The Effect Of Country Of Origin And Consumer Ethnocentrism On Brand Equity Of Cosmetics Product In Ho Chi Minh City

Abstract

The cosmetics market in Vietnam, especially in Ho Chi Minh City, has high consumer demand but lacks a dominant monopoly brand. This presents an opportunity for cosmetic brands to rapidly develop if they can capture this market. However, the market is highly competitive with many domestic and international players. To succeed, cosmetic brands need a clear understanding of consumers in Ho Chi Minh City. This study aims to help brands target consumers by analyzing the impacts of Country of Origin and Consumer Ethnocentrism on Brand Equity in this context. Previous studies have analyzed the relationships between Country of Origin, Consumer Ethnocentrism, and Brand Equity in the cosmetics market. However, there is limited research comparing the impacts of Country of Origin and Consumer Ethnocentrism on Brand Equity in the Vietnamese cosmetics market. This study aims to investigate and analyze these relationships across the four brand equity dimensions in the context of the cosmetics industry in Ho Chi Minh City. The researchers used a quantitative survey with convenience sampling to test the hypotheses. The online survey had 320 valid respondents, and the data was analyzed using SPSS 20 and AMOS 23. The findings show that Country of Origin and Consumer Ethnocentrism positively influence Brand Equity. However, the direct effect analysis indicates only Country of Origin has a significant impact, while Consumer Ethnocentrism has an insignificant direct impact. The study also examined mediating relationships. It found that Consumer Ethnocentrism has a positive relationship with Brand Equity through the mediating variables of Brand Awareness, Perceived Quality, Brand Loyalty, and Brand Image. Similarly, Country of Origin also has a positive relationship with Brand Equity through these mediating variables. Based on these conclusions, the researchers will provide recommendations for cosmetics companies and future research, as well as identify the study's limitations.