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Research theories CSR, brand identification (BI), brand relationship quality (BRQ), switching brand intention; verify differences in the influence of variables CSR, BI, BRQ on the switching brand intention; contribute a suggestion to brand managers, marketers in raising customer’s perception about CSR.
MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY TRAN NGUYEN KHANH HAI CORPORATE SOCIAL RESPONSIBILITY, BRAND – CUSTOMER RELATIONSHIP QUALITY AND SWITCHING BRAND INTENTION IN THE CONSUMER GOODS IN VIETNAM Major: Administrations Code: 9340101 SUMMARY OF ECONOMIC DOCTORAL THESIS Ho Chi Minh City 2019 The research was completed at University of Economics Ho Chi Minh Scientific instructors: Assoc Prof Ph.D Nguyen Quang Thu Reviewer 1: …………………………………… Reviewer 2: ……………………………… Reviewer 3: …………………………………… The dissertation will be defended in front of thesis scoring council at the University of Economics Ho Chi Minh City at …. hour …. day …. month …. year …. The thesis can be found at the library: …… …………………………………………………………… PUBLISHED SCIENTIFIC WORKS Tran Nguyen Khanh Hai and Nguyen Quang Thu, 2018. The role of brand identification in the relationship between corporate social responsibility and intent to transform brand. Economic Studies. Vol 4 (479), pp.50 59 Nguyen Quang Thu and Tran Nguyen Khanh Hai, 2018. The impact of brand identification on brand – consumer relationship quality and switching brand intention. External Economics. Vol 103, pp.30 42 Tran Nguyen Khanh Hai and Nguyen Quang Thu, 2018. The impact of corporate social responsibility on brand – customer relationship quality and brand switching intention in Vietnam. Journal of Science. Vol 60, no 3, pp.106 119 Tran Nguyen Khanh Hai, 2018. Consumers’ perceptions of corporate social reponsibiliy: A review of the literature and discuss directions for future research Journal of Finance and Marketing Studies. Vol 46, pp.5264 Tran Nguyen Khanh Hai and Nguyen Quang Thu, 2018. Corporate social responsibility, brand identification, and brand switching intention in Vietnam Journal of Finance and Marketing Studies. Vol 45, pp.5264 Tran Nguyen Khanh Hai and Nguyen Quang Thu, 2018. Impact of corporate social responsibility on brand identification and brand switching intention in Vietnam CHAPTER 1: OVERVIEW 1.1 Research background In the highly competitive service sector, it is important that service providers have a developing differentiated service brands to create a sustainable competitive advantage (Sreejesh and Roy, 2015). In reality, recently researches have shown that consumers distinguish the brand based on the relationship which they have developed Therefore, it is essential to establish a relationship with customers through the marketing strategy of the business (Veloutsou, 2015) To begin with, corporate social responsibility (CSR) plays a pivotal role in the context of customer interest in CSR. The power of a brand depends on what the customer has learned, felt, seen and heard about the brand through their experience, that is, depending on customers’ mind (Hoeffler and Keller, 2002) Therefore, related images that derived from CSR can influence the brand through customers’ reaction In addition, when customers are skeptical about the brand, along with the diminishing value of traditional media in branding, questions related to branding identification are more important in brand management (Tuškej et al., 2013) To evaluate brandcustomer relationships, the brand identification (BI) and brand relationship quality (BRQ) are key factors (Lam et al., 2010; Bruhn et al., 2012; Kieu, 2016). BI is known as "the key psychological foundation for the profound, committed, and meaningful relationships that marketers increasingly desire to build with their customers" (Bhattacharya and Sen, 2003, p. 76) can be a useful dimension to understand the underlying mechanisms that explain the interaction between the brand and the customer While it is rare research of switching brand intentions to mention about the customers’ emotional, state of relationship even though it has impacted on the switching (Lin, 2010) Kieu (2016) examined the relationship between brand customer relationship quality and other relationship structure such as brand trust, brand identification, loyalty Future research may explore the prefix of brand identification because it is not included in the theoretical model. In addition, as the theory proposes other results of brand identification and brand customer relationship quality, such as brand switching (brand name, Lam et al., 2010), Further research should also consider the results of this relationship Thus, the exploration of customers’ perceptions about CSR is based on the triplebottom line theory (TBL) in the BRQ and the result of this relationship is switching brand intention is not interested. Therefore, the study identifies the relationship between customers’ perception of CSR based on TBL theory with BRQ and switching brand intention in the consumer goods in Vietnam, namely supermarket service is necessary Especially in the context combination of TBL theory, social identification theory, relationship marketing theory to build the relationship between CSR concepts, brand identification, substance brand relationship the customer is still a gap Briefly, BRQ is interested in growing; so BI, BRQ, and the impact of CSR on the switching brand intention in Vietnam is a new study 1.2 Research objectives Research theories: CSR, brand identification (BI), brand relationship quality (BRQ), switching brand intention Identify and measure the impact of CSR, BI, BRQ on the switching brand intention; Verify differences in the influence of variables: CSR, BI, BRQ on the switching brand intention; Contribute a suggestion to brand managers, marketers in raising customer’s perception about CSR 1.3 Objects and scope of the research The research objects are CSR, brand identification, brand relationship quality and switching brand intention Theoretical scope: This thesis focuses on CSR and its results, namely: BI, BRQ, switching brand intention in the consumer goods in Vietnam The author is based on the customer’s perception of the above concepts The survey scope: The study conducted a survey of customers who regularly shop at the general retail supermarket in Ho Chi Minh City, in the context of the consumer goods, namely retail supermarkets Time frame: Its data were collected from 2014 to 2018 1.4 Research implications Theoretical significance: CSR has been implemented quite a lot in developed countries, but in developing countries it is still quite new. Especially in Vietnam with specific demographic characteristics, orientations and policies, there may be differences. The combination of these theories synthesized the fundamental theories: sustainable development, TBL, social identification, relationship marketing and the concepts of CSR, brand identification, brand customer relationship quality, brand switching intention. This has contributed to the consumer behavior theory system Practical significance: The research results show managers and marketer in the field of retail supermarkets summarizing the situation of customer awareness about CSR. Since then, they set out suitable CSR plans, programs and actions to reduce their intention to switch brands Research also helps managers and marketers understand the benefits of being aware of CSR by customers It makes customers increase trust, satisfaction, commitment and reduce switching brand intention Research supports the viewpoint in developing economies, businesses should invest in CSR strategies and activities to enhance brand identification, strengthen brandcustomer relationship quality and reduce switching brand intention. 1.5 Structure of the thesis The thesis includes five chapters: Chapter 1: Overview; Chapter 2: Theoretical Foundations and Research Models; Chapter 3: Research Methodology; Chapter 4: Research results and Chapter 5: Conclusions CHAPTER 2: THEORETICAL FOUNDATIONS AND RESEARCH MODELS 2.1 CSR theory The TBL theory (triplebottom line theory) is used to verify and reflect the effectiveness of businesses in three factors: economy, environment and society Accordingly, corporate must ensure both economic, social benefits and environmental protection benefits. 2.2 Social identity theory Social identity is the person’s perception that he belongs to a certain social group, which has the same meaning of affection, interests, characteristics and values with himself (Tajfel, 1972) It helps to predict customers' behaviors and ability to move through other groups based on their perceptions of differences (Escalas, 2004) A social identity theory is an appropriate approach to research customers and brands; so many researchers have proposed a consumer social identitybrand model that illustrates the relationship between brand and customer; between customers and social identity; and between social identity and branding (Nguyen et al., 2015). This combination occurs when there is a match between the customer, social identity and the brand they own. 2.3 Relationship quality theory Crosby et al (1990) argue that the quality of the relationship is the customer's perception of trust and satisfaction with the seller to reflect their positive relationship. Since then, many scientists have inherited and developed based on this definition when conducting research on relationship quality (Bejou et al., 1996; Dorsch et al., 1998; Roberts et al., 2003; Golicic, 2007) 2.4 Reasonable action theory Theory of Reasoned Action TRA was first researched and introduced by Fishbein Ajzen in 1967, continued to be revised and supplemented twice in 1975 and 1987, showing that consumption trend was the factor best guess consumer behavior The author has studied the impacted of the social responsibility to switching brand intention through brand identification and brand customer relationship quality in the perspective of customers; so only focusing on customer’s perception about corporate social responsibility, the relationship between awareness, attitudes and behavioral intentions. This is shown in figure 2.4 below: Figure 2.4: Compact theoretical behavior model (Source: Author's synthesis) 2.5 Research model 2.5.1 Research concepts CSR concept This thesis has inherited the CSR concept stated by Du et al. (2011, page 1) “CSR is a company's commitment to maximize 10 the economic, social and environmental longterm benefit through activities, business, policies and resources" for research CSR perception of customers referred to CSR is customer’s perception about CSR. For a comprehensive study of CSR, this study has incorporated many components in a multidimensional approach based on sustainable development theory to measure CSR through three responsible issues: economic, social, environment with CSR perspective according to customers' perception Brand identification concept Brand identification is a person who realizes that he has "the mentality associated with the fate of the group, sharing the common destiny and experiencing the success and failure of the brand" (Mael and Ashforth, 1992, p. 104 105). In this view, brand identification is a sense of personal similarity with a social group Brand customer relationship quality concept Quality of brandcustomer relationship is defined as "strength" and "depth" in brandcustomer interaction (Smit et al., 2007; Hudson et al., 2015). It increases when customers feel the brand's program meets their expectations and wants to continue to stick with it The model of brand commitment seems to be the most appropriate framework to investigate the impact of both cognitive components (trust, satisfaction) and affective (brand 12 Customers stayed with brands that have higher brand satisfaction and commitment (Şahin et al., 2011; Kokkiadi and Blomme, 2013). Therefore, when customers were not satisfied, the risk of customers switching to a more attractive brand becomes bigger (Gulamali and Persson, 2017). This showed that the quality of the brand relationship was stronger; customer’s trust, satisfaction and commitment with the brand was higher. Since then, the hypothesis H1 has been as follows: H1: Brand customer relationship quality has a negative impact on switching brand intention The impact of brand identification on brand customer relationship quality, switching brand intention Based on the social identification theory that when customers identified with the brand, they were ready to repeat purchase (Tukeke et al., 2013) One of the important consumer needs was the self expression and improvement of their image At the time of buying the brand, they conveyed a specific image or social role. They tended to identify themselves with reputable brands, because it increased their selfesteem and the need to belong to the group (Tajfel and Turner, 1985) Customers switched to another brand with the aim of enhancing identification (Lam et al., 2010) In other words, brand identification would make customers feel more attached, consistent with the brand and the intention to transform the brand to become rarer Research by Lam et al (2010) showed that brand identification define the viability of brandcustomer relationships 13 From the above arguments, author has hypotheses H2a and H2b as follows: H2a: Brand identification has a negative impact on switching brand intention H2b: Brand identification has a positive impact on brand customer relationship quality The impact of CSR on switching brand intention, brand customer relationship quality, brand identification Stanaland et al (2011) suggested that CSR encourages consumers to trust the brand Garcia de los Salmones et al. (2005) pointed out that customer trust in a company's products or services is directly affected by their perception of CSR. McDonald and Lai (2011) and Pérez and Rodríguez del Bosque (2015) found a significant positive relationship between CSR and customer satisfaction Besides, CSR also affected the customer’s commitment (Inoue et al, 2017) It means, when customers trusted through CSR, they tended to bind more brands, switching brand intention will become rare and the brand customer relationship quality will be strengthened The attitude of customers would be more positive for businesses that perform CSR activities than for businesses that do not implement CSR (Murray and Vogel, 1997) and when planning or conducting purchases they based on CSR images of businesses (Vlachos et al., 2009; Choi and Ng, 2011; Du et al, 2011). Obviously, CSR of enterprises affected the decision to own customers' goods directly and indirectly through customer identification with enterprises (Pérez et al, 2013). In this view, many scholars have shown that CSR affects brand identification 14 (Lichtenstein et al., 2004; Marin et al., 2009; He et al., 2011, Mobin Fatma et al., 2016) From the above analysis, the hypotheses H3a, H3b, H3c are set as follows: H3a: CSR has a negative impact on switching brand intention H3b: CSR has a positive impact on of brand customer relationship quality H3c: CSR has a positive impact on brand identification Since then, the author has proposed the research model as follows: Figure 2.5: Recommended theoretical research model (Source: author) 15 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research design The study was conducted in two steps: preliminary research and primary research. Preliminary research was conducted by qualitative research and quantitative research. Based on theoretical and hypothetical frameworks developed in Chapter 2, with indepth interviewing techniques for exploration. Then, discussing group to develop, adjust the measurement scale in accordance with the characteristics of Vietnam. A quantitative preliminary research was conducted by direct interviewing with 115 samples through a detailed questionnaire. The Cronbach's alpha reliability and the Exploratory Factor Analysis (EFA) were used Primary study was conducted by quantitative method. It uses direct interview technique with detailed questionnaire with regular customers in the retail supermarket in Ho Chi Minh city. It used convenience sampling with 507 samples. The collected data was measured by the Cronbach alpha reliability and the EFA. Then, analyzed the CFA to measure all the research, measurement scales. Finally, the theoretical model and hypotheses in the model were tested through the SEM, Bootstrap models and multi – group analysis 3.2 Measurement Measure of CSR The CSR used in this study is a secondorder concept consisting of three responsible components: economic, social and environmental. They were measured by 20 items based on AlvaradoHerrera et al. (2017) and qualitative research results Table 3.1: Scale of CSR Cod e Economic responsibility Items Author 16 Ec1 Ec2 Ec3 Ec4 Ec5 Ec6 I believe brand X tries to maximize profits to sustain business I believe brand X tries to build solid relations with its customers to assure its longterm economic success I believe brand X tries to continuously improve the quality of the services that they offer I believe brand X tries to have a competitive pricing policy I believe brand X tries to do its best to be more productive I believe brand X tries to organize its services: security, car, fire protection, hygiene to meet customer needs AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) author synthesized from discussion group’s conclusion Social responsibility So1 So2 So3 So4 So5 So6 So7 So8 So9 I believe brand X tries to sponsor educational programs I believe brand X tries to sponsor public health programs I believe brand X tries to be highly committed to welldefined ethical principles I believe brand X tries to sponsor cultural programs I believe brand X tries to make financial donations to social causes I believe brand X tries to help to improve quality of life in the local community I believe brand X tries to provide products that meet food hygiene and safety standards, quality assurance, provenance AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) author synthesized from discussion group’s conclusion author synthesized I believe brand X tries to create jobs for local from discussion people group’ conclusion author synthesized I believe brand X tries to sponsor programs: from discussion Vietnamese people use Vietnamese goods, group’s conclusion gratitude. Environmental responsibility En1 I believe brand X tries to sponsor pro environmental programs AlvaradoHerrera et al. (2017) 17 En2 En3 En4 En5 I believe brand X tries to allocate resources to offer services compatible with the environment I believe brand X tries to carry out programs to reduce pollution I believe brand X tries to recycle its waste materials properly I believe brand X tries to use only the necessary natural resources AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) AlvaradoHerrera et al. (2017) Note: X is the supermarket brand name ((Source: Author's synthesis)) Measure of Brand identification Some researchers have passed the Mael and Ashforth (1992) initial organizational identification scales in the context of the consumer goods brand (He and Li, 2011; Keh and Xie, 2009; Kuenzel and Halliday, 2008, 2010; Zhou et al., 2012) and the results were good. The brand identification scale of 05 items was based on the Mael and Ashforth (1992) scale and group discussion results (table 3.2) Table 3.2: Scale of brand identification Cod e Bi1 Bi2 Bi3 Bi4 Bi5 Items When someone criticizes brand X, it feels like a personal insult (no happiness) I am very interested in what others think about brand X Author Mael and Ashforth (1992) Mael and Ashforth (1992) Mael and Ashforth X’s successes are my happiness (1992) When someone praises brand X, it feels Mael and Ashforth like a personal compliment (1992) author synthesized When I want to shop, I think of the brand from discussion X group’ conclusion Note: X is the supermarket brand name (Source: Author's synthesis) 18 Measure of BRQ The BRQ scale consists of three components: trust, satisfaction and commitment. This conceptual scale is based on the Nyffenegeer et al. (2015) and Lo et al. (2017) scales and was revised after qualitative research (table 3.3) Table 3.3: Scale of BRQ Code Items Author Trust Tr1 I rely on brand X Tr2 X is an honest brand Tr3 X is a safe brand Tr4 X acts in customers’ best interests X group makes an effort to know its Tr5 customers Satisfation I am consistently satisfied with my decision to Sa1 fly with X Sa2 I am completely satisfied with X X offers exactly what I expect from a Sa3 supermarket Brand X always create sympathy with Sa4 customer: giving birthday gifts, Tet gifts, Commitment Co1 Nyffenegger et al. (2015) Nyffenegger et al. (2015) Nyffenegger et al. (2015) Lo et al. (2017) Lo et al. (2017) Nyffenegger et al. (2015) Nyffenegger et al. (2015) Nyffenegger et al. (2015) author synthesized Lo et al. (2017) I am emotionally attached to the hotel group I am committed to the relationship with Lo et al. (2017) brand X Note: X is the supermarket brand name Co2 (Source: Author's synthesis) Measure of switching brand intention After the two groups discussed, switching brand intention was measured by seven – point Likert on three item scales, developed by Shin et at (2008) (see Table 3.4) Table 3.4: Scale of switching brand intention 19 Cod e Sw1 Sw2 Sw3 Items Author I intend to switch supermarket Shin et al. (2008) Next time, I shall buy in another Shin et al. (2008) supermarket I would not continue to buy at X Shin et al. (2008) Note: X is the supermarket brand name (Source: Author's synthesis) 3.3 Measurement Validation Measuring reliability of the scale used the Cronbach alpha. The results of the analysis showed that the scales of the research concepts are reliable with Cronbach’s alpha > 0.6 and the item total correlation coefficient > 0.5 following the exclusion these items scalers: Ec1, Ec6, Bi3, Bi4, So5, So9 The EFA outcomes showed that there are total eight factors is extracted at 67.858> 60%, Eigenvalue = 1.093. This proves that these scales will explains the research concepts. In other words, the EFA model is appropriate and the research concepts are of distinct value. The factor loadings of the items are in the range of 0.583 to 0.911, all > 0.5, practical significance 20 CHAPTER 4: RESEARCH RESULTS 4.1 Characteristics of samples Statistical sampling included 396 females, accounting for 78.1%; 111 males accounted for 21.9% The number of respondents aged 2534 is the majority, 205 people make up 40.4%; Next is the group of people aged 3544 with 105 people, accounting for 20.7%. Most of them have college degrees 476 (93.9%) In terms of income, the prevailing income is 1020 million VND / month, 181 people make up 37.5%; Next is from 510 million per month, 127 people make up 25%. 4.2 The reliability and exploratory factor analysis Results of Cronbach's alpha analysis showed that 33 items had the item – total correlation coeffiencey > 0.5 and a high Cronbach's alpha coefficient > 0.6, ranging from 0.813 to 0.897. So that, all 33 items of scales were tested the exploratory factor analysis There were eight factors extracted at 61.092> 60%, Eigenvalue = 1.018. Thus, the concepts were well explained, or in other words, the EFA model is appropriate and the research concepts are worth distinguishing. The factor loadings of the items were > 0.5, practical significance 4.3 Confirmatory Factor Analysis (CFA) CFA performed in the following order: CFA CSR concept; CFA brand relationship quality concept; and CFA the final measurement model. The results showed that the scales are both valid and relevant to the market statistics (Table 4.1) 21 Table 4.1: The final measurement model testing Fact or Scaler CSR Economic al responsib Social responsib ility Environm ent responsib Code The reliabil ity General Average Variance Extracte Factor Loading Agreeme nt Ec alpha 0.813 So 0.890 0.8904 0.5373 0.7327 Agreeme nt En 0.845 0.8444 0.5206 0.7212 Agreeme 0.862 0.8618 Brand Identification BRQ Number observe d Cronba variable ch s Bi 0.8142 0.5229 0.7230 Agreeme nt 0.6755 0.8213 nt Agreement Trust Tr 0.896 0.8961 0.6334 0.7950 Agreeme nt Satisfacti on Sa 0.897 0.8973 0.6861 0.8280 Agreeme nt Commitm ent Co 0.881 0.8820 0.7892 0.8880 Agreeme nt 0.830 0.8313 Switching brand intention Sw 0.6217 0.7883 (Source: Research results) 4.4 Theoretical Model Testing Figure 4.1: SEM results (standardized) (Source: Research results) The model showed in Fig 4.1 with 484 degrees of freedom, in accordance with the set of survey data. Because, it has a chisquare value = 667.378 (p = 0.000), Chisquare / df = 1.379 TLI = 0.978, CFI = 0.980, GFI = 0.929 and RMSEA = 0.027 are all satisfactory The unnormalized estimation result of the parameters is shown in Table 4.1. With the value of p Bi ate CSR SE CR Pvalue 0.901 0.063 14.356 0,000*** Bi > BRQ 0.198 0.059 3.343 0,000*** CSR > BRQ 0.171 0.076 2.241 0.025 Bi > Sw 0.134 0.065 2.071 0.038 CSR > Sw 0.451 0.084 5.347 0,000*** BRQ > Sw 0.574 0.082 6.962 0,000*** Note: *** p