An examination of the effects of selected marketing mix elements on brand equity of coffee chains in Ho Chi Minh city - The case of Phuc Long coffee, Starbucks coffee, Highlands coffee, and The coffee bean and tea leaf
Abstract
This study was conducted from September 2014 to January 2015 with the aim of exploring the relationships between some selected marketing mix elements and the creation of brand equity. The author proposes a conceptual framework in which 6 marketing mix elements (Price, Store image, Distribution intensity, Monetary Promotion, Nonmonetary Promotion, and Advertising spending) are related to the brand equity which includes 3 dimensions: perceived quality, brand loyalty, and brand associations combined with brand awareness. The reviewing of literature, related theories and former researches proposes different scales of measuring customer-based brand equity. However, the measurement scales of Yoo et al., (2000) about brand equity‟s dimensions and some marketing mix efforts were mainly applied in this research. The questionnaire which includes both Vietnamese and English version was directly distributed to 310 customers in coffee shops of 4 brands: Phuc Long, Starbucks, Highlands, The coffee bean and tea leaf in Ho Chi Minh city. To analyze the result, the author utilized a structural equation modeling (SEM) to test and support for the research hypotheses.
The results indicate that high price, and high distribution intensity are related to high brand equity, whereas frequent price promotions, such as price deals, are related to low brand equity. In addition, there is not enough statistical evidence to prove that advertising spending has a positive effect on brand equity. This research also proposes some recommendations for marketing managers of these 4 coffee brands to come up with appropriate marketing strategy and policies in order to foster brand equity of their brands in the view of customers.
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