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A Study of Factors Influencing Brand Loyalty towards a Thanakha Cosmetic in Yangon, Myanmar By Nu Nu Seng Mai A thesis submitted in partial fulfillment of the requirements for the degree of Master of Business Administration Graduate School of Business Assumption University Bangkok, Thailand November, 2016 A Study of Factors Influencing Brand Loyalty towards a Thanakha Cosmetic in Yangon, Myanmar By Nu Nu Seng Mai A thesis submitted in partial fulfillment of the requirements for the degree of Master of Business Administration in Marketing Examination Committee: 1. Asst. Prof. Dr. Sirion Chaipoopirutana (Advisor)…………………… 2. Dr. Apichart Intravisit (Chairman)………………… 3. Dr. Vorapot Ruckthum (Member)…………………... 4. Dr. Ioan Voicu (Member)…………………... Graduate School of Business Assumption University Bangkok, Thailand November, 2016 Thesis Title A Study of Factors Influencing Brand Loyalty towards A Thanakha Cosmetic in Yangon, Myanmar By Ms. Nu Nu Seng Mai Major Marketing Thesis Advisor Assistant Professor Sirion Chaipoopirutana, Ph.D. Academic Year 2016 The Graduate School of Business, Assumption University, has approved this thesis as a partial fulfillment of the requirements for the Degree of Master of Business Administration in Marketing. -------------Dean of the Graduate School of Business (Kitti Phothikitti, Ph.D.) THESIS EXAMINATION COMMITTEE ~ Chairman (External) (Associate Professor Ranee Esichaikul, Ph.D.) 9w00 a~ Thesis Advisor (Assistant Professor Sirion Chaipoopirutana, Ph.D.) ~"'~··z-:=7 " Member :pichart lntravisit, Ph.D.) Member ----+,---------Vth~ ,.t:" D1Mv~f-k_ (Vorapot Ruckthum, Ph.D.) _____,~~'--'-'-''--"---'---'----'--'----Member (loan Voicu, Ph.D.) ABSTRACT Myanmar was once an isolated pariah country in Southeast Asia which is now the fastest growing market. The country is using the new democratically elected government in order to attract the interest of investors around the world. So, the country endures substantial political and economic reformation. The country has been restructuring its policies with the goal of establishing a market-oriented economy. The demand for beauty products is on the rise in Myanmar’s growing consumer market. Beauty brands from Europe, America and Asia are emerging in Myanmar salons and beauty shops as more women are hunting better skincare and quality cosmetics. Among these foreign brands, Myanmar traditional cosmetic brands are also struggling to survive in the local market. However, Myanmar traditional cosmetic so called Thanakha remains as a favorite beautifier for generation to generation. Hence, in this study, the researcher will focus on customer brand loyalty towards a Thanakha cosmetic in Yangon, Myanmar and explore which factors affect most on brand loyalty among Myanmar customers. In this research, the researcher utilized three theoretical frameworks of Ebeid (2014), Gil et al., (2007) and Hameed (2013) in order to develop a conceptual framework. The researcher collected the data from 400 Myanmar shoppers at seven selected shopping centers such as Junction 8 shopping center, Taw Win center, Junction Square shopping center, Dagon center, Ocean shopping center, Hledan center and Parkson FMI center as target respondents. The respondents are customers who have experienced with Shwe Pyi Nann Thanakha cosmetic at least 3 months. The researcher employed Simple Linear Regression (SLR) and Multiple Linear Regression (MLR) in order to test the hypotheses. According to the result of SLR analysis, in hypothesis one (H1), family has a positive influence on brand awareness. In (H2), family has a positive influence on perceived quality. In (H3), family has a positive effect on brand association. In (H4), advertising spending is positively impact on brand awareness. In (H5), advertising spending has a positive influenced on perceived quality. In (H6), advertising spending is positively impact on brand association. In (H7), advertising spending has a positive effect on customer satisfaction. From the result of MLR analysis, all three variables such as brand awareness, brand association and customer satisfaction are positively influenced on brand loyalty. However, perceived quality has a negative impact on brand loyalty. Among all variables, customer satisfaction is the most significantly positive effect on brand loyalty although perceived quality has a negatively influence on brand loyalty. According to the finding, it can be concluded that customer satisfaction is the most significantly influenced on brand loyalty towards Shwe Pyi Nann Thanakha cosmetic brand. If customers are satisfied about the product, there is no doubt that they will be loyal to such brands. Therefore, the more the customer satisfied the products, the more customers loyal to a brand. However, perceived quality has a negative impact on brand loyalty towards Shwe Pyi Nann Thanakha cosmetic. This can imply that the more customers perceive the quality of a product, the less customers brand loyalty towards Shwe Pyi Nann Thanakha cosmetic. To sum up, this research would be beneficial for marketers, managers and business owners in order to build a strong brand loyalty in the future. ACKNOWLEDGEMENTS “I can do all things through God who strengthens me”. Philippians 4:13 First and foremost, I would like to thank God, for providing me this opportunity and allowing me the capability to proceed successfully. This thesis appears in this way due to the assistance and guidance of several people. I would therefore like to offer my sincere thanks to all of them. Dr. Sirion Chaipoopirutana, my beloved advisor, my heartfelt thanks for accepting me as your dearest student, your warm encouragement, thoughtful guidance, very critical comments, offering valuable advice, support during the whole period of the study, and especially for your patience and guidance during the writing process. I would like to express my deep thanks to the committee members, Dr. Apichart Intravisit, Dr. Vorapot Ruckthum and Dr. Ioan Voicu for their excellent advices and detailed review during the preparation of this thesis. I would like to thank all my friends who always help me when I need. My sincere thanks go to them who are ready to help me anytime. I would also like to acknowledge Mr. Sumit Sharma as the proof reader of this thesis, and I am gratefully indebted to him for his very valuable comments on this thesis. Finally, I would like to express my very profound gratitude to my parents, brother, parent-in-law and to my husband for providing me with unfailing support and continuous encouragement throughout my years of study and through the process of researching and writing this thesis. This accomplishment would not have been possible without them. Words cannot express how thankful you all have done for me. Nu Nu Seng Mai November, 2016 TABLE OF CONTENTS Abstract……………………………………………………………………………………………i Acknowledgements………………………………………………………………………………iii Table of Contents………………………………………………………………………………....iv List of Tables……………………………………………………………………………………viii List of Figures…………………………………………………………………………………….xi CHAPTER 1 GENERALITIES OF THE STUDY 1.1 Introduction .............................................................................. Error! Bookmark not defined. 1.1.1 History of Thanakha and Purpose of Research ................ Error! Bookmark not defined. 1.1.2 Shwe Pyi Nann Thanakha Company Background ............................................................. 8 1.1.3 Kinds of Thanakha products by Shwe Pyi Nann.............. Error! Bookmark not defined. 1.1.4 Recent Myanmar’s Cosmetics Market Condition ............. Error! Bookmark not defined. 1.1.5 Shwe Pyi Nann Thanakha Cosmetics in Myanmar ........... Error! Bookmark not defined. 1.2 Research Objectives ................................................................. Error! Bookmark not defined. 1.3 Statement of the Problems ...................................................... Error! Bookmark not defined. 1.4 Scope of the Research .............................................................. Error! Bookmark not defined. 1.5 Limitations of the Research ..................................................... Error! Bookmark not defined. 1.6 Significance of the Study ........................................................................................................ 20 1.7 Definition of Terms................................................................................................................. 20 CHAPTER 2 LITERATURE REVIEW 2.1 Theory and Definition of Variables……………………………………………………...22 2.1.1 Family……………………………………………………………………………...22 2.1.2 Advertising Spending……………………………………………………………. ..23 2.1.3 Brand Awareness…………………………………………………………………..24 2.1.4 Brand Association………………………………………………………………... 25 2.1.5 Perceived Quality…………………………………………………………………..26 2.1.6 Customer Satisfaction…………………………………………………………….. 27 2.1.7 Brand Loyalty…………………………………………………………………….. 28 2.2 Related Literature Review 2.2.1 Relationship between family and brand awareness………………………………. 30 2.2.2 Relationship between family and perceived quality……………………………….31 2.2.3 Relationship between family and brand associations……………………………...31 2.2.4 Relationship between advertising spending and brand awareness………………...32 2.2.5 Relationship between advertising spending and perceived quality………………..33 2.2.6 Relationship between advertising spending and brand associations……………….33 2.2.7 Relationship between advertising spending and customer satisfaction……………34 2.2.8 Relationship between brand awareness, perceived quality, brand associations,
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