You are on page 1of 12

Marketing Intelligence & Planning

Emerald Article: Brand loyalty in emerging markets


Tho D. Nguyen, Nigel J. Barrett, Kenneth E. Miller

Article information:
To cite this document: Tho D. Nguyen, Nigel J. Barrett, Kenneth E. Miller, (2011),"Brand loyalty in emerging markets", Marketing
Intelligence & Planning, Vol. 29 Iss: 3 pp. 222 - 232
Permanent link to this document:
http://dx.doi.org/10.1108/02634501111129211
Downloaded on: 22-08-2012
References: This document contains references to 48 other documents
Citations: This document has been cited by 2 other documents
To copy this document: permissions@emeraldinsight.com
This document has been downloaded 3756 times since 2011. *

Users who downloaded this Article also downloaded: *


Won-Moo Hur, Kwang-Ho Ahn, Minsung Kim, (2011),"Building brand loyalty through managing brand community commitment", Managemen
Decision, Vol. 49 Iss: 7 pp. 1194 - 1213
http://dx.doi.org/10.1108/00251741111151217

Jan Mller Jensen, Torben Hansen, (2006),"An empirical examination of brand loyalty", Journal of Product & Brand Management, Vol.
15 Iss: 7 pp. 442 - 449
http://dx.doi.org/10.1108/10610420610712829

Steven A. Taylor, Kevin Celuch, Stephen Goodwin, (2004),"The importance of brand equity to customer loyalty", Journal of Product
& Brand Management, Vol. 13 Iss: 4 pp. 217 - 227
http://dx.doi.org/10.1108/10610420410546934

Access to this document was granted through an Emerald subscription provided by UNIVERSITAS KATOLIK PARAHYANGAN

For Authors:
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service.
Information about how to choose which publication to write for and submission guidelines are available for all. Please visit
www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
With over forty years' experience, Emerald Group Publishing is a leading independent publisher of global research with impact in
business, society, public policy and education. In total, Emerald publishes over 275 journals and more than 130 book series, as
well as an extensive range of online products and services. Emerald is both COUNTER 3 and TRANSFER compliant. The organization is
a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive
preservation.
*Related content and download information correct at time of download.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-4503.htm

MIP
29,3 Brand loyalty in emerging
markets
Tho D. Nguyen
222 Faculty of Business Administration, University of Economics,
HCM City, Vietnam and
Received February 2009 College of Business, University of Western Sydney, Sydney, Australia, and
Revised September 2009
Accepted February 2010
Nigel J. Barrett and Kenneth E. Miller
Faculty of Business, University of Technology, Sydney, Sydney, Australia

Abstract
Purpose This paper seeks to compare some key antecedents of brand loyalty between two
emerging markets: Thailand and Vietnam.
Design/methodology/approach Using a sample of 603 female consumers of international shampoo
brands, including 304 consumers in Bangkok, Thailand and 299 users in Hanoi, Vietnam, a model was
tested that incorporates key determinants of brand loyalty perceived quality, brand awareness,
advertising attitudes, and distribution intensity by means of structural equation modeling.
Findings The paper found that there are positive relationships between perceived quality and
brand loyalty, between brand awareness and perceived quality, between advertising attitudes and
brand awareness, and between distribution intensity and brand awareness in both markets. However,
the relationship between brand awareness and brand loyalty was found only in the Vietnamese
market, and the relationship between advertising attitudes and perceived quality was only found in
the Thai market. Finally, no relationship between distribution intensity and perceived quality was
found in either market.
Research limitations/implications A major limitation of this study is the examination of only
one concept that stands for strong brands, i.e. brand loyalty. Several other concepts, such as brand
relationship quality and brand impressions, should be investigated in future research in order to
compare and contrast with those found in advanced economies.
Practical implications The results of this study suggest that managers of international brands in
emerging markets should recognize the differences between markets in order to design effective
loyalty programs for each market.
Originality/value A major contribution of this study is to empirically compare the impacts of
perceived quality, brand awareness, advertising attitudes, and store image on brand loyalty in two
emerging markets: Thailand and Vietnam.
Keywords Brand loyalty, Emerging markets, Vietnam, Thailand
Paper type Research paper

Brands play a central role in marketing and have attracted the attention of academics
and practitioners over many years (Aaker, 1991; Brodie et al., 2009; Erdem et al., 2006).
Accordingly, several perspectives on brands have been found in the literature (Ambler
and Styles, 1996). Traditionally, a brand is defined as a name, term, design, symbol,
Marketing Intelligence & Planning or any feature that identifies one sellers good or service as distinct from those of other
Vol. 29 No. 3, 2011
pp. 222-232 sellers (Bennett, 1995, p. 17). According to this approach, the brand is viewed as part of a
q Emerald Group Publishing Limited
0263-4503
product, and the main function of the brand is to distinguish a firms product from
DOI 10.1108/02634501111129211 competing products, i.e. it is an identifier. A more holistic approach defines a brand as:
[. . .] the promise of the bundles of attributes that someone buys and that provides satisfaction Brand loyalty
[. . .] The attributes that make up the brand may be real or illusory, rational or emotional,
tangible or invisible (Ambler and Styles, 1996, p. 10).
In this approach, the product is regarded as a component of the brand. The product
simply provides consumers with functional benefits, whereas the brand provides
consumers with not only functional benefits but also with emotional benefits, and thus,
satisfaction (Hankinson and Cowking, 1996). Consequently, marketing activities of firms 223
have gradually focused more on the brand instead of the product, thereby, leading
academics to discover factors that constitute strong brands (Aaker, 1996). However, such
attention has occurred mainly in the developed world. Little research has been devoted to
the issue in emerging markets. In addition, replication research plays an important role in
science. It is a necessary part of knowledge development, nevertheless, it is rarely
undertaken in the social sciences, especially in business research (Easly et al., 2000;
Hubbard and Vetter, 1996). Replication studies have found that a number of original
models were not supported (Darley, 2000). This results in the isolation and fragmentation
of the literature (Hubbard and Vetter, 1996). This study attempts to bridge this gap by
examining key antecedents of brand loyalty in two emerging markets: Thailand and
Vietnam. Specifically, it compares and contrasts the role of advertising attitudes,
distribution intensity, brand awareness, and perceived quality on consumer loyalty to
international brands in these two markets. The paper is structured as follows:
introduction to the Thai and Vietnamese markets, conceptual model, methods, results,
discussion and implications, and limitations and directions for future research.

The markets: Thailand and Vietnam


Thailand and Vietnam have a number of similarities as well as differences. In terms of
economic development, both markets can be classified as emerging markets in South East
Asia. Relative to Vietnam, Thailand is more developed and is a lower-middle-income
economy (GDP per capita around US$2,565; TBFR, 2006), whereas, Vietnam is a low-income
economy (GNP per capita around US$534; VBFR, 2005). With a population of more than
60 million, and a GDP growth rate of about 6 percent, Thailand is a relatively large market in
the region. This has presented opportunities for international marketers, leading to the
success of several international brands in the market. For example, in the hair care market,
multinational companies (MNCs) such as Unilever, Colgate-Palmolive, and Procter &
Gamble are playing a leading role in Thailand. As observed by SPC Asia (2005, p. 11): Its
a golden time in Thailand for multinational brands such as Sunsilk and Care Baby Powder.
With a population of more than 80 million, and a GDP growth rate of about 7.5 percent
annually (VBFR, 2005), Vietnam is also a potential market for international brands.
However, Vietnamese consumers are not so familiar with brand consideration and choice.
A survey conducted by Taylor Nelson Sofres in 2004 found that up to 47 of percent
Vietnamese consumers agree that the country-of-origin is more important than brand
names (The Wall Street Journal, 2004). The concept of brands and branding has only
recently happened in Vietnam. Most Vietnamese firms have not recognized the
importance of brands and branding. Unbranded products, or the use of a companys name
as a brand name to distinguish its products from those of competitors, has been a common
approach (Nguyen et al., 2003). The new economic reforms introduced by the Vietnamese
Government in 1986, in which a key objective has been to attract foreign direct investment,
encouraged the entry of several MNCs (such as Procter & Gamble and Unilever)
MIP into the market in the early 1990s. The brand promotion programs launched by these
29,3 MNCs have shifted Vietnamese consumers shopping habits from purchasing products to
purchasing brands. Accordingly, Vietnamese consumers have tended to become more
sophisticated in their consumption behavior, especially in urban areas of the country. For
example, surveys by Taylor Nelson Sofres Vietnam in 1999 and 2004 reveal that, in 1999,
54 percent of consumers paid more to enjoy the finer things of life. However, this rate
224 reached 80 percent in 2004. The surveys also indicate that, in 1999, 79 percent of
Vietnamese consumers agreed that they often switch brands. However, this rate became
47 percent in 2004 (The Wall Street Journal, 2004). This indicates that some brands have
well-established positions in the market. Unfortunately, very little research on branding in
this market has been undertaken (Nguyen et al., 2003).

Literature review and hypotheses


The literature reveals several approaches to evaluating the strength of a brand. Some
stem from cognitive psychology, i.e. based on consumer cognitive processes, such as
brand awareness, perceived quality, and brand loyalty (Aaker, 1991; Kressmann et al.,
2006; Yoo et al., 2000), brand relationship (Aggarwal, 2004; Fournier, 1998; Smit et al.,
2007; Veloutsou and Moutinho, 2009; Woodside and Walser, 2007), and brand
personality and impressions (Aaker, 1997; Fennis and Pruyn, 2007; Orth and Malkewitz,
2008). Others come from information economics, i.e. based on the signal of the brand to
the consumer such as brand credibility, consistency, and clarity (Erdem and Swait, 1998;
Erdem et al., 2006). Although the perspectives differ, their common focus is on what
makes a brand strong, i.e. the creation of loyal consumers.
Among the concepts used to describe a strong brand, brand loyalty is perhaps the
one that has received the most attention by academics and practitioners (Malai and
Speece, 2005; Tsao and Chen, 2005). For that reason, there are several definitions and
measures of brand loyalty; some focus on the attitudinal dimension and others focus on
the behavioral aspect of brand loyalty (Gee et al., 2008; Oliver, 1997). In this study,
brand loyalty is a deeply held commitment to rebuy or repatronize a preferred brand
consistently in the future, despite situational influences and marketing efforts having
the potential to cause switching behavior (Oliver, 1997, p. 392).
In most models of brand equity, brand loyalty is posited to be either a component
(Aaker, 1991) or an outcome (Erdem and Swait, 1998) of brand equity. Brand loyalty is
a valuable asset for every brand. Research has indicated that the cost of recruiting new
customers is very high due to advertising, personal selling, establishing new accounts,
and customer training (Mittal and Lassar, 1998). More importantly, profits generated
by loyal customers increase significantly over time (Reichheld and Sasser, 1990).
Accordingly, research on brand loyalty and its antecedents is still of interest to many
researchers (Gounaris and Stathakopoulos, 2004; Tsao and Chen, 2005). In this study,
brand awareness, perceived quality, distribution intensity, and advertising attitudes
are posited to be key factors that have direct and/or indirect effects on brand loyalty.
Figure 1 shows these relationships and hypotheses.

Brand awareness and perceived quality


There is widespread agreement among researchers that brand awareness is a reliable
measure of the strength of a brand (Aaker, 1996). Brand awareness is defined as the strength
of a brands presence in the consumers mind (Aaker, 1996, p. 10). High brand awareness,
resulting from brand associations, is a signal of quality that assists consumers in making Brand loyalty
purchase decisions (Aaker, 1991; Yoo et al., 2000). Therefore, brand awareness can be
viewed as an antecedent of brand loyalty. Together, with brand awareness, perceived
quality, which refers to the customers perception of the overall quality or superiority of a
product or service with respect to its intended purpose, relative to alternatives (Aaker, 1991,
p. 84), plays an important role in the explanation of brand loyalty.
Perceived quality is based on the judgment of consumers about the attributes of a 225
brand that are meaningful to them, i.e. it is a perception. When consumers perceive that
the brand has high quality compared to other brands in a competitive set, they are likely
to put a high value on the brand, driving their purchase and repurchase decisions.
However, as mentioned previously, consumers cannot perceive the quality of the brand
if they are not aware of it. Consequently, awareness may help consumers become
familiar with the brand. Further, familiarity can encourage buying decisions, especially
for low-involvement products (Aaker, 1991). Also, it can be argued that awareness is
necessary to enable consumers to differentiate a brands attributes from its competing
brands. When consumers evaluate a brand in relation to other brands in the competitive
set, they recognize the differences among them. The interactions between brand
behavior and consumer behavior could be expected to make a strong affective tie with
the brand (Fournier, 1998). Therefore:
H1. There is a positive relationship between perceived quality and brand loyalty.
H2. There is a positive relationship between brand awareness and brand loyalty.
H3. There is a positive relationship between brand awareness and perceived quality.

Advertising attitudes
The attitude of customers toward advertising, which can be defined as a learned
predisposition to respond in a consistently favorable manner toward advertising in
general (MacKenzie and Lutz, 1989, pp. 53-4), has received considerable attention from
researchers and practitioners (Li and Miniard, 2006; Mehta, 2000; Petrovici and Paliwoda,
2007). Advertising is believed to be an effective tool to promote brands. Through
advertising, consumers have an opportunity to discover the presence of a brand and its
associations. Positive attitudes of consumers toward advertising programs of a brand
will stimulate consumers to recognize the distinctiveness of the brand compared to
competing brands. In addition, when consumers prefer the brands advertising programs,
they intend to search for more information about the brand. Such activities will improve
customers attitudes and perceptions about the brand and assist consumers in perceiving
the quality of the brand (Mehta, 2000; Villarejo-Ramos and Sanchez-Franco, 2005;
Yoo et al., 2000). Therefore:
H5
Advertising Perceived H1
attitudes quality

H7 Brand
H3 loyalty
H4
Distribution Brand Figure 1.
intensity awareness H2 Conceptual model
H6
MIP H4. There is a positive relationship between advertising attitudes and brand
29,3 awareness.
H5. There is a positive relationship between advertising attitudes and perceived
quality.

Distribution intensity
226 Distribution intensity refers to the number of intermediaries used by a manufacturer
within its trade areas (Frazier and Lassar, 1996, p. 39). It can be argued that the more
intensive the distribution of a brand the greater are the opportunities for consumers to
become aware of the brand, and subsequently purchase it. Also, the convenience of
being able to find the brand when and where consumers want it saves them time, thus
increasing satisfaction and enhancing the brands value (Yoo et al., 2000). Accordingly:
H6. There is a positive relationship between distribution intensity and brand
awareness.
H7. There is a positive relationship between distribution intensity and perceived
quality.

Method
Sample
The hypotheses were tested using female consumers of shampoo in Bangkok, the capital
city of Thailand, and in Hanoi, the capital city of Vietnam. The unit of analysis of this
study was consumers. In Thailand, the decision makers for shampoo are both male and
female members of the family. However, in Vietnam, the decision maker for shampoo in
the family is female (Nguyen and Nguyen, 2002). Therefore, for comparison purposes
between the two markets, female consumers were selected for study. Shampoo was
chosen because it is a product that consumers often pay considerable attention to when
making purchase decisions due to its perceived value in enhancing their appearance.
Six popular brands of shampoo (Pantene, Sunsilk, Rejoice, Head & Shoulders, Kao,
and Wella) were chosen for Bangkok, and eight popular brands (Pantene, Sunsilk,
Rejoice, Clear, Head & Shoulders, Organics, Double Rich, and Feather) for Hanoi.
Convenience sampling was used. The questionnaires, with instructions of how to
complete them, were distributed to respondents by an interviewer. In order to minimize
possible response bias, instructions emphasized that the study focused only on their
personal opinions. There were no right or wrong answers. After completion, the
questionnaires were checked and collected by the interviewer. Respondents were chosen
using equal quotas for both country and demographic categories: countries (Thailand
and Vietnam), age (young and old), education (with and without a bachelors degree), and
income (low and high). However, due to some invalid questionnaires which were
removed from the sample, the numbers of consumers in the two groups of each category
varied slightly. The total sample size was 603, comprising 304 female consumers in
Bangkok and 299 female consumers in Hanoi. Table I shows the characteristics of the
sample in both countries: Thailand and Vietnam.

Measurement
There were five constructs used in this study: brand loyalty, brand awareness, perceived
quality, advertising attitudes and distribution intensity. Brand loyalty was measured
by three items assessing the overall commitment of being loyal to a specific brand Brand loyalty
(Yoo et al., 2000). These items were: I consider myself to be loyal to X; I would not buy
other brands if X is available at the store; and, I try to find X rather than buying other
brands. Brand awareness was measured by four items, addressing the degree of brand
recognition (Yoo et al., 2000). These items were: I can recognize X among other brands;
I know what X looks like; some characteristics of X come to my mind quickly; and,
overall, I have no difficulty in imaging X in my mind. Perceived quality was measured by 227
four items, asking consumers about their perception of the brand quality (Aaker, 1996).
These items were: X would cure my dandruff; X would make my hair silky; X would not
make my hair dry; and, overall, X is of high quality. Advertising attitudes was measured
by two items, addressing preference of consumers on advertisements. These two items
were: the ad of X is very attractive; and, I like the ad of X. Finally, distribution intensity
was measured by two items (Yoo et al., 2000): there are many stores that sell X; and, I can
buy X everywhere in Bangkok (Hanoi). The questionnaire was developed in English and
was then translated into Thai and Vietnamese languages. Back translation was also
undertaken to ensure the equivalence of meaning (Brislin, 1970). All items were measured
using a five-point Likert scale, anchored by 1 strongly disagree and 5 strongly agree.

Data analysis and results


Cross-national measurement validation
Before comparing the results from Thailand and Vietnam, configural and metric
invariance were tested using multi-group confirmatory factor analysis (CFA; Mullen, 1995;
Steenkamp and Baumgartner, 1998). Five constructs were investigated: brand loyalty,
brand awareness, perceived quality, advertising attitudes, and distribution intensity.
The results indicate that the CFA five-factor model received a good fit to the data:
x 2[160] 344.98.52 ( p , 0.001); TLI 0.949; CFI 0.961; and, RMSEA 0.044. These
findings support the configural invariance of the five-factor model. All factor loadings
were substantial (.0.58) and significant ( p , 0.001). All factor correlations were
significantly below unity ( p , 0.05). These findings support the convergent and
discriminant validity between constructs (Steenkamp and van Trijp, 1991). Equality of
factor loadings was also supported: x2[170] 362.90 ( p , 0.001); TLI 0.950; CFI 0.960;
and, RMSEA 0.043). The comparison between these two models (non-equality and
equality of factor loading models) indicates that the x 2 statistic was not significant:
Dx 2[10] 22.06 ( p . 0.05). Other measures of fit also indicate that these two models were
not significantly different in terms of model fit: CFI decreased an insubstantial 0.001; and,
TLI and RMSEA increased. These findings provide evidence to support the metric
invariance of measures (Mullen, 1995; Steenkamp and Baumgartner, 1998).

Education Age Income


Without a BA BA and Young (18-24 Older (. 24
Country degree postgraduate years of age) years of age) Lowa Higherb Total

Thailand 164 140 147 157 164 140 304


Vietnam 166 133 138 161 141 158 299
Total 330 273 285 318 305 298 603
Notes: aLess than US$120/month in Vietnam and less than US$500 in Thailand; bfrom US$120/month Table I.
or more in Vietnam and from US$500/month or more in Thailand Sample characteristics
MIP In sum, cross-national invariance of the measures used in this study was supported.
29,3 Table II presents factor loadings, composite reliability, and average variances extracted.

Tests of hypotheses
The multi-group analysis in structural equation modeling (Bollen, 1989) was used to test
the hypotheses as well as to compare the structural relationships in the model between the
228 two markets (Thailand and Vietnam). Analysis involved two steps. First, the two
samples were used to estimate the paths in the model with no structural paths constrained
(model A). Next, constraints were imposed for the structural paths for both markets, i.e. all
the structural paths in the model were set to be equal for both markets (model B).
The results of the multi-group analysis show that both models (models A and B)
received good fit to the data (model A: x 2[164] 367.29 ( p , 0.001); TLI 0.946;
CFI 0.958; and, RMSEA 0.045. model B: x 2[171] 391.69 ( p , 0.001); TLI 0.943;
CFI 0.954; and, RMSEA 0.046). However, Model A (unconstrained model) was
selected over model B (constrained model) because it received better fit: Dx2[7] 24.40
( p , 0.001). It is also noted that the correlation between distribution intensity and
advertising attitudes was found to be significant (r 0.28, p , 0.001). Further, no
improper solutions were found in any results of the tests (Heywood cases were absent and
all standardized residuals were less thanj2.58j). The unstandardized structural coefficients,
which are suitable for cross-national research (Singh, 1995), are reported in Table III.
Consistent with H1, a positive relationship between perceived quality and brand loyalty
was found in both Thailand (b 0.65, p , 0.001) and Vietnam (b 0.94, p , 0.001). H2
proposes a positive relationship between brand awareness and brand loyalty. This
hypothesis was supported in Vietnam (b 0.27, p , 0.001) but failed to reach statistical
significance in Thailand (b 0.04, p . 0.52). H3 proposes a positive relationship between
brand awareness and perceived quality. This hypothesis was supported both in Thailand
(b 0.22, p , 0.01) and in Vietnam (b 0.42, p , 0.001). H4, proposing a positive
relationship between advertising attitudes and brand awareness, was also supported both
in Thailand (b 0.20, p , 0.005) and in Vietnam (b 0.26, p , 0.001).

Thailand sample Vietnam sample


Factor Composite Average variance Factor Composite Average variance
Construct Item loading reliability extracted loading reliability extracted

Brand Aw1 0.78 0.86 0.60 0.79 0.86 0.60


awareness Aw2 0.82 0.80
Aw3 0.79 0.75
Aw4 0.71 0.76
Perceived Pq1 0.58 0.80 0.50 0.66 0.82 0.54
quality Pq2 0.76 0.76
Pq3 0.68 0.74
Pq4 0.79 0.77
Distribution Di1 0.84 0.85 0.73 0.80 0.81 0.68
intensity Di2 0.87 0.85
Table II. Advertising Ad1 0.94 0.87 0.78 0.82 0.80 0.66
Factor loadings, attitudes Ad2 0.82 0.80
composite reliability, Brand Ly1 0.70 0.84 0.64 0.78 0.85 0.66
and average variance loyalty Ly2 0.86 0.81
extracted for constructs Ly3 0.83 0.84
H5 proposes a positive relationship between advertising attitudes and perceived quality. Brand loyalty
Contrary to the finding in H2, this hypothesis was found to be significant in Thailand
(b 0.11, p , 0.05) but not in Vietnam (b 0.01, p . 0.88). H6 proposes that distribution
intensity is positively related to brand awareness. Similar to H1 and H3, this relationship
was found to be significant both in Thailand (b 0.34, p , 0.001) and in Vietnam
(b 0.25, p , 0.05). Finally, H7 proposes a positive relationship between distribution
intensity and perceived quality. Inconsistent with H7, this relationship was found to be 229
neither significant in Thailand (b 0.11, p . 0.16) nor in Vietnam (b 0.10, p . 0.27).

Discussion and implications


This study empirically examines key determinants of brand loyalty and contributes to
the literature on branding in the developing world by making a comparison between
Thai and Vietnamese consumers. The findings of this study indicate a number of
similarities as well as differences exist between Thailand and Vietnam.
First, the relationship between perceived quality and brand loyalty, and the
relationship between brand awareness and perceived quality are found to be significant in
Thailand as well as in Vietnam. The impacts of advertising attitudes and distribution
intensity on brand awareness are also found to be significant in both markets. These
findings are consistent with previous research on branding in advanced economies: brand
awareness and perceived quality are components of brand equity (Aaker, 1991), and
advertising and distribution are key determinants of brand awareness (Yoo et al., 2000).
Second, the effect of brand awareness on brand loyalty is found to exist only in Vietnam,
and the effect of advertising attitudes on perceived quality exists only in Thailand.
The results indicate a difference between these two markets. Compared to Thailand,
Vietnam is a transitional market, where marketing activities supporting brands are still
underdeveloped. In addition, consumers in Vietnam still pay more attention to the
country-of-origin than to the brand (The Wall Street Journal, 2004). This may lead to high
within-country brand parity, i.e. consumers perceive the differences between the major
brand alternatives in a product category, originating from the same country, to be small
(Iver and Muncy, 2005). For example, Vietnamese consumers may perceive that all brands
manufactured by Japanese companies have the same quality. In this case, a brand that
receives high attention from customers, i.e. the brand has distinctive associations that help
consumers distinguish it from competing brands, will have a competitive advantage. This
finding suggests that managers of international brands design marketing programs that
are able to communicate distinctive associations with their brand in order to create high

Thailand sample Vietnam sample


(n 304) (n 299)
Structural paths b SE p-value b SE p-value

H1. Perceived quality ! Brand loyalty 0.65 0.091 0.000 0.94 0.105 0.000
H2. Brand awareness ! Brand loyalty 0.04 0.063 0.520 0.27 0.074 0.000
H3. Brand awareness ! Perceived quality 0.22 0.068 0.002 0.42 0.068 0.000
H4. Advertising attitudes ! Brand awareness 0.20 0.063 0.001 0.26 0.073 0.000 Table III.
H5. Advertising attitudes ! Perceived quality 0.11 0.055 0.040 0.01 0.062 0.888 Unstandardized
H6. Distribution intensity ! Brand awareness 0.34 0.086 0.000 0.25 0.105 0.019 structural coefficients (b)
H7. Distribution intensity ! Perceived quality 0.11 0.078 0.165 0.10 0.089 0.275 with standard errors
MIP brand awareness. Such programs will assist them in building high consumer perception of
29,3 the brands value, leading to an increase in brand loyalty.
Finally, distribution intensity plays no role in building consumers perception of a
brands quality in both countries. The literature on brand positioning indicates that high
quality has an inverse relationship with distribution intensity (Frazier and Lassar, 1996).
Yoo et al. (2000) found that distribution intensity has a positive effect on brand equity.
230 Therefore, managers of international brands should recognize that distribution intensity
may play different roles in different product categories and countries. For that reason,
a thorough understanding of the segments that the brand is serving is required.

Limitations and directions for future research


This study has a number of limitations. First, the survey was undertaken only in the
capital cities of Thailand and Vietnam. More representative samples in the two countries
are needed in future research. Second, further research should investigate different types
of product categories, for example, tangible versus intangible and, low versus high,
involvement products. Third, this study investigates female customers. A comparison of
attitudes and behavior between male and female customers should be undertaken in
future research. Fourth, the focus of this study is international brands. Comparisons
between local brands versus international brands, as well as Asian versus Western
international brands (Chao et al., 2003), especially about the role of country-of-origin in
brand loyalty, are other directions for future research. Finally, several concepts
describing the strength of a brand have been introduced in the literature, such as brand
relationship quality and brand impressions. Therefore, future research should compare
and contrast those constructs to capture a more comprehensive picture of a strong brand.

References
Aaker, D.A. (1991), Managing Brand Equity, The Free Press, New York, NY.
Aaker, D.A. (1996), Building Strong Brands, The Free Press, New York, NY.
Aaker, J. (1997), Dimensions of brand personality, Journal of Marketing Research, Vol. 34 No. 3,
pp. 347-56.
Aggarwal, P. (2004), The effects of brand relationship norms on consumer attitudes and
behavior, Journal of Consumer Research, Vol. 31, June, pp. 87-101.
Ambler, T. and Styles, C. (1996), Brand development versus new product development: towards
a process model of extension, Marketing Intelligence & Planning, Vol. 14 No. 7, pp. 10-19.
Bennett, P.D. (Ed.) (1995), Dictionary of Marketing Terms, American Marketing Association, Chicago, IL.
Bollen, K.A. (1989), Structural Equations with Latent Variables, Wiley, New York, NY.
Brislin, R.W. (1970), Back-translation for cross-cultural research, Journal of Cross-Cultural
Psychology, Vol. 1, pp. 185-216.
Brodie, R.J., Whittome, J.R.M. and Brush, G.J. (2009), Investigating the service brand: a customer
value perspective, Journal of Business Research, Vol. 62, pp. 345-55.
Chao, P., Samiee, S. and Yip, L.S.-C. (2003), International marketing and the Asia-Pacific region,
International Marketing Review, Vol. 20 No. 5, pp. 480-91.
Darley, W.K. (2000), Status of replication studies in marketing: a validation and extension,
Marketing Management Journal, Vol. 10 No. 2, pp. 121-32.
Easly, R.W., Madden, C.S. and Duun, M.G. (2000), Conducting marketing science: the role of
replication in the research process, Journal of Business Research, Vol. 48, pp. 83-92.
Erdem, T. and Swait, J. (1998), Brand equity as signaling phenomenon, Journal of Consumer Brand loyalty
Psychology, Vol. 7 No. 2, pp. 131-57.
Erdem, T., Swait, J. and Valenzuela, A. (2006), Brands as signal: a cross-country validation
study, Journal of Marketing, Vol. 70, January, pp. 34-49.
Fennis, B.M. and Pruyn, A.T.H. (2007), You are what you wear: brand personality influences on
consumer impression formation, Journal of Business Research, Vol. 60, pp. 634-9.
Fournier, S. (1998), Consumers and their brands: developing relationship theory in consumer 231
research, Journal of Consumer Research, Vol. 24, March, pp. 343-73.
Frazier, G.L. and Lassar, W.M. (1996), Determinants of distribution intensity, Journal of
Marketing, Vol. 60, October, pp. 39-51.
Gee, R., Coates, G. and Nicholson, M. (2008), Understanding and profitably managing customer
loyalty, Marketing Intelligence & Planning, Vol. 25 No. 4, pp. 359-74.
Gounaris, S. and Stathakopoulos, V. (2004), Antecedents and consequences of brand loyalty:
an empirical study, Journal of Brand Management, Vol. 11 No. 4, pp. 283-306.
Hankinson, G. and Cowking, P. (1996), The Reality of Global Brands: Cases and Strategies for
Successful Management of International Brands, McGraw-Hill, Maidenhead.
Hubbard, R. and Vetter, D.E. (1996), An empirical comparison of published replication research
in accounting, economics, finance, management, and marketing, Journal of Business
Research, Vol. 35, pp. 53-164.
Iver, R. and Muncy, J.A. (2005), The role of brand parity in developing loyal customers,
Journal of Advertising Research, Vol. 45 No. 2, pp. 222-8.
Kressmann, F., Sirgy, M.J., Herrmann, A., Huber, F., Huber, S. and Lee, D.-J. (2006), Direct and
indirect effects of self-image congruence on brand loyalty, Journal of Business Research,
Vol. 59, pp. 955-64.
Li, F. and Miniard, P.W. (2006), On the potential for advertising to facilitate trust in the
advertised brand, Journal of Advertising, Vol. 35 No. 4, pp. 101-12.
MacKenzie, S.B. and Lutz, R.J. (1989), An empirical examination of the structural antecedents of
attitude toward the ad in an advertising pretesting context, Journal of Marketing, Vol. 53,
April, pp. 48-65.
Malai, V. and Speece, M. (2005), Cultural impact on the relationship among perceived service
quality, brand name value, and customer loyalty, Journal of International Consumer
Marketing, Vol. 17 No. 4, pp. 7-39.
Mehta, A. (2000), Advertising attitudes and advertising effectiveness, Journal of Advertising
Research, Vol. 40 No. 3, pp. 67-72.
Mittal, B. and Lassar, W.M. (1998), Why do consumers switch? The dynamics of satisfaction
versus loyalty, Journal of Services Marketing, Vol. 12 No. 3, pp. 177-94.
Mullen, M.R. (1995), Diagnosing measurement equivalence in cross-national research,
Journal of International Business Studies, Vol. 26 No. 3, pp. 573-96.
Nguyen, T.D. and Nguyen, T.T.M. (2002), Conceptualization and Measurement of Brand Equity
in Vietnam, Research Report No. B2002-22-33, HCMC University of Economics, HCM City
(in Vietnamese).
Nguyen, T.D., Nguyen, T.T.M. and Barrett, N.J. (2003), Brand equity and its antecedents,
Economic Development, Vol. 13, July, pp. 2-5.
Oliver, R.L. (1997), Satisfaction A Behavioral Perspective on the Consumer, McGraw-Hill,
New York, NY.
MIP Orth, U.R. and Malkewitz, K. (2008), Holistic package design and consumer brand impressions,
Journal of Marketing, Vol. 72, May, pp. 64-81.
29,3 Petrovici, D. and Paliwoda, S. (2007), An empirical examination of public attitudes towards
advertising in a transitional economy, International Journal of Advertising, Vol. 26 No. 2,
pp. 247-76.
Reichheld, F.E. and Sasser, W.E. Jr (1990), Zero defections: quality comes to services, Harvard
232 Business Review, Vol. 68, September-December, pp. 105-11.
Singh, J. (1995), Measurement issues in cross-national research, Journal of International
Business Studies, Vol. 26 No. 3, pp. 597-619.
Smit, E., Bronner, F. and Tolboom, M. (2007), Brand relationship quality and its value for
personal contact, Journal of Business Research, Vol. 60, pp. 627-33.
SPC Asia (2005), Steady state, SPC Asia, March, p. 11.
Steenkamp, J.-B.E.M. and Baumgartner, H. (1998), Assessing measurement invariance in
cross-national consumer research, Journal of Consumer Research, Vol. 25, June, pp. 149-58.
Steenkamp, J.-B.E.M. and van Trijp, H.C.M. (1991), The use of LISREL in validating marketing
constructs, International Journal of Research in Marketing, Vol. 8 No. 4, pp. 283-99.
TBFR (2006), Economic outlook, Thailand Business Forecast Report, 1st Quarter, pp. 12-20.
Tsao, H.-Y. and Chen, L.-W. (2005), Exploring brand loyalty from the perspective of brand
switching costs, International Journal of Management, Vol. 22 No. 3, pp. 436-41.
VBFR (2005), Economic outlook, Vietnam Business Forecast Report, 4th Quarter, pp. 9-17.
Veloutsou, C. and Moutinho, L. (2009), Brand relationships through brand reputation and brand
tribalism, Journal of Business Research, Vol. 62, pp. 314-22.
Villarejo-Ramos, A.F. and Sanchez-Franco, M.J. (2005), The impact of marketing communication
and price promotion on brand equity, Journal of Brand Management, Vol. 12 No. 6, pp. 431-44.
(The) Wall Street Journal (2004), Urban Vietnamese get rich quick, The Wall Street Journal
(Eastern Edition), October 26, p. A.22.
Woodside, A.G. and Walser, M.G. (2007), Building strong brands in retailing, Journal of
Business Research, Vol. 60 No. 1, pp. 1-10.
Yoo, B., Donthu, N. and Lee, S. (2000), An examination of selected marketing mix elements and
brand equity, Journal of the Academy of Marketing Science, Vol. 28 No. 2, pp. 195-211.

About the authors


Tho D. Nguyen (PhD, UTS) is an Associate Professor of Marketing, University of Economics,
HCM City and Honorary Associate, School of Marketing, University of Technology, Sydney.
His works have been published in the Advances in International Marketing, International
Business Review, Journal of International Marketing, among others. Tho D. Nguyen is the
corresponding author and can be contacted at: ndtho@ueh.edu.vn
Nigel J. Barrett (PhD, UNSW) is Honorary Associate, School of Marketing, University of
Technology, Sydney. His works have been published in International Business Review, Journal of
International Marketing, European Journal of Marketing, among others.
Kenneth E. Miller (PhD, Ohio State) is a Professor of Marketing, School of Marketing,
University of Technology, Sydney. His works have been published in the Journal of Consumer
Research, Journal of Marketing Research, Journal of Business Research, among others.

To purchase reprints of this article please e-mail: reprints@emeraldinsight.com


Or visit our web site for further details: www.emeraldinsight.com/reprints

You might also like