For instance, promotions make consumers more sensitive to price for all brands in the same product category; they consequently decrease the probability to buy the purchased brand if there is no promotion1. In other words, promotions may heavily impact the subsequent brand choice. If consumers buy the brand because it is promoted but because they favor the brand, then promotions have generated negative association to the brand. This can explain why “discount” negatively impact the brand loyalty, as it can be explained that consumers no longer have incentive to switch the brand, they may come back to the favorite brand with the same function of the product2.
Limitations of the Study
The findings of this research are subject to at least five shortcomings. Firstly, the data collected only from 8 districts out of 16 districts in HCMC. Based on a new research by the UK-based Oxford Economics published on Wednesday report, Bloomberg forecasted that Vietnam will become the second fastest growing economy in Asia by 2021 with the expected growth rate of 8% per year, which will rank Vietnam in the 30 biggest cities in Asia. While JLL ranked HCMC the second most active city in the globe, only after India’s Bangalore. HCMC is classified in “High Potential Cities” with the competitive advantages of low costs, fast consumer market growth and the increasing level of foreign investments as Vietnam appears to be more attractive and giving new reasons to invest3.
However, Vietnam has just declared independence since 1975. After 40 years since the Vietnam War, the remnants of the war have still had influenced on the economy in several ways. With the current growth rate of Vietnam economy will lead to a certain increase in the level of disparity between the rich and the poor. It is, therefore, impossible for all citizens to adapt to the new living habits of the modern life. The thing is the sample’s age in this study ranging from 20 to 50+ which means some of them are born in the unknown of war, while the rest had grown up suffering the insufficiency of food and clothes. The two generations will establish different spending habits which have their roots in the subconscious processes in which the later will more incline to save than spend. Economic factors are a critical impact on spending behavior and how purchasing decisions are made.
Secondly, the products chosen (washing powder and perfume) are basic products that should be available in any family, and can be easily bought within the city. This is a limitation of this research because it was assumed that these two products categories represent all other types of products, while some other type of product may better perform the difference in level of consumer involvement.
Thirdly, the sample size was 215 which is a relatively small sample size compared to the population size. Therefore, it must be warned that the findings of this research may not be generalized to the population of HCMC.
Fourthly, the limitations lie in the method chosen to analyze the collected data. Regarding the sampling method, non-probability sampling does not allow all citizens of the population has an opportunity to participate in the survey which means the odds of any person being chosen for the study cannot be calculated. The group of members were selected depend on the accessibility or subjective judgment of the researcher resulting in difficulties in identifying sampling inconsistency and possible bias, which is the case of this study4.
Finally, the Cronbach’s alpha test was used in this study to test the internal consistency reliability of the scale in the survey. However, there have been many arguments that either against and support the reliability and validity of the test. According to Schimitt, the internal consistency indicates the interrelatedness while homogeneity refers to uni-dimensionality of any given group of items5. In other words, without further information, alpha value is very confusing that uni-dimensionality or multi-dimensionality of the data can be indicated by either low and high alpha values. There must be more detailed information to know exactly what alpha represents for, because the measure of internal consistency cannot be explained by alpha itself6.