Research Proposal on Brand Loyalty in Mobile Phone Market

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I. Introduction
1. Problem Statement
A number of papers have discussed about the factors that influence a consumer’s brand loyalty, such as "An empirical model for brand loyalty measurement" (Punniyamoorthy, M and Prasanna Mohan Raj, 2007), or “The relation between Brand Loyalty, Product Involvement and Information Search” (Ai Lin Lim, 1999). Although both of the researches mentioned above reached some conclusions about their topics, it is our initial assumption that these conclusions will be more or less inapplicable to the Vietnamese market because of the different in the population analyzed. In fact, consumers in developed countries (such as the United States) are less dependent on price compared to Vietnamese consumers, with a higher level of compulsive consumption (as discussed in “Estimated Prevalence of Compulsive Buying Behavior in the United States”, American Journal of Psychiatry,2006); while Vietnamese consumers, in particular Vietnamese students, possessing limited income, which leads to lower compulsive buying and higher product involvement in general, will presumably have different motivations behind their repurchasing decisions. 2. Purpose of the study

This study has two objectives:
* First, to determine the main factors that influence the perception of brand loyalty of Vietnamese young adults in the mobile phone market, particularly Vietnamese students, whose characteristics and preferences are somewhat different from other consumer groups. * Second, to discuss the extent to which these factors affect the consuming decision when the consumers have to face with other situational limitations, especially when buying products with high involvement such as mobile phones. 3. Research Questions

There are 3 main questions that this study aims to answer:
a) Is there a connection between certain variables (income level, peer pressure, advertising, etc.) and the tendency of brand loyalty of university students in Vietnam? b) Which is the main factor that affects the perception of brand loyalty in said population? c) Will Vietnamese students make buying decisions that are over their budget to buy brand products that they’re loyal to? The questions are important because it may help mobile phone businesses to gain a better understanding of the tastes and preferences of Vietnamese growing market, and therefore being able to apply the knowledge and gain a competitive advantage in marketing over existing firm. 4. Significance of the study

This paper may be significant to improving the existing marketing strategy of Vietnamese’s mobile phone suppliers, particularly for new companies in the market, such as FPT with their S99 smart-phone; thus helping them to gain an advantage over established foreign suppliers (such as Nokia, Samsung, etc.). 5. Definitions

* Brand Loyalty
Brand loyalty is based on the amount of brand commitment. The amount of commitment is not fixed, but can be considered as a continuum. The amount of commitment is based on the type of brand satisfaction which is defined as “the outcome of the subjective evaluation that the chosen alternative (the brand) meets or exceeds the expectations”. [Bloemer] * Product involvement

Product involvement is an important concept, along with brand loyalty, believed to explain a significant proportion of customer’s purchase choices. There is no commonly accepted definition for this hypothetical construct. A temporary generally acceptable generic definition and a few characteristics are proposed by Rothschild: "Involvement is a state of motivation, arousal or interest. This state exists in a process. It is driven by current external variables (the situation, the product, the communications) and past internal variables (enduring, ego, central values). Its consequences are types of searching, processing and decision making" (Rothschild, 1984, p. 217). 6. Limitations

There is a certain number of limitations in the execution...
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