β2, β4
β2 = β1, β4;
β2 < β3, β5

β4 = 0.203

β4 = β1, β2, β3; β5

β5 = 0.272

β5= β3; β1, β2, β4

β1 = 0.263

β1 = β2, β4; β3, β5

β3 = 0.312

β3= β1, β2, β4, β5

β2 = 0.260

β2 = β1, β4; β3, β5

(Source: Authors’ calculations)
CHAPTER 5: CONCLUSION AND RESEARCH
MPLICATIONS
5.1. RESULT

DISCUSSIONS

AND

RESEARCH

IMPLICATIONS
5.1.1. Result Discussions
Fristly, Binh Thuan dragon fruit brand equity is directly affected
by brand awareness, brand association, perceived quality, brand
loyalty and perceived safety;
Secondly, brand loyalty is directly affected by brand awareness,

brand association, perceived quality and perceived safety;
Thirdly, brand association is directly affected by brand
awareness, perceived quality and perceived safety;


22
Fourth, perceived quality is directly affected by brand awareness
and perceived safety;
Fifthly, perceived safety is directly affected by brand awareness.
5.1.2.

Research Implications

For perceived quality
The shape and colour of Binh Thuan dragon fruit: Development
Research Center of Binh Thuan dargon fruit trees combines with
Regular Farmers Union to change farming practices by applying
technical advances in planting and tending to produce products with
shapes, colors which are beautiful and uniform.
The preserve of Binh Thuan dargon fruit: Development Research
Center of Binh Thuan dargon fruit trees combines with Association
of Binh Thuan dragon fruit to guide packing facility how to extend
the preserve of Binh Thuan dargon fruit.
For perceived safety:
The production processes safety: Development Research Center
of Binh Thuan dargon fruit trees regularly guide farms how to use
pesticides in the production process; how to plant Binh Thuan
dargon fruit trees which are suitable to VietGap.
The preliminary treatment and packing safety: (i) for
Development Research Center of Binh Thuan dargon fruit trees: it

disseminate and guide primary processing and packing facilities to
product which follow VietGap; (ii) for Association of Binh Thuan
dragon fruit: Association of Binh Thuan dragon fruit mobilize the
businesses to invest on buiding packing facilities in order to ensure
the quality of products; to equire businesses to build processing
packaging facilities which are suitable to VietGap.