A STUDY OF TRUST FOR DOMESTIC BRANDS

Le Xuan Truc

WHAT? - Definitions and theories

WHY? - Culture, perception, domestic brand

WHO? - A portrait of Vietnamese consumer with respect to trust

HOW? - A snapshot of trust relationship between Vietnamese consumers and domestic brands

CONCLUSIONRECOMMENDATION

WHAT?

Definitions and theories

What does TRUST mean to you?

‘I believe that I will not be cheated’

‘Trust is the foundation decision making’

‘Trust is the confidence based on the past experience’

‘It would be very difficult to trust a person/product/brand again, if that person/product/brand fails my expectation’

INTERVIEW

‘The foundation of brand is trust’

Trust Level

Trust Equation - RISK

Perceptual Process

.

WHY?

Culture

Perception

Domestic brands

Do you trust domestic or international brands?

WHO?

A portrait of Vietnamese consumer with respect to trust

“A PERSON LIKE ME IS NOW THE MOST TRUSTED”

123 Respondents…

Family FriendsSeniors

123 Consumers trust in…

123 Consumers explain about brand trust

‘My experience in using it’

‘good packaging, good quality - consistency ’

‘I trust the brand because it has a long history of establishment and I have used it in a long time’

‘my friends have used it’ - ‘my family recommend it to me’

Or simply … ‘it is International’

Vietnam Culture

70

20

4050

80

PDI IDV MAS UAI LTO

High Power Distance Index (PDI) with respect to seniority in relationship

Low Individualism (IDV) A ‘We’ is more important than an ‘I’

Masculinity (MAS) infer a feminine society - emotional

Uncertainty Avoidance (UAI): the openness to new ideas and culture diversity; still very risk-adverse.

High Long-term orientation (LTO)values thrift, perseverance, long term and absolute truth.

I’m vey much influence others i.e. my family, friends and seniors. I trust

them

I am feminine

I value long-term

relationship, high brand loyalty

& trust

I am Risk-Adverse

I am Young and quite open to new ideas and culture.

Low in ethnocentrism

I trust international brands more

A Typical Vietnamese Consumer

HOW?

A snapshot of trust relationship between Vietnamese consumers and

domestic brands

TRUST- An Interpersonal relationship

Acquaintance Friendship Life-long partner

Make acquaintance by Advertising

It leads to trial.

‘Trial leads to Trust’

Association -Ads recall the good experience

TVCs are still the King to trigger the consumer interest and attention.

1 Straight SellProduct Attributes

2 Hard SellComparative Attributes

3 EndorsementFunctional Benefits

4 MetaphorConsumer Benefits

5 LifestyleFunctional + Emotional

6 SymbolicAbstract Values

7 Post ModernAdvertising itself

Naïve Consumers

Low competition

High competition

Super Consumers

Vietnam Ad Savvy

PR encompass the trustworthiness of the brand

PR reduces risk such as rumors andharmful information

PR entrust brand through 3rd party

Trust is not just about you and the brand !

Trust is established not only based on an actor's own experiences (individual trust), but also based on the trust that

other actors (collective trust)

ideal social self image

collectivism

need of affiliation

Family, friends and society

‘Today’s consumers resemble dynamic swarm’

DDBO Chicago, 2008

VOX POPULI

I recommend…

Understand the Vietnamese consumers

Make sure the consumer experience is consistent inside out

Choose right Match-makers

Brand Trust model

In concrete…

an interpersonal relationship

managed by individuals but influenced by the society

varies for different level of relationship

It takes great time and effort to make sure that we understand the other well and be able share a good lifetime experience

It happens the same to brand trust…

simply place the name of the brand into the person, we will see how we trust

the brand

Prepared by Le Xuan Truc

Advised by Mr. Cheah Kuan Yean