Research Methods for Strategic Management

Tasks

(1.1) Select a research topic / question

Gartner Group revealed in its research that 20% of existing customers of the company

could generate 80% of a company's profits. (Gartner.com, 2018) Hence, it is safe to say that

customer loyalty must be acknowledged as the key to the success of any business. Companies

should not only focus on attracting new customers but, more importantly, also build a sustainable

revenue stream with existing customers and reward them for their loyalty.

In Vietnam, the banking area, especially the commercial banking segment, is becoming

more and more fierce with the participation of both domestic and foreign players. The customer

loyalty rate is still meager, which means the majority of customers find it easier to close their

banking accounts and switch to other banks due to the dissatisfying experiences with service

quality. In such the case, which bank can build, maintain, and enhance customer loyalty can also

stay competitive and even become the leading in the market. Loyal customers keep using the

banking services over other banks’ services meanwhile becoming the banks’ advocates who

recommend the bank to other potential customers. If so, the bank needs to identify and capture

the relationships among the factors that influence customer loyalty, one of which is the brand

equity. In fact, customer loyalty is an integral part to measure brand equity. However, the

relationship between them is two-dimensional that means the loyalty is also strongly influenced

by the brand equity vice versa. From this sense, this research will focus on "The Brand Equity: A

Study on How Brand Equity Can Affect Customer Loyalty in Vietcombank Ha Noi, Vietnam.”

Research Objectives:
  Firstly, the research aims at studying the importance of customer loyalty in the

commercial banking area, especially for Vietcombank, Vietnam.

 Secondly, the research will go insight into the relationship between brand equity and

customer loyalty in Vietcombank. Supposing that the increase in brand equity would lead

to the rise in the loyalty of banking customers as well.

 Propose appropriate recommendations relevant to the results of the research to help

Vietcombank improve its brand equity.

Research Scope: Conducting the survey on 130 customers of Joint Stock Commercial Bank for

Foreign Trade of Vietnam (Vietcombank), Hanoi branches irrespective of their genders, ages,

incomes, educations, and purposes within one month from August 15th, 2018 to September 15th,

2018.

Keywords: brand equity, customer loyalty, Vietcombank.

Vietcombank Introduction

In 1963, Vietcombank had been formerly founded under the foreign exchange department

of the State Bank of Vietnam before being converted to the Vietnamese first joint-stock

commercial bank in June 2008. Since the first Hanoi Branch of Vietcombank launch in 1985, up

to now, there have been 61 branch offices distributed around the city. Over 30 years, Hanoi

branches have continuously grown in scale and affirmed their positions as the leading branches

in Vietcombank system.

As other commercial branches of Vietcombank, Hanoi offices focus on four major

operations. Firstly, deposit service is the most basic activity within the banks. Vietcombank

branches are supposed to receive deposits in the form of recurring, fixed, savings, or current

savings via individual, organizational, or business deposit accounts. In return, the banks must
pay the principal plus interest to the depositors upon the maturity or when the customer needs to

withdraw money at the bank. Compared with other businesses, commercial banks handle with a

special commodity known as the capital, whose price is also determined by the supply-demand

relationship in the market and the interest gained from the difference between the cost of deposit

interest and the interest income. Hence, the second operation in Vietcombank, Hanoi branches is

credit services, in which the banks lend the funds mobilized to generate most of its revenue.

Besides, to stabilize income and offset credit risk, the banks also participate in investment and

trading on the securities market to seek profit from security income and market price

devaluation. Directly contributing capital to joint-venture enterprises is another form of

investment operation under the Vietcombank branches in Hanoi. Finally, the banks also play as

the financial intermediary in foreign currency mobilization, remittance, cash collection, entrusted

operations, etc.

In 2017 Annual General Shareholder Meeting, Vietcombank announced its strategic vision

is to “be the No. 1 bank in Vietnam and one of the top 300 largest financial institutions in the

world, governed by the best international practices in 2020; to improve the financial capability to

meet the business development requirement and risk management.” (Vietcombank, 2017), the

whole Vietcombank system in general and Hanoi branches, in particular, follow the mission

statement to bring success to its customers satisfying them with the fast and reliable transactions

at their convenience. Hence, how to attract and build a long-term relationship with existing and

potential customers, in other words, establish, maintain, and enhance customer loyalty to the

brand, is among the most concerns by Vietcombank.

(1.2) Explain the factors that contribute to the process of successful research question

selection
 Among various areas of professional business practices, I have decided to carry out the

study on the influence of brand equity to customer loyalty in the commercial banks, to be more

specific, Vietcombank, Hanoi branches, Vietnam because of the following reasons.

Last year, I completed the CityU's Bachelor of Science in Business Administration with a

major in Financial Management. At university, I had precious chances to cultivate myself the

solid background relating to business administration, finance, and accounting, which grew my

interest in the banking area. Without a doubt, banking is far more complex than other businesses,

which is mainly based on the invisible values of trust and trust is likely to build customer loyalty.

Banking administrators often pay significant attention to earning and keeping a robust customer

loyalty as long-term strategic management. The survey by Ernst & Young on nearly 800 people

in Vietnam, however, suggested the loyalty of customers to the local banks was still very low

that “65 to 77 percent of respondents said that they were ready to close their bank accounts and

change to another bank.” (Vietnam Economic Times, 2018) To improve such the figure, it is

required to break down into the customer loyalty, especially in commercial banking area to

define affecting factors and put forward the relevant solutions. Though there are several already-

done pieces of research on this topic, none went insight into the impacts of brand equity on the

loyalty which I select as the research question. Since banking services have been highly

standardized with few differences in products, services, and interest rates, what retains existing

customers or attracts new customers is the bank equity including brand association, perceived

quality, brand awareness, and brand loyalty.

At present, I am working as the manager of Customer Relationship department of

Vietcombank Ho Guom, Ha Noi branch. Not only do I have opportunities to find potential

customers, meet up and persuade them to choose our bank but I also support them whenever
problems are arising in the process of using the bank products or services. In short, my job is to

build the relationship with customers and earn their loyalty. Thus, the result of this research topic

is helpful to contribute to my daily tasks as well as to operation and strategic management of the

entire Vietcombank system. Remarkably, Forbes Vietnam ranked Vietcombank as the most

considerable brand equity in the local industry with $ 177.9 million (Forbes Vietnam, 2017)

Needless to say, brand equity creates a substantial competitive advantage for the bank in the

market. Vietcombank needs to pay more attention to this asset to maintain its leading position in

the banking area while strengthening customer loyalty to achieve more benefits.

When conducting this study, I also wish to apply the knowledge and skills learned from

BA and MBA programs in combination with the practical experiences to present the accurate

result and the most effective proposals. These skills include critical thinking, time-management

skill, data collection, and processing skills..

(1.3) Justify their choice of research question

Trust by customers lies at the heart of brand equity establishment in any business,

including the banking area which is likely to turn into the loyalty. The research aims at defining

the factors that influence brand equity at Vietcombank Ha Noi, Vietnam then concluding

whether the enhanced brand equity increases customer loyalty. If yes, the research needs to

propose recommendation accordingly to improve the brand equity in the banks.

From the perspective of the bank, brand equity is an intangible asset that not only creates

competitive advantages but also brings real profits. Firstly, the customer loyalty generated by the

four elements of the brand equity including brand awareness, perceived quality, brand

characteristics, and other ownership factors will help the company acquire a stable revenue

stream from loyal customers in the long term. Besides, the bank can take advantages of the
strong brand to attract new customers to its products and services. At the same time, loyal

customers also recommend the banks to other potential customers. This type of word-of-mouth

marketing is easy to build trust with new users.

Furthermore, the high brand equity allows the bank to pursue the high price strategy

without concerning the loyal customers can switch to other banks. By that way, the banks can

generate more and more profit. The brand equity also saves lots of time and money when it

comes to the brand extension as customers have become familiar with the existing brand. From

customers’ view, brand equity will add them more the value since all components of brand

equity will help customers understand and retain a wide variety of product and brand

information, especially when choosing the products or services. At this level, the products meet

the needs and satisfy customers in both the rational and emotional aspects that convey the brand

commitment consistently. For example, in the commercial banking industry, customers build

faith in good services or products, bank reputation, marketing impression, location, and

dedicated staffs. These factors are the integral elements contributing to brand equity, then

enhance customer loyalty by reducing the likelihood to select other banks.

What’s more, the results of this study will not only be applied to Hanoi branches but must

also trigger the strategic managers of the whole system to carry out further researches on this

topic to come up with solutions that help Vietcombank stay ahead of the other local commercial

banks.

(2.1) Conduct research to find literature relevant to the research question

To assess the importance of brand equity to customer loyalty in the commercial banking

area, more specifically in Vietcombank, it is required to identify the factors that influence the

identification of brand equity and the ones that impact on the loyalty of customers. In this regard,
this research will use the following literature works as the solid theoretical background for

further hypotheses.

Brand Equity

Being first introduced in the early 1980’s, brand equity soon gained the attention of

researchers and businesses around the world, especially popular in the field of marketing

management. The concept of brand equity is multidimensional and sophisticated which is

understood in various ways based on different purposes. However, its definition is now

considered from two main perspectives including finance-based or customer-based brand equity.

This research will break down into the later.

One of the best-known research on brand equity was by David Aaker, the professor at the

University of California, Berkeley. He defined “brand equity is a set of assets and liabilities

linked to a brand, its name and symbol, that add to or subtract from the value provided by a

product or service to a firm and/or that firm's customers.” (Aaker, 1997, p.46) Accordingly,

brand equity includes five components, as known as brand loyalty, brand awareness, perceived

quality, brand associations, and other proprietary assets. Loyalty indicates that businesses can

increase brand equity based on building loyalty for their customers. If so, the company needs to

create a familiar brand image, keep its promises to customers, build brand trust and maintain

regular customers. Brand awareness refers to enhancing brand equity by generating a general

impression with the customer through the identification system and the daily tangible signal.

About the importance of the perceived quality to brand equity, the business must pay attention to

function, aesthetics, convenience, hygiene safety, durability, reasonable price, etc. Brand

association is what comes across the mind of customers when they mention about brands making

the brand outstanding from others. It is often related to product quality, brand name, or the
characteristics of the brand’s owner. For example, Apple is usually associated with strong words

like ‘cool’ ‘awesome’ and even ‘love.’

Kevin Lane Keller introduced his well-known model to build brand called the customer-

based brand equity (CBBE). His research on building a strong brand focused on four steps. The

first is to establish the proper brand equity based on breadth and depth brand awareness. Next is

to convey the appropriate brand meaning through strong, favorable, and unique brand

association. Then, the business needs to assure that brand responses are positive and accessible.

Lastly, brand relationship with customers must be characterized by intense and active loyalty.

The core of the model is not much different from the previous models. However, it is valuable in

practice. Particularly, customer loyalty is not just a continuous purchase, but consumers must

feel attached, attached or always want to belong to the world that the brand created. Four tasks of

building customer-based brand equity are carried out by “establishing six blocks, they are brand

salience, brand performance, brand imagery, brand judgment, brand feelings, and brand

resonance.” (Keller, 2001, p.4)

Customer Loyalty

According to Jill Griffin, “the concept of customer loyalty is geared more to behavior than

to attitude. When a customer is loyal, she exhibits purchase behavior defined as nonrandom

purchase expressed over time by some decision-making unit.” (Griffin, 2005, p.10) There are

two critical conditions affecting loyalty that are customer retention and share of customer.

Attracting new customers is far more difficult than keeping existing customers, thus, the longer

the company can encourage loyal customers to stay with the brand, the more revenue the

company will earn. Whereas, the share of customer is the consumption of a specific product or

service that a customer buys from a supplier. Ideally, the purchase behavior of loyal customers
reflects both of these conditions. Seeking market share can undermine the company's profits and

attract the attention of the most profitable customers. Loyalty is the result of paying attention to

what it takes to keep the customer and then continuously provide the customer.

Another research by Mark D. Uncles and his colleagues at University of New South Wales,

Sydney emphasizes customer loyalty as that a feature of people rather than inherent in brands

using three popular conceptualizations. “Loyalty as primarily an attitude that sometimes leads to

a relationship with the brand; loyalty mainly expressed in terms of revealed behavior; and buying

moderated by the individual’s characteristics, circumstances, and/or the purchase situation,”

(Uncles, M.D, Dowling, G.R., & Hammond, K. 2013. p.5) In these regards, the researchers built

customer loyalty program with two aims. One is to boost sales by increasing purchases, using,

and the range of products purchased from suppliers. The other is to be more defensive, by

building closer linkages between the brand and the existing customer who hopes to maintain the

existing customer base.

The Importance of Brand Equity to Customer Loyalty in Banking Area.

As noted above, brand equity and customer loyalty are among the most critical factors for

commercial banks. Thus, there was a study of the impact of brand equity on customer loyalty at

BIDV, Thua Thien Hue branch which was applied to the brand equity model of David Aaker. In

other words, the hypothesis was built to measure the influence of four factors; they are brand

awareness; perceived quality; brand associations; and brand loyalty. (Thanh Hoa, 2014) The

research results indicated that the perceived quality and the brand association were the two most

influential factors to customer loyalty while other attributes had the slightest impact. The

research also inferred that the four components were not independent but mutually dependent. If
one of these factors increases or decreases, it will affect the increase or decrease of brand equity,

thereby affecting customer loyalty to BIDV Bank in Thua Thien Hue branch.

(2.2) Undertake a critical review of the key literature for inclusion in a research proposal

Though David Aaker or Kevin Lane Keller came up with different models to measure

brand equity, both emphasized on four critical components including brand awareness; brand

associations; perceived quality - which is similar to positive and accessible brand responses in

Keller’s model; and brand loyalty. In respect of customer loyalty, the organization aims at two

strategic objectives which are to retain existing customers and increase their share. Thus,

theoretically, strong brand equity needs to make differences from other brands, enabling

consumers to recognize and remember the brand as a component of the product. This is brand

awareness. The next step is to establish brand associations that are in the minds of consumers can

be related to brand performance or brand image. When the brand has the right brand awareness

and the appropriate brand associations, then, the third step is to elicit positive brand responses

through marketing channels and other information sources. These activities must emphasize the

perceived quality by the customer, not only the usage value of products or services but also their

perceived values. Eventually, the combinations of these components will attract and retain

customers, hence, earns their loyalty. Loyal customers actively seek to interact with the brand

and share their experiences and recommendations with others. Not only does the share of

customers increase, resulting in the rise in profit, but brand advocates also bring other potential

loyal customers. Besides, businesses with high loyalty can grant many benefits, such as quoting

extremely high prices for products, saving cost while still optimizing the efficiency of marketing

activities.
 To test the hypothesis concluded above, I will carry out the research "The Brand Equity: A

Study on How Brand Equity Can Affect Customer Loyalty in Vietcombank Ha Noi, Vietnam”

by modeling the relationship of four key features and customer loyalty and building relevant

scales. Using appropriate techniques with both quantitative data and qualitative data, as well as

suitable methodology, the research aims at concluding the importance of brand equity to

customer loyalty. Afterward, put forward recommendations relevant to results of the research to

help Vietcombank improve its brand equity.

(3.1 + 3.2) Evaluate techniques for use with quantitative data and qualitative data in a

research proposal

When conducting researches in any field, there are numerous methods to take into account,

among which qualitative and quantitative are mostly used. Based on the research topic, the

researcher can apply either or both methods. Whatever method is selected, it is essential to

consider its pros and cons, as well as the suitable techniques.

Quantitative Data

On the one hand, “Quantitative Data is objective data produced through a systematic

process that is verifiable, replicable and in and of itself is not subject to

interpretation.”(Adage.com, 2018) The quantitative research is primarily quasi-theoretical, using

the model of empiricism which can be proved in practice and through objectivism. It gives the

ability to conduct statistical inference in the more significant number from the results obtained in

relatively small samples. The results from good surveys can be used to compare over time or

between regions. Besides, it is easy and quick to measure and evaluate the correlation between

variables. However, the disadvantage of this method is the inevitable errors during the sampling
process, mostly due to the two most common cases. The respondents might not remember or

misunderstand the questions, or they deliberately give wrong answers due to several factors.

Quantitative data involves several techniques. The first two steps are to define research

topic/research and to conduct a literature review by which the researcher can evaluate related

theories and models. Next, the research model is possibly built based on these regards using

suitable variations. This model needs to be brief and simple, which can reflect the relationship of

variables within the scope of the study based on the hypothesis made earlier. It helps to identify

which types of data to be collected, avoid wasting time for unnecessary information and

confusion in processing data. Furthermore, the research model is the basis for conducting data

analysis, predicting and explaining the meaning of result. In fact, the research model is not rigid

but can be adapted to the reality of the research project. The variables that are measured are

commonly classified as being regulated by scales, in other words, to create a range of points to

assess the characteristics of the research question expressed through the evaluations and

comments of respondents. Data collection techniques involve the secondary data and the primary

data. For the earlier, it is necessary to ìnentify what and where to gather the information.

Regarding this research on the importance of brand equity to customer loyalty, the researcher can

get the secondary data from the internal sources such as the marketing and finance departments

of Vietcombank, Hanoi branch or from other researches and governmental announcements

whereas the primary data can be collected by survey. Another quantitative technique is to

analyze the data achieved mostly by using statistical software such as SPSS or EVIEWS. The use

of these tools requires a good knowledge of statistical computing, the proficiency in data

collecting and analyzing the data, as well as programming capabilities. Moreover, data
presentation technique is also important to present the key results, compare with similar studies,

make accurate conclusions, and propose the recommendations.

Qualitative Data

On the other hand, “qualitative research is multimethod in focus, involving an interpretive,

naturalistic approach to its subject matter.” (Potter, 2013, p.2) Accordingly, data collected by the

qualitative method is impossible to quantify in numbers, for example, the answer to the questions

of what, why, where, when, or how, etc. Qualitative research examines the problem from the

perspective of the research subject, meaning that the researcher carefully reviews the point of

view of others who have researched intending to enhance or find out what is missing. Compared

with the quantitative data, the qualitative often provides more descriptive since understanding the

context of research is critical to explaining and predicting the behaviors of the subject. Moreover,

qualitative researchers do not depend on any fixed formulation but can be flexibly modify based

on the information provided. However, the biggest cons of the qualitative are its subjectivity.

Qualitative researchers often start with relatively open methods and require the gradual

identification of research questions that are difficult to pin down in the overall research. They

rely heavily on opinions stated by previous researchers.

Techniques used in the qualitative research are both similar and different from the

quantitative. In the first step to identify the topic, the researcher needs to use inductive,

theoretical and qualitative methods without the aims at explaining and using tectonic theory but

to build research that is appropriate to the conditions. Concerning data collection, qualitative

researchers have many techniques, but the most common are interviews, group discussions, and

observation. Sampling techniques include selective samples, index samples, or snowball

samples. The first is the most common method in which the object of the study is to select
participants based on representative criteria. Collected data are categorized into the model as the

foundations to organize and report the results. However, this model is much simpler than the

quantitative and not proven by the statistical model. The next step is to analyze data using data

decoding encoding, recursive abstract view, mechanical engineering, etc. techniques.

Conclusion

The choice of research method depends on three main factors including the research

topic/question; skills of the researcher; and the ability of research data collection. In fact, it is

possible to combine both methods in one research. Quantitative research enhances the accuracy

of qualitative research and further clarifies the meaning of quantitative results whereas

qualitative research methods can support quantitative research by identifying topics that are

relevant to the survey method and explaining the relationships among the variables found in the

studies. The research "The Brand Equity: A Study on How Brand Equity Can Affect Customer

Loyalty in Vietcombank Ha Noi, Vietnam” will use both qualitative data and quantitative data

but focus on the latter because of the lack of time and data collection ability. Qualitative methods

are used to identify research topics and questions, along with the literature review to select

quantitative modeling elements.

(4.1) Evaluate appropriate research methodologies in terms of the research question

Quantitative Methodologies

Quantitative methodologies include experiments, observation, and structured interviews.

(Bris.ac.uk, 2018) Although there are others, these three are most likely to employ in a

quantitative dissertation.

1. Experiments
 Experimental research is a quantitative methodology of gathering data carried out by

observations in a condition in which the research subject and the surrounding environment to be

deliberately targeted. It allows affecting the subject actively, interfering with the course of a

natural process. In other words, the parameter is controlled by the researcher. The advantages of

this method are that the researcher can change the nature of the structure and mechanism of the

object based on the influence of the external effects by altering relevant environmental elements.

In addition, it allows breaking down into the relationship of nature, identifying the rules,

discovering the components and mechanisms. Experimental research can be repeated many times

to demonstrate the normative relationship and the topic credibility. It requires elaborate

preparation of theories and tools or even costly modern equipment. Moreover, each experiment

only tests the relationship between the two factors, while a research question often involves

multiple factors. Furthermore, it is difficult to use this method to study complex activities in

human thoughts and emotions. In this research, this methodology can be applied to demonstrate

the relationship of brand equity to customer loyalty all over the Vietcombank system in the long-

term. If so, it is essential to set a detailed plan on theories and tools used.

2. Observation

Quantitative observation is also a popular methodology in which the researcher gathers the

data objectively, mostly paying attention to the numbers or measurements, while still testing

results on statistical analysis. To achieve the appropriate result, it is required to take a sample

best representing the population. The benefit of this method is that observers can set various

research objectives without being limited by the examples and their answers. In some cases,

observational techniques possibly provide reliable data because the behaviors and reactions of

the observed are honest and diverse. The downside is that it is time-consuming and expensive.
The quantitative observation requires a large number of samples to enhance the credibility of the

research result. Moreover, the data collected need going through a general statistical analysis

before drawing the relevant conclusion. To some extent, this methodology is suitable to the

Brand Equity research on Vietcombank, Hanoi branch. As mentioned above, I am now in charge

of the Customer Relationship manager at Vietcombank Ho Guom, Ha Noi branch. By meeting

and solving customer needs, I can directly observe their behaviors to provide quantitative

analysis contributing to the research. However, it is essential to select and evaluate an adequate

sample size; I need more support from my colleagues and modern equipment, as well as

extended time to make accurate conclusions.

3. Structured Interview

Structured interview uses a fixed set of predefined and standardized question to collect data

for a statistical survey easily, hence, this methodology is so-called quantitative interviews. In this

case, the respondents read the questions in the same order and with often closed-ended answers,

Interviewers read the questions exactly as they appear so the survey proceeds within the same

context. By scheduling such a structured interview, the researcher can increase the credibility

and reliability of the research data. Also, the information collected is efficiently processed. The

disadvantage of this methodology is that it lacks the flexibility and may miss out on the many

options available to the interviewer. Also, the interviewee may feel bored.

Qualitative Methodologies

Qualitative research is a descriptive and explanatory approach based on means of

experiences, perceptions, motivations, intentions, behaviors, and attitudes. Besides, qualitative

research still uses data, not to model but to support analysis and reasoning. Below are severally

utilized qualitative methodologies.

1. Unstructured Interview

Unstructured interviewing is the most widely used method in social research. Using this

method, the research has to memorize the topic to avoid missing out and can actively change the

order of issues depending on the interviewing background and respondents' answers. This

qualitative methodology is carried out under the form of chatting intending to making the

respondents feel comfortable and open to interviewing topics. The advantage is that it allows the

researcher to be flexible based on the context and characteristics of the research topic and

question. Hence it is useful when it is required to repeat the interview several times in different

backgrounds or on sensitive topics. The downside is that there are no ready-made templates, in

other words, each interview is different, so it is challenging to systematize the information and

analyze the data.

2. Semi-structured Interview

Semi-structured interviews are based on a list of questions or topics to be addressed.

However, the order and manner of questioning may adjust to the context and characteristics of

the interviewee. The advantage of semi-structured interviews is that using the interview guide

will save time with a list of questions that help identify the issues that need to be crawled but

allow for the flexibility required to discuss the new problems. Compared with the structured,

researchers easily systematize and analyze the information obtained. It does, however, need time

to explore the topic of interest to determine the research questions and design the appropriate

queries.

3. Structured Interview

Similar to structured interview in quantitative research, the researcher asks a set of

standard and predetermined questions about particular topics in a specific order, both measurable
and unmeasurable data possibly included mostly to describe and analyze the cultural and

behavioral characteristics of the research object. What more, the interviewer can provide the

clarification on several questions. The pros and cons of this type of qualitative methodology are

the same as that of the quantitative.

4. Group Discussion

Besides the individual interview, the qualitative research can also gather data by group

discussion, either focus group or unofficial group. In case of the research on Vietcombank, I

prefer to use the focus group interview to increase the reliability of the result. A focus group

usually consists of 6 to 8 people sharing specific characteristics that are relevant to the topic of

discussion, for example, the education, age, gender, etc. On the one hand, this method provides a

significant amount of information more quickly and cheaply compared to the individual

interviewing and is valuable in understanding community attitudes and behaviors. At the same

time, it is used to identify relevant questions for individual interviews. On the other hand, it is

difficult for the researcher to control the dynamics of the discussion process and to record the

details of the focus group discussion is difficult, not to mention the research results are often

more difficult to analyze than individual interviews.

5. Qualitative Observation

This methodology is open to objectives and research questions, which means the research

is not prepared in advance. Qualitative observation, similar to the quantitative, has the advantage

of preserving the natural, such as the objectivity of events, phenomena, and psychosocial

expression as well as providing lively, specific, and rich data. However, the primary

disadvantage of observation is that observers play passive roles waiting for phenomena to take

place rather than proactively make them happen at will. What’ more, it is difficult to evaluate the
existence of the conditions that arose phenomena and facts and therefore it is difficult to separate

causal relationships.

(4.2) Choose an appropriate methodology in terms of the research question

As mentioned above, the research "The Brand Equity: A Study on How Brand Equity Can

Affect Customer Loyalty in Vietcombank Ha Noi, Vietnam” will use both qualitative data and

quantitative data but focus on the latter. Qualitative research was conducted to review a

preliminary study of the research subject, thereby identifying research questions and defining

quantitative models and variables used. Particularly, I apply the structured interview

methodology to collect the required data.

Firstly, the structured interview is available to present both qualitative data and quantitative

data. Accordingly, the model of the impact of brand equity on customer loyalty at Vietcombank,

Hanoi brand includes four variables; they are brand awareness, perceived quality, brand

association, and brand loyalty. To understand and evaluate these four factors, both measurable

and unmeasurable questions are required. However, all items are closed-ended. The given

answers are prepared in advance and often along with the comprehensive explanation that

prevents the respondents from misunderstanding the questions and providing the answers within

the control and descriptions of the researcher.

Secondly, the structured interview using closed-ended answers allows the researcher to

present the questions in various ways while the interviewees find it quick and convenient to

select their preferred. In particular, the interviewer can display the selections as Yes/No, multi-

choices, rating scale, etc. based on the purpose of quantitative data or qualitative data. Using the

same set of questions and answers under the same order, the interview can be duplicated to a

large number of samples, so many interviews can take place within a short of time. On the other
hand, a structured interview often includes twenty to forty questions with short and clarified

selection which only takes several minutes to complete. As the manager of Customer

Relationship department, I can select the suitable sample respondents and persuade them to

spend some time completing the interview. Last but not least, the results from the closed-ended

structured interview are easy to be quantified for the quantitative research.

(4.3) Justify the methodology selected in terms of the research question

To ensure the structured review is helpful enough to collect adequate data that contribute to

the conclusion of the research, the survey is built on six steps.

Step 1: Define the objectives of the research survey.

The questions given must be relevant to the research objectives, meaning that they help to

evaluate the factors that impact on Vietcombank brand equity including brand awareness,

perceived quality, brand association, and brand loyalty, and on the customer loyalty. The

collected data consist of both the qualitative and the quantitative.

Step 2: Identify the subjects and samples of the research

Each study has it own subjects who share specific characteristics that are relevant to

research questions. Subjects of the research on the importance of brand equity to customer

loyalty are clients having used products or services of Vietcombank, Hanoi branches.

However, collecting data from all subjects is impossible due to the lack of time and

resources. Selecting a specific number of representative samples is essential. The choice of

samples the limited time, the ability of data collection, and the reliability of the research result.

Typically, the number of samples is at least five times as many as the number of questions given.

I plan to ask 100 to 150 clients irrespective of their genders, ages, incomes, educations, and

purposes within one month from August 15th, 2018 to September 15th, 2018.
Step 3: Determine the ways of data collection

The survey will be delivered directly to the customers at the banks. This way, the data

collected is more and reliable since the researchers can explain the purpose as well as the

meaning of questions to the respondents. Besides, it is possible to send an online survey to

subscribers of the internet banking app. However, the response rate is often low, not to mention,

there is a lack of credibility due to misunderstanding the questions.

Step 4: Design the research questions and their order in the interview

Identify questions directly related to the purpose of the study and decide on the type of

questions as well, such as Yes/No, multi-choices, rating scale, etc. Moreover, the number of

closed items must be limited so that customers will not get bored while still achieving the

research objectives. The order of the questions also needs to be logical to avoid making the

respondents confused as well as direct to the respondents. At the same time, the researchers also

find it easy to synthesize and analyze the answers.

Step 5: Conduct the sample interviews/consult the experts and make possible changes

Before interviewing on a large scale, it is vital to question several samples first to uncover

the mistakes and make the adjustments accordingly. Besides, it is possible to consult the experts

who have hands-on experience on similar topics.

(5.1) Record findings on a research question, literature review and methodology in an

agreed format.

The detail including the research question, literature review, methodology mentioned

above is recorded in the following format.

Title and Author Information

  Title “The Brand Equity: A Study on How Brand Equity Can Affect Customer Loyalty in

Vietcombank Ha Noi, Vietnam.”

 Personal Information

Abstract

 Present the research topic and research objectives

 Introduce the design of the research

 Summarize the findings and draw the major conclusion on the research question: In

Vietcombank, Hanoi branch, the increase in brand equity results in the higher customer

loyalty.

 Keywords of the research

Table of Content

 Present a breakdown of sections and its subsections with page number

Introduction

 A brief introduction to Vietcombank and its Hanoi branches

 Literature review:

 The brand equity model by David Aaker;

 The customer-based brand equity (CBBE) of Kevin Lane Keller;

 Jill Griffin’s customer loyalty concept;

 Customer loyalty program by Mark D. Uncles

 The research on the importance of brand equity to customer loyalty at BIDV, Thua Thien

Hue branches

 Hypothesis model and statement built on literature review

Method
  Describe the methods used when performing the research: qualitative data and

quantitative data

 Justify the choice of methods

 The pros and cons of each method

 The selection of the structured interview methodology

 Steps to use the methodology in the research

(5.2) Summarise the findings using suitable methods

The fact that customer loyalty rate is still meager is among the most critical issues facing

Vietnamese commercial banks. So is Vietcombank (Joint Stock Commercial Bank for Foreign

Trade of Vietnam) - the local bank currently having the largest brand equity. With such the

competitive advantage in mind This research focused on “The Brand Equity: A Study on How

Brand Equity Can Affect Customer Loyalty in Vietcombank Hanoi, Vietnam” to break down

into go insight into the relationship between brand equity and customer loyalty in Vietcombank

then to put forward suggestions based on the result of the research to help the bank enhance its

brand equity, in other words, improve its customer loyalty.

For those purposes, I referred to famous models on the research topic including the brand

equity model of David Aaker; the CBBE approach of Kevin Lane Keller, Jill Griffin’s customer

loyalty concept; Mark D. Uncles’s customer loyalty program, and the research on how brand

equity impacts on the customer loyalty at BIDV, Thua Thien Hue branches. Based on those

regards, I built a hypothesis model indicating the factors affecting the brand equity and the

relationship between brand equity and customer loyalty. Supposed that the more brand equity is,

the higher customer loyalty will result in. In particular, four main components to measure brand

equity are the brand association, perceived quality, brand awareness, and brand loyalty. To test
the hypothesis in Vietcombank, Hanoi branches, I applied the quantitative data method using the

structured interview methodology. To be specific, 130 interviewees who are the customers of

Vietcombank, Hanoi branches were asked to complete a set of 21 closed-ended questions. The

data collected were analyzed with the support of SPSS tool to understand descriptive statistics,

test data standard normal distribution, and run SPSS linear regression.

The results of the quantitative data analysis indicated that perceived quality and brand

loyalty are the most influential components when considering the brand equity of Vietcombank,

Hanoi branches. What’s more, the four main factors (brand association, perceived quality, brand

awareness, and brand loyalty) have a mutual relationship. In other words, if there is an increase

in one factor, it will result in the changes in other factors; then; increase the brand equity and

customer loyalty. Therefore, to improve customer loyalty in Vietcombank, it is required to

enhance all four elements, especially the perceived quality and brand loyalty.

(5.3) Present the findings using suitable methods

 Hypothesis model
 Figure 1. Model of Affecting Components to Brand Equity and Customer Loyalty

1. Hypothesis with the quantitative scales of measurements:

 H1: Brand Awareness

 H1a: I can recognize the brand of Vietcombank

 H1b: I can distinguish the logo of Vietcombank among other commercial banks’ logos

 H1c: When thinking about commercial banks, Vietcombank is my top of mind

 H1d: I feel totally familiar with Vietcombank brand

 H1e: I find the advertising of Vietcombank very good

 H2: Perceived Quality

 H2a: I think the interest rate offered by Vietcombank, Hanoi branches is quite reasonable

 H2b: The facilities at Vietcombank, Hanoi branches are well-decorated, making it more

convenient for customers than other banks

 H2c: Products and services at Vietcombank, Hanoi branches meet my demands well.

 H2d: When making the bank transactions, I feel Vietcombank the safest

 H2e: Vietcombank, Hanoi branches often provide attractive promotion campaigns

 H2f: I completely trust in the quality of products and services at Vietcombank, Hanoi

branches

 H3: Brand Association

 H3a: Compared with other brands, I think the brand image of Vietcombank is more unique

 H3b: Compared with other banks, Vietcombank is the leading brand.

 H3c: I realise that Vietcombank often presents commitment to society and community

 H3d: I trust the products and services of Vietcombank, Hanoi branches

 H4: Brand Loyalty

  H4a: I will continue being the client of Vietcombank if the bank can satisfy and live up to

my expectation

 H4b: I always choose Vietcombank when needing to make transaction.

 H4c: If the Vietcombank fails to meet my requirements timely, I will wait rather than

switch to others

 H5: Customer Loyalty

 H5a: In short, I will be the long-term loyal customers of Vietcombank, Hanoi branches

2. Descriptive statistics of research samples

Below is the distribution of the respondents in regards of their gender, age, occupations,

and incomes.

Figure 2: Distribution of research samples by gender, age, occupation, and incomes

 (Source: Data from The Structured interview)

 Standard normal distribution

Components
Variables
Brand Perceived Brand Brand
Awareness Quality Association Loyalty

H1a: I can recognize the brand of 0.854

Vietcombank

H1b: I can distinguish the logo of 0.817

Vietcombank among other commercial
banks’ logos

H1c: When thinking about commercial 0.759

banks, Vietcombank is my top of
mind

H1d: I feel totally familiar with 0.752

Vietcombank brand

H1e: I find the advertising of 0.717

Vietcombank very good

H2a: I think the interest rate offered by 0.809

Vietcombank, Hanoi branches is quite
reasonable

H2b: The facilities at Vietcombank, 0.796

Hanoi branches are well-decorated,
making it more convenient for
customers than other banks

H2c: Products and services at 0.786

Vietcombank, Hanoi branches meet my
demands well

H2d: When making the bank 0.776

transactions, I feel Vietcombank the
safest

H2e: Vietcombank, Hanoi branches 0.747

often provide attractive promotion
campaigns
H2f: I completely trust in the quality of 0.743
products and services at Vietcombank,
Hanoi branches

H3a: Compared with other brands, I 0.875

think the brand image of Vietcombank
is more unique

H3b: Compared with other banks, 0.845

Vietcombank is the leading brand

H3c: I realise that Vietcombank often 0.804

presents commitment to society and
community

H3d: I trust the products and services 0.764

of Vietcombank, Hanoi branches

H4a: I will continue being the client of 0.874

Vietcombank if the bank can satisfy
and live up to my expectation

H4b: I always choose Vietcombank 0.599

when needing to make transaction

H4c: If the Vietcombank fails to meet 0.584

my requirements timely, I will wait
rather than switch to others

Eigenvalue 3.052 3.619 2.712 1.469

Variance (%) 61.05% 60.31% 67.79% 48,81%

Cronbach’s Alpha 0.7798 0.7762 0.822 0.713

Table 1. Standard normal distribution of the research
(Source: the result of the data process in SPSS)

Each variable is entered to SPSS regression model to identify which variable has the

greatest impact on customer loyalty to Vietcombank, Hanoi branches. In which,

 X1: Gender of the respondents. This dummy variable is assigned the value “0” for female

respondents and “1” for male respondents

 X2: Age of the respondents which is qualified and entered into the SPSS based on the

five age ranges as in the chart.

 X3: Income of the respondents. Similarly, the value of this variable in the SPSS is according

to the income ranges in the chart as above.

 X4 to X7 is assigned to brand awareness, perceived quality, brand association, and brand

loyalty respectively.

 Yi: The dependent variable indicated customer loyalty

 β: Unstandardized Beta Coefficients; VIF: Variance Inflation Factor

Independen Step 1 Step 2 Step 3 Step 4 Step 5 VIF Ran

t Variables k
β p- β p- β p- β p- β p-
valu valu valu valu value
e e e e

Constant α 3.705 0.00 2.44 0.00 1.35 0.00 1.22 0.00 0.65 0.072 1,146
0 7 0 3 0 0 1 9

X1 0.108 0.02 0.09 0.05 0.04 0.03 - 0.00 - 0.051 1.218 7

5 7 2 1 4 0.01 8 0.01
1 1

X2 - 0.00 - 0.00 - 0.00 0.14 0.00 0.13 0.008 1.938 5

0.234 1 0.18 4 0.15 3 8 5 2
8 9

X3 0.213 0.00 0.11 0.02 0.06 0.04 0.04 0.02 0.03 0.005 2.689 6
0 3 0 9 0 6 5 7

X4 0.38 0.00 - 0.03 - 0.03 0.22 - 2.422 3

3 1 0.18 8 0.23 9 4 0.037
8 6

X5 0.88 0.00 0.69 0.00 0.56 0.000 1.387 1

9 0 2 0 2

X6 0.30 0.02 0.12 0.033 2.264 4

1 2 3

X7 0.43 0.000 2
5

R-squared 0.217 0.290 0.535 0.555 0.610

Adjusted 0.217 0.074 0.245 0.020 0.055

R-squared

Table 2. SPSS stepwise linear regression

(Source: the result of the data process in SPSS)

(5.4) Critically analyse the findings from your study

Analysis the results of SPSS

 Table 1. Standard normal distribution of the research

Cronbach’s alpha is a measure of internal consistency, meaning how closely related a set of

items are as a group. “It is considered to be a measure of scale reliability in which a reliability

coefficient of .70 or higher is considered “acceptable” in most research situations.” (Packages et

al., 2018) As can be seen from the table 1, the Cronbach's alpha of the four variables (brand

awareness, perceived quality, brand association, and brand loyalty) are all more than 0.70, which

means being reliable enough to be used in the next linear regression.

 Table 2. SPSS stepwise linear regression

According to the result of the linear regression in step 1, male customers tend to be more

loyal to Vietcombank, Hanoi branches than the female because the Beta coefficient is 0.108. The

variable X2 (Age of the respondents) has a negative effect on loyalty with the Beta coefficient of

-0.223 whereas the variable X3 (Income of the respondents) positively impacts on the customer

loyalty with the Beta coefficient of 0.213. In this step, the R-squared is 0.217, meaning these

three independent variables can explain 21.7% of the variation in the outcome of the SPSS.

In step 2, the variable X4 is entered into the model to measure the effect of brand

awareness on customer loyalty. The Beta coefficient is 0.383 indicating that the increase in brand

awareness results in the rise in customer loyalty. However, compared to step 1, the change of R-

squared is not too large from 0.217 to 0.209. The Adjusted R-squared is 0.704, meaning that

brand awareness only contributes to the explanation of the variation by 7.04%. In other words,
the impact of brand awareness on customer loyalty is small provided that other variables of the

model remain unchanged.

In Step 3, the variable X5 is entered into the model, similarly to Step 2, to evaluate the

importance of the Perceived Quality to Customer Loyalty. With the Beta coefficient of 0.889,

this variable has a positive impact on customer loyalty. The R-squared changes from 0.290 to

0,535, meaning the Adjusted R-squared is 0.245. It refers that the Perceived Quality is the most

influential factor to customer loyalty toward Vietcombank, Hanoi branches.

Next, the Beta coefficient of the variable X6 is 0.301 with the Adjusted R-squared of

0.020. The Brand Association positively affects customer loyalty but very small. Finally, when

entering the variable X7 to the model, the relevant Beta coefficient and the Adjusted R-squared

are 0.435 and 0.055 respectively. In other words, Brand Loyalty has not a significant influence

on customer loyalty toward Vietcombank, Hanoi branches.

Recommendations to improve Brand Equity in Vietcombank, Hanoi branches

In conclusion, the higher brand equity; to be specific; the four components (brand

awareness, perceived quality, brand association, brand loyalty) are, the better customer loyalty of

Vietcombank, Hanoi branches will become. Especially, the perceived quality is the No.1 factor

that determines whether the customer is loyal to the bank brand or not. In this regard, I would

like to propose several recommendations to improve the perceived quality at the banks as follow:

 Continue to remain and strengthen the brand image as the leading local bank with

professional and dedicated service quality.

 Improve the quality of the bank staff by conducting training courses on professionalism

and customer service.

 Cut down on unnecessary procedures to shorten the service time and bring higher

customer satisfaction.

 Develop a service quality management system at banks to promptly detect and correct

errors during the bank operations to provide the best service quality/

 Expand Vietcombank branches in scale and facilities to increase brand equity and build

trust with customers.

 Promote marketing to raise brand awareness, brand association, and brand loyalty.

 Prepare to conduct the relevant research on larger scales to test the reliability of the study

and to come up with appropriate conclusions and solutions.

 A Survey on Brand Equity of Vietcombank Ha Noi, Vietnam.

Dear Respondent

Many thanks for your kind participation in this interview about the impact of the brand equity to

customer loyalty at Vietcombank, Hanoi branches. Your answers will be useful as valuable data

to improve the service quality at the bank. Thank you very much.

Researcher: Nguyen Thuy Trang at Foreign Trade University

Email: vttrang.5295@gmail.com

------******------

I.Please give us some information about you by ticking (√ ) the most appropriate box. None of this

data will be made public rather than help me to interpret the answers to other questions.

Gender 🔲Male 🔲 Female

Age 🔲 18-25 🔲 26-35 🔲 36-50 🔲 50-More

Occupation 🔲 🔲 🔲 🔲 Business Owner or 🔲 Others

Official Teacher Student Employees

Income per 🔲 1-3M 🔲 3-5M 🔲 5-7M 🔲 7-9M 🔲 9-

Month More
(VND)

II. The following are questions on the brand equity of Vietcombank, Hanoi branches. Please tick

(√ ) the box that represents your opinion the best.

(Strongly disagree to Strongly Agree)

Variables Strongly Disagree Neutral Agree Strongly

Disagree Agree

1. I can recognize the brand of 🔲 🔲 🔲 🔲 🔲

Vietcombank

2. I can distinguish the logo of 🔲 🔲 🔲 🔲 🔲

Vietcombank among other commercial
banks’ logos
3. When thinking about commercial 🔲 🔲 🔲 🔲 🔲
banks, Vietcombank is my top of mind

4. I feel totally familiar with 🔲 🔲 🔲 🔲 🔲

Vietcombank brand

5. I find the advertising of Vietcombank 🔲 🔲 🔲 🔲 🔲

very good

6. I think the interest rate offered by 🔲 🔲 🔲 🔲 🔲

Vietcombank, Hanoi branches is quite
reasonable

7. The facilities at Vietcombank, Hanoi 🔲 🔲 🔲 🔲 🔲

branches are well-decorated, making it
more convenient for customers than
other banks

8. Products and services at 🔲 🔲 🔲 🔲 🔲

Vietcombank, Hanoi branches meet my
demands well

9. When making the bank transactions, I 🔲 🔲 🔲 🔲 🔲

feel Vietcombank the safest

10. Vietcombank, Hanoi branches often 🔲 🔲 🔲 🔲 🔲

provide attractive promotion campaigns

11. I completely trust in the quality of 🔲 🔲 🔲 🔲 🔲

products and services at Vietcombank,
Hanoi branches

12. Compared with other brands, I think 🔲 🔲 🔲 🔲 🔲

the brand image of Vietcombank is
more unique

13. Compared with other banks, 🔲 🔲 🔲 🔲 🔲

Vietcombank is the leading brand

14. I realise that Vietcombank often 🔲 🔲 🔲 🔲 🔲

presents commitment to society and
community

15. I trust the products and services of 🔲 🔲 🔲 🔲 🔲

Vietcombank, Hanoi branches

16. I will continue being the client of 🔲 🔲 🔲 🔲 🔲

Vietcombank if the bank can satisfy and
live up to my expectation

17. I always choose Vietcombank when 🔲 🔲 🔲 🔲 🔲

needing to make transaction

18. If the Vietcombank fails to meet my 🔲 🔲 🔲 🔲 🔲

requirements timely, I will wait rather
than switch to others