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: …………………………………….................
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Reviewer 2: ………………………………........................
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Reviewer 3: …………………………………….................
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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: …….......................
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PUBLISHED SCIENTIFIC WORKS
1. 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.
2. 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.
3. 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.
4. 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.52-64.
5. 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.52-64.
6. Tran Nguyen Khanh Hai and Nguyen Quang Thu, 2018.
Impact of corporate social responsibility on brand
identification and brand switching intention in Vietnam.
.
1
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 brand-customer 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
2
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 brandcustomer 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 brandcustomer 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 triple-bottom 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.
3
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.
4
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
brand-customer
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.
5
CHAPTER 2: THEORETICAL FOUNDATIONS AND
RESEARCH MODELS
2.1 CSR theory
The TBL theory (triple-bottom 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 identity-brand 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,
6
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
7
maximize the economic, social and environmental long-term
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 brand-customer relationship is defined as
"strength" and "depth" in brand-customer 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
8
commitment) to verify the relationship between brand customer relationship with the switching brand intention
(Papista and Dimitriadis, 2012, Fritz et al, 2014; Veloutsou,
2015; Giovanis, 2017).
Switching brand intention
Intention is a sign of human readiness to perform a certain
behavior, considered a direct premise of behavior (Ajzen,
1991). The intention to convert is a customer who stops buying
the brand's goods or services and replaces it with another brand
(Ping, 1994; Shin et al., 2008; Zhang, 2009).
2.5.2 Theoretical models and research hypothesis
Based on the theoretical foundation of CSR, brand
identification,
quality
of
brand-customer
relationship,
identification of gaps, the author has proposed a research model
with 04 groups of basic elements as construction prefix quality
brand
relationships
-
customers,
namely
CSR;
brand
identification; brand – customer relationship quality; and the
results of the brand-customer relationship quality, namely the
switching brand intention.
The impact of brand-customer relationship quality on
switching brand intention
Nguyen and Nguyen (2010) argued that when assessing
and maintaining business relationships, the quality of
relationships plays a key role. Customers also tended to conduct
positive behaviors, such as voluntarily helping the service
organization and other organization’s customers (Xie et al.,
2017).
9
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 selfexpression 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 self-esteem 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
relationships.
define
the
viability
of
brand-customer
10
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, brandcustomer 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
11
(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:
Brand –
H2a
consumer
relatonship
quality
Brand
identifatin
H2b
H3f
Switfhing
brand
intentin
H1
H3b
H3a
Corporate social responsibility
Figure 2.5: Recommended theoretical research model
(Source: author)
12
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 in-depth 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 second-order concept
consisting of three responsible components: economic, social
and environmental. They were measured by 20 items based on
Alvarado-Herrera et al. (2017) and qualitative research results.
13
Table 3.1: Scale of CSR
Cod
e
Economic responsibility
Ec1
Items
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
long-term economic success
I believe brand X tries to continuously
Ec3
improve the quality of the services that they
offer
I believe brand X tries to have a competitive
Ec4
pricing policy
I believe brand X tries to do its best to be
Ec5
more productive
I believe brand X tries to
Ec6
organize its services: security, car, fire
protection, hygiene to meet customer needs
Social responsibility
I believe brand X tries to sponsor educational
So1
programs
I believe brand X tries to sponsor public
So2
health programs
I believe brand X tries to be highly
So3
committed to well-defined ethical principles.
I believe brand X tries to sponsor cultural
So4
programs
I believe brand X tries to make financial
So5
donations to social causes
Ec2
Author
Alvarado-Herrera
al. (2017)
et
Alvarado-Herrera
al. (2017)
et
Alvarado-Herrera
al. (2017)
et
Alvarado-Herrera et
al. (2017)
Alvarado-Herrera et
al. (2017)
author
synthesized
from
discussion
group’s conclusion
Alvarado-Herrera
al. (2017)
Alvarado-Herrera
al. (2017)
Alvarado-Herrera
al. (2017)
Alvarado-Herrera
al. (2017)
Alvarado-Herrera
al. (2017)
et
et
et
et
et
et
So6
I believe brand X tries to help to improve
quality of life in the local community
Alvarado-Herrera
al. (2017)
So7
I believe brand X tries to provide products
that meet food hygiene and safety standards,
quality assurance, provenance.
author
synthesized
from
discussion
group’s conclusion
So8
I believe brand X tries to create jobs for local
people
author
synthesized
from
discussion
group’ conclusion
So9
I believe brand X tries to sponsor programs:
Vietnamese people use Vietnamese goods,
gratitude.
author
synthesized
from
discussion
group’s conclusion
14
Environmental responsibility
I believe brand X tries to sponsor proEn1
environmental programs
I believe brand X tries to allocate resources
En2
to offer services compatible with the
environment
I believe brand X tries to carry out programs
En3
to reduce pollution
I believe brand X tries to recycle its waste
En4
materials properly
I believe brand X tries to use only the
En5
necessary natural resources
Alvarado-Herrera
al. (2017)
et
Alvarado-Herrera
al. (2017)
et
Alvarado-Herrera
al. (2017)
Alvarado-Herrera
al. (2017)
Alvarado-Herrera
al. (2017)
et
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
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
Bi3
X’s successes are my happiness
Bi4
When someone praises brand X, it feels
like a personal compliment
Bi5
When I want to shop, I think of the brand
X
Author
Mael and Ashforth
(1992)
Mael and Ashforth
(1992)
Mael and Ashforth
(1992)
Mael and Ashforth
(1992)
author
synthesized
from
discussion
group’ conclusion
Note: X is the supermarket brand name
(Source: Author's synthesis)
et
et
15
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
Trust
Items
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
Sa3
Sa4
I am completely satisfied with X
X offers exactly what I expect from a
supermarket
Brand X always create sympathy with
customer: giving birthday gifts, Tet gifts,
programs for loyal customers ...
Commitment
Co1
I am emotionally attached to the hotel group
I am committed to the relationship with
Co2
brand X
Author
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
from discussion
group’
conclusion
Lo et al. (2017)
Lo et al. (2017)
Note: X is the supermarket brand name
(Source: Author's synthesis)
16
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
Cod
e
Sw1
Sw2
Sw3
Items
I intend to switch supermarket
Next time, I shall buy in another
supermarket
I would not continue to buy at X
Author
Shin et al. (2008)
Shin et al. (2008)
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 itemtotal 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.
17
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 25-34 is the majority, 205 people make up
40.4%; Next is the group of people aged 35-44 with 105 people,
accounting for 20.7%. Most of them have college degrees 476
(93.9%). In terms of income, the prevailing income is 10-20
million VND / month, 181 people make up 37.5%; Next is from
5-10 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).
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