National Economics University

NEU Business School

________________________

RESEARCH PROPOSAL

Influence of brand awareness and brand image on

consumers' purchase intention to H&M fashion in
Hanoi

Prepared by:
Group 4 - EBBA 13.2

Hanoi, October 2022

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Table of Contents

1. Rationale___________________________________________________________3
1.1. Background______________________________________________________3
1.1. Introduction to H&M______________________________________________4
1.1.1. History of H&M_______________________________________________4
1.1.2. The success of H&M in the Vietnamese market_______________________4
1.1.3. H&M locations in Ha Noi_______________________________________4
1.2. Objectives_____________________________________________________5
2. Research Scope______________________________________________________5
2.1. Geography and Research subject_____________________________________5
2.2. Research Contents________________________________________________5
3. Literature Review____________________________________________________5
3.1. Brand Awareness_________________________________________________5
3.2. Brand Image_____________________________________________________6
3.3. Purchase Intention________________________________________________6
3.4. 4Ps Marketing Mix________________________________________________7
3.4. Consumers______________________________________________________8
4. Research Questions___________________________________________________8
5. Theoretical Framework and Research Hypothesis___________________________8
6. Research Methodology________________________________________________9
6.1. Population and Sample_____________________________________________9
6.2. Data collection__________________________________________________10
6.2.1. Primary data________________________________________________10
6.2.2. Secondary data_______________________________________________10
6.3. Data processing_________________________________________________11
7. Timetable__________________________________________________________12
8. References_________________________________________________________13

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Influence of brand awareness and brand image on
consumers' purchase intention to H&M fashion in Hanoi
_____________________________________________________________________

1. Rationale
1.1. Background

Over the last decade, Vietnam has been assessed as one of the fastest-growing
countries in the region and is expected to accelerate in the next decade (IMF 2022). In
the 10-year period (2010-2020), Vietnam's economic growth index has increased by
18 steps (from 70 to 52) with an average ECI score of 0.18 points (Growth Projection,
Atlas of Economics Complexity 2022). According to the World Bank, 6 years from
2015, Vietnam's GDP has increased by more than 50%; from 239.26 billion USD to
362.64 billion USD in 2021 (World Bank data 2021). GDP per capita in Vietnam has
improved significantly, from 2015 to 2021, this figure has increased by approximately
1,112 thousand USD (World Bank data 2021). As a result, people's lives have
gradually become more stable and better off, leading to a surge in purchasing power,
especially for fashion items. When people have enough financial resources for
essential needs (the wealth effect), they tend to buy needs that express themselves,
which is most evident in how they dress and enhance their personal beauty. According
to 2017 statistics from Asia plus Inc, about 46% of survey respondents spend less than
12.5 USD a month on fashion shopping (Asia Plus Inc 2017).

Vietnam's fashion industry has recently seen a boom of diversity in domestic

and foreign fashion brands. From 2015 to 2020, Viet Nam had successfully signed
free trade agreements that brought many achievements to the garment and fashion
industry, such as the Vietnam - Eurasian Economic Union Free Trade Agreement; the
Comprehensive and Progressive Agreement for Trans-Pacific Partnership; or the
Vietnam - European Union Free Trade Agreement (WTO-FTA), thereby promoting
foreign fashion brands to open establishments in Vietnam. Some foreign fashion
brands that first established their bases in Vietnam, such as H&M (Sep 9, 2017),
Uniqlo (2019), and ZARA (2016), ... brought a new wave to Vietnamese fashion.

The presence of many famous brands in the fashion industry is also successful
in the Vietnamese market. However, it also causes certain difficulties for brands when

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the market is increasingly diversified and expanded (Malie Nguyen 2021). Nowadays,
to be able to access and learn about products, customers use many different channels
such as social networking sites, e-commerce platforms, review websites, or real
sources of information, etc…, and get to know a wider range of products. From there,
consumers will have certain perceptions and evaluations of the brand's products. This
has had a significant impact on consumers' purchasing decisions, making brands
always have to find effective marketing directions to be able to build their own
brands.

1.1. Introduction to H&M

1.1.1. History of H&M

H&M was established by Erling Person in 1947, the shop exclusively

sold women’s clothing. In 1968, the name is changed to Hennes & Mauritz
when Erling Persson buys the hunting store Mauritz Widforss and a stock of
men’s clothing comes with the store. This was the start of sales of men’s and
children’s clothing. In the 90s, the European expansion continues and H&M’s
fashion becomes available online for the first time. The first stores in the US
and Spain opened in 2000. In subsequent years H&M opens in more European
markets and also in Asia (The H&M Way).

1.1.2. The success of H&M in the Vietnamese market

H&M is known as a fast fashion brand with the concept: “H&M offers
fashion and quality at the best price”. In 2019, H&M's revenue peaked in the
2017-2019 period, standing at $48.5 million. The profit after tax also increased
by $1.9 million, to $2.4 million (Malie Nguyen 2021). In 2020, H&M
generated 54.3 million U.S. dollars in revenue in Vietnam, indicating a
significant increase from 2017 (Minh-Ngoc Nguyen 2021).

1.1.3. H&M locations in Ha Noi

1. Aeon Mall Ha Dong

2. Vincom Nguyen Chi Thanh
3. Vincom Royal City
4. Gia Lam

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 5. Vincom Times City

1.2. Objectives

 Understand the impact of consumers' Brand Awareness and Brand Image

on purchase intention for H&M fashion products.

 The influence of 4Ps Marketing mix on purchase intention.

 Exploring H&M consumers segment.

2. Research Scope
2.1. Geography and Research subject

Every H&M consumer regardless of age located in urban areas of Ha Noi

2.2. Research Contents

The impact of Brand Awareness, Brand Image, and 4Ps Marketing mix on
consumers’ purchase intention.

3. Literature Review
3.1. Brand Awareness

Various researchers defined the concept of “brand awareness”. Brand

awareness is a fundamental component of brand equity (Aaker, 1991; Berry, 2000;
Cobb-Walgren et al., 1995; Keller, 1993; Shen, Yuan, Zhang, & Zhao, 2014; Yoo &
Donthu, 2001; Yoo et al., 2000). It reflects the salience of a brand in the customer's
mind (Aaker, 1996b). According to Keller (2008), brand awareness refers to whether
consumers can recall or recognize a brand, or simply whether or not consumers know
about a brand. In the broader sense, brand awareness is the premise of building brand
equity since the brand name provides the memory nodes in consumers’ minds (Aaker,
1991). Brand awareness includes “consumer recognition, recalls, top-of-mind
awareness, knowledge dominance, and recalls the performance of brands, as well as
brand attitude” (Kim et al., 2008). Besides, it is generally agreed that consumers may
link the related brand knowledge to the brand name, which finally constitutes brand

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equity (Aaker, 1991; Keller, 1993). . Hence, brand awareness provides a kind of
learning advantage for the brand (Keller, 2008). Brand awareness is critically
important to consumer decision-making, especially for low-involvement packaged
goods. In reality, brands that consumers know are more likely to be included in the
consumers’ consideration set (Hoyer & Brown, 1990; MacDonald & Sharp, 2000).
The consumer receives brand awareness via effective marketing communication
channels such as television, handphone, and online advertising as it gives assurance of
product quality and credibility which helps to reduce risk in product evaluation and
selection while buying a product (Aaker, 1996; Buil et al., 2013; Keller and Lehmann,
2003; Rubio et al., 2014).

3.2. Brand Image

Brand image plays an indispensable role in buying intentions of customers.

Keller (1993) stated that the brand image is the whole the reflection and
understanding about the product that he has in his mind. According to Rahmawati
(2016), brand image is a collection of brand associations that are created and stick in
the minds of consumers. Brand image is also the viewpoints and beliefs of consumers
about product quality manufactured by companies, especially the company’s
commitment to the products which are supplied to consumers (Finato, Hadiwidjojo,
Aisjah, & Solimun, 2014; Arslan & Zaman, 2014). Brand image is an asset, and a
good brand image will give a strong competitive advantage through consumer loyalty,
product quality and help increase the company’s performance. Consumers are more
likely to purchase the product with a better brand image. A positive brand image is
proportional to consumer buying intention (Arslan, 2014). Chernatony and
McWilliam (1989) indicated that the meaning and function of brand image can be
illustrated as follows: (a) brand image is an identifiable design, (b)brand image is a
consistent promise and guarantee of quality, and consumers can feel the consideration
and added value before and after purchase, (c) brand image is a self-image reflection
and a symbol to consumers themselves and others, and (d) brand image delivers a
relative of product information to assist consumers making purchase decisions brand
image is unique product recognition. With a good image, a brand can help its
customers feel safer and more trustable to buy its products.

3.3. Purchase Intention

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 Consumer’s purchase intention is vital in forecasting consumer behavior that it
obviously depends on the influencing factors that make the measurement difficult
under different circumstances. Lin (2009) defined buying intention as consumers'
probable reaction when they buy a specific product. An intention behavior is defined
as the "subjective probability that he or she will engage in a given behavior"
(Committee on Communication for Behavior Change in the 21st century, 2002). He
and Hu (2008) explained that buying intention is the transaction after consumer has an
overall evaluation of the product, such as attitude. Consumers' recommendations are
associated with the positive buying intention and affect directly consumers' choice
(Chang & Chin, 2010). It is considered that purchase intention is the preference of
consumer to buy the product or service. In another words, purchase intention has
another aspect that the consumer will purchase a product after evaluation. In reality,
many factors affect the consumer’s intention while selecting the product and the
ultimate decision depends on consumers’ intention with large external factors (Keller,
2001). Results of Shal and al. (2012) also suggested that purchase intention is a kind
of decision-making that studies the reason to buy a particular brand by consumer.
Morinez et al. (2007) define purchase intention as a situation where consumer tends to
buy a certain product in certain condition. Most previous studies tested the influence
of brand image on consumers' purchase intention and showed a significant
relationship between these variables (Arslan & Altuna, 2010; chi et al., 2008; Tariq et
al., 2013).

3.4. 4Ps Marketing Mix

Borden (1965) claims to be the first to have used the term “marketing mix” and
that it was suggested to him by Culliton’s (1948) description of a business executive
as “mixer of ingredients”. Marketing mix is the combination of different marketing
decision variables being used by the firm to market its goods and services. After
identifying the market and gathering the basic information about it, the next step is the
direction of market programming, is to decide upon the instruments and the strategy to
meet the needs of the customers and the challenge of the competitors. It offers an
optimum combination of all marketing ingredients so that companies can realise goals
for example profit, sales volume, market share, return on investment etc. The
marketing mix is grouped under four elements i.e., Product, Price, Place, Promotion.
(Meera Singh 2012). Goi (2009) define that marketing mix is originating from the
single P (price) of microeconomic theory (Chong, 2003). McCarthy (1964) offered the

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“marketing mix”, often referred to as the “4Ps”, as a means of translating marketing
planning into practice (Bennett, 1997). Marketing mix is not a scientific theory, but
merely a conceptual framework that identifies the principal decision making managers
make in configuring their offerings to suit consumers’ needs. The tools can be used to
develop both long-term strategies and short-term tactical programmes (Palmer, 2004).

3.4. Consumers

According to Khan (2006) all of us are consumers, we consume daily regarding

to our needs, preferences, and buying power, which open the door for too many
questions about what to buy? How do we buy? Where and when do we buy? It is
stated that consumers are the focus of all retail decisions, many questions had been
asked about how consumers decide upon what product to buy, the brand, and the store
to buy them from. The buying process starts when people recognized that they have
unsatisfied need, while unsatisfied need actually arises when consumer satisfaction
differ from his or her present level of satisfaction (Levy, Weitz, 2004, p.111). Semeijn
et al. (2004), in their study, indicated that poor product or services may cause a
consumer to be negatively judged and evaluated based on his/her preferences.
Consumers are satisfied because of the value package of their perceptions such as the
price, product quality, service quality, corporate image, and so on. They further
contended that if consumers receive the actual outcome of the value package as they
expected, they will be happy (Frederick and Salter, 1995).

4. Research Questions
This research is designed to answer the following questions:

 What is brand awareness?

 What is brand image? What is included in brand image?
 What is the difference between brand image and brand awareness?
 What are the factors that influence purchase intention for H&M
products?
 Who are the consumers of HM brand products?

5. Theoretical Framework and Research Hypothesis

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 The hypothesis is that Purchase Intention is influenced by Brand Awareness,
Brand Image, and the 4Ps Marketing mix. The interaction is also impacted by
demographic variables.

Hypothesis 1: Brand Awareness has an impact on Purchase Intention.

Hypothesis 2: Brand Image has an impact on Purchase Intention.
Hypothesis 3: 4Ps Marketing Mix strategy has an impact on Purchase Intention.
Hypothesis 4: Demography moderate impact of Brand Awareness, Brand Image,
4PsMarketing Mix strategy on Purchase Intention.

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6. Research Methodology
6.1. Population and Sample

This research population contains all consumers of H&M located in urban areas
of Ha Noi. Ha Noi's average population is about 8,33 million persons (GSO 2021).
However, the population density per km2 is distributed unequally between rural and
urban areas. Moreover, based on 5 H&M locations, we decided to narrow the
population to the urban population of Ha Noi. The research population is estimated at
4,1 million persons. With the following figures, we use Andrew Fisher's Formula for
large populatin and propose the research sample size will be 385. Assumed that the
confidence level is 95%, sample proportion is 0.5 and the marginal error is 5%.

Andrew Fisher's Formula for infinite population:

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Z × p ×(1− p)
n= 2
ME

- Z: Z-score
- n: Sample size
- p: Sample proportion
- ME: Marginal error

6.2. Data collection

6.2.1. Primary data

This main data is collected through a survey. This survey will be conducted
both online and offline.
With the offline survey, participants have a maximum of 48 hours to
finish the form before the team collects it. We believe that 48 hours is an ideal
time for answering a survey sheet. If more than 48 hours are used, participants'
answers may be influenced by external factors and cannot be reliable.
For the online surveys, questions are designed through Typeform. An
online survey can gather more participants, however, the quality of data may be

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 not precise. After the survey end, we will filter the data and remove unreliable
ones.

6.2.2. Secondary data

The research also uses secondary data from previous authors, and journals…
which had the same category as this research.

6.3. Data processing

The research contains the following methods:

 Descriptive analysis to describe the original data.

 Cronbach’s Alpha test for the reliabilities of scale. There are different reports
about the acceptable values of alpha, ranging from 0.70 to 0.95 (Bland J,
Altman D 1997). A low value of alpha could be due to a low number of
questions, poor inter-relatedness between items, or heterogeneous constructs
(Nunnally J, Bernstein L 1994).

 Factor analysis is useful for studies that involve a few or hundreds of variables,
items from questionnaires, or a battery of tests which can be reduced to a
smaller set, to get at an underlying concept, and to facilitate interpretations
(Rummel, 1970)

 Multi-regression is used to estimate the correlation between independent

variables and dependent variables.

 ANOVA test is also used to find out the difference among demographic
variables.

The whole process is performed by Excel 365 and Statistical Package for Social
Sciences (SPSS) ver 29.0.0.0 (241).

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7. Timetable
 Dec 15 - Mar 03.

o Gathering related research, collecting secondary data on H&M

o Developing a theoretical framework and survey instruments

 Mar 15 - Jun 10.

o Develop survey questionnaires

o Collect primary data

 Jul 02 - Sep 01.

o Analyzed and processed primary data

o Data visualization

 Sep 15 - Dec 15.

o Writing report

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