4.4 Discussion
The present study of branding in Electric Bicycle industry contributes our understanding of perceived quality, brands loyalty, brand awareness /association and CSR with brand equity on B2C market settings.
First, hypotheses H
1 stated the perceived quality would be related to industrial buyer-based brand equity. Results of hypotheses testing didn’t confirm the existence of a significant relationship between perceived product quality and brand equity. This insignificant relationship implies perceived product quality is not the important factor to build the brand equity in customers’ minds especially in electric bicycle industry in Vietnam market. This is a new finding in the literature. One possible explanation for this finding is that although Taiwanese EB companies might provide the equal perceived quality products to their dealer, buyers usually do not return these products and service to their seller to ask for the assistance of services.
Second, the results of hypothesis H
2 testing showed that brand equity explained a significant in brand loyalty in the Vietnam Electric Bicycle industry. The possible explanation for this finding is that it is difficult to switch EB product providers for loyal industrial buyers because of technical support preference and long-term maintenance required where as they could not make choices. Due to the Electric Bicycle requires after service on electrical battery change and motor maintenance in Vietnam. The innovative products and after service programs, high tech response by GPS designed networked and efficient make loyal customers satisfied even with paying high price to earn the performance. To stay ahead of the competition, a holistic branding approach is required that covers everything from the development and
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design to the implementation of marketing programs, processes, and activities that are intersecting and interdependent (Kotler and Pfoertsch 2007).
Third, the results of hypotheses H
3, the testing didn’t confirm the existence of a significant relationship between Brand awareness with associations and Brand equity.
This insignificant relationship implies Brand awareness with associations with Brand equity also show that while the relationship between equity was insignificantly positive as well as between brand preference and purchase intention. These insignificant relationships confirmed the existence of the determinants of brand equity dimension on brand awareness with associations in the case of Electric Bicycle industry in Vietnam. That means the consumer in Vietnam would not take their relative or association opinions, the race psychology in Vietnamese are very self-opinionated and self-righteous. This is a new finding in the literature. One possible explanation for this finding is the population very young in Vietnam, they are follow their direct feeling and very few to take others opinions.
Fourth, the results of hypothesis H
4 testing shows that brand equity explained an insignificant in Corporate Social responsibility on environment concerned product with brand equity in the Vietnam EB industry. The possible explanation for this finding is a less education and understanding the impact on global warming knowledge in the most emerging countries. The government on those emerging countries put more effort on economy growing and less attention on their environment and pollution problems. However, Vietnam is a member of ASEAN plus three countries and TPP, those developed countries would request Vietnam follow the international standard on air pollution and reduce the GHG emission. Vietnam government will change their policy to put more serious to request the manufacturing
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follow the same as developed countries standard, the CSR will be positively influence in the future. See the hung population as figure 7 and marketing opportunity in Vietnam on their position in ASEAN plus three countries and TPP members maps as Figure 8 as below;
(FTA: Free Trade Agreement; TPP: Trans-Pacific Partnership)
Country Population FTA Region
Brunei Darussalam 401,890 ASEAN plus 3 & TPP
Cambodia 14,805,358 ASEAN plus 3
Indonesia 237,424,363 ASEAN plus 3
Laos 6,500,000 ASEAN plus 3
Malaysia 28,334,135 ASEAN plus 3 & TPP
Myanmar 60,280,000 ASEAN plus 3
Philippines 92,000,000 ASEAN plus 3 Singapore 5,183,700 ASEAN plus 3 & TPP
Thailand 66,247,974 ASEAN plus 3
Vietnam 91,519,289 ASEAN plus 3 & TPP
China 1,370,536,875 ASEAN plus 3
Korea 48,875,000 ASEAN plus 3 & TPP
Japan 127,380,000 ASEAN plus 3 & TPP
USA 307,000,000 TPP
Chile 17,248,450 TPP
New Zealand 4,177,000 TPP
Peru 29,496,000 TPP
Total 2,507,410,034
wikipedia.org/wiki
1. Figure 7 The Population by ASEAN plus 3 countries and TPP members
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Figure 8 Vietnam becomes a Free Trade Agreement party in ASEAN and TPP
Fifth, the results of hypothesis H
5 testing shows that brand equity explained a significant in brand preference in the Vietnam Electric Bicycle industry. Vietnam was Colonialize by France for 100 years since Sep. 1858. It’s a lot of influence on French life style till today. Vietnamese values the brands、outgoing、sociable and always dressy well …same as French . This is explained our finding that’s brand equity with brand preference is positively relative in consumer mind in Vietnam. It’s also explained why Vietnamese were willing to pay US$ 7,500 to buy 125 C.C. Honda and Piaggio motorcycle bikes on past 3-4 years. willing to pay more to get the good brand name products it is difficult to switch EB product providers for loyal industrial buyers because of technical support preference and long-term maintenance required where as they could not make choices. Due to the Electric Bicycle requires after service on electrical battery change and motor maintenance in Vietnam. Case company provided
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the innovative products and after service programs, including the GPS networked designed to get the nearest agent location for any emergency programs and technical support on their Electric Bicycle. To make loyal customers satisfied even with paying high price to earn the performance.
Finally, the results of hypothesis H
6 testing shows that brand preference explained a significant relative with purchase intention in the Vietnam Electric Bicycle industry. Vietnamese purchasing behavior as case company past 11 years experienced, the key elements as following, first of all the manufacturers should pay attention on marketing strategy in order to strengthen their products level. Second, Vietnamese consumers take products quality and perceived value into their account before making the buying decision. Therefore, producers should improve brand equity and country image of the products in order to maintain the level of perceived quality and value which attribute to the consumer's purchase intention. Although, we did not find the positively relative on perceived quality with brand equity on our research data, however, it’s difficult to have a long term run on any kind of business staying in the market.
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Chapter Five: Conclusion