Factors Affecting to Brand Equity: An Empirical Study in Vietnam Banking Sector

Abstract

A strong brand is one of the most important assets of any company that want to be in a sustainable growing position within the context of international integration and tough competition today. Competitors of financial institutions in Vietnam are not only domestic but also foreign financial institutions. Unlike the manufacturing sector, the banking business is based on the trust of customers. A good bank brand is a prestigious brand, highly trusted by customers and influential decision to choose the use and maintenance of customers. This paper aims to provide empirical evidence of factors that impacted on bank brand equity in a specific context on Vietnam Banking Sector. The findings indicate strong support for bank brand equity coming form two factors among others: Brand Loyalty and Brand Association. The study is limited to 17 over 35 brands in Vietnam Banking Sector, and the survey was conducted with 378 banking customers in Ho Chi Minh Market only. However, the results provide deeply understanding of factors that impact on the brand equity, these may support banking managers to prepare properly strategy on brand equity investment for gaining customers’ trust, generating purchase intentions, sales and financial values for the bank brand.