The impact of cultural identity and attitude-to-brands on customer loyalty in Vietnamese context

Abstract

In contemporary times, Vietnam is recognized as a country with significant potential, attributed to its remarkable advancements across various sectors. The food and beverage industry, in particular, stands out as a highly promising market within the nation. Furthermore, the franchising model, widely embraced by entrepreneurs venturing into the food and beverage sector, was a favorable approach to achieving the Vietnamese market. Of notable importance is the impact of cultural identity on the adoption of the franchise model abroad. Against this backdrop, this research aims to investigate how cultural identity influences customer loyalty. To achieve this, a theoretical framework was crafted, encompassing elements such as cultural identity, perceived cultural marketing, perceived quality of food and beverages, perceived service quality from employees, customer satisfaction, and ultimately, customer loyalty. Additionally, the study delves into the role of Attitude-to-brands in mediating the relationship between customer satisfaction and customer loyalty. The investigation involved 257 Vietnamese diners who had experienced foreign franchised restaurants or coffee shops, analyzed using Smart PLS 4. The findings reveal a positive influence of cultural identity on customers’ perceptions of products and services, subsequently fostering customer loyalty. Furthermore, the study identifies attitude toward brands as a mediating factor in the intricate connection between customer satisfaction and loyalty. In essence, the insights gained from this research offer valuable guidance for franchise businesses seeking to enter or refine their strategies in the Vietnamese market. By uncovering the effects of cultural identification and customer attitude on customer loyalty, the study provides a foundation for informed decision-making and strategic adjustments in the dynamic landscape of the Vietnamese business environment.