Exploring the factors affecting laptop consumers brand loyalty in HOCHIMINH CITY , luận văn thạc sĩ

MINISTRY OF EDUCATIION AND TRAINING
UNIVERSITY OF ECONOMICS HOCHIMINH CITY

NGUYỄN THỊ HỒNG NGUYỆT

EXPLORING THE FACTORS AFFECTING
LAPTOP CONSUMER’S BRAND LOYALTY

IN HOCHIMINH CITY

Major

:

Business Administration

Major Code

:

60.34.05

ECONOMICS MASTER THESIS
Supervisor: Dr. Nguyễn Thị Mai Trang

HOCHIMINH CITY - 2010


ACKNOWLEDGEMENTS
The study about “Exploring the factors affecting Laptop consumer’s Brand
Loyalty in Ho Chi Minh City” was not going to be completed without the assistance

and support from different relevant sources.
First of all, I would like to express my whole-hearted appreciation to my
supervisor, Dr. Nguyen Thi Mai Trang, who has provided me with her strict
comments and invaluable advices during the process of my study.
Besides, my special thank would be sent to my parent. Without their warmly
constant encouragement, my further pursuit and attendance in Master of Business
Administration in order to then conduct this dissertation would not have been
brought to life.
Profound gratitude was also extended to my cousin, Ms. Nguyen Thi Bich
Duyen, who has assisted me in the process of data collection and to my close friend,
Ms. Do Thuy, who has guided me to the usage of SPSS software.
An honorable mention goes to my dear husband, Mr. Ly Son. This study is
the result of his encouragement, help and love.
Finally, I would like to send sincere thanks to my friends for their great
contributions and motivation to the accomplishment of my dissertation.


ABSTRACT
This study investigated and reported the effect elements and their affected
level on brand loyalty for the laptop product in Ho Chi Minh market. The important
variables comprised Self-expressive value, Distinctiveness, Perceived Quality,
Perceived Price.
The framework of in-depth - interview in form of the qualitative research
based on the items of the previous research to discover new observed variables.
Then, the researcher would modify available observed variables of the previous
researches in order to meet with laptop category and Ho Chi Minh market. The 300
respondents in the quantitative research who were from the universities in Ho Chi
Minh city were used to test reliability (Cronbach Alpha), Correlation (Exploring
Factor Analysis) and test Multiple Regression Model.
After analyzing, the research’s results indicated that all of observed variables

obtained reliability and correlation, except one variable (bl5). Besides, all of four
factors have influenced on brand loyalty. The different affected levels of the factors
as well as the implications of the study were also represented in this paper.


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CONTENTS
CHAPTER 1: INTRODUCTION

1.1 Research background ....................................................................

1.2 Problem definition .........................................................................

1.3 Research questions and objectives ................................................

1.4 Limitations and research methodology .........................................

1.5 Research implications ...................................................................

1.6 Thesis structure .............................................................................
CHAPTER 2: LITERATURE REVIEW

2.1 Brand ............................................................................................

2.2 Brand loyalty ................................................................................

2.2.1Consumer’s loyalty and brand equity

2.2.2Value strategy of brand loyalty .........

2.3 The factors affected on brand loyalty in Ho Chi Minh market ....

2.3.1Self-expressive value of brand person
2.3.2Distinctiveness of brand personality

2.3.3Perceived Quality .............................

2.3.4Perceived Price .................................

2.4 Research model ...........................................................................

2.5 Summary .....................................................................................
CHAPTER 3: RESEARCH METHODOLOGY

3.1 Research design ..........................................................................

3.1.1Exploratory study .............................

3.1.2Main survey ......................................

3.1.2.1 Sample size ......................................................................

3.1.2.2 Research process ..............................................................

3.2 Measurement ..............................................................................

3.2.1Measure of Sef-expressive value ......

3.2.2Measure of Distinctiveness ..............

3.2.3Measure of Perceived Quality .........


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3.2.4Measure of Perceived Price ..............

3.2.5Measure of Brand Loyalty ................

3.3Summary .....................................................................................
CHAPTER 4: DATA ANALYSIS AND RESULTS

4.1Descriptive data analysis .............................................................

4.2Measure Assessment ...................................................................

4.2.1Cronbach Alpha Reliability Analysis

4.2.2Exploring Factor Analysis (EFA) .....

4.2.2.1 EFA results of the independent variables..........................

4.2.2.2 EFA results of the dependent variable ..............................

4.3Hypotheses Testing .....................................................................

4.3.1Testing Assumptions of Multiple Reg

4.3.2Testing Hypotheses between Indepen

4.4The relationship among the quality variables and the quantitativ

4.4.1Testing the relationship between gen

4.4.2Comparing the different influence le

4.4.3Testing the different influence levels

4.4.4Testing the different influence levels

4.5Consumer’s evaluation on Brand Loyalty following using brand

4.6Summary .....................................................................................
CHAPTER 5: CONCLUSIONS

5.1Overview .....................................................................................

5.2Main findings ..............................................................................

5.2.1Antecedents of Brand Loyalty .........

5.2.2Outcome of qualitative variables affe

5.3Theoretical Implications ...............................................................

5.4Managerial Implications ...............................................................

5.4.1Perceived Price .................................

5.4.2Distinctiveness ..................................

5.4.3Perceived Quality .............................

5.4.4Self – expressive value .....................


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5.5 Further research................................................................................................................................... 40
References........................................................................................................................................................ 41
Appendice........................................................................................................................................................ 45
Appendix 1: Questionnaire.................................................................................................................. 45
Appendix 2: EFA results of independent variables.................................................................... 47
Appendix 3: EFA results of dependent variable (Step 1)......................................................... 49
Appendix 4: EFA results of dependent variable (Step 2)......................................................... 50
Appendix 5: Testing assumptions of multiple regression........................................................ 51
Appendix 6: Multiple Regression Line results............................................................................ 53


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LIST OF FIGURES
Figure 2.1

: Two models about the relationship between product with brand.................7

Figure 2.2

: Research Model............................................................................................................ 13

Figure 3.1

: Research process.......................................................................................................... 17

Figure 4.4

: Histogram, Normal P – P Plot and Scatter Plot of Brand Loyalty.............51

Figure 4.5

: Mean of each using brand name on Brand Loyalty ....................................... 34


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LIST OF TABLES
Table 3.1

: Scale of Self – expressive value................................................................................ 18

Table 3.2

: Scale of Distinctiveness................................................................................................ 18

Table 3.3

: Scale of Perceived Quality........................................................................................... 19

Table 3.4

: Scale of Perceived Price............................................................................................... 19

Table 3.5

: Scale of Brand Loyalty.................................................................................................. 20

Table 4.1

: Sample characteristics................................................................................................... 21

Table 4.2

: Cronbach Alpha of observed variables of independent variables.................23

Table 4.3

: Correlations between Self – expressive value, Distinctiveness,
Perceived Quality, Perceived Price and Brand Loyaly 51

Table 4.4

: The results of Regression Coefficients analysis.................................................. 28

Table 4.5

: Independent samples t – test results of gender factor and Self-expressive

value 28
Table 4.6

: The analysis results of the different influence levels of buyer factor on
Brand Loyalty

Table 4.7

30

: The analysis results of the different influence levels of used time

factor on Perceived Quality31
Table 4.8

: The analysis results of the different influence levels of using brand

name factor on Distinctiveness
Table 4.9

32

: Mean of each using brand name on Brand Loyalty............................................ 33


1

CHAPTER 1: INTRODUCTION
The introduction chapter identify the research background, present the problem
statement, the research questions, and introduce the research methodology, the
objectives as well as limitation of the study. Furthermore, the significance of the
research problem and thesis structure are also outlined.

1.1 Research background
Meeting human’s the various complicated demands is an extremely harsh
problem for a firm, especially a new firm which has just penetrated in a market.
Moreover, to survive in the high competitive globalized and integrated environment in
the recent years, the firm must be hardworking not only for producing high quality
products, but also for understanding its consumer’s all requirements and desires. In
particular, it is critical for the survival of a firm to retain its current customers and to
make them loyal to the brand (Mellens, Dekimpe, Steenkamp, 1996). For these
reasons, the success of a firm depends largely on its capability to attract customers
towards its brands and maintain them loyal. Aaker (1996) argue that if we can maintain
consumer loyal with our brand, we have many benefits which are come from reducing
the marketing cost, trade leverage, attracting new consumers as well as having time to
respond to competitive threats. Therefore, it is necessary to study Brand Loyalty and
explore the factors affected on it, then we have a suitable branding strategy.
In fact, Vietnam is a dynamic and developing economy with higher and higher
economic growth rate year by year, and it is industrialized and modernized towards an
integration into global economy. This means consumption demand about technology
and high-technology product is dramatically being increased, especially with the
laptop product – a product has various functions can be used for various working
goals. Therefore, the imported laptop which is estimated will be increased significantly
in the future. That also means the competition is quite fierce in this field; and this can
be proved through the appearance of most prestigious laptop brands around the world
in Vietnam.


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Furthermore, Hochiminh city is the best dynamic area in Vietnam. It is known
as the central economic of Vietnam with the highest economic growth rate in both
commercial industry and agriculture. The rapid growth in economic together with the

particular advantage conditions, Hochiminh city is a place that concentrates the largest
population in nationwide. So, Hochiminh city is considered a place that has the best
numerous laptop user in Vietnam.
1.2 Problem statement
Customer loyalty plays more and more important role in business field. This
matter attracts not only businessman but also researcher. Previous research suggest that
loyal customers spend more than non-loyal customers, act as advocates for a brand by
engaging in positive word of mouth, and are therefore “at the heart of a company’s
most valuable customer group” (Zeithaml et al., 1996). Besides, it can cost as much as
six times more to win a new customer than it does keep an existing one (Rosenberg et
al., 1983: 45). Hence, the increase and retention of loyal customer become a key factor
for the long-term success of the companies. However, how to maintain and increase
loyal consumer to a brand or what factors affect on Brand Loyalty, and what influence
level of the factors on Brand Loyalty are an outstanding problem.
Another problem is that most of the brand loyalty models are conceptualized by
researchers and validate in the developed countries. This poses the question of whether
or not those models will work well in a developing country as Vietnam.
1.3 Research questions and objectives
To solve the problems defined above, this research aims at answering the
following question:
►

What are the key determinants affect on Brand Loyalty? By

evaluating the influence level of the factors on Brand Loyalty, the
importance of increasing loyal customer shall be highlighted to eventually
help the managers identify the right direction of their investment and keep
their customers under a tough competitive environment.

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1.4 Limitations and research methodology
This research focuses on one important type of high technology product through
two phases: an exploratory study and a main survey. A choosen product to examine is
the laptop for its quite high price and high-competitive pressure of its market. For this
reason, the consumers will consider carefully and seriously when making a buying
decision.
In exploratory study, a qualitative study is undertaken by an in-depth-interview.
Collected information is used to explore, adjust, and supplement to the measuring
scale of the factors affected on brand loyalty for Laptop brands.
The main survey is conducted by quantitative research in form of questionnaire.
The result of questionnaire data is presented in the numerical form such as percentage
of age groups who attend this survey, or percentage of the main using laptop brand
name and so on. These numbers are, then, demonstrate in tables, graphs or other forms
of statistics. Conducted in Hochiminh city, the purpose of quantitative research is to
confirm the components as well as value and reliability of the measuring scales of
brand loyalty. Cronbach alpha coefficient, Exploring Factor Analysis (EFA), and
Multiple Linear Regression analysis (MLR) are applied through SPSS software; and
Convenience sampling is used.
1.5 The research implications
This study brings the practical meanings to human’s life in terms of business
(marketing manager, advertising agency and market researchers...) and academic
(educators, students of the business administration deparment especially in the
marketing division) as follows:


The research result has been a scientific foundation so that based on

it, the managers will make an effective strategy to enhance consumers’

loyalty for laptop brands.


The research result contributes additionally to the marketing

literature in particular in Brand Loyalty.


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

The research will be a reference material for not only researchers,

lecturers, students in the marketing, branding and management fields but
also other people in the society as well.
1.6

Thesis structure

This research is organized in five chapters. The beginning is the introduction
chapter. It includes a brief overview of the research background, problems and
objectives. The limitations and research methodology, the implications of research, and
structure are also presented.
Chapter 2 is the literature reviews and conceptual model. It explores and reviews
the extant literature on brand and Brand Loyalty. The factors of brand personality and
brand association which promote the effectiveness of Brand Loyalty are also discussed
in this chapter. Based on the literature reviews, a research model is proposed.
Chapter 3 is the research methodology. An attention is concentrated on the
research design, then interprets and illustrates the way that primary and secondary data

is collected. The measurement scales apply for the research factors will be determined
clearly and suitably.
Chapter 4 analyzes the collected data and presents the findings from the survey
in terms of Self-expressive value of brand personality, Distinctiveness of brand
personality, Perceived Quality and Perceived Price. Besides, results from the university
students’ interviews for the effective levels of these factors on Brand Loyalty are show
as well.
Chapter 5, the final part of this dissertation, is the chapter of conclusion and
signification. The researcher will mention several recommendations for brand
managers of Laptop products in Ho Chi Minh City Market in terms of the theoretical
and managerial significance. In addtion, this chapter also made a brief summary about
the main content of the dissertation and further research.


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CHAPTER 2: LITERATURE REVIEW
Before carrying out the survey on the effect factors and its influence level on
Brand Loyalty for Laptop brands in Ho Chi Minh city market, the chapter 2 will
provide a theoretical background about brand, Brand Loyalty as well as the factors
affected on Brand Loyalty. Based on these, the conceptual model is contructed.
2.1 Brand
“We don’t just want people to buy a brand, we want people to buy into a brand,
to make it part of their lives” Stan Richard, The Richards Group, said (Landa, 2006).
Thus, brand has been recalled many times around our lives, in particular in marketing
and selling field. However, to understand what brand is. It is not easy for anyone
because of complicated meaning of brand word and non-existence of a formal brand
definition. For these reasons, we will approach the brand’s concept according to two
main views.
The first one is the traditional brand concept with American Marketing

Association definition. They assumed that a brand is “a name, term, sign, symbol, or
design, or combination of them, intended to identify the goods or services of one seller
or group of sellers and to differentiate them from those of competitiors” (Bennett,
1995; Keller, 1998). This means a brand is a part of product and its main function
distinguish the same catalogue product of various producers.
The second brand concept is intergated concept. According to this concept, the
meaning of brand would change when there is a change in the economic environment.
The traditional concept can not explain sufficiently the brand meaning in the
globalized and strict competition of the economy during the 20th century. So the
integrated brand concept has appeared to adapt the new situation. Davis (2002)
supposes that a brand is not only a name or a symbol but also more complicated. It is a
assembly atribute with various dimensions to supply all requirements from the target
customers. To sum up, a brand in this concept assert that the product which is a part of
brand which provides funtional benefits to consumers only. Besides, the components
of mix marketing comprise product, price, distribution, and promotion that are a part


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of a brand only (Ambler and Style, 1996). Figure 2.1 is drawn to illustrate the change
from the traditional brand concept to the integrated brand concept as below.
Figure 2.1 Two models about the relationship between a product
with a brand.
A. Brand is a part of product

B. Product is a part of Brand

Product
Brand

Source: Nguyen Dinh Tho & Nguyen Thi Mai Trang (2002)
Source: Nguyen Dinh Tho & Nguyen Thi Mai Trang (2002)
Futhermore, it is believed that beyond those intrinsic elements, a brand also
means all the experience and feelings that consumers associate with it or even the
prestige about the brand echoed either by words of mouth or appears on articles
(Kotler & Pfoertsch, 2007). Discussing about brand’s benefits, we can not deny that
brands have had benefits for both of the manufacturers and consumers. For consumers,
a brand is a signal of quality; it helps identify products and sevices and assign
responsibility to manufactures or services providers; a brand is also the risk and search
cost reducer; it is even can be used as a symbolic device...(Aaker, 1996; Keller, 1998).
For manufactures, brands also help manufactures to identify and simplify handling or
tracing products. Brand legally protect unique features of a product or service that
bears the name. “A brand is also a manufacture or service providers’ promise of quality
and especially those function benifits that the consumer expects; the unique
associations endow to the brand which may provide competitive advantage for the
firm; and maybe the benifit of most concern to shareholders, that it is a source of
financial returns” (Lam Hong Phong, 2009).


7

To sum up, brand plays an important role in our life and it has multiple
dimensions and meanings. However, the integrated brand concept is accepted by
researchers and practioners. Product can be imitated by the competitors, but brand is
private property of a firm; product can be out of date, yet a brand, if a brand success
will be never obsolete (Aaker, 1991:1). Therefore brands are being represented product
in the promotion marketing day by day (Chevron 1998; Bhat & Reddy, 1998).
2.2 Brand Loyalty
In marketing literature, loyalty is definies “... a deeply held commitment to
rebuy or repatronise a preferred product or service consistently in the future, thereby

causing repetitive same-brand or same brand-set purchasing, despite situational
influences and marketing efforts having the potential to cause switching behaviour”
(Olive, 1999). Additional, Dwayne Ball (2004) argues that loyalty represents for both
attitude and behavioral intentions (repurchase or purchase frequency), and attitudinal
component. And the specific conceptual definition of Brand Loyalty is presented by
Jacoby and Chestnut (1978). According to them, Brand Loyalty is “ the (a) biased, (b)
behavioral response, (c) expressed over time, (d) by some decision – marketing unit,
(e) with respect to one or more alternative brands out of a set of such brands, and (f) to
be a funtion of psychological (decision-making, evaluative) processes (Jacoby and
Chestnut, 1978: p.80). There are six requirements for brand loyalty mentioned in this
definition.
2.2.1 Consumer’s loyalty and brand equity
Brand loyalty is a measurement of consumer’s trust for a brand. The more tight
the loyalty level is, the more rich the close consumer’s database is. This is a
guaranteed sign for the prestige and quality of the brand in the future.
Actually, consumer’s loyalty is a core value of Brand Loyalty. For example, if a
consumer buy a goods for its reasonable price, its quite stable quality or its convenient
buying only, this goods’ brand has not value. In contrast, if the consumer insists on
finding an exactly brand that she desires to express her preference in the strictly
competitive evironment where all brands are nearly similar in product, price, quality,


8

convenience, even the same in attractive promotion program or services..., this brand
has a precise value.
2.2.2 Value strategy of brand loyalty
Building the brand loyalty successfully will bring a firm a lots of real benefits.
According to Aaker (1996), there are four benefits from the consumer’s loyalty
including reduced marketing costs, trade leverage, new customers’ attraction, time to

respond to competitive threats.
Reduced marketing costs: maintaining the target customer is less expensive
than attracting the new customer is. However, it actually is a wrong decision when we
try to catch a new customer without giving care to the old and present customers in the
expanding market strategies. Firms selling brands with a high rate of loyal of
consumers have had a competitive advantage more than other ones. Brand loyal of
consumers reduces the marketing costs of the firm as the cost of attracting a new
consumer has been found to be about six time higher than the costs of maintaining an
old one (Rosenberg and Czepiel, 1983). The satisfaction of the old and present
consumers is more valuable than the attraction to a new consumer. Therefore, a firm
shall make its best efforts to satisfy the old and present customers.


Trade leverage: when consumers are loyal to a brand, they trend to

buy a right brand that they desire without bargain; they are ready to pay
higher price for their prefered brand. So, a firm has a large number of
loyal consumers, it ensure that the firm’s returned profit will be higher
and higher day by day. Actually, this is demontrated and mentioned by
Reichheld et al. (2000), and Krishnamurthi and Raj (1991); they argue
that brand loyal consumers are willing to pay higher prices and are more
less price sensitive.
 Attraction to new customer: the loyal consumers are an alive proof
and a
trust invitation to potiential consumers; in particular the potential
consumers are the loyal consumers’ a relative or a relationship. Brand
loyalty generates positive word-of-mouth recommendation (Ruben,


9

2007). Therefore, a loyal consumer is a particular tool that a firm can use
to attract new consumers.


Time to respond to competitive threats: Aaker (1991) assume that

brand loyalty provides the firm with valuable time to respond to
competitive moves. This comment is accepted by many researcher and
businessman.
In conclusion, building loyal consumer or building brand loyalty is a necessary
strategy of a firm. Brand Loyalty become a ultimate target of almost firms in the
highly competitive economy nowadays.
2.3 The factors affected on brand loyalty in Ho Chi Minh market
2.3.1 Self-expressive value of brand personality
A brand is used for expression and to reflect self-concept. While expressed
properly, brand personality has affected positively to a consumer’s attitude to the brand
(Aaker, 1999). Additional, Belk (1988) supposes that if the brand helps a person to
express him/herself, the brand will be become more attractive. Moreover, brand
personality can help firms communicate with customers and consumers more
effectively, and marketing managers as well as marketers also recongnize that brand
personality plays an important role in advertisements and sales promotion (Plummer,
1985; Batra, 1993; Aaker, 1991). And, when there is a specific association between the
brand’s characteristics and consumers’ personality, consumers are willing to reckon the
brand as their friend. Then, consumers will be loyal with that brand for a long time
without considering for a choice about other brands with the same function products.
Therefore, consumers tend to become loyal when they can express themselves through
a brand.
Actually, by modified Chung & et al. (2001) research, several Vietnamese
researchers (Dinh Thi Ngoc Linh (2006), Pham Anh Tuan (2008),…) have measured

and confirmed that Self-expressive value of brand personality had positively affected
on brand loyalty.
In recent years, the youth has been strongly influenced by many newly imported
lifestyle trends, especially the individual libertarianism which is more and more
popular. Besides, nowaday youth’s tendency expresses and likes to express


10

himself. The Self-expression is usually represented by the accustomed things such as
cell-phone, motorcycle, clothes, laptop and so on. Consequently, we consider the Selfexpressive value of brand personality as an antecedent variable or an independent
variable which can influence on Laptop consumer’s Brand Loyalty in this study.
H1. There is a positive relationship between Self-expressive value of brand
personality and Brand Loyalty.
2.3.2 Distinctiveness of brand personality
Distinctiveness of brand personality is unique positive characters or salient
features of a brand. These features made a remarkable difference of the brand. It is a
basis to distinguish this brand with others. This implies that when a consumer chose a
brand with a remarkable feature which is differred from other, they want to illustrate
they are different. In other words, consumers want to express themselves through a
brand which has one or several the same personal character with them. For example,
among beverage brands, if you are an active and dynamic teenager or a youth, and you
desire to express your personality to others, you will tend to drink Pepsi cola than
Coca-cola or other brands. An obvious reason is Pepsi cola’s brand image represented
the personal characters of these subjects for Pepsi company’s brand communication
strategies, while Coca-cola’s strategies are towards maturity of a classical style. Even
when using a BMW car will make consumers become more luxurious than using a
Toyota.
Distinctiveness factor is proved to have influence to brand loyal directly or
indirectly. In Chung & et al. (2001), demonstrate that distinctiveness factor affected

indirectly on Brand Loyalty, whereas Dinh Thi Ngoc Linh (2006) indicates that
Distinctiveness has directly affected on Brand Loyalty. Actually, in the modern life,
everyone become busier and busier, time is shorter and shorter, and everything pass
quickly. If you are a special or unique person, you will have a chance to make an
impression to others only. In another way, your own way expresses yourself “this is
me, myself”. The differentiated expression and Self-expression nowadays become
more and more popular lifestyle trend particular in the youth. Therefore,
Distinctiveness has a relationship with Brand Loyalty. Thus, it is expected that


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consumers with a higher satisfaction in Distinctiveness of product will be more loyal
to brand.
H2. There is a positive relationship between Distinctiveness of brand
personality and Brand Loyalty.
2.3.3 Perceived Quality
Perceived Quality can be divided into product quality and service quality. And,
product quality consist of seven dimensions (performance, features, conformance with
specifications, reliability, durability, serviceability, and fit and finish) while service
quality dimensions comprise tangibles, reliability, competence, responsiveness, and
empathy (Zeithaml, 1988). On the other hand, Dawar (1999) argue that Perceived
Quality is “ ideas or customer’s overview comment about one or several remarkable
elements, perfect components or particular dimensions of product”. Therefore,
Perceived Quality is consumer’s comments about product quality subjectively.
However, Perceived Quality is different from other consumers eventhough it is
considered for only one product of the same brand. There are different comments for
the same standard level of product. In fact, when consumers have the differences in
geography, age, level or the differences in their perception about product’s package,
brand image, advertising or word-of-mouth as well as the differences between

experiential consumers or in-experiential ones, consumers will be impacted on these
dimensions with different levels.
Perceived Quality is one of among important basic factors influenced on Brand
Loyalty in Vietnam market in particular in a long-term used product. It is proved that
most previous Vietnamese researcher has been chosen Perceived Quality as an effect
factor on Brand Loyalty in their research model, and most of them confirm from their
research results that Perceived Quality has affected positively on Brand Loyalty.
Represented for this statement, we have Nguyen Dinh Tho & Nguyen Thi Mai Trang
(2002), Dinh Thi Ngoc Linh (2006), Trieu Luong Tu Phuong (2005),…. Moreover,
quality factor of the long-term used product, like the laptop product, is considered
carefully because of many reasons. Firstly, if Laptop causes a problem or a damage,
consumers have no much time to take it to a warranty post or a repaired store. The next


12

reason is for information security. Thirdly, consumers ask the laptop a high processing
speed to save their time. Therefore, we have the following hypothesis:
H3. There is a positive relationship between Perceived Quality and Brand Loyalty.
2.3.4 Perceived Price
The foundation of Perceived Price is based on the real price of a product and
consumer’s reference price (Winer, 1986). Perceived Price is impacted the same
direction (positive) with the real price of product, and it is affected contra-variant
(negative) by the reference price (Chang and Wildt, 1994). Besides, Alhabeed (2002)
argue that Perceived Price is affected by expenditure and opportunity cost, then it
influences to perceived value, and finally it affect on Brand Loyalty.
Perceived Price has influenced directly or indirectly on Brand Loyalty. The
foreign researcher’s results conclude that Perceived Price affect indirectly on Brand
Loyalty (Yoo & et al, 2000), whereas the domestic researches’ results illustrate that
Perceived Price influence directly on Brand Loyalty (Dinh Thi Ngoc Linh, 2006; Trieu

Luong Tu Phuong, 2005). This can be explained that Vietnamese income plays an
important role in making a buying decision. Therefore, we have the following
additional hypothesis in this paper.
H4. There is a positive relationship between Perceived Price and Brand Loyalty.
2.4 Research model
Based on the mentioned literature, a research model is proposed, in the purpose
of testing and verifying the elements affect on Brand Loyalty for Laptop brands in Ho
Chi Minh city market.


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Figure 2.2 Research Model

Self-expressive
value
H1

Distinctiveness

H2

Brand Loyalty
H3

Perceived Quality
H4

Perceived Price

The hypotheses:
H1. There is a positive relationship between Self-expressive value of brand
personality and Brand Loyalty.
H2. There is a positive relationship between Distinctiveness of brand personality
and Brand Loyalty.
H3. There is a positive relationship between Perceived Quality and Brand Loyalty.
H4. There is a positive relationship between Perceived Price and Brand Loyalty.
2.5 Summary
This chapter summarizes the previous theories and research results of research
models which are reckoned basic theories and inheritability knowledge to support this
study.


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Based on literature review, we select and adjust the appropriate elements to a
kind of product and market research - the laptop consumers in Hochiminh city market.
Besides, we also consider the dependence of Brand Loyalty variable impacted by the
four independent variables concluding Self-expressive value, Distinctiveness,
Perceived Quality and Perceived Price.
The theories and concepts are the sound foundation for the study about the
effective factors on Brand Loyalty for Laptop brands in Ho Chi Minh market.
However, the research method, the data collection process and method of data analysis
have a critical part in the success of dissertation. Through the research methodology of
the next chapter, the researcher will present all of these problems.


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CHAPTER 3: RESEARCH METHODOLOGY

A research methodology defined what the activity of research was, how to proceed,
how to measure progress, and what constitutes success (MIT AI Lab, 1988). Or in
other words, the chapter 3 dealed with the methodology used for this dissertation. It
provided an outline of the research approach, the associated methods and techniques
used for the collection of relevant data (Galliers, 1992). This part was organized into
two parts: (1) research design, (2) measurement scales. Besides, tools which were used
for testing the research questions and hypotheses were also mentioned in this chapter
of dissertation.
3.1 Research design
As we mentioned in chapter 1, the research was performed through two phases:
(1) an exploratory study, (2) a main survey. The purpose of the exploratory study was
exploring and refining the relevant items and buiding a questionnaire. Besides, the
main survey was also discussed in data collection, analysis of collected data as well as
model measurement.
3.1.1 Exploratory study
In the exploratory study, a qualitative research was executed by means of indepth interviews with fifteen full time students (including five students of University
of Economics Ho Chi Minh City and ten students of Ho Chi Minh City University of
Technology). Based on the outcome of this study, the conceptual model and
hypotheses were confirmed. Appropriate adjustment in measurement scale was made
to match with the real situation of laptop consumer in Ho Chi Minh city. Furthermore,
a pilot test was conducted with a sample of 25 students of Ho Chi Minh City
University of Technology by means of face-to-face interviews to check the correctly
meaning understanding of these words which were used in the questionnaire before the
main survey was undertaken.


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3.1.2 Main survey
The main survey was a quantitative research which was conducted in

Hochiminh city with convenient sampling; and the final questionnaires were sent to
both part time and full time students of these universities in Ho Chi Minh city.
3.1.2.1 Sample size
A good sample size should satisfy both accuracy and precision or it should
bring no systematic bias in variance with the sampling error acceptable (Donald &
Pamela, 2003). Additional, Hair & et al. (1998) argued that we needed to collect at
least five sample for a observed variance in Exploring Factor Analysis. And, a good
sample size in Multipe Linear Regression Analysis, we should ensure a sample size
following the below formula (Tabachnick & Fidell, 1996).
N>=8M+50
N: sample size
M: the number of independent variable of model
3.1.2.2 Research process
The research process was demonstrated in figure 3.1 as below:


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Figure 3.1 Research process

In-depth interview

Literature Review

Revised

In-depth interview

The formal
questionnaire

Quantitative
research

Cronbach alpha

Completed
measurement scale

EFA

MLR

3.2 Measurement
Measurement scale used in this study was multi-item seven point Likert scales,
which developed and validated by previous researches (including Dodds, 1991; Yoo &
et al, 2001; Chung & et al, 1998,2001; Tho and Trang, 2002).
Qualitative research results were a foundation to adjust and to build a measure
scale suitable with the kind of product and Hochiminh market.