The factors affecting the brand value of private universities in Ho Chi Minh city through measurement of students’ perceptions: The study at Ho Chi Minh city university of technology (Hutech)
Le Quang Hung/ MICA 2018 Proceedings
International Conference on Marketing in the Connected Age (MICA-2018), October 6th, 2018
Danang City, Vietnam
The Factors Affecting the Brand Value of Private Universities
in Ho Chi Minh City through Measurement of Students’
Perceptions: The Study at Ho Chi Minh City University of
Technology (HUTECH)
Le Quang Hunga*
aBusiness Administration Faculty, Ho Chi Minh City University of Technology, 475A Dien Bien Phu Street, Ho Chi Minh City, Vietnam
A B S T R A C T
The current state of Vietnamese higher education demonstrates the intense competition among universities.
Therefore, the issue of enhancing the brand value to attract students is placed at the top to Vietnam
universities. This paper uses mixed research methods (qualitative and quantitative research). Data were then
analyzed by measuring Cronbach's Alpha coefficient for reliability, analyzing EFA, and using PATH model to
test experiment on the research model affecting HUTECH’s brand value. Additionally, this paper also
proposes some implications for enhancing HUTECH’s brand value in the current context of competition
among private universities.
Keywords: higher education, students, geographical location, lecturers, staffs, satisfaction, confidence, brand
value
1. Introduction
In recent years, the State has been not only focusing on the development and expansion of public and private
schools, or training schools under internationally associated programs, etc, but also offering many opportunities
for high school students to get their feet wet in the world of college life and academics. Regarding the private
education system, the issue of competition is vital since the university's brand is the first chosen priority for
students and their family. Therefore, the selected research topic "The factors affecting the brand value of
private universities at Ho Chi Minh city through measurement of students’ perceptions: The study in Ho Chi
Minh city university of Technology" will contribute to explore the influence factors and suggest implications for
enhancing the brand value as well as the competitiveness of private universities at Ho Chi Minh city in general
and HUTECH in particular.
The objectives of this research are to determine the factors affecting the value of HUTECH brand through the
measurement of students' perceptions and to develop research model having impacts on HUTECH brand value.
In the model there are new features as follows:
Adding Geographic location factor to enhance the brand value of private universities in general and
HUTECH in particular.
The more satisfied students are with college’s services, the higher their trust in the college brand is.
Using PATH model to test the experiment of model through the intermediate variable is Student
Confidence.
* Corresponding author. E-mail address: lq.hung@hutech.edu.vn
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2.
Theory elements and research methodology
2.1. Theory elements
2.1.1. Theory elements of students’ satisfaction with universities
1. D. W. Chapman (1981) argued that university’s fixed factors such as tuition, geographic location, expenses
support policy or environment of dormitory alter students’ college choice decisions.
2. Lutfi Atay and Haci Mehmet Yildirim (2009), University of Canakkale Onsekiz Mart pointed out that
among many factors affecting students’ satisfaction, the most influential one is job opportunity after graduation.
3. Muhammed Ehsan Malik, Rizwan Qaiser Danish, Ali Usman from University of Punjab Pakistan (2010)
showed that although students are satisfied with tangible means, level of engagement, confidence and empathy,
other elements such as facilities, laboratory, computer room, school canteen are unable to fulfil students’
expectations.
4. Tran Xuan Kien (2008), studied five factors (facilities, enthusiasm of staffs and lecturers, faculty team,
ability of fulfilling commitments and student care) affected students’ satisfaction in Thai Nguyen University.
Results showed that these five factors affected students’ satisfaction with 87.1% of the relevance between model
and data. Differentiation of some hypotheses shows that the level of students’ satisfaction is not altered by
academic year, major and learning performance but varied by gender.
5. Duong Tan Tan (2010) researched the factors affecting students’ satisfaction in University of Economics
Da Nang such as classrooms, canteen, school website, learning conditions, Computer room, office of Training
affairs and Student affairs. Research results show that 8 of 10 factors affect students’satisfaction including
classroom, library, canteen, computer room, school website, learning conditions, faculty, office of academic
affairs, and office of student affairs.
6. Le Quang Hung et al. (2014) synthesized groups of factors influencing students' college choice decisions,
which were reviewed in the above topics. From that, a developed research model on additional aspiration choices
of students from HUTECH Faculty of Business Administration includes the following factors: Benchmark,
Prestige, Communication, Geographic Location, Facilities, Lecturers, Tuition and Assistance. The analysis found
that Benchmark was not included in the officially theoretical research model. The reason is that there is no
difference in the benchmarks of most private schools, so students are not interested in this factor. Research
results show that Lecturers and Geographic location significantly affect college choice of students.
In summary, through domestic and foreign studies, students' satisfaction is commonly influenced by factors
such as Facilities, Academic quality, Lecturers, Career opportunities after graduation, School services, etc. Most
of the current researches in Vietnam have neither mentioned the students’ satisfaction with the Geographic
location of the university nor demonstrated that the more satisfied students are with college’ services, the higher
their trust in the college brand is.
2.1.2. Theoritical framework of brand
There are different views on brand. However, there are two main perspectives:
1. A brand is a name, symbol, sign, design or combination of these elements to identify a product or service
of a manufacturer and distinguish it from other competitors’ brands (Bennett, 1995; Nguyen Dinh Tho et al.,
2011). In this view, the basic function of a brand is to distinguish the product from others.
2. The second view stated that the above viewpoint of brand could not explain the role of the brand in the
context of increasingly integrated and intensely competitive world economy. Murphy (1987) generalized the
composition of a brand included "... product, packaging, trademark, propaganda, advertising and the whole
process of product displays," and concluded that brand is "the sum of all things in terms of tangible matters,
aesthetics, senses and emotions." Kotler et al. (1999), brand is a set of attributes providing values target
customers require. Davis (2002), brand is a "promise" of sellers to buyers about features and benefits of the
product/service. Thus, the product is a part of the brand.
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In this study, the authors advocated the second view. In business, brand is not only a product but also
distinguishes it from other products and provides psychological needs to customers. Enterprises up to now view
brand as the most valuable asset they hold.
2.1.3. Theoritical framework of college brand
In the context of higher education being more commercial, the concept of university brand has been more
concerned. Universities in the world have been adopting more and more integrated marketing techniques to their
brand communications.
1. Harvey (1996) stated that branding in higher education helps students and their parents identify specifically
offered services they are fostered to use.
2. McNally et al. (2002) defined a university brand as the feeling or emotion of a student, describing
experiences of purchasing products or services of an academic institution.
3. Bulotaite (2003), a university is a complex organization that brand able to simplify this complexity and
enhance its attractiveness and loyalty toward it.
4. Schackner (2004), Point Park University in Pittsburgh announced a $1 million branding campaign through
billboards, newspaper ads, and other media.
5. Hacker (2005), University of Houston decided to launch a $ 5 million campaign which has been
implemented over five years to build image and proactive access.
6. Balmer et al. (2007) argued that the strategic importance of holding a strong brand in educational sector
has been acknowledged by many university managers.
7. Hemsley-Brown et al. (2007) argued that there are few of experimental researchs on branding,
identification and image in higher education sector.
8. Chapleo (2010), when mentioning the name of a university, it is obvious that “associations, emotions,
images” of the school are immediately evoked. The mission of university branding is to build, manage and
develop these impressions.
9. Chapleo (2011), up to now, branding in higher education sector has been a controversial concern with little
researches and few attentions from professors, though there are some studies on marketing in higher education.
Geographic location of a university is not mentioned in ten studies above as a factor enhancing the brand
value of the university.
2.1.4. Researches on university brand
1. Sultan et al. (2014) presented an integrated model demonstrating not only the factors influencing service
quality of a university, but also the results of delivering the service quality. The result of this study shows that
past experiences are preconditions for perceived service quality (academy, administration, facility). The result of
perceived service quality is Students’ satisfaction, Confidence, Brand effeciency, and Behavioral intention of
students. This model explains how the service quality is formed, how perceived service quality affects college
brand. It is essential for universities to consider this research model to gain sustainability in global competition,
enhance brand efficiency as well as attract and retain students.
2. Nguyen Tran Sy, Nguyen Thi Mai (2014) showed a model of university branding conludes Advertising,
Activities of admissions consultancy, Promotions during learning process and Word-of-mouth (WOM) activities.
These four approaches will alter students' perceptions of the school's image and reputation. This leads to an
impact on students’ loyalty to the school. In this study, the authors presented basic theories of brand and
branding in the business and education sector. From that point, the arguments and research model on branding
for Vietnamese education are demonstrated based on students’ perception. However, this study develops
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research model but has not yet verified the model. Therefore, it is necessary for the following studies to have
modeling test.
3. Nguyen Thanh Trung (2015) conducted a study on "Brand value of a university based on employees:
Research in Vietnam". In this study, the author simultaneously took into account three groups of factor affecting
brand value based on employees: (1) Marketing, (2) Human Resource Management and (3) Working
Environment.
The research results show that there are 2 factors directly affecting the components of brand value based on
employees: (1) Internal branding and (2) Organizational culture. In particular, Organizational culture is the most
influential factor on brand value based on employees.
Most of researches on university brand name in Vietnam have not synthetically studied subjects directly
building brand value of the university are Lecturers, Staffs and Students.
2.1.5. Research model and hypotheses
In published studies, there are general remarks about brand of university and university branding without
detailing about what aspects of college brand. There are no studies currently evaluating university brand both
internally and externally. Based on this fact, the authors conduct a research on HUTECH brand with two
approaches: (1) From lecturers, staffs (internal model) and (2) From students (external model)
These two models are based on the principle research framework of Sultan et al. (2014) and two research models
of HUTECH by Le Quang Hung et al in 2014 and 2015. In this study, the authors present a brand research model
of HUTECH University with the approach from students.
Geographic
location
H1’
H2’
H3
Facilities
H5’
HUTECH brand
Confidence
Lecturers
Staffs
H4’
Fig. 2.1. Theoretical research model (External model)
The research model is based on the PATH model in which the more pleasure students are with factors serving
learning activities as well as teaching, the more confident they are of their school. When students have
confidence in the school, they will promote and introduce many good things about the school. From that brand
value of the school will be enhanced.
2.2. Research methodology
In this study, the authors used mixed research methods (Qualitative Research and Quantitative Research).
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2.2.1 Qualitative Research
Qualitative research is conducted through focus group discussion. Draft scales are used in the school
discussion with 14 leaders, staffs and lecturers representing faculties, departments, institutes and 15
undergraduate students from Faculty of Tourism - Restaurant - Hotel Management, Accounting - Finance -
Banking, Construction, Mechatronics - Electronics Engineering, Foreign Languages, and Biotechnology -
Environment.
This study adjusts and adds observed variables used to measure concepts in the research model. Through the
qualitative research, the scales have been calibrated accordingly and the official survey is used for quantitative
research.
The scale is designed as follows:
The concept of Geographic location is denoted by DL and measured by the following 5 observed variables:
DL1
The teaching facilities located in Ward 25, Binh Thanh District are convenient for transportation and
school shifts.
DL2
DL3
DL4
DL5
Bus station near the school campus is convenient for students to travel by public transports.
Near the East bus station, students can easily visit the family on weekends.
Hutech located in the inner-city is convenient for students to work overtime.
Hutech located in Binh Thanh District is convenient for students to rent accommodation at
reasonable prices.
The concept of Facilities is denoted CS and measured by the following 6 observed variables:
CS1
CS2
CS3
CS4
CS5
CS6
The class has a reasonable number of students.
The classroom is fully equipped with teaching equipment.
The classroom facilities are working well.
Library has all necessery reference materials for students.
Library has enough space for students to study.
The location of the school is convenient for studying and living.
The concept of Lectures is denoted GVI and measured by the following 7 observable variables:
GVI1
GVI2
GVI3
GVI4
GVI5
Lecturers have extensive knowledge.
Lecturers have easy-to-understand communication methods.
Lecturer are f riendly with students.
Lecturers enthusiastically support students in learning issues.
Lecturers teach according to the school materials.
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GVI6
GVI7
Lecturers evaluate academic achievement accurately.
The results of the study are evaluated fairly by Lecturers.
The concept of Staffs is denoted NV and measured by the following 7 observable variables:
NV1
NV2
NV3
NV4
NV5
NV6
NV7
Staffs respect students.
Staffs solve students' requests quickly.
Staffs work with high precision.
Departments are open during business hours.
The school’s carrer counseling activities meet the requirements of students.
I found that the school academic support acctivities are good.
I found that the student support activities for students in the School's extracurricular activities are
good.
The concept of Cofidence is denoted NT and measured by the following 6 observable variables:
NT1
NT2
NT3
NT4
NT5
NT6
I feel the school has done the right commitments to the students.
Lecturers are talented and virtuous teachers.
The school services are trustworthy.
The Graduate Diploma increases my employability.
School offers useful knowledge for my career.
School supports me to improve the skills needed for my career.
The concept of HUTECH brand is denoted by TH and measured by the following 5 observed variables:
TH1
TH2
TH3
TH4
TH5
HUTECH has a good reputation.
HUTECH is a reliable private university.
I found that the work festival day of school attracts many prestigious businesses.
I knew that many businesses prefer to recruit graduates from HUTECH.
I am proud to be a HUTCH student.
2.2.2 Quantitative Research
2.2.2.1 Choosing sample method
Quantitative research is conducted through direct interview method. Sample size is 500. There are 461 valid
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samples. The number of men is 287, accounting for 62%, while the number of women is 174, accounting for
38%. All selected students are 3rd and 4th year students and this sample accounted for 10% of population from
the above seven faculties.
Cluster sampling:
Rank 1: Faculty
Rank 2: Class
Quota sampling by Sex
Male: 60%
Female: 40%
Convenience sampling: 500 samples of 3rd and 4th year students
The samples of this research are junior and senior students (third- and fourth-year students). Thanks to
roughly three-and-four-year experience at the university, the students have studied with numerous lecturers,
participated in activities, had many opportunities to work with deans of the university, faculty, and
departments… and staff and thus encountered working styles and the response and commitment of the university
to students. For these reasons, the students can perceive accurately about the university and trust the place where
they are studying. Once students trust the university, they will satisfy, introduce and promote good things about
the university. As a result, the university’s brand value will increase.
This study uses SPSS 20 software to test the scale and research model. Scales are tested by Cronbach's Alpha
coefficient, Exploratory factor analysis (EFA). The research model is validated through PATH model.
2.2.2.2 Research process
Theoretical
framework
Draft scale
Research objectives
Formal Scale
Group discussion
(n=29)
Direct interview
(n=500)
Regression model
PATH model
Exploratory Factor
Analysis
Cronbach's Alpha
Fig. 2.2. Research procedure
2.3
Results and discussion
2.3.1 Research results
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2.3.1.1 Evaluation of scale reliability
Table 2.1. Cronbach’s Alpha of Brand Factor Scale
Factor
Observed variables
Cronbach’s Alpha
Geographic location
Staffs
DL1, DL2, DL3, DL4, DL5
0,779
0,802
0,804
0,745
0,793
NV1, NV2, NV3, NV4, NV5, NV6
CS1, CS2, CS3, CS4, CS5, CS6
GVI1, GVI2, GVI3, GVI4, GVI5
NT1, NT2, NT3, NT4, NT5, NT6
TH1, TH2, TH3, TH4, TH5
Facilities
Lecturers
Confidence
Brand
0,795
Source: The author’s data analysis
2.3.1.2 Exploratory factor analysis (EFA)
Table 2.2. Result of last EFA factor analysis
Rotated Component Matrix
Components
1
2
3
4
CS5
CS4
CS3
CS6
CS2
0,787
0,758
0,709
0,638
0,627
0,562
0,307
0,269
CS1
DL2
DL1
DL3
DL4
DL5
GVI3
GVI2
GVI4
GVI5
GVI1
NV4
NV3
NV1
NV2
NV5
0,717
0,713
0,686
0,677
0,658
0,228
0,258
0,751
0,732
0,640
0,622
0,540
0,243
0,222
0,748
0,686
0,683
0,668
0,656
0,268
0,216
0,273
0,300
Source: The author’s data analysis
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2.3.1.3. Conclusion of EFA measurement model
From the results of the analysis of EFA and Cronbach's Alpha as above, the adjusted formal theoretical
research model includes four factors influencing students’ confidence. Specifically, this model has five
component variables, including four independent variables (Facilities, Geographic location, Lecturers and Staffs)
and a dependent variable (Confidence).
H1
H2
Facilities
Geographic location
Lecturers
Confidence
H3
Staffs
H4
Fig. 2.3. Formal model of students’ confidence
The hypotheses for the formal research model are as follows:
H1: Facilities have the same effect direction on students' confidence.
H2: School’s geographic location has the same effect direction on students' confidence.
H3: Lecturers have the same effect direction on students' confidence.
H4: Staffs have the same effect direction on students' confidence.
2.3.1.4 Regression analysis
a. Multiple linear regression model
Confidence = a0 + a1*Facilities + a2*Geographic location + a3* Lecturers + a4*Staffs
Table 2.3. Relevance of multiple linear regression model
Change statistics
Std. Error
R
Adjusted R
Square
Durbin-
Watson
Model
1
R
of the
F
Square
df1
4
df2
R Square
change
Sig. F
change
Estimate
change
0,880a 0,775
391,593
0,000
1,476
0,773
0,301
0,775
456
Independent variables: Facilities, Geographic location, Lecturers, Staffs
Dependent variable: Confidence
Source: The author’s data analysis
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Table 2.4. Statistical parameters of regression model with Enter method
Unstandardized
coefficients
Standardized
coefficients
Collinearity Statistics
Model
t
Sig.
Std.
Error
B
Beta
Tolerance
VIF
(Constant)
-0,320
0,310
0,100
0,022
-3,203
0,001
Geographic
location
0,726
1,376
0,366
14,018
0,000
Staffs
0,213
0,282
0,307
0,023
0,027
0,026
0,718
0,814
0,678
1,392
1,229
1,476
0,246
0,257
0,321
9,359
10,431
11,880
0,000
0,000
0,000
Facilities
Lecturers
Dependent variable: Confidence
Source: The author’s data analysis
b. Evaluation of the importance of factors influencing students’s confidence
Confidence = 0,366 * Geographic location + 0,246 * Staff + 0,257 * Facilities + 0321 * Lecturer
Through the test results, the formal adjusted model is shown as follows:
0,366
0,321
0,257
Geographic location
Lecturers
0,880
Confidence
Facilities
0,246
Staffs
Fig 2.4. Formal adjusted model of students’ confidence
c. PATH Model
Confidence: Independent variable
Brand: Dependent variable
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Table 2.5. Relevance of linear regression model (PATH)
Change statistics
Std. Error
of the
Estimate
Adjusted R
Square
Model
1
R
R Square
F
change
df1
1
df2
R Square
change
Sig. F
change
0,891a
0,794
1773,117
0,000
0,794
0,41726
0,794
459
Independent variable: Confidence
Dependent variable: Brand
Source: The author’s data analysis
Through results of PATH, the formal model adjusted as follows:
0,366
Geographic location
0,321
Lecturers
0,880
0,891
Confidence
HUTECH
Brand
0,257
0,246
Facilities
Staffs
Fig. 2.5. PATH model of HUTECH brand
2.3.2. Discussion
1. In the model proposed by the research team, a new factor is Geographic location, which has not been
mentioned in models that have studied the brand value of private universities. The test showed that the
Geographic location Factor composed of 5 variables (DL1, DL2, DL3, DL4, DL5) and remained unchanged
through Cronbach's Alpha and EFA analysis (Table 2.1, 2.2). The results show that the competitive advantages
of HUTECH are: (1). Training centers are in the downtown of Ho Chi Minh city, close together. (2). The bus
stop is in front of the school gate. (3). School campuses are near the provincial bus station so that it is easy for
students lease a house, work overtime and visit family on weekends. This factor has the most powerful effect
(standardized β =0.366) to students’ belief. This proves to bring the new factor of Geographic location into
enhancing HUTECH’s brand value is suitable.
2. The test showed that the Lecturer factor has 5 observation variables (GVI1, GVI2, GVI3, GVI4, GVI5) by
Cronbach's Alpha and EFA analysis (Table 2.1, 2.2). Lecturer factor is repeated study however the results show
that Lecturer is still the top concern of students when they choose to study in 4 years. Nowadays, education is a
service, students desire to study with lecturers with extensive knowledge, easy-to-understand, friendly and
enthusiastic teaching methods. This factor has the second strongest influence (standardized β = 0.321) to
Student’s belief. This demonstrates that Lecturer is still the top concern of the university in enhancing the brand
value to attract students.
3. Facilities and Staffs factors are repeat study, however the results show that this factor is less interested of
students. Most private universities are now boldly investing in the construction of new facilities and modern
educational devices as well as the selection and training of professional staff to withstand work pressure.
4. The Belief factor is a new point in the PATH model to study HUTECH’s brand value. The results showed
that the Belief factor remained 6 observed variables (NT1, NT2, NT3, NT4, NT5, NT6) by Cronbach's Alpha
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and EFA analysis (Table 2.1, 2.2). This show that students and their families still choose HUTECH because it
has made the commitments: the teachers have good morale, the quality of the university's services are reliable,
the university's diploma increases the ability to get jobs. ...
5. After analyzed by Cronbach's Alpha and EFA, the Brand factor retains five observed variables (TH1, TH2,
TH3, TH4, TH5) (Table 2.1, 2.2), show that HUTECH is still the leading brand in private universities. A well-
known university, many prestigious businesses like recruiting graduates, is a reliable place for students to study.
6. After Two-stage regression analysis:
Stage 1: Four factors DL, NV, CS, and GV (independent variables) have a proportional influence on the
NTIN (dependent variable). The most influential factor is DL, followed by GV, CS and NV. With R = 0.800 and
R2 = 0.775, this is the appropriate model to use to evaluate the relationship between dependent and independent
variables.
Stage 2: The Confidence variable (independent variable) had a strong influence on the brand variable
(dependent variable) with R = 0.891 and R2 = 0.794 (Table 2.3). The model explained 79.4% of the same effect
direction on students' confidence with HUTECH brand. This is a very high figure show the interest of students
and their families to HUTECH. These figures prove the university's worthy achievements over the past 20 years.
The results show that students, their families and society still have high trust in the HUTECH brand. This
proves that using PATH to test the HUTECH’s brand value enhancement model is appropriate. So as choosing a
school for their children, HUTECH is still the parent’s top choice. The more interested the society, the better the
value of HUTECH brand.
3. Recommendations to private universities in Hochiminh city
3.1 Building campus and dormitory
Most of the student's life during school hours and extra work is tied to school and local residence. Besides,
Geographic location is the most influential factor in students' beliefs. A university that meets not only elements
of school facilities such as buildings, playgrounds, libraries, educational facilities, and natural surroundings
around the school, but also dormitory for students near the school, is a very competitive element to attract large
numbers of students.
Nowadays, Hochiminh City’s real estate prices have risen everyday. The traffic jam in the inner-city has
become worse. Therefore, suburban districts on the highway or metro are good places to build campus,
domitory. If university does not have enough the financial resource to build school facilities in the inner-city
near the main campus, it should build branches in the suburban districts such as Thu Duc, District 9, Binh
Chanh, Binh Tan. Because these districts are invested by the city government to build Metro. The most
advantageous is the school facilities constructed along the metro lane.
Main campus and operational center should be located integratedly at the same place to facilitate the
management, teaching and learning. Last but not least, the universities should build dormitories and canteens to
stabilize students’ lives and mood for learning.
3.2 Attracting good lecturers
In order to recruit professional lecturers, good salary payment must be taken into consideration. In general, it
is necessary for the universities to have strong financial resources to build the campus as well as to pay staffs and
lecturers. Since all revenues of the universities depend on the number of students, the universities must gain
prestige, build a strong brand identity to enhance their competitiveness and attractiveness of students.
Attract more young lectures graduated in developed countries. They are the innovative people, absorb the
elite of the world to convey to the students.
To provide incentives so that the lectures feel assured of their works and devote their life to the long-term
development of the university with wages, bonuses and benefits and, most importantly, the sale of preferred
stock.
3.3 Enhancing the competing capability
In the future, the Ministry of Education and Training will drop a minimum grade for enrolling universities.
Thus, the competition in new student enrollment among universities in general and private universities in
particular will be more severe. Therefore, when it comes to student attraction, a university with a well-respected
brand has an enormous advantage.
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