The Journal of Asian Finance, Economics and Business

Korea Distribution Science Association (한국유통과학회)
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Impact of Consumer Ethnocentrism on Reasoned Action and Brand Equity: Empirical Evidence from Local Fashion Brands in Vietnam

  • Received : 2022.01.20
  • Accepted : 2022.04.25
  • Published : 2022.05.30
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Abstract

Purpose: The is study aimed to examine the impact of consumer ethnocentrism on reasoned action and brand equity on Generation Z in Vietnam. Research design, data and methodology: A quantitative study was undertaken on 302 Generation Z members. The data for the study was collected using a Google Form-based questionnaire from December 2021 to January 2022. Descriptive statistics, Cronbach's alpha, and structural equation modeling were among the data analysis techniques employed. The results: The results show that consumer ethnocentrism has a direct positive impact on reasoned action (subjective norms and attitude toward domestic goods) as well as an indirect positive impact on brand equity, including brand awareness, brand quality, and brand image. Major findings: According to the findings of this study, governments should continue to push propaganda and advocacy programs, call for national pride and encourage home consumers to support and use domestic goods. Domestic brands must strengthen their ties to the community and invest in community-oriented programs that promote domestic consumption. Vietnam's domestic fashion brands need to promote the exploitation of community-oriented and nationalistic content to call on domestic consumers to support them to consume domestic brands.

Keywords

1. Introduction

The brand is the most valuable asset for all companies, as it is one of the considerations for customers to choose products (Mohd Suki et al., 2015; Suki & Suki, 2013). Brand equity helps companies assert their distinctiveness and uniqueness to customers. Brand equity will make the brand more recognizable and help them make the shopping decision-making process easier. Brand equity is the basis on which customers rely to place their trust in certain businesses more than others, thereby helping to improve customer loyalty and willingness to pay for products/services which have been branded (Lassar et al., 1995). Businesses will have more competitive advantages over their competitors in the market when building brand equity values (Severi & Ling, 2013). Consumer preferences, purchase intention, and brand choice is all influenced by brand equity (Chang & Liu, 2009; Irshad, 2012). Good brand equity improves the chances of a successful brand extension strategy, provides competitive protection, and acts as a formidable barrier to entry for competitors (Farquhar, 1989).

It is vital to build and maintain a strong brand image to compete in domestic and global markets. Some garment producers attempt to establish a global brand, while others just supply to international clients or retail chains who meet their requirements. Branded clothes add a touch of class to an ensemble and give the customer something more. It enables them to raise awareness of the apparel’s and the brand’s worth. The price difference between an unbranded outfit and a branded set is brand equity. Similar clothing with no label and a lesser price may be found elsewhere by the customer.

A branded garment with a label, on the other hand, gives the customer a status symbol, pleasing their ego. The brand image’s reputation aids in the promotion of the goods among status-conscious buyers. Globalization is accelerating at an increasing rate around the world, including in Vietnam. This unavoidable tendency intensifies competition, putting more pressure on domestic firms in a variety of industries, most notably the fashion industry. More than 200 multinational fashion labels, ranging from budget to high-end, have entered and dominated the Vietnamese fashion sector, including Adidas, H&M, Zara, Uniqlo, and others (Bui, 2021). It demonstrates how vital it is for fashion companies, particularly domestic fashion labels, to generate and develop brand equity. Vietnamese fashion businesses are steadily establishing their position and quality in the thoughts of customers. Many Vietnamese local brands have established a strong foothold in the market such as Biti’s, Owen, Ivy, Juno, Sixdo, Dirty Coins, 5TheWay, Bobui, etc. Currently, Vietnamese local fashion brands are gradually focusing on building their brand equity.

Many factors affect brand equity, such as consumer ethnocentrism and consumer hostility (Wall & Heslop, 1986; Brislin, 1993; Steenkamp et al., 2003; Chaudhry et al., 2020; Kotler & Armstrong, 2010); product type and word of mouth (Ansary & Nik Hashim, 2018); subjective norms and eWOM (Eagly & Chaiken, 1993; Perera et al., 2020). Brand reputation and a brand’s commercial image are also factors of brand equity (Porral et al., 2018). Following previous studies, this study expects a significant impact of consumer ethnocentrism on reasoned action and brand equity, case study for local fashion brands in Vietnam’s generation Z. It is expected that research results will provide valuable information for improving brand equity for Vietnamese local fashion brands.

2. Literature Review and Hypotheses

2.1. Brand Equity

During the 1980s, brand names became one of the most popular and potentially important marketing concepts. Brand equity, according to Aaker (2014), is the global value formed by factors such as brand awareness, quality perception, and brand image. When seen through the eyes of the customer, the relevance of brand equity becomes even more apparent. Given the same level of product functionality, brand equity is defined as the difference in consumer choice between a featured branded product and an unbranded product (Yoo et al., 2000). The previous studies examined the factors that impact brand equity, which were brand awareness, brand association, perceived quality, brand loyalty (Faircloth et al., 2001; Majid et al., 2016; Sasmita & Mohd Suki, 2015; Singh & Pattanayak, 2016; Tolba, 2011). According to Tan (2012), brand familiarity and brand trust can represent complementary aspects of brand equity. This study proposes to apply the theory of brand equity of Aaker (2014) to determine the components of Vietnamese local fashion brand equity, including brand awareness (BA), brand quality (BQ), and brand image (BI).

2.1.1. Brand Awareness

Brand awareness is the first stage in building brand equity, and all other brand ideas are built upon it (Aaker, 1996; Keller, 1993). Brand awareness is the power to track customer memory and reflect the customer’s ability to recognize or recall a brand under different conditions. The growing familiarity of regular encounters provides brand awareness. Names, symbols, logos, characters, packages, taglines, advertising and promotions, sponsorships, public relations, and outdoor advertising all help to increase brand awareness and familiarity; repeating this feedback promotes recognition and recall (Keller, 2013). According to purchase Percy and Rossiter (1992), brand awareness is the recipient’s ability to describe a brand in a given category with enough detail.

2.1.2. Brand Quality

Brand quality (BQ) is the ability of a product of this brand to perform its function correctly, including reliability and accurate information about the product (Kotler & Armstrong, 2010). Brand quality perception is defined as the user’s evaluation or feeling about the superior or outstanding feature (Zeithaml, 1988). The quality sensor is a common Philip variable in customer decision-making, especially when they have to choose a product from the brand choice. Perceived brand quality refers to the customer’s assessment of a brand’s benefits, excellence, reputation, and distinctive features compared with other brands (Pham et al., 2016). Based on the brand quality scale of Khan et al. (2015), this study proposes a set of scales for perceived brand quality for Vietnamese fashion brands, including Good quality, Durable to use, Comfortable and safe, Diverse designs; Trending and trendy, and highly versatile.

2.1.3. Brand Image

Brand image is the existence in the customer’s mind to distinguish it from other brands such as logos, names, designs, letters, or distinctive colors that influence consumers’ understanding of the brand, consumer confidence in a particular brand, and how consumers perceive a brand. Brand image is the perception of the brand in the mind of the customer. It is an aggregate of beliefs, ideas, and impressions that a customer holds regarding the brand (Jalilvand & Samiei, 2012). Brand image plays an important role in branding and buyer decision-making. Brand equity can be established both directly and indirectly through brand image (Faircloth et al., 2001), and brand image has a positive effect on brand equity (Juntunen et al., 2011); Chang & Liu, 2009; Mishra & Datta, 2011).

According to Thakor and Katsanis (1997), the brand image allows customers to recognize products, evaluate product quality, reduce risk when purchasing, get specific experience and satisfaction from differentiating products. When it comes to experiential product reviews, a positive brand image can offset the negative perception of the country of origin and increase the likelihood of a product being selected. The better the product quality, the more the brand image is known to customers. When faced with similar products, consumers are often limited in terms of time and product knowledge to make informed purchasing decisions. Therefore, brand image is typically used as an extrinsic factor in purchasing decisions (Grewal et al., 1998). The factors that make up the brand image are prominence, popularity, familiarity, reliability, and good service (Fianto et al., 2014).

2.2. Consumer Ethnocentrism

In a study by Shimp and Sharma (1987), several surveys from Americans showed that consumers with high consumer ethnocentrism (CE) had less favorable attitudes toward foreign-made cars compared with non-racial consumers. Consumer ethnocentrism is not only a factor affecting the moral responsibility when purchasing domestically produced products but also a determinant of product perception. In addition, high consumer ethnocentrism can also lead to an appreciation of domestic products and even higher prices (Pecotich & Rosenthal, 2001). According to Wu et al. (2020), consumer ethnocentrism can influence consumers’ attitudes towards consumer products. The above studies lead to the conclusion that consumer ethnocentrism has a positive effect on both attitudes and subjective norms of local brand products. Steenkamp et al. (2003) has shown that consumer ethnocentrism impacts consumers. Some minority consumers are often proud of their country’s brands, symbols, and culture, so they are less open to foreign cultures. Buying foreign-made products can be seen as unethical and unpatriotic, negatively impacting the domestic economy. According to another study, consumer ethnocentrism has been described as a personality trait that influences an individual›s opinions and intentions.

According to another study, Consumer ethnocentrism is a psychological trait that can influence an individual’s views and intentions, furthermore, when customers choose to prefer imported goods from abroad or domestically produced goods, buyer behavior tends to favor domestically produced goods over imported goods (Lee et al., 2003). Consumers tend to see their team better than others and judge things from the team’s point of view (Brislin, 1993). Research results of Nguyen et al. (2022) have determined the positive correlation of consumer ethnocentrism to brand trust for domestic brands. Consumer ethnocentrism has direct effects on consumers’ purchase intentions for domestic brands (Yuantao et al., 2019). Research by Cho (2018) showed the positive impact of consumer ethnocentrism on the formation process of consumer animosity and store selection process (attitude). Based on previous studies, this study proposes to test the impact of consumer ethnocentrism on reasoned action and brand equity for Vietnam’s domestic fashion brand. The following research hypotheses are proposed:

H1a: Consumer ethnocentrism has a significant impact on subjective norms.

H1b: Consumer ethnocentrism has a significant impact on attitude towards domestic product.

H1c: Consumer ethnocentrism has a significant impact on brand awareness.

H1d: Consumer ethnocentrism has a significant impact on brand quality.

H1e: Consumer ethnocentrism has a significant impact on brand image.

2.3. Theory of Reasoned Action

The theory of reasoned action (TRA) was formulated by Fishbein and Ajzen in 1975. Theory of reasoned action (TRA) holds that behavioral intentions lead to behavior and intentions are determined by individual attitudes towards behavior, along with the influence of subjective norms around the performance of those behaviors, in which, Attitude and Subjective norms are important in behavioral intentions (Fishbein & Ajzen, 1975).

According to Fishbein and Ajzen (1975), a positive attitude will lead to the desired outcome, while a negative attitude will lead to an undesirable outcome. This theory of rational action predicts and explains the propensity to perform behavior with attitudes toward consumer behavior better than consumer attitudes toward products or services (Karami, 2006). Approaching the fashion apparel purchase decision as a problem-solving process, consumers gain awareness and form brand/product beliefs by either brand/ product awareness or information search. Information about related attributes, then consumers evaluate these beliefs and perceptions and develop feelings and attitudes about the brand/product that lead to the purchase or rejection of the brand/product (Solomon et al., 2012).

Here are some studies on TRA’s impact on brand equity: The impact of brand awareness, sales promotion, online advertising, product attributes on Chinese tourists’ intention to buy Thai instant noodles (Liao, 2019). Wu (2020) confirmed the positive correlation of planned behavior with components of brand equity. Research by Abbasi et al. (2018) on antecedents and consequences of brand equity-a research to determine the role of brand effect; There is also the study influencing consumers’ online brand-related activities: the impact of brand equity on the consumer’s propensity to engage with brand-related content on social media (Schivinski et al., 2021); Brand personality towards customer purchase intention: the intermediate role of electronic word-of-mouth and brand equity (Vahdati & Mousavi Nejad, 2016).

2.3.1. Subjective norms

Subjective norms are an individual’s perceptions of whether an action should or should not be performed, based on their key references (Fishbein & Ajzen, 1975). Subjective norms, defined by normative views for behavioral expectations and personal motives to act in accordance with those expectations, can be measured across the persons connected with consumers. Individual behaviors are voluntary and based on individual beliefs, perceptions, and collective subjective norms, rather than being regulated and imposed (Kongsompong et al., 2009). An individual’s motivation to participate in social activities, such as joining a social group, depends on the attitudes and behaviors attached to the themes (Bellucci et al., 2018). Furthermore, there is a scarcity of studies conducted to investigate the accuracy of subjective norms on brands and their credibility (Sijoria et al., 2019).

Perera et al. (2020), in their study on higher education that looked at the impact of subjective norms, eWOM, and brand reliability on brand value, found that subjective norms boost perceived brand credibility and, as a result, brand equity. The study of the impact of brand equity on purchase intentions with the moderating role of subjective norms, according to Shah et al. (2016), clearly reveals that subjective norms also positively regulate and significant association between brand equity and buy intention. Previous research has shown that subjective norms have a substantial impact on fashion attitudes toward products, raising purchase intent (Nam et al., 2017). Based on the above studies, we make the following hypotheses:

H2a: Subjective norms have a significant impact on attitude towards domestic product.

H2b: Subjective norms have a significant impact on brand awareness.

H2c: Subjective norms have a significant impact on brand quality.

H2d: Subjective norms have a significant impact on brand image.

2.3.2 Attitude Towards Product

A consumer’s overall positive or negative opinion of a brand is product attitude (Chang & Chieng, 2006). One of the most commonly studied structures in customer behavior is brand attitudes, which has been a key in marketing research for the past two decades. Organizational managers can deliver clearer and more successful marketing communications by better understanding the underlying causal dynamics of attitude formation and image interpretation (Mitchell & Olson, 1981). Brand attitude is described by Mitchell and Olson (1981) as “the consumer’s overall evaluation of the brand”. The brand is largely viewed as a worldwide evaluation based on positive or adverse reactions to brand related stimuli or beliefs. Murphy and Zajonc (1993) considered it the brand’s most important component. Gilitwala and Nag’s study (2021) found that one’s attitude toward a product has a positive impact on the brand’s perceived quality. In consumer-based brand equity and relational communication, the core must be considered (Lane & Jacobson, 1995; Morgan & Hunt, 1994). According to the multi-attribute attitude model (Ajzen & Fishbein, 1980), overall brand evaluation is based on beliefs about various brand/product features. A consumer’s internal judgment of a brand is referred to as brand attitude (Chang & Liu, 2009). In essence, evaluation becomes a function of salient brand beliefs (Faircloth et al., 2001). One of the most researched constructs is brand attitude, consumer behavior has been a significant topic in marketing research for the past 20 years, and to better explain the image, attitudes, and how marketing communication may be ongoing and possibly more effective (Mitchell & Olson, 1981). Furthermore, Chaudhuri (1995) provided a conceptual model that illustrated the importance of brand attitude structure in the construction and precursor of brand equity. From there, they are summarized in the following assumptions:

H3a: Attitude towards local products has a significant impact on brand awareness.

H3b: Attitude towards local products has a significant impact on brand quality.

H3c: Attitude toward local products has a significant impact on brand image.

Based on the literature review and related studies, the research model is proposed in Figure 1.

Figures 1: Proposed Research Model

3. Methodology

3.1. Measurement Scales

The scale of brand equity components, including Brand awareness, is built based on Macdonald and Sharp (2000). Perceived brand quality is measured by observed variables of Khan et al. (2015). Brand image is selected from 5 observed variables of (Cheung et al., 2020; Hien et al., 2020; Khan et al., 2015; Swartz, 1983). Consumer ethnocentrism is measured by 4 observed variables. These observed variables have been inherited by us from the 17- item CETSCALE built by Shimp and Sharma (1987). This paper relies on the scale of Ajzen (2001) to build 4 observed variables about the subjective norms component in the model. The last component is the attitude towards local products, and we rely on the scale of Huber and McCann (1982), Ajzen (1991), and Thuy (2021). The observed variables of the components in the model are designed into questions using a 5-level Liker scale, in which 1: strongly disagree to 5: strongly agree.

3.2. Sample and Data Collection Methods

Research participants were people of Generation Z in Vietnam. They have used Vietnamese local fashion brand products. According to Wood (2018), Gen Z accounts for 32% of all online consumers in the world with $44 billion in spending, and this number is expected to grow in the coming years. In Vietnam, Generation Z will account for about 25% of the country’s workforce by 2025, equivalent to 15 million potential consumers (Mah, 2019). Gen Z is a generation of young people born in the mid-90s and early 2000s and living in the digital age. They are the main users of social media and are exposed to many product brands (Norazah & Norbayah, 2013). It can be said that Generation Z is very interested in the brand equity of Vietnamese local fashion products because it can affect their need to express their individuality.

The data of the study was collected from a questionnaire designed for the Google Form tool. Data collection took place from December 2021 to January 2022 based on the convenience sampling method. The sample size collected was 302, the sample size of the study met the requirements of the linear structural analysis method (SEM), Kline (2005) suggested that the sample size for the estimation method is used. There are three types used in SEM: small sample ≤100, medium sample 100–200, and large sample ≥200 (Kline, 2005).

3.3. Analytical Methods

Data was filtered and analyzed using SPSS and AMOS software. Data analysis methods include descriptive statistics, Cronbach alpha test, and structural equation modeling (SEM). Descriptive statistics were used to describe the sample structure. The Cronbach alpha test is used to test the reliability of the sets of scales. SEM is applied to test the correlation between components in the model.

4. Results and Discussion

The findings of a survey of 302 Vietnamese Gen Z respondents aged 15 to 26 years old. The age group that offers the most information is 19–22 years old, accounting for 74.17 percent of the total; the rest is split evenly between the two age groups of 15–18 years old (12.91 percent) and 16–23 years old (16.91 percent) (12.91 percent). Women made up 66.23 percent of the sample, while men made up the rest (33.77 percent).

4.1. Reliability of The Scale

The study uses the Cronbach Alpha analysis method to test the reliability of the scales for the components in the theoretical model; the results are summarized in Table 1 to record the Cronbach’s Alpha coefficient of all the scales. The components in the model are from 0.70 or higher. The corrected item-total correlation coefficients of all observed variables compared with the total variation are all large 0.50, showing that the scales of the components in the theoretical model have high reliability.

Table 1: Cronbach Alpha Test Results of the Components in the Theoretical Model

4.2. Factors Affecting Brand Equity

The study uses structural equation modeling (SEM) to determine the impact of factors on brand equity. The results of the first analysis are summarized in Table 2; many components are not statistically significant with the 95% confidence level; the model is further corrected by removing the relationships that are not statistically significant.

Table 2: Results of Estimating the Impact of Factors on Brand Equity for the First Time

The structural equation modeling after adjustment is summarized in Table 3.

Table 3: Results of Estimating the Impact of Factors on Brand Equity

***, P < 0.001, Statistically significant with a confidence level of 99.99%.

The results of linear structural analysis are summarized in Table 2 and 3; the study rejects the following hypotheses with 95% confidence: H1c (CE → BA, P = 0.11 > 0.05), H1d (CE → BQ, P = 0.82 > 0.05), H1e (CE → BI, P = 0.66 > 0.05), means that CE has no direct impact on the components of brand equity, namely BA, BQ, and BI, but CE has an indirect positive impact on BA, BQ, and BI through SN and AP (Figure 2). The results of this study show that there is not enough basis for concluding that consumer ethnocentrism has a direct positive impact on brand equity for local fashion products in the research population of Generation Z in Vietnam; H2c (SN → BQ, P = 0.44 > 0.05), means that the SN has no direct impact on the BQ, but the SN has an indirect positive impact on the BQ through the BA; and H3c (AP → BI, P= 0.82 > 0.05), there is no direct positive impact of AP to BI, but AP has an indirect positive impact on BI through BA and BQ.

The combined results in Table 3 and Figure 2 confirm statistically significant relationships with 99.99% confidence in the following variables:

Figure 2: Analysis Results of the Impact of Factors on Brand Equity

Consumer ethnocentrism has a direct positive impact on subjective norms (CE → SN, P < 0.001) and attitude towards the local fashion product (CE → AP, P < 0.001), so hypotheses H1a and H1b are accepted. If CE increases by 1 unit, it will have a direct positive impact on SN is 0.62***, and AP is 0.77*** units. The results of this study indicate that the higher the consumer ethnocentrism of Generation Z in Vietnam, the higher the subjective norms and attitudes towards local fashion products, showing that nationalism has a positive impact on subjective norms and attitudes for local products. Local fashion companies need to focus on exploiting the national spirit of Generation Z in Vietnam in communication and marketing programs to contribute to increasing and promoting the perception of brand value and brand equity, thereby enhancing the competitiveness of the brand. In particular, Generation Z is a generation of huge potential customers for the fashion industry in the near future in the Vietnamese market because this segment accounts for a high proportion of the total population of Vietnam and the purchasing power of this group of customers. This item is also very large for fashion products.

Subjective norms have a direct positive impact on attitude towards local fashion product (SN → AP, P < 0.001), brand awareness (SN → BA, P < 0.001), and brand image of the local fashion product (SN → BI, P < 0.001), so hypotheses H2a, H2b, and H2d are accepted. If the SN of generation Z in Vietnam increases by 1 unit, it will have a direct positive impact on AP: 0.21***, BA: 0.30***, and BI: 0.41***. Thus, subjective norms, in addition to having a direct positive impact on AP, also have a direct positive impact on two elements constituting brand equity, BA and BI of local fashion products, subjective norms will make a positive contribution to brand awareness with good characteristics of image brand of Vietnam’s local fashion brand is also very valuable.

The function and importance of influence from idols, relatives, friends, and the surrounding environment in developing the spirit of home spending among Generation Z has been identified by research findings. For local brand fashion companies, it is necessary to focus and promote the development of content and messages to call for the promotion of the Vietnamese national spirit. Vietnamese people purchasing Vietnamese goods will have a very positive impact on society and will directly affect Generation Z, a generation that is likely to be the future consumer base of Vietnam.

Attitudes towards local fashion products have a direct positive effect on brand awareness of local fashion products. (AP → BA, P < 0.001) and perceived brand quality of local fashion products (AP → BQ, P < 0.001), hypotheses H3a and H3b are accepted. The higher the Attitude towards local fashion products, the more favorable it will have a direct positive impact on the perception of the brand equity of Generation Z in Vietnam towards local fashion products. As a result, if the positive attitude toward local fashion products rises by one unit, the effect will rise to BA 0.55*** units and BQ 0.55*** units. The findings of the study aid in providing information to local brand fashion companies that need to continue to maintain and improve product and customer service quality to increase customer satisfaction with local brand fashion products.

The positive impact of brand equity components is also recognized in the research, with brand awareness having a direct positive impact on the perceived brand quality of local fashion products (BABQ, P 0.001) and brand image with local fashion products (BABI, P 0.001). According to this study, the more knowledgeable Generation Z is about local fashion businesses, the better their assessment of brand quality and the image will be. Specifically, if brand awareness increases by 1 unit, there will be a positive increase in perceived brand quality of 0.39*** and brand image of local fashion product as 0.33*** units. Similarly, perceived brand quality has a direct positive impact on the brand image of local fashion products (BQ → BI, P < 0.001), that is, the higher the perception of quality for local fashion products, the more positive the young people’s assessment of the local fashion brand image will be. Specifically, if the perception of brand quality increases by 1 unit, it will have a positive effect on increasing the brand image by 0.29*** units.

The components in the model explain a significant portion of the variation in the values of the components for brand equity, accounting for 61 percent of the variation in BA, 78 percent of the variation in BQ, and 84 percent of the variation in BI. CE, SN, and AP, as well as BA, BQ, and BI, were identified as having an impact on the impression of Vietnamese local fashion brand equity in this study. CE has an indirect impact on the components of brand equity via SN and AP. The brand equity components are directly influenced by the two components, SN and AP. According to research, the better a customer’s CE, the higher their SN and attitude toward the local product (AP), resulting in a positive impact on brand equity. Content and messaging boosting national pride will have a significant impact on increasing CE for domestic consumers, hence positively impacting SN, AP, and BE for local products.

The results of this study suggest that the government should continue to promote programs to propagate, mobilize and promote the spirit of Vietnam, calling for support for Vietnamese goods and Vietnamese people to consume Vietnamese goods. For fashion companies, in particular, it is critical to focus the production of communication material and messages on preserving the Vietnamese national spirit, as well as pushing for and disseminating media information about Vietnam on a variety of fronts. Because of the substantial number of Generation Z users in Vietnam, mass media, particularly social networks, has a wide reach and influence. Consuming Vietnamese items is also a manner of supporting the Vietnamese national spiritual system, as well as transmitting the spirit of Vietnamese consumers to Generation Z in Vietnam. Other customer groups can benefit from Vietnamese products. Educational institutions, families, and other social organizations must also enhance the use of propaganda, advocacy, and calls to action to encourage people to buy Vietnamese goods, which is one of the strategies to promote and increase CE, SN, AP, BA, BQ, and BI for domestic goods.

5. Conclusion

Consumer ethnocentrism has a direct impact on reasoned action (subjective norms and attitude toward domestic products) and an indirect impact on brand equity (brand awareness, brand quality, and brand image) through the subjective norms, according to research findings. This study’s findings are comparable to those of previous studies such as Thuy (2021), Yuantao et al. (2019), Cho (2018), Brislin (1993), Lee et al. (2003), Pecotich and Rosenthal (2001), Steenkamp et al. (2003), and Wu et al. (2010). The results of this study show that domestic fashion brands need to take advantage of the ethnic element to call for national beliefs, which will have a great impact on brand building and development. Especially for customers of Generation Z in Vietnam, a large group of potential customers with high fashion consumption demand and a great influence on other customer groups.

The findings of the study also show that reasoned action has a beneficial impact on the components of brand equity. The subjective norms, in particular, have a direct positive impact on brand recognition and image. Through brand awareness, the subjective norms have an indirect impact on brand quality. Attitudes toward domestic products have a direct and indirect positive impact on brand awareness and quality, as well as brand image. The results of this study are similar to previous studies such as Perera et al. (2020), Shah et al. (2016), and Sijoria et al. (2019). According to the findings, customers who have a positive attitude toward household items have a very significant impact on brand equity perception. National governments must continue to promote propaganda campaigns to boost morale and encourage people to actively consume domestic products to support domestic companies. Domestic businesses could also expand their involvement in advocacy activities aimed at fostering national pride and identity.

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