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Vai trò của tương tác xã hội, sự gắn bó với thương hiệu và sự hài lòng trong việc ảnh hưởng lên ý định tiếp tục sử dụng và truyền miệng đối với ứng dụng di động mang thương hiệu: Một nghiên cứu thực nghiệm trong bối cảnh Việt Nam

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Nội dung Text: Vai trò của tương tác xã hội, sự gắn bó với thương hiệu và sự hài lòng trong việc ảnh hưởng lên ý định tiếp tục sử dụng và truyền miệng đối với ứng dụng di động mang thương hiệu: Một nghiên cứu thực nghiệm trong bối cảnh Việt Nam

  1. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 THE ROLE OF PARASOCIAL INTERACTION, BRAND ATTACH- MENT AND SATISFACTION IN PREDICTING CONTINUANCE INTENTION AND WORD-OF-MOUTH TOWARD MOBILE BRANDED APPS: AN EMPIRICAL STUDY IN VIETNAMESE CONTEXT VAI TRÒ CỦA TƯƠNG TÁC XÃ HỘI, SỰ GẮN BÓ VỚI THƯƠNG HIỆU VÀ SỰ HÀI LÒNG TRONG VIỆC ẢNH HƯỞNG LÊN Ý ĐỊNH TIẾP TỤC SỬ DỤNG VÀ TRUYỀN MIỆNG ĐỐI VỚI ỨNG DỤNG DI ĐỘNG MANG THƯƠNG HIỆU: MỘT NGHIÊN CỨU THỰC NGHIỆM TRONG BỐI CẢNH VIỆT NAM Ha Tran-Thi-Phuong, Nhan Tran-Danh Nhu Tran-Thi-Quynh University of Economics – The University of Danang phuonghatran@due.edu.vn Abstract Mobile branded applications are increasingly built by various companies who urge to change the way consumers communicate to brands, encourages them to connect and interact with brands as well as control interactions between consumers and brands more effectively. This study aims to investigate the role of parasocial interaction, brand attachment and satisfaction of consumers in predicting continuance and word-of-mouth intention toward mobile branded apps. The research model was empirically examined utilizing 250 responses conducted from Vietnamese young people. The research results confirmed the impact of parasocial interaction, brand attach- ment and satisfaction on continuance and word-of-mouth intention toward mobile branded apps. The research results also revealed the positive influences of branded application experience and perceived usefulness on the parasocial interaction, brand attachment and satisfaction. Keywords: mobile branded applications, parasocial interaction, brand attachment, satis- faction, branded application experience, perceived usefulness. Tóm tắt Các ứng dụng thương hiệu trên điện thoại di động đang ngày càng được xây dựng bởi nhiều công ty khác nhau, những người mong muốn thay đổi cách thức người tiêu dùng giao tiếp với thương hiệu, khuyến khích họ kết nối và tương tác với thương hiệu cũng như kiểm soát tương tác giữa người tiêu dùng và thương hiệu một cách hiệu quả hơn. Nghiên cứu này nhằm mục đích điều tra vai trò của tương tác xã hội, sự gắn bó với thương hiệu và sự hài lòng của người tiêu dùng trong việc dự đoán ý định tiếp tục sử dụng và ý định truyền miệng đối với các ứng dụng mang thương hiệu trên thiết bị di động. Mô hình nghiên cứu được khảo sát thực nghiệm với 250 câu trả lời được thực hiện từ những người trẻ Việt Nam. Kết quả nghiên cứu đã xác định tác động của tương tác xã hội, sự gắn bó với thương hiệu và sự hài lòng đối với ý định tiếp 831
  2. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 tục sử dụng và ý định truyền miệng đối với các ứng dụng mang thương hiệu trên thiết bị di động. Kết quả nghiên cứu cũng cho thấy những ảnh hưởng tích cực của trải nghiệm đối với ứng dụng mang thương hiệu và tính hữu ích cảm nhận lên tương tác xã hội, sự gắn bó với thương hiệu và sự hài lòng. Từ khóa: ứng dụng mang thương hiệu trên thiết bị di động, tương tác xã hội, sự gắn bó với thương hiệu, sự hài lòng, trải nghiệm ứng dụng mang thương hiệu, tính hữu ích cảm nhận. 1. Introduction Many companies have recently indicated an interest in designing branded applications to encourage attachment and create customer satisfaction when choosing company’s applications (Bellman, Treleaven-Hassard, Robinson, Varan, & Potter, 2013). Smartphone applications expand the capabilities of each phone allowing users to perform particular tasks flexibly (Wottrich, van Reijmersdal, & Smit, 2018). Branded applications can change the way consumers communicate with the brand, because they can help consumers easily interact and control their interaction with the brands (Bellman, Potter, Treleaven-Hassard, Robinson, & Varan, 2011). The results of the study show that the use of branded mobile phone apps increases consumers’ interest in the brand’s product catalogs through applications and encourages consumers to connect and interact with the brand more effectively. A branded app could establish the connection of emotion with its cus- tomers (Fang, 2017), by increasing customer trust and engagement, with brand-related content. The attached brand name can keep loyal customers using the app because of its close relationship with the brand. The interactive features of mobile applications reinforce customer relationships and help consumers have a very positive attitude and trust in this brand (S. J. Kim, Wang, & Malthouse, 2015). However, the research on the relationship between consumer continuance and word-of-mouth intention and brands based on the context of mobile branded apps is still limited, especially in Vietnamese context. Therefore, a study with a comprehensive research framework to better understand the mechanisms of consumer-brand relationships that influence on the con- tinuance and word-of-mouth intention to branded applications is required. In this studies, we examined the relationship of parasocial interaction, brand attachment and satisfaction and continuance and word-of-mouth intention toward mobile branded apps. Be- sides, the mechanisms through which brand consumers’ suitability facilitates brand attachment and satisfaction also are examined in this study. The paper is structured as follows. In the next sections we will discuss the conceptual model development with proposed hypothesis, method- ology, results, and conclusion. 2. Literature Review 2.1. Mobile applications Mobile apps are software programs created specifically for mobile devices: smartphones, tablets. They turn them into a miniature space for entertainment, shopping, news, etc. Systematic interfaces work flexibly in software program applications and have expanded phone’s features that allow users to easily perform specific tasks (Jaakkola, Helkkula, Aarikka-Stenroos, & Dube, 2015; Yang, 2013). Initially, the app was created for general productivity and information recovery purposes, including email, calendar and contact management, or basic applications for a phone. However, with increasing the demand of consumers, these features are increasingly optimized 832
  3. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 and born. The tools are gradually being developed, promoting rapid expansion to include other application categories such as games, beautiful photography apps, social app utilities, etc. In ad- dition, with new features on the tools, the security of accessing personal information will be op- timized and safer (Hsu & Lin, 2015). In general, the application is a software that runs on hardware platforms, we can download it on any smart device that can access the Internet such as tablets, laptops, smartphones and desktop (Peng, Chen, & Wen, 2014). As mobile applications spread across various mobile platforms, researchers gradually turned to brand management and marketing features. Marketers have found the great uses and potential of smartphone apps as an effective marketing communication tool (Bellman et al., 2011). According to Nielsen (2014), on average, people spend lots of time using mobile applications than searching web browsers when they really need to. People use mobile apps more and more and they contain a large number of potential customers that businesses are looking for. Under- standing this trend, in addition to website design, there are countless new applications being launched every day. They apply to many different fields and industries: education, e-commerce, real estate, beauty spa, etc. 2.2. Branded apps Branded applications designed by a prominent branding company, in particular to identify the brand between customer interactions with the company’s services (Bellman et al., 2011; Fang, 2017). A branded app is a mobile application created by a company to promote its brand. It reflects the color, logo, typical slogan and characteristics of a brand through the application that customers have been approached. Branded applications provide product information to consumers, which encourages consumers to interact more strongly and easily with the brand they have chosen (Jin, 2016). Specifically, branded applications have transformed consumer brand engagement from centralized to an instant consumer interaction conversation (J. Kim & Ah Yu, 2016). Simply, we can see, branded applications that consumers are likely to regulate and control all the features they interact with the brand’s services through their mobile applications, the level of consumer attachment to that brand application is high and effective (Jung, 2014; Zhao & Balagué, 2015). Today, many well-known brand companies take advantage of media marketing opportunities through mobile applications, they have designed mobile branded applications to raise brand awareness and increase the value of each customer experience (S. J. Kim et al., 2015; Zhao & Balagué, 2015). Therefore, many big brands in Vietnam in particular and around the world in general have developed these outstanding features to attract and improve the relationship between a number of consumers with the company’s brand such as Pizza Hut, My Starbucks, Gong Cha, McDonald, The Coffee House, etc. 3. Conceptual model development 3.1. Brand Attachment An attachment is a deep and lasting emotional relationship, connecting one person to an- other through time and space and some people seeking natural attachment to specific data to avoid physical and psychological threats and to promote regulatory influence (Pedeliento, An- dreini, Bergamaschi, & Salo, 2016). Consumers can create strong connection and develop it with the goals necessary in their own lives and they can have a strong attachment to a brand, any per- 833
  4. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 son, a product or even places where they care about and want to visit. (Ramkissoon & Mavondo, 2015). Brand attachment is a sense of each individual about that brand in which love and brand engagement are expressed through the experience of each consumer when they use brand appli- cations, thereby serving as a foundation to affirm the relationship between brand and consumers (Thomson, MacInnis, & Whan Park, 2005). Compared to other consumer behavior research struc- tures, brand attachment clearly demonstrates the relationship and correlation between customers and the brand, this focus is on explaining the relationship of a brand with customers and forming consumer loyalty for that brand (Bahri-Ammari, Van Niekerk, Khelil, & Chtioui, 2016). The emotional attachment with a brand is reflected in the emotional dependence on the brand of the consumer (Phau, Teah, So, Parsons, & Yap, 2013). If the experiences that consumers really feel a high degree of attachment, they will make efforts, invest time and effort for that brand (Smaoui & Temessek Behi, 2011). Moreover, the buying decisions of consumers are in- fluenced by emotions related to the experience during using process that they are constantly con- sidering choices. So, brand attachment determines the ability of consumers to respond to their behaviors during the time they are actually experienced, such as purchase intent and brand ex- tension (VanMeter, Syrdal, Powell-Mantel, Grisaffe, & Nesson, 2018). The study of Hwang, Baloglu, and Tanford (2019) show that consumer brand attachment promotes their interoperability and loyalty to the brand, so they tend to continue to buy and use the products, service of that brand. Unlike the continuance intention, the potential for referral and sharing capacity can be an important component that should be supplemented in combination with the theory of technology application of previous studies effectively (Chea & Luo, 2008; Miltgen, Popovič, & Oliveira, 2013). The study of branded application is quite appropriate in this context, when word of mouth intention is considered a particularly important outcome variable (Hsieh & Tseng, 2017) in the success of a brand when using mobile brand applications as well as the ability to grow sales in the process of applying the application model to business (Liang, Li, Yang, & Wang, 2015). In the context of mobile branded applications, the impact of brand-consumer attachment on decisions of continuing using and spreading their word-of-mouth would be addressed. Therefore, the fol- lowing hypotheses are proposed: H1a: There is a positive relationship between consumers’ brand attachment and their con- tinuance intentions toward branded apps. H1b: There is a positive relationship between consumers’ brand attachment and their word- of-mouth intentions toward branded apps. 3.2. Satisfaction Satisfaction is defined as a measure of the level of customer satisfaction of a product, serv- ice and ability of a company which will help to accurately identify the specific information of each customer through surveys, adjustments and ratings, from which the company can improve and enhance its products and services in the best way (Schroeder, 2009). According to Ölander (1977), customer satisfaction is a relative measurement related to customer evaluation and com- parison. Also with this novel concept, customer satisfaction is assessed with products and services, basically (Ölander, 1977). The theory of satisfaction has been generalized by many authors and researchers on satisfaction standards (Aigbavboa & Thwala, 2013). Satisfaction is used to evaluate 834
  5. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 that a feature of a product or service, or a product or service itself, is provided (or is being sup- plied) by a consumer favorite and satisfaction response (Oliver, 1977). According to Chu (2002), the satisfaction of customers’ emotional responses to products and services is assessed as the process of forming satisfaction which is considered a fairly complex process related to cognitive, emotional and other psychological effects of people. Different from the usual face-to-face support capabilities, brand applications develop serv- ices that offer outstanding speed and optimal benefits, bringing a common satisfaction to all users (Pantano & Viassone, 2015). According to Grace and O’Cass (2005), satisfaction or dissatisfaction is the result of confirming or not confirming previously thought expectations about actual per- formance. Satisfaction is a positive response after consuming or consuming a product or service (Grace & O’Cass, 2005). In the context of research for the use of mobile branded applications, the positive benefits from experience of the applications will contribute to promoting the contin- uance intention with the brand’s products and services as well as word of mouth intention of long-term consumers (De Cannière, De Pelsmacker, & Geuens, 2010). Therefore, the following hypotheses are formulated as follows: H2a: There is a positive relationship between consumers’ satisfaction and their continuance intentions toward branded apps. H2b: There is a positive relationship between consumers’ satisfaction and their word-of- mouth intentions toward branded apps. Beside, consumers are almost identical with the brand when they feel satisfied with what they expect (Kuenzel & Halliday, 2008). The stronger the customer relationship with a brand, the greater its visibility. According to research (Thomson et al., 2005), when consumers feel sat- isfied with what the brand gives them, the connection between the brand and consumers tends to grow higher. In addition, the accumulated experience of consumers during the use of applications as well as forming the quality of the relationship between consumers and the brand are all ex- pressed by the satisfaction factor. Consumers who feel satisfied with that brand will gradually use and search for everything related to the brand such as logos, products and services to express their brand personality (Chiu, Huang, & Yen, 2010); so, the expression in the brand personality also strongly influences the brand attachment over a period of time (Orth et al., 2012). A higher level of brand attachment will bring a higher level of consumer satisfaction with the brand. Orth et al. (2012) and Bahri-Ammari et al. (2016) also proposed that customer satisfaction can explain their attachment. Therefore, consumers easily attach to the brand when they are really satisfied with that brand. Accordingly, the following hypothesis is proposed: H2c: There is a positive relationship between consumers’ satisfaction and their brand at- tachment. 3.3. Para-social Interaction Para-social interaction is proposed by Horton and Richard Wohl (1956) to paint the audi- ence’s delusional experience of establishing a face-to-face relationship or direct interaction with a distant media feature (i.e., mediated representation of speakers or characters). This interaction is being imagined as a personal, reciprocal relationship. In fact, this is a one-way or non-interac- tive, dialectical type of interaction because it is done through an intermediary virtual character 835
  6. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 or controlled by a virtual media representative (Horton & Richard Wohl, 1956; Perse & Rubin, 1989). The development of this interaction does not necessarily depend on how long the rela- tionship lasted or began, the para-social interaction can affect and arise at the first meeting (Perse & Rubin, 1989). Some traditional studies have focused on the relationship of the audience with a character in the mass media, and the researchers think that para-social interaction can take place in a sen- timental relationship, existing outside the mass media (Giles, 2003), such as the relationship be- tween readers and bloggers (Colliander & Dahlén, 2011), between the online community and the candidate on the website (Thorson & Rodgers, 2006). Unlike other interactive relationships, para- social interaction is done in a virtual context with fictional characters like online brands. Para- social interaction can see it thriving not only in terms of information communication but also in application design (Perse & Rubin, 1989). Para-social interaction has the ability to thrive in user interaction through the brand information they are provided and experienced from popular branded applications. Most recent studies have focused on the effects and impacts of factors on the use of branded applications, while the study on para-social interaction for brand applications is still very limit. Therefore, in the context of the research topic, para-social interaction will be more clarified for mobile branded applications. Through the theory of para-social interaction, the research can be based on the theory to make it clear that para-social interaction is capable of promoting social interaction between users and media characters (Giles, 2003). User interaction behaviors such as increasing views and prod- uct-selection clicks that they are interested in them, have been suggested that individual users may be affected by para-social interaction in their relationship with brand by previous studies (Hofstetter & Gianos, 1997; Skumanich & Kintsfather, 1998). In fact, today, para-social interac- tion demonstrates the relationship between consumers and the brand is strongly promoted (the availability of information and trust in brand use) (Labrecque, 2014). Based on the para-social interaction theory, the more consumers para-social interaction with a brand, the more likely they are to intend to continue using the brand’s own application. The more people trust and continue to use their brand app, the more they are likely to have word-of-mouth intention on the brand. Therefore, the hypotheses were developed as follows: H3a: There is a positive relationship between consumers’ para-social interaction and their continuance intentions toward branded apps. H3b: There is a positive relationship between consumers’ para-social interaction and their word-of-mouth intentions toward branded apps. 3.4. Brand – self congruity When a brand helps consumers maintain their self-image or improve their self-esteem (Phua & Kim, 2018), brand – self congruity can be reached. In the course of using or just beginning to reach brand applications, consumers are motivated that they should create a unique personal iden- tity that differentiates them from others (Sirgy, Johar, Samli, & Claiborne, 1991); therefore, if the brand gives them the ability to express their individuality and novelty, then consumers can increase the strong attachment with the brand they are interested in. Brand - self congruity fosters enthusiastic consumer feedback toward a brand. For example, in a study of Islam, Rahman, and 836
  7. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Hollebeek (2018), the emotional relationship between consumers and brands is greatly improved when brands are part of consumer awareness and can especially reflect their behaviors in con- sumers in the process of using the application. In addition, a strong brand-consumers connection contributes to a positive feeling of attachment, according to Pedeliento et al. (2016). The concept of brand - self congruity has been shown in several studies of offline shopping in shopping centers (El Hedhli, Zourrig, & Park, 2017) or in online shopping stores (Badrinarayanan, Becerra, & Madhavaram, 2014). When the relevance of the brand that consumers feel, the relationship be- tween the consumer and the brand will tend to attach together. Therefore, the proposed hypothesis is as follows: H4: There is a positive relationship between consumers’ para-social interaction and their word-of-mouth intentions toward branded apps. 3.5. Expectation Confirmation Expectation confirmation is a component that consumers will be expected to associate with a type of technology (Halstead, Hartman, & Schmidt, 1994). The use of technology models can be seen as new experiences that always formulate expectations and be evaluated during using process. Confirmation of expectations is reflected as an estimate relative to the advance accept- ability value of the technology (Hew, Lee, Ooi, & Lin, 2016). In this study, expectation confir- mation is assessed for perceptions of mobile branded applications. These judgments are made to compare those who have initial expectations, from which they actually decide to continue using those applications or not. Expectation confirmation refers to the fit between the actual performance of branded ap- plications and the expectations of consumers when using them. The functions of the product and the expectations of consumer functions are expressed to a fair degree, demonstrating the com- patibility between expectation confirmation and functional suitability (Sirgy et al., 1991). The difference between consumers’ expectations and the actual performance of the products they use is judged on confirmation of expectations and functional suitability. According to research by Huber, Vollhardt, Matthes, and Vogel (2010), consumers can perceive the suitability and benefits of functions in brand applications, so that the brand’s relationship with consumers will be more appropriate and advance. The functional properties of the product are really effective and meet the expectations of consumers that they can feel and experience, then the quality of relationship between customer and the brand will improve more. Park, MacInnis, Priester, Eisingerich, and Iacobucci (2010) proposed that brand cohesion was the last important criterion that clearly ex- pressed relationship between customers and brand. Jahn, Gaus, and Kiessling (2012) studied and suggested that partner quality is one of the important factors that create brand attachment. Specif- ically, functional relevance develops relationship between brand and customer, so it also makes consumer brand attachment for the use of mobile branded applications increasingly strengthened. Expectation confirmation in several studies has been discovered to have an effect on brand at- tachment. Once the functional expectations of brand applications meet the needs of consumers, they tend to attach to that brand more and more. According to expectation confirmation model, confirmation of expectations will also affect satisfaction with technology applications. A number of studies have found that confirmation ex- 837
  8. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 pectation has an impact on satisfaction (Bøe, Gulbrandsen, & Sørebø, 2015; Hsu & Lin, 2015; Yuan, Liu, Yao, & Liu, 2016), and it is clear that most of the relationship between expectation and satisfaction has a positive effect. When consumers use applications to process information, they initially receive the anticipation and expectation they want from their intended use through those applications, the satisfaction of each user would appear immediately after using at the first time or the next time. Several studies such as Y. Lee and Kwon (2011), the expectation takes place initially by using the services on the website and appears satisfactory after using. T.-C. Lin, Wu, Hsu, and Chou (2012) argued that the use of Internet Protocol television brought consumers satisfaction when their expectations were confirmed. With research of Nascimento, Oliveira, and Tam (2018), smart-watches’ satisfaction levels were higher when their initial expectations met their actual expectations. Similar to the case studies in the context of technology systems, con- sumers will be satisfied when they receive a performance, use as expected, typically using a mo- bile branded app in the way of easiness and being effective. The expectation confirmation model finds that the level of satisfaction and useful awareness in actual performance affects consumers’ expectations and expectations for the processing of in- formation in applications. Besides, several studies like Oghuma, Libaque-Saenz, Wong, and Chang (2016), Ayanso, Herath, and O’Brien (2015), and M.-C. Lee (2010) about electronic med- ical records, web-related services, and mobile, also show that confirmation of perceived useful- ness impacts on the context of using information system is different. A range of information technology products and services, systemized, standardized by the expectation confirmation model (Hsu & Lin, 2015), in addition it also expands development on mobile branded apps which are quite appropriate. In case if the use of mobile branded applications brings the expectations and expectations of consumers, they will feel the usefulness of the branded application. This shows the consistency and importance of expectations in the context of using branded applica- tions. Accordingly, the proposed hypotheses are proposed as follows: H5a: Expectation confirmation influences positive effects on brand attachment with a branded application. H5b: Expectation confirmation influences positive effects on satisfaction with a branded application. H5c: Expectation confirmation influences positive effects on the perceived usefulness to- ward using a branded application. 3.6. Perceived usefulness In the technology acceptance models, perceived usefulness is an important factor in eval- uating the results to show the effectiveness of the use (Davis, Bagozzi, & Warshaw, 1992). In this study, perceived usefulness has a practical value measurement that users seek during the use of mobile branded applications (Fang, 2017). The expectation confirmation model has also shown the increasing consumer satisfaction for information processing facilities through the perceived usefulness of efficient systems. One example of this relationship is satisfaction with electronic documents have a positive effect on the usefulness of such documents, according to Stone and Baker-Eveleth (2013). Another example is that doctors are aware of the usefulness of electronic medical records with regard to satisfaction with records (Ayanso et al., 2015). In this study, the 838
  9. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 more perceived usefulness about brand applications, such as updates on new information, the launch of new product categories, etc., the higher the level of consumer satisfaction. According to expectation confirmation model, perceived usefulness influence the contin- uance intention in accessing and processing information systems (Bhattacherjee, 2001). Besides, according to many other studies such as Gao and Bai (2014), Oghuma et al. (2016) and Nasci- mento et al. (2018), the study authors tested that perceived usefulness has a positive impact on continuance intention, particularly in the context of mobile branded applications. Continuance intention toward using brand applications will appear to consumers when they are truly aware of the usefulness of the applications and they will tend to change their mind. So, as the core element in technology acceptance models, perceived usefulness is an important component and has the potential to positively influence word of mouth intentions. Consumers tend to have word of mouth intention to introduce their relatives and friends to use if branded applications are really useful to them. Therefore, the hypotheses are developed as follows: H6a: Perceived usefulness influences positive effects on satisfaction toward a branded ap- plication. H6b: Perceived usefulness influences positive effects on continuance intention toward a branded application. H6c: Perceived usefulness influences positive effects on word-of-mouth intention toward a branded application. Based on the arguments above, the proposed model is shown in Figure 1 Figure 1. Proposed Research Model 839
  10. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 4. Methodology and Data 4.1. Measurement instruments A questionnaire-based survey was developed in order to test the theoretical constructs. Constructs and measurement items were adapted with slight modifications from technology ac- ceptance literature to build the questionnaire. Measurement items for constructs are adapted from previous study (Labrecque, 2014; C.-P. Lin & Bhattacherjee, 2008; Pedeliento et al., 2016; Roca, Chiu, & Martínez, 2006; Zhang, Benyoucef, & Zhao, 2015). All main measurement items were measured on a five-point Likert scale, ranging from strongly disagree (1) to strongly agree (5). Two demographic variables related to age and gender were also included in the questionnaire. Age was measured in years and gender was coded using a 0 or 1 dummy variable where 1 rep- resented women. The questionnaire was primarily developed in English, based on the literature with re- viewing for content validity experts from a university. Because the data collection procedure was operated in Vietnamese context, then later all English instruments was translated into Viet- namese language by a professional translator. The questionnaire was built online with Google Form service. 4.2. Data collection and processing According to Hair, Anderson, Babin, and Black (2014), the minimum sample size to use EFA is 50, preferably 100 and the ratio of observations over measurement variables is 5: 1, i.e. a measurement variable needs at least 5 observations. Six hundred and fifty eight (658) students and alumni from universities in Vietnam were contacted by e-mail and social network account in May of 2020. This data volume passed the minimum sample size because this study has 30 meas- urement variables. A hyperlink to the online survey was included in the messages. Two hundred and fifty four (250) valid responses were received. The overall response rate was 40%, which is reasonable for studies of this scale. 61% of the subjects were females. Because of our convenience sampling, this gender distribution in the sample could be results of that fact that women are have more interest on mobile shopping and mobile branded apps than men and more willing to answer the questionnaire. The age ranged from 17 to 32 years old. Individuals which are university stu- dents accounted for 75% of the data. The sample is an indicative group to test the instrument be- cause university students have high potential to adopt new mobile technologies such as mobile branded apps (Sohn & Kim, 2008). The descriptive results show that, the frequency of regular use from 2-3 times per month or more accounted for the majority (accounting for 63.6%) and the three most popular branded apps are The Coffee House (29.6%), Highlands Coffee (27.6%) and Gong Cha VN E-Members (17.6%). According to Hair et al. (2014), to determine the direction of scales, exploratory factor analysis (EFA) follows the main component analysis approach with orthogonal rotation varimax can be applied to examine structures or relationships underlying a large number of observed vari- ables as well as to determine whether information can be reduced or summarized in a smaller set of factors good or not. This study uses partial least square (PLS) path modeling to test the theo- retical model due to its most prominent justifications: nonnormal data, small sample sizes and 840
  11. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 formatively measured constructs (Joe F Hair Jr, Sarstedt, Hopkins, & Kuppelwieser, 2014). PLS- was executed via a two-stage data analysis: measurement model and structural model. The struc- tural model estimates are not examined until the reliability and validity of the constructs have been established. According to Joseph F Hair Jr, Hult, Ringle, and Sarstedt (2017) and Henseler, Ringle, and Sinkovics (2009), for assessing measurement model, researchers need to determine outer loadings, composite reliability, cronbach’s Alpha, average variance extracted (), and dis- criminant validity. 5. Results and Discussions 5.1. Measurement model In order to evaluate the constructs’ reliability, Cronbach’s Alpha reliability test was utilized. As shown in Table 1, Cronbach’s Alpha of all constructs are above the expected threshold of 0.6 and all their indicators of item-total correlation are above the expected threshold of 0.3, showing evidence of internal consistency and would be utilized in further analysis. Table 1: Summary of reliability test results Factors Observed variables Cronbach’s Alpha coefficient Brand – self Congruity BC1, BC2, BC3 0.701 Expectation Confirmation EC1, EC2, EC3 0.733 Perceived Usefulness PU1, PU2, PU3, PU4 0.709 Parasocial Interaction PI1, PI2, PI3, PI4, PI5, PI6 0.828 Brand Attachment BA1, BA2, BA3 0.818 Satisfaction SA1, SA2, SA3 0.765 Continuance Intention CI1, CI2, CI3 0.77 Word-of-mouth Intention WI1, WI2, WI3 0.773 In the next step, in order to identify the dimensionality of measurement scales, principle components factor analysis with varimax rotation could be adopted to examine the underlying patterns for the vast numbers of variables. The results of exploratory factor analysis (EFA) with orthogonal rotation (varimax) showed that all initial measurement variables of the initial proposed model were converged on 5 factors (with satisfied KMO and Bartlett’s Test indicators) as pre- sented in Table 2, Table 3, Table 4, and Table 5. Table 2: Factor analysis result for factors affecting Brand Attachment Factor loading Observed variables BAE BC2 0.766 EC1 0.728 841
  12. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 EC2 0.724 EC3 0.721 BC1 0.715 BC3 0.616 Eigenvalues 3.050 Percentage of variance explained 50.83% Table 3: Factor analysis result for factor Perceived Usefulness Factor loading Observed variables PU PU3 0.810 PU4 0.763 PU2 0.729 PU1 0.631 Eigenvalues 2.167 Percentage of variance explained 54.16% Table 4: Factor analysis result for factors affecting Continuance Intention and WOM Intention Observed variables Factor loading BA SA BA2 0.788 PI1 0.776 BA3 0.740 BA1 0.735 PI2 0.720 PI3 0.688 PI5 0.672 PI6 0.641 SA1 0.835 SA2 0.804 SA3 0.760 Eigenvalues 5.065 1.433 Percentage of variance explained 46.047 13.025 842
  13. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Table 5: Factor analysis result for factors Continuance Intention and WOM Intention Observed variables Factor loading CWI WI2 0.785 CI3 0.782 CI1 0.741 WI1 0.740 CI2 0.733 WI3 0.727 Eigenvalues 3.391 Percentage of variance explained 56.52% The five factors are (1) Branded Application Experience (convergence of Brand–Self Con- gruity and Expectation Confirmation), (2) Perceived Usefulness, (3) Parasocial Interaction and Brand Attachment (convergence of Parasocial Interaction and Brand Attachment), (4) Satisfaction, and (5) Continuance and Word-of-mouth Intention (convergence of Continuance Intention and Word-of-mouth). Besides, the results of scale reliability test with Cronbach’s Alpha in Table also showed that these 5 factors meet the requirements of reliability coefficient of 0.6 or higher and all item-total correlation of each measurement variables are greater than 0.3. Table 6: Summary of reliability test results in the modified research model Cronbach’s Alpha Factors Observed variables coefficient Branded Application Experience BC1, BC2, BC3, EC1, EC2, EC3 0.802 Perceived Usefulness PU1, PU2, PU3, PU4 0.709 Brand Attachment BA1, BA2, BA3, PI1, PI2, PI3, PI5 and 0.885 PI6 Satisfaction SA1, SA2, SA3 0.765 Continuance - Word-of-mouth CI1, CI2, CI3, WI1, WI2 and WI3 0.845 Intention The modified hypotheses and research model was formed and shown in Figure 2. 843
  14. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Figure 2. Modified Research Model In the last step of measurement model verification, all observed variables of 5 latent vari- ables were used to conduct the partial least squares structural equation modeling (PLS-SEM). The analysis results show that the outer loadings for each of the latent variable of the present study were sufficiently greater than 0.5. The composite reliability (CR) coefficients for each of the latent variable ranged from 0.824 to 0.908, which indicating strong reliability of the measures. The average variance extracted (AVE) have sufficiently greater than 0.5, thus the study demon- strated adequate convergent validity (see Table 7). The shared variance between factors was below the square root of the AVE of the individual factors, ratifying the discriminant validity. The results of cross loading show that all individual items are loaded higher on their respective constructs than on the other constructs. The square root of AVE was higher than the correlations among the latent variables. Therefore, the discriminant validity of the measurement model in this study is acceptable. VIF of all observed variables are less than 3 and ranged from 1.000 to 2.961; thus, multicollinearity is not a concern in this study. Table 7: Convergent Validity Composite Reliabil- Average Variance Factors ity (CR) Extracted (AVE) Branded Application Experience 0.507 0.860 Perceived Usefulness 0.541 0.824 Parasocial Interaction and Brand Attachment 0.554 0.908 Satisfaction 0.680 0.864 Continuance and Word-of-mouth Intention 0.565 0.886 5.2. Hypotheses Testing In order to extend the research results to the overall, the model needs to be tested for reli- 844
  15. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 ability. Path coefficient for endogenous latent variables is used. Evaluation of research results conducted through non-parametric Bootstrap analysis (Bootstrapping Test). Bootstrap is used in PLS to provide confidence intervals for all parameter estimates, building a basis for statistical inference. The path coefficients that make up a Bootstrap distribution can be viewed as an ap- proximation of the sampling distribution. PLS results for all bootstrap models provide confirma- tion for all hypotheses with mean values and standard deviation for each path coefficients as shown in Table 8 and Figure 3. Table 8: Bootstrapping Test Results Path Coef- Standard Hypothesis Relationship t-values p-values ficients (b) Deviation H1 Branded Application Experi- 0.466 0.06 7.797 0.000 ence g Perceived Usefulness H2 Branded Application Experi- 0.377 0.053 7.078 0.000 ence g Satisfaction H3 Branded Application Experi- 0.506 0.063 7.983 0.000 ence g Parasocial Interaction and Brand Attachment H4 Perceived Usefulness g Satis- 0.449 0.043 10.368 0.000 faction H5 Perceived Usefulness g Con- 0.244 0.057 4.306 0.000 tinuance and Word-of-mouth Intention H6 Satisfaction g Parasocial Inter- 0.165 0.062 2.659 0.008 action and Brand Attachment H7 Parasocial Interaction and 0.348 0.047 7.418 0.000 Brand Attachment g Continu- ance and Word-of-mouth Inten- tion H8 Satisfaction g Continuance 0.368 0.066 5.578 0.000 and Word-of-mouth Intention 845
  16. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 Figure 3. Hypotheses testing with Bootstrapping (PLS-SEM) 6. Conclusion Nowadays, many well-known brand companies take advantage of media marketing oppor- tunities through mobile applications, they have designed mobile branded applications to raise brand awareness and increase the value of each customer experience. However, the research on the relationship between consumer continuance and word-of-mouth intention and brands based on the context of mobile branded apps is still limited, especially in Vietnamese context. Toward fulfilling this research gap, this study has explored a comprehensive research framework to better understand the mechanisms of consumer-brand relationships that influence on the continuance and word-of-mouth intention to branded applications. Our research results confirmed the impact of parasocial interaction and brand attachment and satisfaction on continuance and word-of- mouth intention toward mobile branded apps. Such results are in the line with what has been ap- proved by prior studies such as Giles (2003), Orth et al. (2012), Labrecque (2014) and Hwang et al. (2019). The research results also revealed the positive influences of branded application ex- perience and perceived usefulness on the parasocial interaction, brand attachment and satisfaction. This result is consistent with previous research of Gao and Bai (2014), Oghuma et al. (2016) and Nascimento et al. (2018). Based on the results of this research, some suggestions are proposed. Firstly, to encourage and motivate consumers to know and use mobile branded apps, policymakers and brands in all sectors, especially in fashion, food and drink, coffee needs to update and develop a mobile branded app of its brand the most optimal and convenient way for consumers. This can attract and encourage users to be interested in and have an enjoyable experience with a brand’s products and services without having to visit the brand’s stores directly. With the increasing popularity of mobile brand applications, it will promote the interaction of consumers with the brand more 846
  17. INTERNATIONAL CONFERENCE FOR YOUNG RESEARCHERS IN ECONOMICS & BUSINESS 2020 ICYREB 2020 closely. Secondly, policymakers and businesses also need to consider the attachment and per- ceived usefulness of consumers through mobile branded apps. The impact of perceived usefulness also greatly affects consumer satisfaction, from that decision to the intention to continue and word-of-mouth on those applications. Businesses and brands should upgrade their interface op- erations and update information about products, services and programs onto the application in a sufficient and eye-catching way, but not lacking creative part. In addition, to have a better con- nection between consumers and brands, businesses need to provide and implement programs for products and services such as “Golden Week” promotion, happy birthday, accumulated stars, etc. at branches and store locations that “match” with the information given in mobile app. This will make it easier for consumers to connect and interact with the brand. Some people just like to ex- perience the application, so when they press the download button to the phone, everything opti- mized for a brand is shown through an application that will attract users and thence, they are more likely to continue using the app and recommend it to their friends to experience it. In addi- tion, for those who do not have too much time to update the brand’s program information timely, thank to that mobile branded app, they can know that information and can search for the location of the brand’s store that is suitable for their dwelling house or workplace so that they can go there to experience it directly in the brand’s store. Since then, the level of consumer satisfaction with applications has also been increased, enhancing interaction with apps through downloads of branded applications of consumers on smartphones. Thirdly, managers need to constantly improve the responsiveness of products and services through mobile branded applications to attract more new customers. When there are many users, it will cause WOM effects, stimulate the use of new customers. Fourthly, the application managers of brands should invest attention to customer feed- back, handle problems that arise as this is the most effective way to improve the reputation of the brand. Encourage customers to leave feedback and evaluation after use, from which businesses improve and develop to be able to meet consumer needs. Ultimately, today’s market competition of brands that require innovation and development for mobile applications in an efficient way that are easy-to-use and comfortable with the experience. That will help consumers feel better when downloading applications of the brand they are interested in. Therefore, managers should invest in developing, upgrading and providing useful features and compatible programs and ac- tivities in both online and offline in a parallel and effective manner. Beside of our study’s main contribution that adds into the existing body of knowledge, we also recognize its limitations, mostly regarding the sampling with typically young, highly edu- cated people as responders. The respondents’ behavioral patterns might diverge to some extent in comparison with the population average. With the behaviors that are mostly more pioneering and rapider to adopt new technologies, this sampling may have biased the effects. It is likely that seniors and less educated consumers or those who hold low computing or Internet-related capa- bility would recognize more difficulty in adopting mobile branded apps. Future research can be constructed based on this study by examining the proposed model in different age groups or ap- plying this model to other countries and also other contexts. 847
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