MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY LÊ QUANG BÌNH CUSTOMER EQUITY AND CONSUMER WELL-BEING: A CASE STUDY OF THE RETAIL SUPERMARKET INDUSTRY IN VIETNAM Major: BUSINESS ADMINISTRATION Code: 9340101 SUMMARY OF Ph.D THESIS Ho Chi Minh City - 2019 The thesis was completed in University of Economics Ho Chi Minh City Tutor: Asso Prof Ph.D Nguyễn Đình Thọ Reviewer 1: Reviewer 2: Reviewer 3: The thesis will be presented to the school-level thesis evaluation board at:……… At time date month year……… The thesis can be found at: Chapter 1: OVERVIEW OF RESEARCH THESIS 1.1 Research problem Managers faced daily challenges of increasing the efficiency of their products and services with the millions of dollars invested in marketing programs, regardless of whether the investment is made a reasonable profit or not Managers may simply not know how or are not able to calculate profit from investing in marketing programs They lack models of linking marketing activities with customer spending activities and instead often use intuition to make decisions (Vogel at al, 2008) Customer equity model is one of the first methods to bridge this gaps Customer equity has become an important marketing objective for today's business organizations, as it is capable of evaluating individual customers and customer segments from a value perspective (Rust at al, 2000) The concept of customer equity must incorporate customer value management, brand management and customer relationship management (Lemon at al, 2001) It is seen as the basis for a new strategic model from which to build more powerful and customer-centered marketing programs that can are financially accountable and measurable The impact of marketing on consumer well-being (CWB) has been concerned by many authors (eg Sirgy, 2001; Sirgy & Lee, 2008, 2012; Sirgy at al, 2006, 2007, 2008b) Marketing greatly affects consumer quality of life because it directly affects the satisfaction of elements in consumers' life and indirectly affects other aspects of life such as work life, family life, leisure life, financial life, etc (Day 1978, 1987; Leelakulthanit at al, 1991; Lee & Sirgy, 1995; Sirgy, 2001; Samli at al, 1987) So far there have been many different concepts and measures of consumer well-being that have been introduced in the field of marketing, business and the academic research in the world While there have been many different efforts to measure consumer well-being in the world, there is still little interest in studying, applying existing theoretical foundations to measure of consumer well-being in different industries in Vietnam There are many different concepts and measures of consumer well-being Therefore it is necessary to identify and apply the measurement model of consumer wellbeing in accordance with the research object, as well as the performance of marketing strategies towards consumer well-being as a new trend Researching customer attitudes and behaviors for a particular company is based not only on customer interaction and experience with that company, but also based on customer standards, preferences and personality characteristics (Ferguson at al, 2010) The personality traits associated with customer reactions to a service experience will create a specific attitude about a company that can lead to an intention in the next attitude and behavior (Bagozzi, 1992) Consumers may prefer a specific supplier and product that matches their personality traits or their own views (Yi Lin, 2010) In previous studies of customer characteristics in the field of marketing, the five-character personality model (BigFive) has been widely used by authors The model of five personality traits including extraversion, conscientiousness, agreeableness, emotional stability (neuroticism) and openness to experience (Bove & Mitzifiris, 2007) In Vietnam, researching on personality traits in marketing is still less concerned by the authors, especially in the retail sector Researching on customer equity in the retail sector in generally and retail supermarkets in particularly has been done in previous studies (eg Vogel at al, 2008; Dwivedi at al, 2012) However, the focus of this study is to explore the relationship between customer equity drivers, including brand equity, perceived value and relationship equity with consumer well-being, as well as testing the role of customer personality traits in the retail supermarket industry in Vietnam Retail supermarket is a shopping place close to consumers It affects the daily lives of consumers in generally, as well as affecting other aspects of their lives such as family life, social life, work life, leisure life, etc Customer's perception of shopping experience is very important in retail supermarkets (Ailawadi & Keller, 2004) It not only affects the satisfaction or dissatisfaction of customers in shopping, but also the customers' feelings of satisfaction in their life, the satisfaction that contributes to improving their quality of life Therefore, in the retail supermarket industry, it is necessary to enhance customer equity, constantly invest in improving brand equity, value equity and relationship equity It is identified as a background for improving consumer well-being in the retail supermarket industry However, studying the relationship between customer equity and consumer well-being is still a new issue in Vietnam There has not been a complete study of measuring the relationship between customer equity components and consumer well-being, as well as testing the role of customer personality on these relationships at Vietnam market in generally and in retail supermarket industry in particularly 1.1 Objectives of the study - Discovering and measure the relationship between brand equity, value equity and relationship equity in the retail supermarket industry in Vietnam; - Discovering and measure the relationship between customer equity drivers (including brand equity, value equity and relationship equity) and consumer well-being in retail supermarket industry in Vietnam; - Exploring the moderator role of customer personality traits on causal relationships between research concepts in the retail supermarket industry in Vietnam - Proposing management implications for marketing managers and business management in Vietnam's retail industry in generally and Vietnam's retail supermarket sector in particularly 1.2 Scope and research methodology The research topic of the thesis only focuses on the retail market in Vietnam but in particular the retail supermarket sector and general retail supermarket selected for research Research objects are customers of general retail supermarkets in Vietnam Survey samples were taken in Ho Chi Minh City, Da Nang and Hanoi Subjects of the survey are customers who are shopping at retail supermarkets in three cities aged 18 and over Preliminary research is conducted by qualitative research and preliminary quantitative research methods, conducted in Ho Chi Minh City in early 2017 Qualitative research is done through focus group discussion techniques Preliminary quantitative research is conducted by direct interview with retail supermarket customers through questionnaires Information obtained from the interview results is used to screen the observed variables that measure research concepts This study uses SPSS software to test the Cronbach alpha reliability and exploring factor analysis (EFA) Formal research is conducted by quantitative research methods, implementing information collection techniques by directly interviewing customers through a complete questionnaire from preliminary quantitative research This research step is carried out in Ho Chi Minh City, Hanoi and Da Nang in mid-2017 This study uses AMOS software, performs the confirmatory factor analysis (CFA) and the structural equation modeling (SEM) to test research models and research hypotheses 1.3 New contributions in theory and practice of the thesis Theoretical contributions: Firstly, the thesis synthesizes a relatively complete and systematic set of customer equity theories, drivers of customer equity (including brand equity, value equity and relationship equity), consumer well-being and customer personality traits The theories presented in this thesis have good reference value for research topics related to this field of research Secondly, researcher has provided a theoretical framework for customer equity, consumer well-being and customer personality traits In addition, the study proposes a model that explores the relationship between customer equity drivers and consumer wellbeing, the moderator role of customer personality traits on relationships of research model in the retail supermarket industry in Vietnam Thirdly, This research has inherited the scales of previous studies, and has adjusted and supplemented to suit the context of this research and retail supermarkets The results have built the scales of this research concepts for retail supermarkets in Vietnam Fourthly, this research results show that value equity and relationship equity have a positive effect on the consumer well-being In the five personality traits, agreeableness is a significant moderating effect on the causal relationship between value equity and consumer well-being, conscientiousness is a significant moderating effect on the causal relationship between relationship equity and consumer well-being, agreeableness is a significant moderating effect on the causal relationship between relationship equity and consumer well-being, extraversion and emotional stability (neuroticism) have a significant moderating effect on the causal relationship between value equity and relationship equity This research results is completely new, not yet published in previous studies Fifthly, this research results show that investing to improve brand equity, perceived value (value equity) and relationship equity not only contributes to customer equity but also contributes to consumer well-being Practical contributions: Firstly, this study provides the general managers and the retail supermarket manager to understand more about customer equity, customer equity drivers, consumer well-being and customer personality traits Research has shown managers what is important to customer equity, thereby marketing investment selectively and effectively to improve customer equity drivers, contributing to enhance the perceived quality of life of consumers This can increase sales and profits for businesses Secondly, this study helps researchers and business managers, especially in the retail context, see the important role of consumer well-being in enterprise marketing strategy In the retail supermarket industry, the goal of the customer is not only toward their shopping satisfaction but also towards their life satisfaction in the general and specific life domains (for example: social life, family life, leisure life, work life, health and safety, physical/sensual life, etc.) Thirdly, this study also helps enterprise directors and marketing managers find the role of customer personality to make the right solutions in business Enterprises can implement solutions such as training their service staffs who can serve customers enthusiastically and thoughtfully, understand customers more in the process of performing their services; Investing in various supermarket utility suitable for the majority of customers; diversification of product types, product quality, prices suitable for each customer, etc to serve customers better Fourthly, this study also helps market research companies and marketing managers to apply this research to measure customer equity drivers, consumer well-being, and customer personality in other industries, since offering appropriate marketing activities to improve customer equity drivers, enhance customer equity for the enterprises and increase consumer well-being 1.4 Structure of the thesis This thesis is carried out in six chapters: Chapter 1: Overview of the research topic, Chapter 2: Theoretical basis, Chapter 3: Research model, Chapter 4: Research methodology, Chapter 5: Results of research, Chapter 6: Conclusion and direction for further research Chapter 2: THEORETICAL BASIS 2.1 Theory of customer equity 2.1.1 Customer lifetime value (CLV) CLV is defined as measuring future profit streams from customers to companies, adjusted to customers' future purchases from the company and being discounted for the present (Rust, Lemon , & Narayandas, 2004, p 23) CLV is an important part of designing, budgeting and implementing marketing decisions (Dwyer, 1989) It may not be beneficial for the company to maintain a relationship with the customer if the customer has a short lifetime with the business or their changing behavior is high According to Berger and Nasr (1998), there is a potential threat when the company is too focused on CLV and efforts to ensure the absolute maximum revenue from the most active and most profitable customers Companies should not neglect opportunities other customer pools may offer for generating revenue The result can continue to increase in CLV from the most frequent customers and gradually reduce the majority of customers causing the overall profit reduction of the company CLV is a key concept of customer equity CLV is a lifetime contribution of the customer to the company and it is used as a measure of corporate success (Gupta et al., 2006) Lifetime contribution of customers to the company is considered in the following four stages: (1) customer asquisition, (2) customer retention, (3) relationship development and, (4) customer withdrawal (Rust, Lemon & Zeithaml, 2004; Berger et al., 2006) These four stages are described by Gupta et al (2006) in Figure 2.1 2.1.2 Customer equity Blattberg and Deighton (1996) defined customer equity as the total net present value of the customer lifetime aggregated across all of the company's customers Customer lifetime value is one of the most important measures of assessing the performance of business companies (Sargeant, 2001) Blattberg et al (2001) stated that "customers are financial assets that companies and organizations should measure, manage and maximize as other assets" Bitan and Mondschein (1997) defined a lifetime value as "all net contributions that customers have created in customer lifetime on customer databases" Firms’ Financial Performance Customer Lifetime Value (CLV) Customer Customer Relationship Customer Asquisition Retention Development Withdrawal Source: Gupta et al (2006) Figure 2.1: Modeling customer lifetime value Rust et al (2004) defined customer equity as “the total of the discounted lifetime values summed over all of the firm’s current and potential customers” (p 110) From this point of view, customer equity is considered an important asset of an organization, because revenue is generated by customers and the investment to generate this revenue is the company's cash flow facility (Hansotia, 2004) As a theoretical framework, customer equity is widely applied in many different market contexts and many industries because it directs enterprises to follow customer orientation (Rust et al, 2004) Customer equity provides a strategic perspective for management decisions by providing facility managers with a basis for identifying those customers or customer types they wish toseek out, retain, avoid, or even given up (Dorsch et al, 2001) An important component of all customer equity-marketing initiatives is identifying specific antecedents, or drivers of customer equity Rust et al (2004) argued that it is necessary for an organization to distinguish between strategies that improve the components of customer equity that are useful and not useful It is only recently that researchers sought to identify specific components of customer equity The summary of studies in this direction is listed in Table 2.1 Table 2.1: Antecedent theories of customer equity Authors Main content Rust, Zeithaml and Lemon (2000); Lemon, Rust and Zeithaml (2001); Rust, Zeithaml and Lemon (2004); Rust, Zeithaml and Narayandas (2004) Presenting a strategic model to explore key drivers that increase the firms’ customer equity The authors have proposed three main drivers of corporate customer equity: value equity, brand equity and relationship equity An overview of customer equity as a marketing process Discussing the management process, model and segmentation Testing the impact of marketing activities on customer benefits and Dias, Pilhens and Ricci (2002) shareholder value Proposing a unified model, called CUSAMS (customer asset Bolton, Lemon and Verhoef (2004) management of services) to understand and influence the value of customer assets Discovering the mediating roles of the drivers of customer equity in Chang and Tseng (2005) the effectiveness of relationship marketing activities on the average revenue of each customer Testing the effectiveness of customer equity components in Voorhees (2006) predicting customer behavior Bayon, Gutsche and Bauer (2002) Vogel, Evanschitzky and Ramaseshan (2008) Hyun (2009) Ramaseshan, Rabbanee and Hui (2013) Razzaq at al (2016) Cho and Jang (2017) Researching the relationship between the drivers of customer equity and customer loyalty and sales in the future of self-service retail stores in Europe The authors used three drivers of customer equity proposed by Rust et al (2000) to explore in the retail sector Establishing a model of customer equity in the restaurant industry including brand equity, value equity and relationship equity The author has proposed sub-drivers of customer equity in the restaurant industry Researching the relationship between the three main components of customer equity The research sample is done for customers in restaurant chains in Korea Researching the relationship between the three customer equity components (brand equity, perceived value and relationship equity) and customer loyalty of the telecommunications industry in the B2B market in Australia through the mediating roles of customer trust The study has investigated the level of meaningful contribution of customer emotions to customer equity components and customer loyalty intention The impact of three customer equity components including brand equity, value equity and relationship equity on loyalty intention that has been investigated by exploring more regulatory effects of positive emotions and negative of customers The research sample is carried out in the supermarket and banking industry in Pakistan Studying the impact of the drivers of customer equity (including brand equity, value equity and relationship equity) on customer loyalty and testing cultural differences between Korean and American customers Research data is collected from customers who have shopping experience at discount stores in Korea and the United States Source: The author synthesized from theoretical research 2.2 The drivers of customer equity Rust et al (2000, 2004), Lemon et al (2001) identified the model of customer equity consisting of three drivers that are value equity, brand equity and relationship equity These three drivers are also used by some other authors in their research (eg Severt, 2007; Sweeney, 2008; Vogel et al., 2008; Hyun, 2009; Dwivedi et al., 2012; Ramaseshan et al., 2013; Martin, 2015; Razzaq et al., 2016; Choo & Jang, 2017) 2.2.1 Value equity Value equity is defined as an objective assessment of customers about the benefits of a brand based on how customers perceive what they spent compared to what they received (Rust et al., 2000) It is the perceived rate between what is received (such as products and its benefits) and what has been spent (such as the price paid for the product) and so the benefit is higher than the cost, it will bring higher customer value Zeithaml (1988) recommended four customer perceived factors in value, including (1) low prices, (2) whatever I want in a product, (3) the quality I get for the price I pay, and (4) what I get for what I give up, including time and effort Holbrook (1999) proposed customers’ perceived value including input/output, quality, convenience and aesthetics Richards and Jones (2008) presented three factors to enhance customers’ perceived value including customer perceptions of quality, price, and convenience Rust et al (2000, 2004) provided three elements of perceived value, including quality, price, and convenience Hyun (2009) provided five elements of perceived value, including food quality, service quality, price, convenience and environment of the restaurant In the retail market, Vogel et al (2008) studied the customer equity of consumer goods retail stores (computer hardware) in Europe, based on Rust et al’ research (2000), the authors gave five elements of perceived value, namely (1) price, (2) product quality, (3) service quality, (4) convenience and (5) ) tangible environment of retail stores Factors of perceived value of Vogel et al (2008) were also studied by Ramaseshan et al (2013) in the telecommunications service industry of the B2B market 2.2.2 Brand equity According to Aaker (1991) defied brand equity as “a set of assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or that firm’s customers” And Keller (1993) defined brand equity as the different effect of brand knowledge on customer response to brand marketing Basically, a company will have a higher brand equity when customers response to their marketing efforts is more positive Ambler et al (2002) defined brand equity as all that exists in the minds of customers, including thoughts, feelings, experiences, images, perceptions, beliefs and attitudes A basic principle for brand equity is that a brand’s foundations including “peoples’ intangible mental associations about it…(and) the value placed on the brand is really the value of the strength and resilience of those associations” (Dyson, Farr, & Hollis, 1996, p 9) Explaining the nature of the relationship between brand equity and customer equity, Rust et al (2000) determined brand equity as part of customer equity and it builds on customer awareness about the brand Moreover, the brand equity represents the subjective and invisible assessment of customers and it is objective perceived value of customers Thus, the brand equity that includes many major components needs to be considered First, brand equity is considered a part of customer equity, which indicates that it is only partly responsible for determining the overall customer equity of the firms Second, brand equity is subjective assessment of brand, but it is not an objective assessment Therefore, the role of brand equity in the model of customer equity is more focused than the concepts of brand equity given before Brand equity is a multidimensional concept whose elements have been tested in theories Two of the often cited models are of Aaker (1991) and Keller (1993) Aaker (1991) proposed brand equity consisting of four elements (1) brand awareness, (2) perceived quality, (3) brand loyalty, and (4) brand association Keller (1993) argued that brand equity is the customer's knowledge of the brand, including two factors (1) brand awareness and (2) brand image Keller (2003) evaluated brand equity from a customer perspective as a two-element structure that is brand awareness and brand image In the study of consumer goods market in Vietnam, Nguyen Dinh Tho and Nguyen Thi Mai Trang (2002) determined the association of brands is the attributes that accompany the brand, the two authors also proposed three components of brand equity including (1) brand awareness, (2) perceived quality and (3) brand passion In the retail industry, there are many published studies related to retail brand equity Theories have shown a concern over the past decade about analyzing the concept of brand equity in the retail sector, with certain contributions to determine the content of this concept (For example: Hartman & Spiro, 2005; Pappu & Quester, 2006a; Jinfeng & Zhilong, 2009; Swoboda et al., 2009; Gil-Saura et al., 2016) According to Pappu and Quester (2006a), brand equity is formed from awareness, association attributes, perceived quality and loyalty Arnett and ctg (2003), brand equity includes loyalty, awareness, service quality and association attributes Jara and Cliquet (2012) proposed the model of retail brand quity based on the model of Keller (1993), with the retail brand equity described as a multidimensional concept consisting of two main components that are brand awareness and positive brand image Vogel et al (2008) defined retail store brand equity as two factors: (1) brand awareness and (2) brand image, which are proposed based on Keller’s model of brand equity (2003) Thus, through the study of the theory of brand equity shows that the factors that make up the brand equity are still inconsistent However, recent research on customer equity in the service and retail industry, the authors all agreed that the component of brand equity in customer equity includes two factors: brand awareness and brand image (Vogel et al., 2008; Hyun, 2009; Dwivedi et al., 2012; Resmaseshan et al., 2013) 2.2.3 Relationship equity Relationship equity is defined as the tendency of customers to return to the brand and beyond the objective and subjective assessment of the brand (Lemon et al., 2001) The concept of relationship involves the belief that how is it important of brand equity and perceived value is still not enough to retain customers In other words, even if the customer evaluates the product objectively and subjectively, they may not buy the product in the future for many reasons, including changes in personal situations and the impact of other companies' marketing efforts (Oliver, 1999) Relationship equity represents the strength of the relationship between firms and customers This concept comes from the theory of relationship marketing Morgan and Hunt (1994) defined relationship marketing as referring to all marketing activities and strategies aimed at creating, expanding, and maintaining the exchange of successful relationships According to Bejou and Iyer (2006), the relationship with customers is a source of intangible assets The intangible asset mentioned by the author is an indirect component of the customer equity defined above Therefore, relationship marketing activities can be viewed as a meaningful role in enhancing value based on the relationship of the organization, as well as the financial results and customer equity of the firm Lemon et al (2001) believed that there should be a "glue" between customers and the company, one of which is to increase the level of cohesion of the relationship In this context, relationship equity is the glue Many researchers have proposed different measuring factors to measure relationship equity Hennig-Thurau and Klee (1997) proposed three factors of relationship equity including trust, commitment, and overall quality De Wulf et al (2001) provide three factors that measure relationship quality including satisfaction, trust and commitment Hyun (2009) studies relationship equity in the restaurant industry, giving four elements of relationship equity including trust, emotional commitment, satisfaction and conflict In summary, through research, we see three factors that authors often use to measure relationship equity are trust, satisfaction and commitment (see De Wulf et al., 2001; Hennig-Thurau et al., 2002; Vogel et al., 2008; Hyun, 2009; Dwivedi et al., 2012) 2.3 Consumer well-being (CWB) 2.3.1 Concept of consumer well-being Many authors have conceived the concept of consumer well-being as a result of consumers' positive emotional response when consuming a product or service Sirgy et al (2008b) believed that consumer wellbeing is a positive emotional response of consumers to high quality goods and services Lee et al (2002), Sirgy and Lee (2003) described consumer well-being as consumer satisfaction from using a high quality goods and services Suranyi-Unger (1981) argued that CWB is the satisfaction of consumers' needs in various life domain (eg physical, social, emotional, physical substances) that are not only economically pure Nakano et al (1995) also described CWB as the level of consumer satisfaction with goods and services, the level of satisfaction with a variety of life domains increases, the level of consumers’ quality of life (QOL) also increased Sirgy et al (2007) defined CWB as a desirable state of objective and subjective quality based on different stages of the consumer life or product cycle that relations with consumer goods Merunka and Sirgy (2011) defined CWB as "a consumer assessment related to the extent to which brands or companies contribute significantly to their quality of life " 2.3.2 Well-being marketing Marketing is capable of significantly enhancing consumer well-being by providing consumers with goods and services, not only to improve their overall quality of life but also to make it safe for consumers, communities and the environment (Lee & Sirgy, 2012) The concept of well-being marketing is based on Kotler's social marketing concept (1979, 1986, 1987) Lee and Sirgy (2004) defined the well-being marketing as: " a way of doing business like planning, determining selling prices, promoting products and distributing goods to customers - designed to improve consumers' quality of life while retaining the interests of the company's stakeholders (eg shareholders, distributors, suppliers, workers, local communities and the environment) The impact of marketing on consumer well-being has been concerned by many authors (eg Sirgy, 2001; Sirgy & Lee, 2008; Sirgy et al., 2008b) Marketing greatly affects consumer well-being because it directly affects the satisfaction of elements in consumers' life and indirectly impacts other aspects of life such as work life, family life, leisure life, financial life, etc (Day 1978, 1987; Leelakulthanit et al., 1991; Lee & Sirgy, 1995; Sirgy, 2001; Samli et al., 1987) So far, there have been many different concepts and measures of consumer well-being in the field of marketing, business and published in jounals of well-being research by academics (eg Meadow & Sirgy, 2008; Nakano & ctg, 1995; Day, 1987; Leelakulthanit et al., 1991; Lee et al., 2002) 2.3.3 The distinction between consumer well-being and consumer satisfaction The term "well-being" can be considered similar to "satisfaction" However, the current theoretical background shows the difference between consumer satisfaction and consumer well-being Based on Oliver's theory of expectations (1980,1997, 2009), customer satisfaction is largely determined by customer expectations, which becomes a strong driving force for repeat purchase, positive word of mouth and customer loyalty (Fornell, 1992; Fornell et al., 1996; Szymanski & Henard, 2001) Of course, the goal of improving customer satisfaction is to ensure a high level of repeat patronage, ergo sales, market share, and profit (Lee & Sirgy, 2012) In contrast, the concept of CWB has been shown to be a meta-level concept with many different aspects of life, namely the link between CWB and quality of life In other words, all the concepts and measures of CWB presented in this thesis are based on the assumption that high level of CWB lead to higher levels of consumer’s quality of life - higher levels of life satisfaction, overall happiness with life, reduction of disease, increased social welfare, etc CWB also play a role as a bridge between satisfaction and consumer quality of life, but satisfaction does not always lead to consumer quality of life which is determined by consumer perception of the consumption of a product or service that enhanced quality of life in their various life domains, eg social life, work life, leisure life, etc (Sirgy et al., 2007) 2.3.4 Tổng quan khái niệm nghiên cứu thực nghiệm chất lượng sống người tiêu dùng In this section, the author will review the different experimental concepts and results of consumer wellbeing models published in previous studies These contributions are summarized and presented in Table 2.3 The models of consumer well-being are summarized in Table 2.3 in previous studies in marketing related academic fields In addition, there are other models of consumer quality of life from the public sector that the author does not synthesize in this study because these models are only useful for public management of CWB, not much meaning to CWB research in the field of marketing Table 2.2: Previous research on CWB Contributions from the marketing sector  The Shopping Satisfaction Model (Meadow & Sirgy, 2008)  The Possession Satisfaction Model (Nakano et al., 1995; Sirgy et al., 1998a,b)  The Acquisition/Possession Satisfaction Model (Leelakulthanit et al., 1991)  The Consumer Life Cycle Model (Lee et al., 2002)  The Need Satisfaction Model (Sirgy et al., 2006b)  The Bottom-Up Spillover Model (Diener, 1984; Sirgy, 2002; Sirgy et al., 2010a,b)  The Marketers’ Orientation Model (Lee & Sirgy, 1999)  The Perceived Value Model (Sirgy et al., 2006, 2007; Grzeskowiak & Sirgy, 2008)) Source: The author synthesized from theoretical research 2.4 Consumer personality traits Customer's personality is a stable set of characteristics and trends that lead to differences in the thoughts, feelings and actions of each individual (Maddi, 1989) McCrae et al (1990) were the first authors to classify personality theory into five elements These five elements are often called BigFive model, which are widely used today (Yi Lin, 2010) According to Bove and Mitzifiris (2007), BigFive model provides the most concise and complete to describe characteristics of personality Personality traits in the Big Five model include: Extraversion (representing sociality), Agreeableness (representing good character), Neuroticism (representing 11 Hypothesis H6a: The level of influence of the value equity of retail supermarket on the CWB of retail supermarket is moderated by the extraversion of retail supermarket customers Hypothesis H7a: The level of influence of the relationship equity of retail supermarket on the CWB of retail supermarket is moderated by the extraversion of retail supermarket customers Hypothesis H8a: The level of influence of the brand equity of retail supermarket on the value equity of retail supermarket is moderated by the extraversion of retail supermarket customers Hypothesis H9a: The level of influence of the value equity of retail supermarket on the relationship equity of retail supermarkets is moderated by the extraversion of retail supermarket customers Hypothesis H10a: The level of influence of the brand equity of retail supermarket on the relationship equity of retail supermarket is moderated by the extraversion of retail supermarket customers Hypothesis H6b: The level of influence of the value equity of retail supermarket on the CWB of retail supermarket is moderated by the conscientiousness of retail supermarket customers Hypothesis H7b: The level of influence of the relationship equity of retail supermarket on the CWB of retail supermarket is moderated by the conscientiousness of retail supermarket customers Hypothesis H8b: The level of influence of the brand equity of retail supermarket on the value equity of retail supermarket is moderated by the conscientiousness of retail supermarket customers Hypothesis H9b: The level of influence of the value equity of retail supermarket on the relationship equity of retail supermarkets is moderated by the conscientiousness of retail supermarket customers Hypothesis H10b: The level of influence of the brand equity of retail supermarket on the relationship equity of retail supermarket is moderated by the conscientiousness of retail supermarket customers Hypothesis H6c: The level of influence of the value equity of retail supermarket on the CWB of retail supermarket is moderated by the agreeableness of retail supermarket customers Hypothesis H7c: The level of influence of the relationship equity of retail supermarket on the CWB of retail supermarket is moderated by the agreeableness of retail supermarket customers Hypothesis H8c: The level of influence of the brand equity of retail supermarket on the value equity of retail supermarket is moderated by the agreeableness of retail supermarket customers Hypothesis H9c: The level of influence of the value equity of retail supermarket on the relationship equity of retail supermarkets is moderated by the agreeableness of retail supermarket customers Hypothesis H10c: The level of influence of the brand equity of retail supermarket on the relationship equity of retail supermarket is moderated by the agreeableness of retail supermarket customers Hypothesis H6d: The level of influence of the value equity of retail supermarket on the CWB of retail supermarket is moderated by the emotional stability of retail supermarket customers Hypothesis H7d: The level of influence of the relationship equity of retail supermarket on the CWB of retail supermarket is moderated by the emotional stability of retail supermarket customers Hypothesis H8d: The level of influence of the brand equity of retail supermarket on the value equity of retail supermarket is moderated by the emotional stability of retail supermarket customers Hypothesis H9d: The level of influence of the value equity of retail supermarket on the relationship equity of retail supermarkets is moderated by the emotional stability of retail supermarket customers Hypothesis H10d: The level of influence of the brand equity of retail supermarket on the relationship equity of retail supermarket is moderated by the emotional stability of retail supermarket customers Hypothesis H6e: The level of influence of the value equity of retail supermarket on the CWB of retail supermarket is moderated by the openness to experience of retail supermarket customers Hypothesis H7e: The level of influence of the relationship equity of retail supermarket on the CWB of retail supermarket is moderated by the openness to experience of retail supermarket customers Hypothesis H8e: The level of influence of the brand equity of retail supermarket on the value equity of retail supermarket is moderated by the openness to experience of retail supermarket customers Hypothesis H9e: The level of influence of the value equity of retail supermarket on the relationship equity of retail supermarkets is moderated by the openness to experience of retail supermarket customers 12 Hypothesis H10e: The level of influence of the brand equity of retail supermarket on the relationship equity of retail supermarket is moderated by the openness to experience of retail supermarket customers 3.3 Proposed research model 3.3.1 Official research model The formal research model consists of an independent variable of brand equity (BE); two variables both independent and dependent are value equity (VE) and relationship equity (RE); dependent variable is consumer well-being (CWB); moderator variables are customer personality traits (Figure 3.4) Value equity H4 H1 Brand equity H2 H3 H8(a,b,c,d,e) H9(a,b,c,d,e) H6(a,b,c,d,e) Consumer well-being H5 H7(a,b,c,d,e) H10(a,b,c,d,e) Relationship equity Customer personality: a) Extraversion b) Conscientiousness c) Agreeableness d) Emotional stability e) Openness to experience Figure 3.4: The formal research model 3.3.2 Competitive model In the competitive model, the research proposes a hypothesis concerning the relationship between brand equity and CWB, see Figure 3.5 Chapter 4: RESEARCH METHOD 4.1 Research design 4.1.1 Introduction to the research process Research process (see Figure 4.1) and implementation schedule (see Table 4.1) Table 4.1: Implementation schedule The way of Stages Research form Method Time Place performance Focus group Preliminary Qualitative 01/2017 HCM city discussion Preliminary Quantitative Interview 3,4/2017 HCM city HCM city, Da Nang Formal Quantitative Interview 6,7,8/2017 & Ha Noi 4.1.2 Research Methods 4.1.2.1 Qualitative research methods Qualitative research is carried out in the form of focus group discussions The purpose of this research is to clarify the factors and adjust and supplement the observed variables for draft scales (see in Section 4.3) 13 Value equity H4 H1 Brand equity Consumer well-being H6 H2 H9(a,b,c,d,e) H7(a,b,c,d,e) H3 H10(a,b,c,d,e) H5 H8(a,b,c,d,e) H11(a,b,c,d,e) Customer personality: a) Extraversion b) Conscientiousness c) Agreeableness d) Emotional stability e) Openness to experience Relationship equity Figure 3.5: Competitive model Research issues Objectives of the research Theoretical background (customer equity, consumer well-being, customer personality) Qualitative research (group discussion, two groups, n1 = 10, n2 = 10) Draft scales Draft scales (first Preliminary quantitative research (n = 389) adjusted) Complete scales Evaluate the reliability of Cronbach alpha and EFA scales Formal quantitative research (n = 1089) Model suitability test (CFA) Moderator variable test (SEM) Evaluate of Structural Equation Modeling (SEM) Results and The meaning of research Figure 4.1: Research process of the thesis 14 The research uses two discussion groups, one male group and one discussion group, from 22 to 35 years old, 10 members per group This qualitative research will be presented in detail in Section 4.4 4.1.2.2 Quantitative research methods Preliminary quantitative research aims to continue a preliminary assessment of the reliability and validity of the scale and adjust it to the retail supermarket market in Vietnam The number of research samples was surveyed with n = 389 and follow the convenient sampling method Subjects of the survey are customers who have been shopping in general retail supermarkets This research was conducted in March and April 2017 in District 1, District and District 5, Ho Chi Minh City Formal quantitative research is conducted by direct interview with customers The number of reseach samples was surveyed with n = 1089 and follow the convenient sampling method The survey subjects are customers who have been shopping in general retail supermarkets with the frequency of shopping at least once a month, regardless of male or female This study was conducted in June, July and August 2017 in Ho Chi Minh City, Da Nang and Hanoi 4.2 Background tof building the scale 4.2.1 Scales of customer equity drivers This research uses Vogel et al.’s (2008) scale of retail customer equity to explore, adjust and supplement observed variables that measure three drivers of customer equity in the retail supermarket industry in Vietnam The measurement variables of this scales are presented in Table 4.2 Table 4.2: Scales of three drivers of customer equity in the retail supermarket industry in Vietnam (draft scale 1) Concepts Brand equity Value equity Relationship equity Measure variables X is a strong brand X is an attractive brand X is a unique brand X is a likable brand How would you rate your overall shopping experience at X (“extremely good value/extremely poor value”) ? The quality provided by X in relation to the price you paid for their product is very good The quality provided by X in relation to the price you paid for their service is very good For the time spent at X, would you say shopping is (“highly reasonable/highly unreasonable”) ? For the effort involved in shopping at X, would you say shopping is (“very worthwhile/not at all worthwhile”)? X is very attractive I have a high quality relationship with X “*” I am familiar with the employees that perform the service I am glad to meet other customers in X Employees in X know my name I feel loyal towards X “*” I am happy with the efforts that X is making towards customers like me “*” company I have trust in X Source: Author adjusted from Vogel et al (2008) The observed variables are measured by the five-point Likert multivariate scales, with the convention: = "strongly disagree", = "disagree", = "medium", = "agree" and = "strongly agree" 4.2.2 Scale of consumer well-being This research uses the CWB scale of Grzeskowiak and Sirgy (2008) to explore, adjust and supplement for the CWB scale of retail supermarket in Vietnam Table 4.3: Scale of CWB of retail supermarket (draft scale 1) Does shopping at X contribute to your quality of life? Measure variables X satisfies my overall shopping needs X plays a very important role in my social well-being X plays an important role in my leisure well-being Source Grzeskowiak & Sirgy (2008) Grzeskowiak & Sirgy (2008) Grzeskowiak & Sirgy (2008) 15 X plays an important role in my family well-being X plays an important role in enhancing the quality of my education life X plays an important role in ensuring my health and safety X plays an important role in my emotional well-being X plays an important role in my work well-being X plays an important role in my financial well-being Sirgy et al (2006a) Grzeskowiak & Sirgy (2008) Sirgy et al (2006a) Sirgy et al (2006a) Sirgy et al (2006a) Sirgy et al (2006a) Source: Author adjusted from Grzeskowiak and Sirgy (2008) The observed variables are measured by the five-point Likert multivariate scales, with the convention: = "strongly disagree", = "disagree", = "medium", = "agree" and = "strongly agree" 4.2.3 Scale of customer personality This research is based on the scale of three customer personality traits of Bove and Mitzifiris (2007) which are extraversion, conscientiousness, agreeableness and in combination with the scale of two customer personality traits of Al-Hawari (2015) is emotional stability and openness to experience to build a scale of customer personality traits of retail supermarkets in Vietnam The observed variables are measured by the fivepoint Likert multivariate scales, with the convention: = "strongly disagree", = "disagree", = "medium", = "agree" and = "strongly agree" Table 4.6: Scale of retail supermarket customer personality (draft scale 1) Concepts Extraversion Conscientiousness Agreeableness Emotional stability Openness to experience Measure variables I am the life of the party I don’t mind being the center of attention I feel comfortable around people I start conversation I am always prepared I pay attention to details I get chores done right away I like order I follow a schedule I am exacting in my work I am interested in people I sympathize with others’ feelings I have a soft heart I take time out for others I feel others’ emotions I make people feel at ease I don’t easily get disturbed My mood doesn’t change a lot I don’t get irritated easily I don’t get stressed out easily I don’t get upset easily I don’t have frequent mood swings I don’t worry about things I have a vivid imagination I have excellent ideas I am quick to understand things I spend time reflecting on things I am full of ideas Source Bove & Mitzifiris (2007) Bove & Mitzifiris (2007) Bove & Mitzifiris (2007) Al-hawari (2015) Al-hawari (2015) Source: Bove and Mitzifiris (2007) and Al-hawari (2015) 4.3 Qualitative research Qualitative research is carried out in the form of focus group discussions The purpose of this research is to explore, adjust and supplement the observed variables of draft scale 16 4.3.1 Research design This research uses two groups of customers who regularly buy goods from retail supermarkets in Ho Chi Minh City (at least once a month), a group of male customers and a female group between the ages of 22 and 35 Each group of 10 members, all working and living in Ho Chi Minh City The purpose of dividing into two discussion groups is to assess whether there is a difference in the outcome of the discussion between men and women Since then, the observed variables will be adjusted to suit the general survey subjects, both male and female The implementation period is January 2017 How it done through group discussion outline prepared by the author (see details in Appendix 1) 4.3.2 Results of qualitative research 4.3.2.1 Scale of brand equity (BE) Scale of retail supermarket brand equity BE1: X supermarket is a strong brand BE2: X supermarket is a well-known brand BE3: X supermarket is a unique brand BE4: X supermarket is a attractive brand 4.3.2.2 Scale of value equity (VE) Scale of retail supermarket value equity VE1: You rate your overall shopping experience at X supermarket is very worthwhile VE2: The quality provided by X supermarket in relation to the price you paid for their product is very good VE3: The quality provided by X supermarket in relation to the price you paid for their service is very good VE4: For the time spent at X supermarket, you can say shopping is very reasonable VE5: For the effort involved in shopping at X supermarket, you can say shopping is very worthy VE6: The display of the X supermarket is very suitable for shopping 4.3.2.3 Scale of relationship equity (RE) Scale of retail supermarket relationship equity RE1: I have a high quality relationship with X supermarket RE2: I am familiar with the employees of X supermarket that perform the service RE3: I am glad to meet other customers in X supermarket RE4: I feel loyal towards X supermarket RE5: I am happy with the efforts that X supermarket is making towards customers like me RE6: I have trust in X supermarket 4.3.2.4 Scale of consumer well-being (CWB) Scale of retail supermarket CWB Does shopping at X supermarket contribute to your quality of life? CWB1: X supermarket plays a very important role in my social well-being CWB2: X supermarket plays an important role in my leisure well-being CWB3: X supermarket plays an important role in my family well-being CWB4: X supermarket plays an important role in enhancing the quality of my education life CWB5: X supermarket plays an important role in ensuring my health and safety CWB6: X supermarket plays an important role in my emotional well-being CWB7: X supermarket plays an important role in my financial well-being CWB8: X supermarket satisfies my overall shopping needs 4.3.2.5 Scales of customer personality traits Scales of customer personality traits of retail supermarket Extraversion ET1: I am the life of the party 17 ET2: I don’t mind being the center of attention ET3: I feel comfortable around people ET4: I like talking to people Conscientiousness CT1: I am always prepared CT2: I pay attention to details CT3: I get chores done right away CT4: I like order CT5: I follow a schedule CT6: I am exacting in my work Agreeableness AT1: I am interested in people AT2: I sympathize with others’ feelings AT3: I have a soft heart AT4: I take time out for others AT5: I feel others’ emotions AT6: I make people feel at ease Emotional stability NT1: I don’t easily get disturbed NT2: My mood doesn’t change a lot NT3: I don’t get irritated easily NT4: I don’t get stressed out easily NT5: I don’t get upset easily NT6: I am in a stable mood NT7: I'm less worried about everything Openness to experience OT1: I have a vivid imagination OT2: I have excellent ideas OT3: I am quick to understand things OT4: I spend time reflecting on things OT5: I am full of ideas 4.4 Preliminary assessment of the scale The scale of research concepts will be preliminarily tested by quantitative method with n = 389 The tool is used to preliminarily test the scales of Cronbach's Alpha reliability factor and explore factor analysis (EFA) Cronbach’s Alpha coefficients are firstly used to remove unsuitable variables The item-total correlation variables less than 0.30 will be eliminated and the criteria to select the scale when it has alpha reliability of 0.60 or higher (Nguyen Dinh Tho & Nguyen Thi Mai Trang, 2008) Next, the EFA method is used, the variables with factor loading less than 0.40 in EFA are further eliminated The method of extracting coefficients is PAF (principal axis factoring) with promax rotation and stopping point when extracting factors with eigenvalue > = The scale is accepted when the total variance extracted is greater than 50% (Nguyen Dinh Tho & Nguyen Thi Mai Trang, 2008) The results of testing the scales of research concepts have satisfactory Cronbach’s Alpha reliability factor (> 0.80) The item-total correlation coefficients are met (> 0.30) Results with eigenvalue> 1.0 The total variance extracted > 50% and all factor loadings are greater than 0.50 Thus, the observed variables of this scales are used for formal research Chapter 5: RESEARCH RESULTS 5.1 Formal research sample 18 Samples are selected according to the convenient sampling method The estimated sample size is n = 1000 and is done through direct interviews with retail supermarket consumers in the three cities of Hanoi, Da Nang and Ho Chi Minh, regardless of male or female, aged 18 and over To get the estimated sample size n = 1000, the number of interview questionnaires distributed was 1500 The reason for the large number of interview questionnaires (greater than 50% of the expected sample size) is due to the respondents must be regular customers shopping at retail supermarkets, shopping frequency is at least one times a month Therefore, during the interview, respondents who not meet the shopping frequency requirements will be disqualified immediately with the clarification question at the top of each questionnaire The results of 207 questionnaires were disqualified during the interview process because they did not meet the above shopping frequency The number of questionnaires that were not collected (because the respondent did not return the answer sheet) was 59 copies The total number of r questionnaires collected was 1234 After checking, there are 147 questionnaires that not meet the requirement due to the blank answer so they will be rejected Finally there are 1087 completed questionnaires used Table 5.1: Description of sample characteristics Contents Age 18 - < 24 25 - < 31 32 - < 38 39 - < 45 46 - < 55 > = 55 Total Income < triệu - < triệu - < 10 triệu 10 - < 15 triệu > = 15 triệu Total Sex Male Female Total Survey area Ho Chi Minh Ha Noi Da Nang Total Frequency Ratio (%) Accumulation rate (%) 323 393 199 103 51 18 1087 29.71 36.15 18.31 9.48 4.69 1.66 100.00 29.71 65.87 84.18 93.65 98.34 100.00 333 357 220 114 63 1087 30.63 32.84 20.24 10.49 5.80 100.00 30.63 63.48 83.72 94.20 100.00 462 625 1087 42.50 57.50 100.00 42.50 100.00 374 423 290 1087 34.41 34.41 38.91 73.32 26.68 100.00 100.00 Source: From the data processing results collected 5.2 Evaluating the reliability of the scale 5.2.1 Evaluating the reliability of the scale with Cronbach’s Alpha 5.2.1.1 Cronbach’s alpha evaluation of the scales of customer equity drivers and CWB Cronbach Alpha results of the scales of customer equity components and consumer well-being show that all scales are reliable The item-total correlation coefficients are high (> 0.50) Cronbach Alpha of all scales is also high, the specific results: the scale of value equity scale is 0.893, the scale of brand equity is 0.882, the scale of relationship equity is 0.913 and the scale of CWB is 0.925 Therefore, all observed variables of the scales are used to analyze the EFA in the next section 5.2.1.2 Cronbach’s alpha evaluation of the scales of customer personality traits Cronbach Alpha results of the scales of five customer personality traits show that scales are reliable The item-total correlation coefficients are high (> 0.50) Cronbach Alpha of the scales is also high, the specific results: the extraversion scale is 0.817, the conscientiousness scale is 0.875, the agreeableness scale is 0.888, the emotional stability scale is 0.887 and the scale of openness to experience is 0.847 (see Table 5.3) Therefore, all observed variables of the scales are used to analyze the EFA in the next section 19 5.2.2 Evaluating the reliability of the scale with EFA 5.2.2.1 EFA evaluation of the scales of customer equity drivers and CWB After analyzing the exploratory factors EFA (using the factoring method of extracting principal axis with promax rotation) The results show that there are four factors extracted at the eigenvalue of 1.49, the extractable variance is 60.04% (the variables in the model are able to exactly explain 60.04%) and KMO is 0.94 The extracted variance and KMO met the requirements In addition, the factor loading coefficients of the observed variables is high and satisfactory (> 0.50), the lowest is observed variable VE3 = 0.63 Thus, after analyzing EFA, there are four factors and 24 observed variables, perceived value has six observed variables, brand equity has four observed variables, relationship equity has six observed variables and CWB has eight observed variables 5.2.2.2 EFA evaluation of the scales of customer personality traits EFA results show that there are five factors extracted at the eigenvalue of 1.05, the extractable variance is 56.2% (the variables in the model are able to exactly explain 56.2%) and KMO is 0.94 The extracted variance and KMO met the requirements In addition, the factor loading coefficients of the observed variables is high and satisfactory (> 0.5), the lowest is the observed variable ET4 = 0.60 Thus, after analyzing EFA, the scales of customer personality traits has five elements and 28 observed variables, the extraversion has four observed variables, the conscientiousness has six observed variables, the agreeableness has six observed variables, the emotional stability has seven observed variables and the openness to experience has eight observed variables 5.2.3 Evaluating the reliability of the scale with CFA 5.2.3.1 The scale of value equity The value equity scale is measured by six observed variables After the CFA test, the observed variables have the required weights (> 0.50), the lowest is VE3 variable with 0.69 and all have statistical significance with p = 0.00 The weighted average value is 0.75 CFA results show that this model has a degree of conformity with market data with Chi-square is 0.815, df is and the value of p = 0.85 (> 0.05) Other measurement criterias are also satisfactory with GFI is 1.000, TLI is 1.000, CFI is 1.000, CMIN/df is 0.27 and RMSEA is 0.000 Thus, the observed variables used to measure the concept of value equity achieve convergent value The composite reliability (CR) is 0.89 and the average variance extracted (AVE) is 56.8% Thus, this scale achieves reliability and extracted variance 5.2.3.2 The scale of brand equity The scale of brand equity is measured by four observed variables After the CFA test, the observed variables have the required weights (> 0.50), the lowest is BE4 variable with 0.66 and is statistically significant with p = 0.00 The weighted average value is 0.724 CFA results show that this model has a suitable level with market data with Chi-square is 2,637, df is and p = 0,267 (> 0,05) Other measurement criterias are also satisfactory with GFI is 0.999, TLI is 0.999, CFI is 1.000, CMIN/df is 1.319 and RMSEA is 0.017 Thus, the observed variables used to measure the concept of brand equity achieve convergent value The CR is 0.816 and the AVE is 52.3% Thus, this scale achieves reliability and extracted variance 5.2.3.3 The scale of relationship equity The relationship equity scale is measured by six observed variables After the CFA test, the observed variables all have the required weights (> 0.50), the lowest is RE2 variable with 0.729 and is statistically significant with p = 0.00 The weighted average value is 0.78 Thus, the observed variables used to measure the concept of relationship equity achieve convergent value CFA results show that this model has a degree of conformity with market data with Chi-square is 1.702, df is and p is 0,79 (> 0,05) Other measurement criterias are also satisfactory with GFI is 0.999, TLI is 1.000, CFI is 1.000, CMIN/df is 0.426 and RMSEA is 0.000 The CR is 0.90 and the AVE is 61.2% Thus, this scale achieves reliability and extracted variance 5.2.3.4 The scale of CWB The scale of CWB is measured by eight observed variables After the CFA test, the observed variables have the required weights (> 0.50), the lowest is CWB6 variable with 0.70 and all have statistical significance 20 with p = 0.00 The weighted average value is 0.76 Thus, the observed variables used to measure the concept of CWB achieve convergence value CFA results show that this model has a suitable level with market data with Chi- square is 13.62, df is 10 and p is 0.191 (> 0.05) Other measurement criterias are also satisfactory with GFI is 0.997, TLI is 0.998, CFI is 0.999, CMIN/df is 1.36 and RMSEA is 0.018 The CR is 0.92 and the AVE is 58.4% Thus, this scale achieves reliability and extracted variance 5.2.3.5 The scale of customer personality traits CFA results of the scale model of customer personality traits have 323 degrees of freedom, Chi-square is 657.59 with p value = 0.00 However, the CFA results show that this model is consistent with market data when the GFI, TLI, CFI, CMIN/df and RMSEA criterias are good with GFI is 0.958, TLI is 0.975, CFI is 0.979, CMIN/df is 2.036 and RMSEA is 0.031 Moreover, the weights are within the permitted standard (≥ 0.50) and all are statistically significant with p is 0.00 Therefore, we can conclude the observed variables used to measure the scale of five customer personality traits (PT) achieve convergence value The CR of ET is 0.80 and the AVE is 50.4%; The CR of CT is 0.87 and the AVE is 52.1%; The CR AT is 0.88 and AVE is 54.9%; The CR of NT is 0.91 and the AVE is 58.2%; and the CR of OT is 0.84 and the AVE is 52% Thus, the CFA results of scales in the research model, we see that all scales are valid (see Table 5.7) Table 5.6: Summary table of results of scale test Concepts VE BE RE CWB ET CT PT AT NT OT Number of components 1 1 Observed variables 6 6 CR AVE 0.89 0.82 0.90 0.92 0.80 0.87 0.88 0.91 0.84 0.568 0.523 0.612 0.584 0.504 0.521 0.549 0.582 0.520 Average weights 0.75 0.72 0.78 0.76 0.71 0.72 0.74 0.76 0.72 Validity Qualified Qualified Qualified Qualified Qualified Source: From the data processing results collected 5.3 Verification of research model 5.3.1 Verification of formal research model The results show that the model has 227 degrees of freedom with Chi-square is 435,860 with p = 0.00 However, when adjusting the level of CMIN/df, this value is 1.920 ( RE -> RE -> CWB ML 0.383 0.182 0.326 0.304 S.E 0.045 0.050 0.042 0.036 C.R 10.126 4.952 8.914 9.072 P 0.000 0.000 0.000 0.000 21 RE -> CWB 0.429 0.032 Note: ML: Maximum Likelihood Estimates; SE: standard error; C.R: Critical Ratios 12.562 0.000 Source: From the data processing results collected Source: From the data processing results collected Figure 5.1: SEM results of theoretical model 5.3.2 Verification of competitive model Source: From the data processing results collected Figure 5.2: SEM results of competitive model SEM results show that the model has 226 degrees of freedom with Chi-square is 435,822 and p = 0.00 But other indicators of the model are consistent with market data with CMIN/df is 1,928 (