BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC KINH TẾ TP. HỒ CHÍ MINH

BÁO CÁO TỔNG KẾT

ĐỀ TÀI NGHIÊN CỨU KHOA HỌC THAM GIA XÉT
GIẢI THƯỞNG ‘’NHÀ NGHIÊN CỨU TRẺ UEH’’ NĂM
2023

THE RELATIONSHIP BETWEEN SOCIAL CUSTOMER ENGAGEMENT AND

BRAND LOYALTY OF VIETNAMESE YOUNG GENERATION: THE
MODERATION OF ARTIFICIAL INTELLIGENCE

Thuộc nhóm chuyên ngành: ...................3...........................................

(Ghi 1 số trong 7 chuyên ngành quy định tại điều 2 thệ lệ cuộc thi)

TP. Hồ Chí Minh, tháng 2/2023

 ABSTRACT
This study was conducted to investigate factors affecting customer engagement on social
media platforms of Vietnamese young generation, the effect of customer engagement on
social media platforms on brand loyalty of Vietnamese young generation, and the
moderating role of artificial intelligence. A 435 valid sample was used in this study to
assess the influence of self – congruity, social influence, economic benefits, information
seeking, brand warmth, brand activism, social media marketing on social customer
engagement; the impact of social customer engagement on brand loyalty; how artificial
intelligence moderates the correlation between social customer engagement and brand
loyalty. PLS – SEM was conducted, then the results showed that all 10 factors with 30
observed variables were accepted. For the multivariate regression test, there were 6
factors positively affecting social customer engagement consisting of: self – congruity,
social influence, information seeking, brand warmth, brand activism, social media
marketing. Artificial intelligence moderates the relationship between social customer
engagement and brand loyalty. The findings of this study have provided a fresh
perspective, assisting managers in their efforts to promote social customer engagement
and brand loyalty. Moreover, our group also suggests several new and innovative
applications of AI in customer engagement on social media platforms.
Key words: customer engagement, social media platforms, brand loyalty, artificial
intelligence, Vietnam
 TABLE OF CONTENTS
ABSTRACT
LIST OF ABBREVIATION
LIST OF FIGURES
LIST OF TABLES
CHAPTER 1. INTRODUCTION..................................................................................... 1
1.1. Research rationale................................................................................................ 1
1.2. Research objective....................................................................................................3
1.3. Research methods..................................................................................................... 4
1.3.1. Preliminary research........................................................................................... 4
1.3.2. Official research.................................................................................................. 4
1.4. Object and scope of research.................................................................................. 4
1.4.1. Research object....................................................................................................4
1.4.2. Research scope.................................................................................................... 4
1.5. Research novelty...................................................................................................... 4
1.6. The contribution of research...................................................................................5
CHAPTER 2. LITERATURE REVIEW..........................................................................6
2.1. Theoretical basis.......................................................................................................6
2.1.1. Customer engagement on social media platforms...............................................6
2.1.2. Artificial intelligence (AI)....................................................................................7
2.2. Relevant theories......................................................................................................8
2.2.1. Theory of reasoned action (TRA).........................................................................8
2.2.2. Technology acceptance model (TAM)..................................................................9
2.2.3. Stakeholders’ theory............................................................................................ 9
2.2.4. Self-Congruity Theory....................................................................................... 10
2.2.5. Uses and gratification theory (UGT).................................................................11
2.3. Review of previous research..................................................................................11
2.4. Research gap........................................................................................................... 17
2.5. Proposed research model.......................................................................................18
2.5.1. Research model..................................................................................................18
 2.5.2. Research hypothesis...........................................................................................20
CHAPTER 3. RESEARCH METHODOLOGY........................................................... 28
3.1. Research process.................................................................................................... 28
3.2. Research methodology...........................................................................................28
3.2.1. Preliminary research......................................................................................... 28
3.2.2. Official research................................................................................................ 32
3.3. Design of research sample..................................................................................... 32
3.3.1. Sample method...................................................................................................32
3.3.2. Research sample................................................................................................ 33
3.3.3. Data collection...................................................................................................33
3.3.4. Method of data analysis and processing............................................................34
3.4. Official research model..........................................................................................34
CHAPTER 4. RESEARCH RESULT.............................................................................39
4.1. The scale-testing result.......................................................................................... 39
4.1.1. Internal Consistency Reliability - Cronbach’s Alpha........................................ 39
4.1.2 Composite Reliability..........................................................................................40
4.1.3 Convergent Validity – Outer Loading and Average Variance Extracted............ 41
4.1.4. Discriminant Validity......................................................................................... 43
4.2. Research model after testing by Smart - PLS 4.................................................. 45
4.3. Multivariate regression results - Bootstrap 5000 samples..................................45
CHAPTER 5. CONCLUSION AND RECOMMENDATION..................................... 48
5.1. Summary of research result.................................................................................. 48
5.1.1. Result for descriptive statistics.......................................................................... 48
5.1.2. Research result...................................................................................................48
5.2. Evaluation of research’s new contribution.......................................................... 49
5.3. Administrative implication................................................................................... 49
5.4. Limitation and future orientation........................................................................ 60
REFERENCE................................................................................................................... 62
APPENDIX....................................................................................................................... 72
Appendix 1. Survey questionnaires............................................................................. 72
Appendix 2. Cronbach’s Alpha – Composite Reliability - Average Variance
Extracted........................................................................................................................74
Appendix 3. Outer loading........................................................................................... 75
Appendix 4. Discriminant Validity.............................................................................. 75
Appendix 5. R-square................................................................................................... 76
Appendix 6. Path coefficients.......................................................................................76
 LIST OF ABBREVIATION

Abbreviation Explanation

AI Artificial intelligence

R&D Research and development

TRA Theory of reasoned action

TAM Technology acceptance model

UGT Uses and gratification theory

CEB Customer engagement behavior

IS Information seeking

SMM Social media marketing

BA Brand activism

SC Self – congruity

BW Brand warmth

SI Social influence

EB Economic benefits

SCE Social customer engagement

BL Brand loyalty

SNSs Social networking sites

PLS - SEM Partial least squares structural equation modeling

eWOM Electronic word of mouth

 AVE Average variance extracted

HTMT Heterotrait-Monotrait ratio of correlations

LIST OF FIGURES

Figure Page

Figure 2.1. Theory of reasoned action 8

Figure 2.2. Technology acceptance model (1989) 9

Figure 2.3. Company's major stakeholders 10

Figure 2.4. Research model of Jayasingh (2019) 11

Figure 2.5. Research model of Nguyen, Nguyen & Duong (2020) 12

Figure 2.6. Research model of Ajiboye, Harvey & Resnick (2019) 13

Figure 2.7. Research model of Rabbanee, Roy & Spence (2020) 14

Figure 2.8. Research model of Bernritter (2015) 15

Figure 2.9. Research model 25

Figure 3.1. Research process 27

Figure 4.1. Structural model and test results of PLS-SEM 41

Figure 5.1. Brand activism posted on social media 48

Figure 5.2. FCMG industry 50

Figure 5.3. AI in improving the hygiene and product quality 51

Figure 5.4. AI chatbot 52

Figure 5.5. Virtual try – on in fashion 53

Figure 5.6. Virtual try – on in glasses 54

Figure 5.7. Virtual try – on in domestics 54

Figure 5.8. Virtual fitting technology 55

LIST OF TABLES

Table Page

Table 2.1. Summary of previous research 16

Table 2.2. Summary of reference variables 19

Table 3.1. Original research scale

Table 3.2. Research sample 30

Table 3.3. Adjusted research scale 34

Table 4.1. Cronbach’s Alpha coefficient 36

Table 4.2. Composite Reliability 36

Table 4.3. Outer loading 38

Table 4.4. Average Variance Extracted 39

Table 4.5. Discriminant Validity - Heterotrait-monotrait criteria (HTMT) 40

Table 4.6. Hypothesis test 42

 1

CHAPTER 1. INTRODUCTION
1.1. Research rationale
More and more brands discover that their revenues depend on selling more
products to existing customers. Cross-selling is now a strategic goal for all of Wells
Fargo's retail branches since the bank claims that their household cross-selling ratio of
5.70 financial products generates more than 80% of its revenues (Wells Fargo, 2011).
Therefore, academics and practitioners are starting to pay more attention to the subject of
consumer engagement. Besides, gaining loyal customers and creating a recognized brand
image are among a company's top priorities in the current era of globalization and intense
competition (Budur et al., 2018). However, due to several factors, it is becoming more
and more challenging to accomplish the same in practice. Numerous businesses struggle
with issues like uncertainties about whether it is worthwhile to spend money and other
resources developing and enhancing their brands as well as if they will be successful in
luring and keeping loyal clients (Budur et al., 2019). Brand loyalty is seen as a positive
response after a customer makes a purchase and feels happy and satisfied with the quality
of benefits of a product and the benefits provided by the brand (Shanahan et al., 2019).
This is due to the results of consumer engagement, which include increased sales and
improved competitive advantage, customer loyalty, and the growth of relationships
between businesses and consumers that are mutually advantageous. Customer
engagement raises close rates while meeting current B2B customer expectations, which
helps both buyers and suppliers. Keep clients engaged throughout the buying process to
foster brand loyalty.
Gustafsson et al. (2005) posit that brand loyalty can be developed through the
creation of bonds and relationships with customers. Brand loyalty occurs after consumers
get satisfied with the products and services given by a brand, and they trust the brand so
that it is hoped that customers will make repeat purchases, and customers will think again
and will not even switch to another brand. Previous research has found that customer
satisfaction and trust affected customer behavior in terms of loyalty (Hwang et al.,2020);
customer engagement was found to be positively associated with brand loyalty (Kosiba et
al., 2018). Moreover, the brand's loyalty represents a deep commitment by customers to
 2

make certain brand repeat purchases consistently (Oliver, 1999). Meanwhile, customer
engagement represents the relationship between customers and brands outside of
purchasing activities (So et al., 2016). Customers who have high engagement tend to
increase their liking for a product, company, or brand, indicating loyalty to them (So et
al., 2014; Vivek et al., 2012). A previous study revealed that controlling product and
brand level would affect brand trust and finally determine loyalty (Chaudhuri &
Holbrook, 2001). Then, satisfaction, loyalty, connection, empowerment, emotional
bonding, trust, and commitment would be exhibited by engaged consumers, and the
engagement process included consumers' interactive experience with communities of the
online brand (Brodie et al., 2013). From these research, it is logical to argue that
consumer engagement has a positive effect on brand loyalty, which is also our main
hypothesis we are about to test.
Users have a substantial channel through which to interact with businesses thanks
to social media platforms (Baird & Parasnis, 2011). Therefore, businesses are spending
money on social media platforms in order to increase their total communication strategy
(de Silva, 2019a). Facebook is without a doubt the most extensively used social media
platform by marketers in Sri Lanka (de Silva, 2021) and is regarded as the most well-liked
social networking site (SNS) (Lipsman, Mudd, Rich, & Bruich, 2012)
The world is forever changing, and the economy is not an exception. Year by year,
styles and tastes of customers gradually follow the latest trends. People tend to dress more
well, eat healthier and live more fully following the crowd effect in social media. Coty's
CEO, Camillo Pane, discussed this speed. He claimed that "brands are produced at the
speed of light and the business is getting more and more complicated.” This is particularly
true for FMCG companies, who can no longer rest their success on securing dependable
clients, as they once could (Kim and Ko, 2012). Realizing the rapid change of customer
tastes, the authors come up with the question whether the relationship of customer
engagement stays the same, or the trend-leading taste of customer may affect their loyalty
in brands. Moreover, we can easily see how customers’ tastes change along with the
revolution of the Internet over time, not just online marketing, or online shopping. Here
we are in the golden era of AI. Thanks to recent developments in almost every product
 3

area, what was once thought of as a unique or even borderline science-fiction concept is
now becoming much more approachable to the general public. However, COVID-19 has
significantly accelerated AI's entry into the economy. While this trend had already begun
to emerge in every sector due to interest in new technology and customization features.
Brands are developing innovative strategies to keep customers interested in and connected
to their products. According to Hago, this provides exciting digital debuts like Parfums-
Givenchy's on Animal Crossing. TikTok, a significant participant in the beauty industry, is
a big influencer of social media, and other new platforms are assisting marketers in
reaching consumers through AI-powered goods, augmented reality, and 3-D experiences,
which help transform computers and phones into a welcoming digital landscape.
According to the World Bank, Vietnam is about to reach a turning point in its
development. Under labor and capital shortages, the nation will need to rely more on
productivity gains to boost GDP growth. A significant increase in domestic innovation
capacity will be needed for this. The socioeconomic development of Vietnam has seen a
significant increase in the importance of research, technology, and innovation since the
start of 2010. With the geographical location in one of the world’s most dynamic regions
and attracting lots of investments from other nations, Vietnam is setting a straight way to
imply AI technology into the industry. According to Oxford Insights' most recent
research, Vietnam moved up seven spots in the Government AI Readiness Index 2022,
placing 6th among ASEAN nations and 55th overall. With all of these strengths and
threats, it is time to let AI innovation become an essential tool for businesses to solve the
equation of customer engagement and brand loyalty.
In fact, there are very few studies which make the moderating role of AI
innovation clear in the relationship between social customer engagement and brand
loyalty, especially in Vietnam. Therefore, it is a must for our group to carry out this topic
to both solidify the knowledge background and shed a new light to Vietnamese brands
who are struggling to be the leaders in the economy.
 4

1.2. Research objective

To explore and analyze which factors impact customer engagement on social
media platforms, the effect of customer engagement on social media platforms on brand
loyalty, the moderating role of artificial intelligence (AI).
1.3. Research methods
1.3.1. Preliminary research
Our group channeled a certain amount of time to review reference materials, such
as research publications or proceedings, in order to boost the purposefulness, novelty,
urgency, and feasibility of our research. In addition, our group received some sound
advice from the subject-matter experts.
1.3.2. Official research
Using a quantitative methodology, our group's research was carried out. Our group
chose to use Google Forms, the most secure approach, to conduct this survey online in
order to save time and obtain more diverse data.
Our group used Smart-PLS software version 4 to analyze the data, which was
based on a 5-point Likert scale from strong disagreement to strong agreement.
1.4. Object and scope of research
1.4.1. Research object
Research object includes factors affecting customer engagement on social media
platforms of young generation, and brand loyalty.
1.4.2. Research scope
Young generation from 18 to 30 years old, living in Ho Chi Minh city different
gender, age group, income, and education level.
Our research was conducted in Ho Chi Minh city from 28th October 2022 to 16th
December 2022.
1.5. Research novelty
It is anticipated that the study "The relationship between social customer
engagement and brand loyalty of Vietnamese young generation: The moderation of
artificial intelligence" would offer useful knowledge about social customer engagement,
brand loyalty, and artificial intelligence.
 5

Customer engagement on social media has previously been meticulously and

thoroughly studied by a variety of experts and authors worldwide. However, most of the
earlier research on social customer engagement focused on several well-known factors,
such as information seeking, social influence, entertainment, and economic benefits
(Jayasingh, 2019; André, 2015; Azar et al, 2016).
Hence, there are 2 remarkable novelties in our research that ought to be considered.
Firstly, the research model will be rebuilt with core elements inherited from previous
research, however, new factors that are suitable and practical in the modern customer
trend are analyzed including self - congruity, brand activism, brand warmth and social
media marketing. Moreover, the moderating variable - Artificial intelligence (AI) is also a
significant factor in our research model.
1.6. The contribution of research
On the theoretical aspect, this research summarizes crucial theories and
information related to social customer engagement, research models and research
methods.
On the practical aspect, our group’s research finds out which factors impact
customer engagement on social media platforms, the effect of social customer
engagement on brand loyalty, and the moderating role of artificial intelligence (AI).
Summary of chapter 1
In chapter 1, our group provided a variety of details regarding the research
rationale, research objectives, the scope of the research, the research object, the novelty of
our study, and its contribution.
The structure of the study is divided into 5 sections. Section 1 introduces the
research topic, research objective, methodology, and the contribution of the topic.
Following this, section 2 briefly and critically reviews the theoretical basis and the related
studies on the subject. Next, section 3 discusses in detail the research model, data, and
econometric approaches. Section 4 illustrates empirical results and discussions. Lastly,
section 5 concludes the paper with research implications followed by some limitations
and future orientation.
 6

CHAPTER 2. LITERATURE REVIEW

2.1. Theoretical basis
2.1.1. Customer engagement on social media platforms
Customer engagement is a phrase for establishing the foundation concept of
Marketing (Brodie el al. 2011). According to Hollebeek et al. (2014), customer
engagement is the scenario when a customer or group of community customers
(hereinafter a customer) in general positively gets influenced in any activities (mostly as
interactions, explorations in curiosities) launched by focal customers or brands. As
humans are high-level animals, having emotions, thoughts, and ethics and
high-communicative living, humans are now having varieties of ways to engage in such
enormous activities that make high levels of needs and satisfactions, which increase the
customer engagement scale of that scenario planned by brands. (Brodie et al., 2013;
Dessart et al., 2015, 2016).
Customer engagement is basically based on three root characters: Cognitive,
Emotional, Behavioral (Brodie et al. 2011, Brodie et al. 2013). These discoveries are
developed in diversification by many researchers alongside the development of the world.
(Phillips & McQuarrie, 2010). However, this study will mainly discuss in short, these
three characters because they will follow and set up as the foundation for all next
chapters.
As the Internet has been invented and has been a part of life since then, the worlds
considered Yahoo, Facebook, Twitter, and many social media platforms arose to support
humans and make the connections of Brands/ Focal Customers - Customers (Tafesse,
2016). For the foundations as posting with contents and images, platforms nowadays
allow the customers to view the selected or targeted posts, communicating throughout
chats and commenting to make humans’ consumption needs as well as brands can offer
and service the products well to customers. (Obilo et al., 2021).
 7

Social Media Platform is widely developed when commencing features appeared

recently (TikTok Shop, Facebook Markets). Han, M. C., & Kim, Y. (2016) has done their
research on targeted social media platforms and clothes - which achieved the highest
consumption and gained the positive confirmation of commencing features of these
platforms after all.
Users of social media, including individuals, corporations, the government, etc.,
have increased their use of it dramatically (Kaplan & Haenlein, 2010). This platform
offers consumers an online "soapbox" where they may share their opinions about goods
and services, in addition to achieving personal fulfillment (Chen et al., 2011). The
younger generation of today, which is active on social media platforms and significantly
influences by friends and peers in terms of brand selection, is particularly prone to this
type of behavior. Due to the increase in social media activity brought on by peer and
friend recommendations, user-generated content, product evaluations, feedback, and other
factors, marketing literature has begun to pay increasingly close attention to the concept
of consumer engagement in context of social media (Dessart et al., 2015).
2.1.2. Artificial intelligence (AI)
The 4.0 Revolution has set up an important milestone when AI is strongly affected
to human’s lifestyles. In definition of AI, according to Russell & Norvig (2002) is system
which mimic some or any parts of human features (voices, learning, some skills and
mindsets, etc.) in order to support human or replace human in some minor or less
important/ need processes (Dwivedi, Hughes et al., 2021). These are also the same as the
two classifications of AI followed by Hossein Hassani and his partners (2020): AI and
AI-enabled machine and technology-oriented approach.
AI now is appeared in Text-driven Chatbot services (i.e., Bot Ban Hang made in
Vietnam, ALIME of Taobao, etc.), voice-driven digital assistants (i.e., Maika in Vietnam,
Alexa, Siri, etc.).
AI Chatbots (or Chatbots) is recognized as a machine or virtual service using real
dataset in physical or digital sources to make the directions, recommendations
personalized for each customer (Xu et al., 2020). They are the most used technology when
the administrators of brands can distinguish each customer’s everythings (needs,
 8

expectations, trends, character, etc) through a list of questions in a survey in real time and
in some cases, it can be the second advisor when the administrators are not available or
offline (Kim et al., 2021). As a result, Chatbots increase the customer engagement
significantly and transform that engagement into specific sales with 26% of all shopping
transactions (Forbes, 2019) and a revenue of $430.9 million in 2020 (Grand View
Research, 2021). However, since Chatbots are developed by data collecting in the past,
they are now showing less flexibility than human in market consumption, which makes
the customers’ acceptance percentage is negatively-correlated to the revenue Chatbots
create (Castelo et al., 2019; Schmitt, 2020). This is the target duty of both researchers and
digital engineers in R&D to renovate most-like human AI as soon as possible. Zhu et al.
(2022) and Sung et al. (2021) have illustrated the positive-correlation of the AI’s training
experience with the increase of customers’ acceptances.
2.2. Relevant theories
2.2.1. Theory of reasoned action (TRA)
Ajzen and Fishbein developed TRA in 1967, and it underwent more research and
modification in the 1970s.
Behavioral intention is the root cause of behavior most directly (what one intends
to do or not to do).
Both attitude (one's assessment of the behavior) and subjective norm (one's
assessment of what important others think one should do) influence behavioral intention,
either of which may be the most significant determinant of any given behavior.
A person's attitude is influenced by their behavioral beliefs (beliefs about the
likelihood of different consequences) and assessments of how good or bad those
consequences might be. Subjective norm is influenced by one's perceptions of what
particular significant others believe one should do and how driven someone is to comply
with those significant others.
 9

Figure 2.1. Theory of reasoned action (1970)

Source: Ajzen and Fishbein (1970)
2.2.2. Technology acceptance model (TAM)
The Davis (1989) technology acceptance model (TAM) has been empirically tested
and used widely. The Theory of Reasoned Action (TRA) in particular and social
psychology theory in general serve as the foundation for this model (Fishbein, &
Ajzen,1970). Users' intentions to utilize technology are explained by TAM.
Author concentrated on just two: perceived usefulness and perceived ease of use.
The term "degree to which a person believes that employing a particular system would
boost his or her job performance" refers to perceived usefulness. The definition of
perceived ease of use is "the extent to which a person believes that using a certain system
would require little physical or mental effort."

Figure 2.2. Technology acceptance model (1989)

 10

Source: Davis (1989)

2.2.3. Stakeholders’ theory
According to the stakeholder theory, a company's survival and success depend on
achieving both its economic (like profit maximization) and noneconomic (like corporate
social performance) goals by considering the needs and preferences of its stakeholders
(Pirsch, Gupta, & Grau, 2007).
There are core and secondary stakeholders in every company. The owners,
employees, clients, and suppliers of a business are its main stakeholders. Other interested
parties such as customers, the media, lobbyists, governments, courts, competitors, the
general public, and society are considered secondary stakeholders. A company's
continuous existence, financial stability, competitive advantages, and the growth of trust
and loyalty among its target customers depend on meeting stakeholder requirements,
which must be emphasized (Mitchell, Agle, & Wood, 1997).

Figure 2.3. Company's major stakeholders

Source: Freeman (1984)
2.2.4. Self-Congruity Theory
According to self-congruity theory, customer behavior is somewhat influenced by
how closely a customer's self-concept resembles his or her image of a particular brand.
Customers typically have more positive attitudes toward (or prefer) brands that are
 11

congruent with their self-image than those that are less so (e.g., Sirgy, 1982; Graeff, 1996;
Helgeson & Supphellen, 2004). Therefore, a customer is more likely to have a positive
opinion of a brand if their self-concept is more in line with that of the brand.
Actual self-congruity, ideal self-congruity, social self-congruity, and ideal social
self-congruity are based on the four different types of self-concept (i.e., actual self, ideal
self, social self, and ideal social self) (Sirgy, 1982). The strongest evidence for actual and
ideal self-congruity is also found in self-congruity study (Sirgy, 1982).
2.2.5. Uses and gratification theory (UGT)
The "Uses and Gratifications' ' (U&G) theory is a socio psychological method that
is positivistic in its epistemological outlook. It is presupposed that people make active,
deliberative, and rational decisions (in the sense of goal-oriented). By identifying the
gratification/rewards they seek, it aims to address the question of why these engaged and
thoughtful people use the many components and features of social media. This is why the
U&G theory has frequently been employed in the past to explain the use of conventional
media (i.e., Television, Magazine, radio, video games, TV satellite, TV replay...). Since
the early 2000s, this theory has been used in the digital age to explain the phenomenon of
internet use as well as virtual communities and, more recently, social networks.
2.3. Review of previous research
Customer brand engagement in social networking sites and its effect on brand
loyalty: To understand why customers interact with Facebook brand pages, Jayasingh
(2019) employed the uses and gratification theory (UGT), social influence theory, and
technology adoption models. Both qualitative and quantitative analyses were used in this
study. Data on the Facebook brand page activity of 100 brands as well as information
from online surveys completed by 334 respondents were gathered. The primary factor
influencing how customers interact with brand pages is their need for information.
Customer participation on social networking sites has also been found to be stimulated by
social influence and economic incentives. The findings also demonstrate a significant link
between engagement and brand loyalty. In order to comprehend customer brand
interaction behavior on social networking sites like Facebook, this study offers a novel
framework.
 12

Figure 2.4. Research model of Jayasingh (2019)

Source: Jayasingh (2019)
The relationships of social media marketing, customer engagement and
purchase intention: Nguyen, Nguyen & Duong (2020) determined and assessed the
correlation between social media marketing, customer engagement, and purchase
intention. The survey was conducted among respondents who have at least one social
media account and are aware of how social media marketing affects customers' intention
to make purchases. Regression was employed by the authors to test their hypotheses. A
thorough questionnaire was used to collect information from 300 participants. The
findings showed a significant correlation between social media marketing and customer
involvement and purchase intention. They also provided evidence that social media
marketing plays a mediating role in the relationship between customer involvement and
purchase intention. This study develops a model that will aid researchers and practitioners
in analyzing and illuminating the influence of social media marketing on Vietnamese
customers' desire to make purchases.
 13

Figure 2.5. Research model of Nguyen, Nguyen & Duong (2020)

Source: Nguyen, Nguyen & Duong (2020)
Customer engagement behavior on social media platforms: A systematic
literature review: Ajiboye, Harvey & Resnick (2019) offered a thorough analysis of the
existing empirical literature on customer engagement behavior (CEB) in connection to
social media platforms. They did this by employing a systematic literature review
methodology. The literature has found five major antecedent reasons, which are as
follows: social links, ownership-value, information search, involvement, and
functionality. These serve as the main drivers of interaction for businesses utilizing social
media. We have assembled the first comprehensive secondary data analysis on the origins
of CEB in social media platforms in this review. In order to further our understanding of
CEB in connection to social media, they highlighted three epistemological tensions within
the corpus and made recommendations for future research.
 14

Figure 2.6. Research model of Ajiboye, Harvey & Resnick (2019)

Source: Ajiboye, Harvey & Resnick (2019)
Factors affecting customer engagement on online social networks:
self-congruity, brand attachment, and self-extension tendency: Rabbanee, Roy &
Spence (2020) investigated connections between self-congruity with a brand and brand
attachment, which can come from the real, ideal, or social self, and from there to user
involvement on social networking sites through liking, sharing, and commenting. The
authors strengthened the tendency for self-extension as a moderator influencing the link
between self-congruity and brand attachment. 282 students at a sizable Australian
institution and 342 participants participated in the data collection. The research indicated
that brand attachment is influenced by two of the three self-congruity orientations, which
in turn affects customers' propensity to like, share, and comment on Facebook.
Additionally, the association between self-congruity and brand attachment is moderated
by self - extension tendency.
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Figure 2.7. Research model of Rabbanee, Roy & Spence (2020)

Source: Rabbanee, Roy & Spence (2020)
Signaling warmth: How brand warmth and symbolism affect customers’
online brand endorsements: Bernritter (2015) studied variables influencing online brand
recommendations by customers. Using a 7-likert scale, 91 University of Amsterdam
students were used to collect the data. This study found that brand warmth had a favorable
impact on online endorsement. Additionally, brand symbolism moderates the association
between brand warmth and online endorsement, while competence and brand symbolism
have no impact on customers' online brand endorsements.
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Figure 2.8. Research model of Bernritter (2015)

Source: Bernritter (2015)
Summary of previous research

Dependent Independent - Mediating -

Research - Author
variable Moderating variables

Entertainment, trust,
economic benefits, brand
Customer brand engagement in social
love, social benefits, social
networking sites and its effect on Brand loyalty
influence, information
brand loyalty - Jayasingh (2019)
seeking - Customer
engagement

The relationships of social media Purchase Social media marketing -

marketing, customer engagement and intention Customer engagement
 17

purchase intention - Nguyen, Nguyen

& Duong (2020)

Customer engagement behavior on Ownership value,

social media platforms: A systematic Customer information search,
literature review - Ajiboye, Harvey & engagement involvement, social links,
Resnick (2019) functionality

Factors affecting customer

engagement on online social
Self-congruity - Brand
networks: self-congruity, brand Customer
attachment - Self-extension
attachment, and self-extension engagement
tendency
tendency - Rabbanee, Roy & Spence
(2020)

Signaling warmth: How brand warmth

and symbolism affect customers’ Customer Brand symbolism, brand
online brand endorsements - Bernritter engagement warmth, competence
(2015)

Table 2.1. Summary of previous research

Source: Authors
2.4. Research gap
Several experts and authors from around the world have previously methodically
and in-depth explored customer participation on social media. However, our group could
identify two areas for additional research. First off, most past studies on social consumer
engagement concentrated on several widely recognized characteristics, including
information seeking, social influence, entertainment, and financial gains (Jayasingh, 2019;
André, 2015; Azar et al, 2016). Nevertheless, it is indisputable that advanced technology
has been developing in the modern period, particularly the growth of artificial
intelligence. Artificial intelligence is still a little studied factor in studies looking at client
interaction on social media sites, though.
 18

2.5. Proposed research model

2.5.1. Research model
Information seeking, self-congruity, brand activism, social media marketing, brand
warmth, social impact, economic advantage are several of our team's 8 recommended
elements that drive customer engagement on social media platforms. Additionally, our
team examined the relationship between online customer involvement and brand loyalty,
using artificial intelligence as a moderating factor. To ensure the impartiality and
applicability of this research, all these elements were supported by reliable references
from earlier studies and sound advice from experts in the field. Our team additionally
modified and added several significant aspects to the research to diversify it and possibly
increase the reliability and value of the findings and recommendations.
Summary of reference variables

The independent,
dependent, mediating and Sign Reference source
moderating variables

Jayasingh (2019). Customer brand engagement in

Information seeking IS social networking sites and its effect on brand
loyalty.

Choedon & Lee (2020). The effect of social

media marketing activities on purchase intention
with brand equity and social brand engagement:
Empirical evidence from Korean cosmetic firms.
Social media marketing SMM
Laksamana (2018). Impact of social media
marketing on purchase intention and brand
loyalty: Evidence from Indonesia’s banking
industry.

Brand activism BA Hennig (2021). Brand Activism as an Extension

 19

of Brand Identity and its Implications for

Employer Branding.
Gray (2019). Brands take a stand for good: The
effect of brand activism on social media
engagement.

Rabbanee, Roy & Spence (2020). Factors

affecting customer engagement on online social
Self - congruity SC
networks: self-congruity, brand attachment, and
self-extension tendency.

Xue et al (2020). Do brand competence and

warmth always influence purchase intention? The
moderating role of gender.
Brand warmth BW
Kolbl et al (2020). Do brand warmth and brand
competence add value to customers? A
stereotyping perspective.

Jayasingh (2019). Customer brand engagement in

Social influence SI social networking sites and its effect on brand
loyalty.

Jayasingh (2019). Customer brand engagement in

Economic benefit EB social networking sites and its effect on brand
loyalty.

Vo, Nguyen & Dang (2022). The role of social

Social customer
SCE brand engagement on brand equity and purchase
engagement
intention for fashion brands.

Helme-Guizon & Magnoni (2019). Customer

Brand loyalty BL
brand engagement and its social side on
 20

brand-hosted social media: how do they

contribute to brand loyalty?

Yin & Qiu (2021). AI technology and online

purchase intention: Structural equation model
based on perceived value.
Artificial intelligence AI
Hwangbo et al (2020). Effects of 3d virtual
“try-on” on online sales and customers’
purchasing experiences.

Table 2.2. Summary of reference variables

Source: Authors
2.5.2. Research hypothesis
Our group proposed research hypotheses to demonstrate the connection between
social customer engagement, brand loyalty, and artificial intelligence by relying on
evidence from other studies in this field.
Information seeking: is a process of obtaining information about products
(Gironda & Korgaonkar, 2014). One of the main drivers of customer engagement in
online brand communities like Facebook brand pages is the ability to search for and
receive information about the business, product, or brand (Azar et al., 2016). One of the
factors influencing a customer's decision to interact with a company on social media is the
information that is posted on Facebook brand pages about the brand or product. Following
a brand page is primarily done to seek for product reviews, learn more about the product,
and acquire pre-purchase information (Whiting & Williams, 2013). For example, through
social media, customers in the fashion sector might actively update information on the
items of the company, such as new collections and promotions. Fernandes & Remelhe
(2016) demonstrated that information seeking exerts a positive effect on customer
engagement. Similarly, Gao & Feng (2016) also proved the positive relationship between
search for information and online customer engagement. Therefore, hypothesis proposed
is that:
 21

Hypothesis H1: Information seeking has a positive effect on customer engagement on

social media platforms of Vietnamese young generation.
Self - congruity: is described in this study as the similarity between the brand
personality and the customer self-concept that customers feel or experience as they
develop a relationship with the brand (Kim, Lee & Ulgado, 2005). When customers use
brands to express their own images, the brand's image can benefit self-expression.
Customers can express an ideal self on social networking sites (SNSs), giving them the
opportunity to select brands to express that ideal self in ways that are not supported in real
life (Schau and Gilly 2003). Customers with various personality types who have stronger
emotional ties to self-expressive brands are more likely to engage in eWOM activity for
those brands. Customers develop attitudes toward things that embody their values,
allowing them to positively express their core beliefs and self-concepts. For instance,
Apple's iPhone has a youthful, cool brand personality and may be used as a symbol,
which is also the reason why Apple's iPhone is becoming more and more popular among
young people. Generally, customers tend to have a strong preference for brands and stay
loyal to brands whose orientation is consistent with their image, such as elegance or
glamor. Lee, Hansen & Lee (2020) indicated that self - congruity positively influences
customer engagement on social networking sites, particularly, Facebook. Moreover,
Andonova, Miller & Diamond (2015) also assessed the significant correlation of self -
congruity and online customer engagement. Therefore, hypothesis proposed is:
Hypothesis H2: Self - congruity has a positive effect on customer engagement on social
media platforms of Vietnamese young generation.
Brand activism: is characterized as a values-driven strategy that businesses use to
demonstrate their awareness of the present and future characteristics of society (Kotler &
Sarkar, 2017). 64 percent of global customers solely base their decision to support or
oppose a brand on its position on social and political concerns (Edelman, 2018). Brands
have started incorporating more advertising campaigns that do not necessarily focus on
the product being sold; instead, they focus on a societal issue or a particular cause as the
value of brand activism has grown in the eyes of the customer. Regardless of a brand's
stance on an issue, the polarization that results from societal concerns ensures a high level
 22

of participation because 70% of customers are eager to give their direct feedback to the
firm on its social responsibility efforts (Cone Communications, 2015). Customers'
purchasing decisions are impacted, sales income is made, engagement metrics rise, brand
awareness rises due to postings' increased visibility, and the list goes on as social media
posts acquire traction from other users. Engagement not only reflects how the public feels
about the brand's position on the problem in relation to the activism campaign, but it also
gives the business insight into how they are seen. Customers have a certain interest in the
brand's social and environmental campaigns. In the contemporary era, customers are
inclined to be into brands that use eco-friendly materials, limit animal- made products or
engage in non-profit activities and express that preference through interaction or sharing
on social networks. Gray (2019) demonstrated that brand activism has a positive influence
on social brand engagement. Therefore, hypothesis proposed is:
Hypothesis H3: Brand activism has a positive effect on customer engagement on social
media platforms of Vietnamese young generation.
Social media marketing: is a type of online marketing that utilizes societal culture
to achieve communication and branding goals (Tuten, 2009). The most popular and
favored type of digital marketing today is social media marketing, which encourages other
theorists and marketers who are interested in working in a related sector of marketing to
do so. Customer engagement has recently received a lot of attention in social media
marketing. Marketing activities offered by social media through channels include
customer relationship management, customer support, buyer research, lead generation,
sales promotion delivery channel, paid advertising channel, and branding. According to
(Stelzner, 2013), marketers may find opportunities from social media communication if
their brands' messages, Website traffic, search rankings, and customer loyalty all rise.
Industry experts have also recognised that online social networks have advantages that go
beyond simply attracting customers to improving the goods and branding of businesses in
the modern world (Forbes, 2015). The argument presented by Harris and Rae (2009) that
social media marketing would play a significant role in boosting customer interaction and
marketing in the future is wholly true for firms in Vietnam. Nguyen, Nguyen & Duong
(2020) illustrated that social media marketing positively affects social customer
 23

engagement. (Kim & Ko, 2012) also demonstrated that social media marketing has a
favorable effect on customer brand engagement. Furthermore, Choedon & Lee (2020)
also proved that social customer engagement is positively influenced by social media
activities. Therefore, hypothesis proposed is:
Hypothesis H4: Social media marketing has a positive effect on customer engagement on
social media platforms of Vietnamese young generation.
Brand warmth: includes sincerity, friendliness, helpfulness, and enthusiasm
(Fiske et al, 2002). In addition, when customers believe a business has good intentions,
such as protecting the environment, they are more inclined to label it as warmth (Kervyn,
Fiske & Malone, 2012). According to Fiske, Cuddy, and Glick (2007), people's
perceptions of other people's warmth are thought to be more significant in their affective
and behavioral responses, and these impressions are almost always of considerable
interest to others and are almost universally seen favorably (Cuddy, Fiske & Glick, 2008).
Customers view and interact with brands in a human-like manner (Aggarwal & McGill,
2007). From this vantage point, endorsing a company online by clicking a like button on a
brand page may be seen as being akin to "friending" someone else, except that in this
scenario the "friend" cannot deny the request. Continuing from the foregoing, it makes
sense that people would introduce a person to their circle of friends more frequently if
they were warm and likable (Sherman, Lansford & Volling, 2006). Thus, it was proposed
that one of the primary forces behind customers' online recommendations is warmth.
Customers have more inclination to interact with brands on social media as they have a
big affection for when these brands show that they are “warm.” Bernritter (2015)
exhibited that brand warmth has a significantly positive impact on social customer
engagement. Therefore, hypothesis proposed is:
Hypothesis H5: Brand warmth has a positive effect on customer engagement on social
media platforms of Vietnamese young generation.
Social influence: refers to how others will react when customers choose to
embrace and use certain products and services (Curran and Lennon, 2011). In social
networking sites (SNS), customers utilize brands to build their self-identity (Schau &
Gilly, 2003). When they 'like' a brand on Facebook, this enables them to make an impact
 24

on other people and deepen their social engagement. Social pressure commonly affects
customers' decisions to join, collaborate, and create brand-related material on a brand
page (Muntinga et al., 2011). Before joining a community on social media, users can see
which friends and how many friends are members of a certain product or brand page
(Coulter & Roggeveen, 2012). When a user sees that their friends are members of a brand
or product page, they are more likely to become interested in it, explore it, and ultimately
approve of and support it. People may sign up for a brand page and post content relating
to the brand because they want to follow their friends and because other users have done
so (Gironda & Korgaonkar, 2014). Jayasingh (2019) demonstrated that social influence
positively affects customer brand engagement on social sites. Correspondingly, André
(2015) in his study also made the same conclusion about the relationship between social
influence and customer engagement on Facebook. Therefore, hypothesis proposed is:
Hypothesis H6: Social influence has a positive effect on customer engagement on social
media platforms of Vietnamese young generation.
Economic benefits: refers to "the extent to which community members desire to
receive utilitarian rewards (e.g., financial rewards, time savings, offers or incentives,
merchandise and awards) through their engagement in the community" (Baldus et al.,
2015). The main benefits of using Facebook brand pages include financial incentives and
other advantages (Tsai & Men, 2013). In the context of brand-customer interactions on
social media, incentives and promotions provided by the brand have become new strategic
interaction types in contemporary society. Currently, it is not difficult to come across
economic benefits from brands on social networks. By participating in minigames or
media campaigns through likes and shares, customers can receive attractive incentives
from brands such as shopping vouchers or accumulated personal points. Moreover,
through livestream on Facebook, customers could also interact with the brand and thereby
get discounts. Azar et al (2016) proved that economic benefits could increase customer
engagement with brands on Facebook. Similarly, Jayasingh (2019) also indicated that
economic benefits positively affect customer brand engagement on social sites. Therefore,
hypothesis proposed is:
 25

Hypothesis H7: Economic benefits have a positive effect on customer engagement on

social media platforms of Vietnamese young generation.
Social customer engagement: refers to creating connections between customers'
bodies and minds and allowing them to voluntarily contribute to a brand's image
independent of any physical transactions (So, Wei & Martin, 2021; Jaakkola & Alexander,
2014). In addition, social customer engagement is also defined as customers' cognitive,
emotional, and behavioral investments into interactions with a specific brand on social
media; the person's underlying (latent) cognitive and emotional engagement becoming
apparent through one's social media-based engagement behaviors. Customer responses or
engagement are typically measured in terms of comments, following, subscribing,
sharing, liking, publishing, etc. in the context of social networking. Brand impacts,
product effects, customer effects, content effects, and market effects are the five main
types of outcomes of customer participation on social media. Customers' perceived value
will rise as a result of brand community involvement habits, which will also boost
customer satisfaction and loyalty. It signifies that customers tend to be familiar with and
fond of a brand while interacting with brands, which leads to brand loyalty. Jayasingh
(2019) showed in his study that customer brand engagement positively impacts brand
loyalty. Therefore, hypothesis proposed is:
Hypothesis H8: Social customer engagement has a positive effect on brand loyalty of
Vietnamese young generation.
Artificial intelligence (AI): is characterized as intelligent action and behavior
displayed by machines, computers, or robots for the benefit of people and organizations.
On social media platforms, clients can travel through an interactive, personalized
experience thanks to growing AI technologies. AI solutions for social media marketing
may sway and forecast user behavior and give social media users a wide range of useful
analytics capabilities in terms of sense-making, decision-making, and insight production
that aid in user engagement (Capatina et al., 2020). The marketing industry is undergoing
a complete shift because of AI. At a subconscious level, AI aids with information
gathering and analysis. AI enhances a business's ability to interact with customers on
social media platforms (Pillai & Sivathanu, 2020). There are several significant
 26

applications of AI in increasing customer engagement on social media including voice

assistant, chat-bots, sentiment analysis, facial recognition, natural language processing,
visual search, AI-driven touchless kiosks. Artificial intelligence (AI) plays a role in
supporting and enhancing the quality of the customer's interactive experience. In the
contemporary era, AI can assist brands in advising customers on products and services.
Besides, AI can also help customers try products on specialized software or recommend
suitable products based on search history. Bag et al (2022) indicated that AI exerts a
positive effect on customer engagement on social sites. Furthermore, Bedi, Bedi & Singh
(2022) also proved that AI could boost brand loyalty in the retailing industry. Therefore,
hypothesis proposed is:
Hypothesis H9: Artificial intelligence (AI) moderates the relationship between social
customer engagement and brand loyalty of Vietnamese young generation.
 27

Figure 2.9. Research model

Source: By authors, 2023
Summary of chapter 2
Our group provided some background information on customer engagement on
social media platforms and artificial intelligence in chapter 2. Our group also provided
significant theories, a review of prior research, and research hypotheses at the same time,
leading to the official research model that we proposed, which included the following
variables: self – congruity, social influence, brand activism, brand warmth, economic
benefits, information seeking, social media marketing, artificial intelligence, social
customer engagement and brand loyalty.
 28

CHAPTER 3. RESEARCH METHODOLOGY

3.1. Research process

Figure 3.1. Research process

 29

Source: Authors
3.2. Research methodology
3.2.1. Preliminary research
3.2.1.1. Preliminary qualitative research
It was determined whether the online survey respondents had a thorough
understanding of both the research topic and the questionnaire by a preliminary
qualitative analysis. Our group used that as the foundation for adding, modifying, and
removing incorrect elements that hinder the study process.
To ensure the effectiveness and quality of the research, our team held a group
discussion with 8 customers in Ho Chi Minh City prior to the official survey. Students and
workers were among the many social classes represented by these customers. Our group
sought to assess whether the scales in the questionnaire were acceptable and whether the
academic words were simple to understand through group discussion.
To be more particular, during the group discussion, our group carefully went over
all of the scales in the research model with the respondents, including their definitions and
every observed variable for each scale. After discussion, all respondents have generally
positive evaluations of the factors that were noticed during the investigation. The team
was also encouraged to change the study questionnaire to include explanations to make it
simpler for respondents to complete the survey in order to get a better outcome. In order
to diversify the model and increase the study's applicability, several new components
were also introduced.
3.2.1.2. Preliminary quantitative research
8 residents in Ho Chi Minh City, including students and employees were chosen by
our group for a quantitative preliminary survey. To determine if respondents had a
complete understanding of the research's components, our group employed a Google
Form online survey with a 5-scale Likert scale (1 - Completely disagree, 2 - Disagree, 3 -
No opinion, 4 - Agree, 5 - Completely agree). This provided our team the chance to make
a more appropriate adjustment.

Variable Question Feedback

 30

I feel that in order to know

more about a brand or store, I
must like its page

I use Facebook to post

Information questions because Facebook
seeking users provide me with better
information than an Internet
search

I think reading Facebook feed

is informative

Content on social media is

quite interesting

Social I find it easy to express my

media opinion on the brand's social
marketing media

Information on the brand's

social media is up to date

Brands greatly contribute to

the community

Brand Brands have gender – focused

activism campaigns

This campaign seems to

benefit the society
 31

The personality of the brand is

consistent with how I see
myself
Self –
The personality of the brand is
congruity
a mirror image of me

People who use the brand are

like how I see myself

The brand is sincere

Brand
The brand is enthusiastic
warmth
The brand is friendly

I will share information and

preferences about the brand
with friends and family

I interact with the brand on

Facebook to state my interests
and preferences to my friends
Social
influence My interaction with the brand
on Facebook allows me to
increase my social involvement

I interact with the brand on the

fanpage to articulate my own It should be removed since it is quite
concerns and preferences to similar with the first one
my friends
 32

I interact with brands on

Facebook in order to access
discounts and promotions
Economic
benefit To participate in competitions
and games to win prizes

To get reward/free gifts

I share the brand's product

experience on social networks

Social I participate in interaction

customer activities with the brand on
engagement social networks

I follow the brand's fanpage on

social media

I am more likely to buy brands

I follow

I will recommend the brand to

Brand
others
loyalty
If I lose a product of the brand,
I will buy another product from
the same brand

AI answers my questions as a
Artificial customer service assistant
intelligence
(AI) AI can recommend what I want
based on my browsing habits
 33

AI can help me accurately

retrieve the goods I want by
inputting voice

It should be removed since this

technology is mostly prevalent in the
3D virtual try – on is quite reality or on brands’ websites, not on
good social media platforms. It could be
considered as an innovative and useful
recommendation in the future.

Table 3.1. Original research scale

Source: Authors
3.2.2. Official research
Quantitative research methodologies were utilized in the study "The relationship
between social customer engagement and brand loyalty of Vietnamese young generation:
The moderation of artificial intelligence". Quantitative research is defined as the
collection of numerical data and its application to understand social phenomena or
generalize it across groups of individuals. Our group can look at the correlation between
the variables using this approach. Our team used a Google Form to collect 435 responses
from people in Ho Chi Minh City over the course of a over one-month sampling period,
representing a range of genders, age groups, income levels, and educational backgrounds.
In Section 3.3.2, the results of descriptive statistics are particularly addressed. Once all the
data has been gathered, the team will review it. The group will examine the data once it
has been collected in its entirety. To evaluate the reliability of the parameters proposed by
the research, our team will use Cronbach's Alpha. The study of partial least squares
structural equation modeling (PLS - SEM) was then put to the test using Smart - PLS
software version 4.
 34

3.3. Design of research sample

3.3.1. Sample method
There must be 200 observations for the research (Gorsuch, 1983). A minimum
observation-to-variable ratio of 5:1 is also suggested by the sample-to-variable ratio. 2018
(Hair et al.).
To ensure objectivity and accuracy, our group decided to collect the data from 435
respondents in Ho Chi Minh City.
3.3.2. Research sample

Percentage
Factors Vote
(%)

Male 149 34.25%

Gender
Female 286 65.75%

18 – 25 318 73.10%
Age group
26 – 30 117 26.90%

Under 5 million per

245 56.32%
month

5 – 10 million per
Income 179 41.15%
month

Over 10 million per

11 2.53%
month

Undergraduate 247 56.78%

Education level Graduate 125 28.74%

Postgraduate 63 14.48%

Table 3.2. Research sample

 35

Source: Authors
3.3.3. Data collection
3.3.3.1. Secondary data
Our group allocated a significant amount of time to reading academic publications,
research articles, and other online resources during the research process to find a reliable
source of data for our study.
3.3.3.2. Primary data
To collect the necessary information for our study, our group used a Google Form
with a Likert scale. Our survey's primary data is split into two categories. The first section
of the survey will concentrate on a few questions and provide descriptive information on a
variety of subjects, such as gender, age group, income, and education levels. The second
one also had the goal of examining the relationships between the various variables.
3.3.4. Method of data analysis and processing
This study was conducted using a quantitative research methodology. To test the
structural model, the authors use SEM linear structural modeling. The proposed model is
relatively complex, and the interactions have both direct and indirect effects on one
another, thus our team decided to employ this approach. When testing, the use of the
multiple regression technique may result in systematic mistakes.
When researchers needed to use sophisticated modeling to uncover relationships
between variables, they developed the term structural equation model (SEM). Researchers
previously used tools to uncover those associations, including multiple regression, logistic
regression, exploratory factor analysis, and others from the first generation of analysis
techniques. In this study, PLS-SEM is used. Partial Least Square - Structural Equation
Modeling, also known as a partial least squares linear structural equation model in
Vietnamese, is referred to as PLS-SEM. This study used the aforementioned approach to
include its findings in order to lessen mistakes impacting the dependent variable and
increase the value of R2. Thus, the model can forecast more accurately (Hair et al., 2016).
 36

3.4. Official research model

Following a discussion with 8 participants from various social classes in Ho Chi
Minh City, ideas, and sound advice from subject-matter specialists. The study was
thoughtfully altered by our team, particularly the observable factors and components.
Regarding "Artificial intelligence," at the beginning, our group included an
observed variable "3D virtual try – on is quite good” because of two fundamental reasons.
The first one is that virtual try-on technology has increasingly become popular and
brought a vast array of practical and great benefits to brands. Through virtual try-on,
customers can experience products and interact with brands on an online platform. For
example, with fashion brands, customers are more likely to shop and enjoy brand
engagement when they can try on outfits on their smartphones. Moreover, virtual - try on
technology is currently utilized on various brands’ websites, and L'Oréal also teamed up
with Facebook in order to launch this technology with newly - released lipsticks on
Instagram. Although this application is quite new in the Vietnamese market, if brands
could develop virtual try - on technology, it would be a promising success for future
brands.
However, after discussion with experts, our group decided to remove an observed
variable "3D virtual try – on is quite good” in our research. It should be a useful
recommendation for our study since 3D virtual try - on has not been considerably
prevalent in Vietnam, which leads to several unexpected mistakes in data collection.
Moreover, this technology has mainly applied on brands’ websites instead of social media
platforms.
In conclusion, 10 factors including dependent, independent, mediating, and
moderating variables are used in our research. There are 30 observed variables in total.
All of them have 3 observed variables.

Variable Question Reference

 37

I feel that in order to know more

about a brand or store, I must
like its page

I use Facebook to post questions Jayasingh (2019). Customer brand

Information
because Facebook users provide engagement in social networking sites
seeking
me with better information than and its effect on brand loyalty
an Internet search

I think reading Facebook feed is

informative

Content on social media is quite

interesting Choedon & Lee (2020). The effect of
social media marketing activities on
Social I find it easy to express my
purchase intention with brand equity
media opinion on the brand's social
and social brand engagement:
marketing media
Empirical evidence from Korean
Information on the brand's cosmetic firms
social media is up to date

Hennig (2021). Brand Activism as an

Brands greatly contribute to the
Extension of Brand Identity and its
community
Implications for Employer Branding
Brand
Brands have gender – focused
activism Gray (2019). Brands take a stand for
campaigns
good: The effect of brand activism on
This campaign seems to benefit social media engagement.
the society
 38

The personality of the brand is

consistent with how I see myself Rabbanee & Spence (2020). Factors
affecting customer engagement on
Self – The personality of the brand is a
online social networks: self-congruity,
congruity mirror image of me
brand attachment, and self-extension
People who use the brand are tendency.
like how I see myself

Xue et al (2020). Do brand

competence and warmth always
The brand is sincere
influence purchase intention? The
Brand moderating role of gender
warmth
The brand is enthusiastic Kolbl et al (2020). Do brand warmth
and brand competence add value to
The brand is friendly customers? A stereotyping perspective

I will share information about

the brand with friends and
family

I interact with the brand on Jayasingh (2019). Customer brand

Social
Facebook to state my interests engagement in social networking sites
influence
and preferences to my friends and its effect on brand loyalty

My interaction with the brand

on Facebook allows me to
increase my social involvement

I interact with brands on Jayasingh (2019). Customer brand

Economic
Facebook in order to access engagement in social networking sites
benefit
discounts and promotions and its effect on brand loyalty
 39

To participate in competitions
and games to win prizes

To get reward/free gifts

I share the brand's product

experience on social networks
Vo, Nguyen & Dang (2022). The role
Social I participate in interaction
of social brand engagement on brand
customer activities with the brand on
equity and purchase intention for
engagement social networks
fashion brands
I follow the brand's fanpage on
social media

I am more likely to buy brands I

follow
Helme-Guizon & Magnoni (2019).
I will recommend the brand to Customer brand engagement and its
Brand
others social side on brand-hosted social
loyalty
media: how do they contribute to
If I lose a product of the brand, I
brand loyalty?
will buy another product from
the same brand

AI answers my questions as a
customer service assistant
Yin & Qiu (2021). AI technology and
Artificial AI can recommend what I want
online purchase intention: Structural
intelligence based on my browsing habits
equation model based on perceived
(AI)
AI can help me accurately value
retrieve the goods I want by
inputting voice
 40

Table 3.3. Adjusted research scale

Source: Authors
Summary of chapter 3
In chapter 3, our group represented research methods consisting of research
process, research methods, sampling method and research analysis.

CHAPTER 4. RESEARCH RESULT

4.1. The scale-testing result
4.1.1. Internal Consistency Reliability - Cronbach’s Alpha
According to Hoang & Chu (2008), the scale of the Cronbach's Alpha coefficient is
from 0.8 to close to 1 that is a very good scale, from 0.7 to close to 0.8 that is a good
scale, and from 0.6 to close 0.7 that is an acceptable scale. However, when Cronbach's
Alpha coefficient is too large (about 0.95 or more), it shows that there is a vast array of
 41

observed variables in the scale that are not different from each other, which is called
overlap in the scale ((Nguyen, 2012). The scales for artificial intelligence, brand activism,
brand loyalty, brand warmth, economic benefits, information seeking, self-congruity,
social customer engagement, social influence, and social media marketing all exceeded
the necessary value of 0.8 and met the very good scale standard after reliability analysis.

Cronbach’s Alpha

AI 0.831

BA 0.887

BL 0.863

BW 0.893

EB 0.904

IS 0.904

SC 0.907

SCE 0.887

SI 0.875

SMM 0.857

Table 4.1. Cronbach’s Alpha coefficient

Source: Authors
4.1.2 Composite Reliability
The number of observed variables in each scale becomes more sensitive when
employing Cronbach's Alpha coefficient for testing. To reduce this sensitivity, researchers
also employ the Composite Reliability, another reliability measurement method. Nguyen
& Cao (2018) claim that the scales' necessary validation criterion is 0.7. Each scale must
therefore be evaluated for its content value before being eliminated if it does not satisfy
 42

the aforementioned testing requirement. The results of the Composite Reliability after
further data validation demonstrate that all scales meet the inherent value, which ranges
from 0.834 to 0.911.

Composite Reliability

AI 0.834

BA 0.901

BL 0.863

BW 0.897

EB 0.911

IS 0.906

SC 0.907

SCE 0.887

SI 0.881

SMM 0.866

Table 4.2. Composite Reliability

Source: Authors
4.1.3 Convergent Validity – Outer Loading and Average Variance Extracted
Researchers tested concepts that have a positive correlation with other concepts in
the same scale and assessed the convergence values of these study concepts using outer
loading and average variance extracted (Nguyen & Cao, 2018).
The higher Outer Loading indicator reaches, the more it proves that the result
variable is conceptually correct. All of the variables are satisfied with the required value
according to the research's results, which range from 0.851 in AI2 to 0.922 in SC1.
 43

AI BA BL BW EB IS SC SCE SI SMM AI x
SCE

AI1 0.874

AI2 0.851

AI3 0.868

BA1 0.913

BA2 0.912

BA3 0.882

BL1 0.882

BL2 0.881

BL3 0.894

BW1 0.911

BW2 0.916

BW3 0.894

EB1 0.922

EB2 0.915

EB3 0.910

IS1 0.918

IS2 0.918

IS3 0.911
 44

SC1 0.922

SC2 0.918

SC3 0.914

SCE1 0.902

SCE2 0.910

SCE3 0.897

SI1 0.903

SI2 0.895

SI3 0.884

SMM1 0.888

SMM2 0.886

SMM3 0.870

AI x 1.000
SCE

Table 4.3. Outer loading

Source: Authors
The convergence value was also measured using Average Variance Extracted
(AVE). The square of the averaged outer loading is known as AVE. When its value is
greater than 0.5, it indicates that the study hypothesis can be explained by the fact that it
accounted for more than 50% of the variation in the observed variables. As a result, the
findings indicate that all the indicated variables, with values ranging from 0.747 in AI to
0.843 in SC, match the criteria.
 45

AVE

AI 0.747

BA 0.814

BL 0.784

BW 0.823

EB 0.838

IS 0.839

SC 0.843

SCE 0.815

SI 0.799

SMM 0.777

Table 4.4. Average Variance Extracted

Source: Authors
4.1.4. Discriminant Validity
If there actually is a difference between the concepts in the study, that difference is
said to have discriminant validity. The Heterotrait-Monotrait Ratio of Correlations
(HTMT), which is the average of all the correlations between the observed variables for
each concept and the other concept, is what we use to quantify this (Nguyen & Cao,
2018). The correlation between ideas denoted by numbers is 1 when HTMT is evaluated,
indicating that the concepts have no discriminative value. Henseler et al. (2015) claim that
values smaller than 0.85 indicate that discriminant validity is established for conceptually
extremely diverse constructs. The table shows that all HTMT levels are acceptable. As a
result, this study showed strong discriminant validity. The structural model will be
assessed next since the assessment validates the measurement's accuracy.
 46

AI BA BL BW EB IS SC SCE SI SMM AI x SCE

AI

BA 0.325

BL 0.806 0.266

BW 0.161 0.495 0.139

EB 0.210 0.217 0.135 0.256

IS 0.233 0.422 0.230 0.362 0.140

SC 0.266 0.508 0.189 0.450 0.154 0.516

SCE 0.299 0.672 0.278 0.622 0.213 0.732 0.826

SI 0.356 0.432 0.378 0.303 0.154 0.423 0.520 0.705

SMM 0.137 0.424 0.155 0.371 0.140 0.410 0.505 0.680 0.343

AI x SCE 0.369 292 0.168 0.263 0.064 0.102 0.169 0.241 0.020 0.127

Table 4.5. Discriminant Validity - Heterotrait-monotrait criteria (HTMT)

Source: Authors
 47

4.2. Research model after testing by Smart - PLS 4

Figure 4.1. Structural model and test results of PLS-SEM

Source: Authors
The results of the structural model testing are displayed as above after testing the
scale. The variables generally guarantee the validity and reliability of the model. The
following chapter's section will provide an explanation of the path coefficients seen in the
graphic above.
4.3. Multivariate regression results - Bootstrap 5000 samples
Hair et al. (2016) suggested a sample magnification approach for the PLS-SEM
analysis technique that may replace up to 5000 samples in order to determine the standard
error of the observed path coefficient, from which it can be deduced that the p-value of
the hypothesis. The 95% confidence interval (equal to the 5%) cutoff point is typically
employed for the two-tailed test in marketing and management studies (Hair et al. , 2016).
The outcomes of hypothesis testing in this study are also evaluated using the 5%
significance level, just like in earlier studies.
 48

Original Standard P
Hypothesis Relationships R2
Sample Deviation values

H1 IS -> SCE 0.251 0.024 0.000

H2 SC->SCE 0.298 0.024 0.000

H3 BA->SCE 0.132 0.023 0.000

H4 SMM->SCE 0.197 0.032 0.000

0.479
H5 BW->SCE 0.167 0.024 0.000

H6 SI->SCE 0.235 0.032 0.000

H7 EB->SCE -0.004 0.023 0.868

H8 SCE->BL 0.085 0.036 0.018

H9 AI x SCE->BL 0.081 0.025 0.001 0.818

Table 4.6. Hypothesis test

Source: Authors
According to the results in the table above, of the 9 proposed hypotheses, 8 are
supported, including H1, H2, H3, H4, H5, H6, H8, and H9, which are similar to earlier
studies. The association between economic benefits and social customer engagement,
according to hypothesis H7, is statistically insignificant, in contrast to the aforementioned
hypotheses.
According to the test results, self-congruity (β=0.298) has the highest impact on
social customer engagement. Social media marketing, brand activism, brand warmth, and
information seeking all have a remarkable impact on social customer engagement. Brand
loyalty was shown to be positively impacted by social customer engagement (β=0.085).
The relationship between social customer engagement and brand loyalty is, moreover,
successfully moderated by artificial intelligence. This suggests that brand-customer
interaction on social media has been more and more greatly influenced by artificial
 49

intelligence. Artificial intelligence would increase social customer engagement, which

would help speed up brand loyalty.
The study employs the coefficient R2 to interpret the fit of the model. For model 1,
6 independent variables account for 47.9% of the variation in social customer engagement
on social media platforms. In model 2, factors including brand loyalty, social customer
engagement, and artificial intelligence can all explain 81.85 of the value of brand loyalty.
Summary of chapter 4
After conducting the necessary and crucial analysis for the study, our group
obtained important results. Firstly, self-congruity, brand warmth, brand activism,
information seeking, social influence, social media marketing exert a positive effect on
social customer engagement. Secondly, social customer engagement positively influences
brand loyalty. Lastly, artificial intelligence moderates the relationship between social
customer engagement and brand loyalty.
 50

CHAPTER 5. CONCLUSION AND RECOMMENDATION

5.1. Summary of research result
5.1.1. Result for descriptive statistics
Female proportion is more than 65% compared to male). In fact, most studies show
that the sample of females is usually higher than male when conducting a survey of
shopping fields.
Age group shows that participants are mostly from 18 - 34 (with 38.62% and
22.30% respectively). These two objectives are the ones getting accustomed to social
media platforms and the others. The awareness of body-caring, outfits, shopping or daily
lives allows them to be more concerned about brand in social media such as Tiktok,
Facebook, Instagram…. With regards to the providers, brands are developing trends of
cheaper price and higher in quality, which satisfies the financial condition of the major
participants.
In terms of Income, this study conducts the majority of those having the income
under 5 million VND monthly with more than half (50.57%). This is common sense in
Vietnam, a country where online shopping is a trend recently with the advantages listed
above. Besides, an additional explanation for the distribution of income factors is that the
participants from 18-25 are mostly full-time students and a few full-time hand-job
employees whose income is not typically so high as the other objectives.
Only 28.74% of graduates and 14.48% of postgraduates participate in the study,
while 56.78% of respondents are undergraduates.
5.1.2. Research result
The whole scale is reliable because the Cronbach’s Alpha coefficient of the
variables
is greater than 0.7, even the “Self – congruity” variable reaches at 0.907, which indicates
that the scale is very good.
When using the Composite Reliability coefficient, all scales are reliable because all
the coefficients are greater than 0.7.
All observed variables of the independent variables are qualified because the outer
loading of all observed variables is greater than 0.7.
 51

All HTMT values are less than 0.85, which means that this study demonstrated
good
discriminant validity.
After testing the scale by SmartPLS4, the variables ensure the reliability and
validity of the model. As far as the factors affecting the relationship between social
customer engagement and brand loyalty are concerned, our research indicates that there
are 6 components that affect the relationship social customer engagement from the highest
to lowest in the following order: the positive effect of Self – congruity on social customer
engagement is the strongest impact (β = 0.298), the next one is the positive impact of
Information seeking on social customer engagement (β = 0.251), the next one is the
positive impact of Social influence on brand love (β = 0.235). Following this, the impact
of Hedonic value on brand love is the positive impact, with β = 0.178, the following is the
positive impact of Environmental responsibility on brand love (β = 0.138). Next after that
is the positive impact of brand love on brand fidelity, which has β equal to 0.734. The beta
coefficient of AR technology is 0.086.
5.2. Evaluation of research’s new contribution
Our research discovered that there are several factors affecting social customer
engagement, which can lead to the adjustment of brand loyalty. Similar to previous
studies such as “Antecedents and consequences of self-congruity” (Rabbanee & Roy,
2015) or “How do digital influencers affect social commerce intention? The roles of
social power and satisfaction” (Wang, Huang & Davision, 2020). However, the most
significant feature that can be seen from the research results is the appearance of the
factors of artificial intelligence, Brand warmth, and Self - congruity. These are factors that
have not been concentrated on, which can lead to numerous inadequate results in many
types of research in the past, while, artificial intelligence, brand warmth, and self -
congruity have a profound influence on brand loyalty.
Moreover, our group discovered that Artificial Intelligence (AI) plays a crucial role
in the process of social customer engagement affecting brand loyalty. Our brand-new
factor, AI, was approved by professional experts and also was a most concerned topic in
the world these days.
 52

5.3. Administrative implication

For policymakers:
Vietnam wants to make artificial intelligence (AI) a leading technology in the
fourth Industrial Revolution, in accordance with a national policy on AI research,
development, and applications until 2030, which was adopted by the Government on
January 26, 2021. By 2030, the nation aspires to become a hub for AI invention,
development, and applications in ASEAN and beyond.
In order to reorganize and promote AI innovation ecosystem, the Government of
Vietnam should concentrate on a few crucial strategic initiatives, such as:
● improving the operational and managerial processes of organizations working in
the science and technology (S&T) sector;
● boosting state spending levels, giving funds to national S&T projects and goods
top priority, and encouraging businesses to invest in S&T development;
● coordinating the creation of a robust S&T national market with the enforcement of
intellectual property laws in order to promote innovation and technology R&D;
● enhancing the use of Vietnamese research and technology in worldwide markets.
For businesses:
When carrying out the topic, our team found out that there are 6 variables that have
a positive influence on customer engagement which are information seeking,
self-congruity, brand warmth, brand activism, social media marketing, and social
influence. The new points of this research are that we successfully tested the effect of
self-congruity, brand warmth and brand activism on customer engagement.
Self-congruity, a vital component of market segmentation, offers marketing
managers information into positioning and advertising research (Sirgy et al, 1997).
Marketers can more accurately position their items in a way that appeals to their
customers if they have in-depth psychological knowledge of their target customers rather
than superficial demographics. Marketers can make decisions by creating a congruence
model for their target market; therefore, the product image attributes (self, ideal, social, or
ideal social) that create the greatest level of congruity (Johar & Sirgy, 1989). Marketers
should take precautions before launching a brand to make sure that the potential early
 53

adopters of their product are indeed their target market. Brand personality changes
brought on by deceptive congruity, a real-ideal image discrepancy, or innovative or
creative customer behavior should be kept an eye on in existing brands. While positioning
their brand for the target market is important, marketers should not be so narrowly
focused that they overlook the impact that non-targeted users may have on their brand.
Recently, more accountability and transparency from businesses are desired by
American customers, according to a recent survey by Jungle Scout of more than 1,000
customers in the United States. Additionally, 43% of customers have a more favorable
opinion of a brand when it actively participates in social change. Over half of all
customers purchasing decisions are influenced by brand activism, making it a crucial
factor for businesses wanting to grow. Brand activism can take many different forms, such
as expanding business opportunities for LGBTQ entrepreneurs, carrying transparent
policies and good treatment of employees, providing clean goods, and not testing on
animals, signing the Climate Pledge on Amazon, or developing environmentally friendly
packaging for items. Recent examples include Adidas' Pride Pack line launch, which
includes rainbow-colored clothing to promote freedom of expression and the LGBTQAI+
community, and Olay's pledge to help women in STEM with their #FacetheSTEMgap
campaign, which includes a $500,000 grant to the UNCF. For instance, offering an
eco-friendly product or product packaging might result in more good reviews online for
the product and brand as well as higher sales considering the desire for environmental
accountability from firms. Here is an example of an Amazon user who looked for an
eco-friendly product, discovered it, recommended it to other customers, and established
themselves as a loyal user.
 54

Figure 5.1. Brand activism posted on social media

Source: Internet
Apart from creating a perfect brand image, to engage with customers and last a
long relationship, brands need to focus on Brand warmth. Our findings recommend
focusing primarily on stressing the brand warmth stereotype if a company wants to
improve the perception of the emotional worth of its brand. This means that brand
communications should be depicting the brand with good intentions (i.e., being nice,
warm, and kind). It is significant to note that showcasing warmth also improves
functional value, boosting communication methods intended to highlight the brand's
expertise.
It is also crucial for customers to reach out to brands, therefore, information
seeking, social media marketing, and social influence should be promoted as well.
Customers desire knowledge from people they can relate to and trust. Businesses spend a
lot of money attempting to establish trust in their brands, but social influence allows you
to do it naturally through the evaluations and feedback of your customers. Customers
desire information from people they can relate to and trust. Businesses spend a lot of
money attempting to establish trust in their brands, but social influence allows brands to
do it naturally through the evaluations and feedback of your customers. We suggest some
of the steps that brands can do as follow:
 55

● Building a strong foundation of trust with previous clients by communicating with

them and asking for their valuable recommendations and feedback will boost
natural marketing and increase recognition over time. For example, encourage
customers to post their makeup look on social media and tag cosmetic brands
along, the same with fashion brands.
● Be generous with information, the information that great brands provide about
their goods and services is extensive. To educate your customers about the various
aspects of your product, make use of the features, comments, reviews, and FAQs.
Additionally, brands that encourage dialogue and immediately address questions
on their websites and social media platforms entice customers. Even the most
popular brands receive critical comments on social media; the key is to respond
politely.
AI innovation
After carrying out the research, our group successfully tested the moderating role
of AI in the relationship of customer engagement and brand loyalty. To survive and thrive
in the face of fierce competition, there is a constant need to introduce new innovations
and advancements. We now find ourselves in a situation where AI is not only a
"technology to try someday" but is happening right now. Furthermore, it no longer just
pertains to progress. It comes down to surviving in a market when everyone else has
already adopted it more and more frequently. In this part, the authors represent some of
the recommendations for businesses who are willing to adapt in the AI era in some
industries, namely FMCG, fashion-beauty and F&B.
● Personalized customers’ experience with data
Fast Moving Consumer Goods is a multi-million-dollar industry. In the FMCG
sector, where there is a lot of data to process, operations to optimize, and decisions to
make, it is extremely relevant. The potential of AI technology in the FMCG industry is
substantial and expanding on a monthly basis. IDC estimates that by 2025, artificial
intelligence will be incorporated into at least 90% of new enterprise apps. Most of them
will be AI-enabled apps that give small upgrades to make programs "smarter" and
"dynamic." Salespeople in the fast-moving consumer goods sector must pay attention to
 56

relationship-building as well as a lot of paperwork, planning, and projections. There are

numerous long-term contracts and regular orders, which results in a lot of repetitive,
analytical labor that requires a lot of time. Due to a lack of time to genuinely converse and
learn what consumers' true needs are, the sales process loses this crucial human element.
The customers, whether they are B2B or B2C, however, want to be heard and recognized.
If they feel that the salesman has taken the time to learn about their needs, they are more
likely to engage in conversation and make a purchase. To put it simply, it is challenging to
earn the trust of customers without making this effort.

Figure 5.2. FCMG industry

Source: Internet
Therefore, a recommendation system that tells salespeople which customers to
target and how to do it properly is a good example of how operations may be optimized
with the aid of AI. With such a solution, they may deliver precise, individualized offers to
the correct customer at the precise moment that customer needs them. Up to 80% of
customers, according to Bloomreach, are more inclined to make a purchase from a
business that provides personalized experiences.
 57

● Improve Hygiene and Sustainable development

During the pandemic, people have become more sensitive to the environmental
impact of their shopping decisions. Before the pandemic, consumers had begun to
prioritize sustainability. But in PwC’s June 2021 Global Consumer Insights Pulse Survey,
half of all global consumers surveyed say they have become even more eco-friendly.
Businesses must focus more on the sustainable development as well as hygiene,
especially in F&B industry, AI can be the helping hand. The optimization of cleaning and
hygiene chores, which are crucial for food and beverage facilities, also shows significant
potential in AI. An AI-powered multi-sensor system will identify food residue and
microbial waste on equipment to decide the ideal duration of cleaning time. This
technology is being developed by a UK cooperation between Martech of Whitwell and the
University of Nottingham. According to estimates, the method could help the UK food
production industry save up to £100 million annually.

Figure 5.3. AI in improving the hygiene and product quality

Source: Internet
Power and water consumption may be optimized with the help of AI, which has an
immediate positive impact on operating costs and margins. For instance, the size, shape,
color, and texture of fresh goods like fruit and vegetables can vary greatly, adding
complexity to the production process. Artificial intelligence (AI) systems can quickly
 58

identify differences, remove contaminants without wasting entire batches, and

continuously optimize water and energy usage in accordance with needs. Robotics can be
used throughout the process, and the whole thing can operate continuously and
continuously throughout the production.
AI Chatbots
Customers are reached by effective marketing communication at the appropriate
time and through the appropriate channel. These fields are the focus of many new AI
businesses. A fantastic method to personalize the customer experience and make sure that
customers get prompt answers to frequent issues without calling customer care is to
deploy chatbots, which use AI to have real-time discussions with users. Chatbots can
assist clients in making informed selections by providing customized advice or addressing
frequent sales objections raised by a product. With the help of their AI chatbots, Sephora
has already taken use of this as of 2017. The Sephora chatbot initially asked customers to
complete a short questionnaire to find the product they were looking for. Because of the
high level of interest, it has been implemented on various communication platforms.

Figure 5.4. AI chatbot

Source: Internet
 59

Retail customers will use chatbots to complete up to $142 billion worth of

purchases by 2024, predicts Business Insider Intelligence. Chatbots are a strong tool, and
marketers employ them because of the enormous amount of business they may generate
for a company's income.
In addition, to reach more users and minimize the cost, it is clever to make full use
of social media sites, brands with low budget can totally build the AI Chatbot in Facebook
or Instagram.
AI Visual try-on & Visual search
The shop of the future will radically differ from what we are used to due to shifting
customer needs. Large stock stocks on the shop floor will give way to brand-new,
tech-driven experiences with AI at the forefront, and customers will think twice about the
things they buy.
The AI market is anticipated to grow from roughly $ 3.5 billion in 2017 to $ 198
billion by 2025, according to Statista. When combined with 3D body scanning, AI will
open the door to developments like virtual try-on technology, which 3D Insights predicts
will completely transform the fashion store experience. Many computers and cellphones
available now enable augmented reality, whose popularity is increasing daily, largely due
to social networks. Because of this, people find virtual try-on solutions to be very
appealing and simply accessible. It is a fantastic chance for businesses to interact with
customers on the platforms they prefer. When it comes to marketing and sales, a virtual
 60

try-on can significantly impact brands. Whether it is a tailored smartphone application or

a smart mirror in a physical store, a virtual try-on gives customers a realistic, personalized
product presentation in a matter of seconds. Customers may rapidly test out dozens of
products and even receive recommendations for related products, which promotes sales.
Leaders in marketing know that it is a must to let the customers feel connected to
the products, therefore promoting customer engagement and brand loyalty. AI and Visual
try-on make it easier. With mobile applications, users can virtually try glasses and
headphones on in seconds. They can browse through the collection, create a list of their
favorites, and compare different products side-to-side. Thanks to precise tracking and
realistic 3D models, the try-on feels almost like looking in the mirror. Users can also take
selfies and share them with their friends on social media, therefore creating brand
recognition.
 61

In the beauty industry, not just accessory brands can apply AR, the virtual makeup
try-on #ColourMe has been launched by L'Oréal's AI and AR business ModiFace and
A.S. Watson Group ("ASW"), bringing ModiFace's leading AR technology to smartphone
users throughout Asia.
The head of L'Oréal's customer products division, Alexis Perakis-Valat, asserts that
"Digital innovations are about to change retail, making shopping more enjoyable, simple,
and personalized. A.S. Watson, a dependable and long-term retail partner, shares our
desire to be a driving force behind this transformation. This is why we are excited to
introduce the #ColourMe virtual makeup try-on, which is powered by our own Modiface
beauty AR and AI startup. With the use of this technology, customers can now experience
makeup in a novel way, and the beauty industry will be further revolutionized in the
future.”
 62

Figure 5.8. Virtual fitting technology

Source: Internet
Fashion brands and enterprises may combine the physical and digital worlds using
virtual try-on technology to give customers a secure, practical, and effective shopping
experience both online and in person.
This method, often referred to as virtual fitting technology, enables customers to
try on clothing virtually in order to assess its size, fit, and style. As a camera-equipped
smartphone takes a picture of the customer, underlying AI overlays a lifelike virtual
image of the product to depict how it would appear on the customer's body. Customers
may virtually try on garments without taking off their clothes thanks to magic mirrors
positioned throughout the store and within fitting rooms. Customers may quickly and
easily switch between different outfits, colors, and patterns thanks to smart mirror
technology offered by vendors.
Besides, as it expands its platform's retail services, Facebook is working on visual
search technologies for Instagram. Mark Zuckerberg stated the development of
camera-based search capabilities is still in its early stages while speaking in a live audio
room on Facebook. The tool would be comparable to those provided by Snapchat and
 63

Pinterest, both of which have made significant investments in visual search. On

Instagram, Zuckerberg described two possible applications for the technology. AI visual
search on Instagram may reveal comparable things that are already accessible elsewhere
in the app, or it could let users search for products using their cameras or photos in their
camera roll.
5.4. Limitation and future orientation
During this research, although our team made efforts to conduct this research,
however, several limitations of the research paper are ineluctable. Firstly, the analysis
"The relationship between social customer engagement and brand loyalty of Vietnamese
young generation: The moderation of artificial intelligence" was analyzed based on data
collected from young generation living in Ho Chi Minh City. For that reason, the most
serious limitation is the scope of the study, which led to the inability to generalize the
research results. Secondly, because the author group includes numerous students who are
at university or newly-graduated students, the survey participants are not diverse, still
focusing mainly on people that are under 25 years old and have low income. Meanwhile,
customers from 26 to 30 years old, especially those who are employed, have more
budgets for products because they have a higher ability to buy types of products. They
also have a higher demand and chances to go shopping frequently than those under 25
years old, who have a low budget and do not have any chances to meet numerous people
in their working time like adults. Thirdly, due to the limitations of knowledge and
experience, the suggestions of solutions given in the research are still theoretical,
subjective, and not practical in the current market situation.
Hence, in the following research, the scope of the study should be expanded to
generalize research results. In addition, the collected data for analysis should be focused
on people who tend not to be loyal customers in order to clarify their reasons and to make
research results more objective and effective. Currently, regarding current brands, the
factor of the quality of the products is also extremely concentrated by customers,
however, in our research, this factor has not been mentioned. Therefore, studies in the
future should focus on analyzing this factor, the intangible value of brands customers can
 64

gain, and the recyclability of products. These three factors are the potential topics, which
can support the industry, and the economy in general.
 65

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APPENDIX
Appendix 1. Survey questionnaires
The relationship between social customer engagement and brand loyalty of Vietnamese
young generation: The moderation of artificial intelligence
Hello everyone, our group is from the Faculty of Finance of UEH University. Our team is
currently working on a research paper for an upcoming academic competition. Our team
hopes that you will take a moment to complete this survey. Our team commits that the
survey results are only used for research purposes and all information is kept confidential.
Thank you very much.
Part 1: Questions related to personal information
Q1. What is your gender?
Male Female
Q2. What is your age group?
18 – 25 26 – 30
Q3. What is your monthly salary?
Under 5 million/month 5 – 10 million/month Over 10 million/month
Q4. What is your education level?
Undergraduate Graduate Postgraduate
Part 2. Please indicate your attitude towards the following statements by ticking x in the
box from 1 to 5 corresponding to
1 - Strongly disagree 2 - Disagree 3 - No opinion 4 - Agree 5 - Strongly agree

Code Statement Score

1 2 3 4 5
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I feel that in order to know more about a brand or

IS1
store, I must like its page

I use Facebook to post questions because Facebook

IS2 users provide me with better information than an
Internet search

IS3 I think reading Facebook feed is informative

SMM1 Content on social media is quite interesting

I find it easy to express my opinion on the brand's

SMM2
social media

SMM3 Information on the brand's social media is up to date

BA1 Brands contribute to the community

BA2 Brands have gender – focused campaigns

BA3 This campaign seems to benefit the society

Advertisements attract me due to their high

SC1
entertainment

The humor of advertisements makes me prefer the

SC2
brand more than others

SC3 Advertisements are funny

BW1 The brand is sincere

BW2 The brand is enthusiastic

BW3 The brand is friendly

 77

I will share information about the brand with friends

SI1
and family

I interact with the brand on Facebook to state my

SI2
interests and preferences to my friends

My interaction with the brand on Facebook allows me

SI3
to increase my social involvement

I interact with brands on Facebook in order to access

EB1
discounts and promotions

To participate in Competitions and Games to win

EB2
prizes

EB3 To get reward/free gifts

I share the brand's product experience on social

SCE1
networks

I participate in interaction activities with the brand on

SCE2
social networks

SCE3 I follow the brand's fanpage on social media

BL1 I am more likely to buy brands I follow

BL2 I will recommend the brand to others

If I lose a product of the brand, I will definitely buy

BL3
another product from the same brand

AI answers my questions as a customer service

AI1
assistant
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AI can recommend what I want based on my browsing

AI2
habits

AI can help me accurately retrieve the goods I want by

AI3
inputting voice

Appendix 2. Cronbach’s Alpha – Composite Reliability - Average Variance

Extracted
 79

Appendix 3. Outer loading

Appendix 4. Discriminant Validity

 80

Appendix 5. R-square

Appendix 6. Path coefficients