Employee-based Brand Equity

By

Tanya Supompraditchai

DISSERTATION

Submitted in partial fulfilment of the requirements

for the Degree of Doctor of Philosophy in Marketing

The University Technology, Sydney, 2010

C ERTIFI C ATE OF AUTHORSHIP/ORIGI NALITY

I certify that the work in this thesis has not prev iously been submitled for a degree nor

ha it been submitted as part of requirements for a degree exce pt as fully acknowledged

within the text.

I al so certify that the thesis has been written by me. Any help that I have recei cd in my

research work and the preparation of the the is itse lf has bcrn adnowk:d ~ccl . In

addition , I certify that all inf'ormation sources and l ireraturc used arc indicatt.:d in t h~

thesis.

Tanya Supornpraditchai

11

To my parents who always give me love and inspiration, and to the memory of my aunt Usa

I 11

Acknowledgements

I am grateful for the advice and encouragement from my supervisors to complete this

thesis. Without their support, this thesis would not exist. I cannot thank my primary

supervisor enough for his patient guidance, support, and confidence in me. Professor

Kenneth E. Miller gave me invaluable feedback despite his busy schedule. I have been

fortunate to have the opportunity to gain from his great experience as a researcher and a

member of the academic community. I will be forever grateful for his commitment to

helping me complete this thesis.

Assoc. Prof. Ian Lings, my co-supervisor, deserves my heartfelt thanks. I appreciate his

advice more than I can say. He always made time for me and supported me through

some of the toughest moments in my study life . He has set an incomparable example as

an academic which I can only aspire to follow one day. He has been a role model for

me in many ways.

Special thanks to Dr. Brian Jonmundsson for his valuable advice and support with this

thesis.

I also would like to take this opportunity to express my appreciation to the School of

Marketing and my colleagues for their personal encouragement and friendships.

Sharing their research experiences with me motivated me to work harder on my own

thesis.

IV

Last of all, I would like to express my deepest appreciation to my family and friends for

their emotional support and encouragement throughout my study in Australia. Without

their support, I would not have been able to continue in my educational pursuits and

make my dreams come true.

Sydney, January 2010

Tanya Supompraditchai

v

Table of Contents

Declaration .. ..... .. .............................. .............................................. ........ .................. ..... ii

Acknowledgements ....................................................................................................... iv

Publications from Thesis Related Research ......................... .. ..................................... xii

List of Acronyms ........................................... ........... ... .................................................. xiii

List of Figures ....................... ....................... .. ...... .. ....................................................... xiv

List of Tables ........... ......... ........................ ......................................... ....................... ..... xv

Abstract ............. .... ..... ............. ............ ............................... ..... ........ ... ........................ xviii

Chapter 1: Introduction ................ ... ............ ..... .... ....... .. ........................ .. .................. . 1 1.1 Introduction __ ___ ________ _____________________________ __ __________________________________________________ __ ________ _

1.2 Why is the Brand Eq ui ty A imed at Company's Employees is Important for

Company Brand Success? __ ___ ___ ___ ____ _____ ______ ____________ ____ __ ____ ___________ ___ ______________ ___ ___ _ 4

1.3 Employee-Based Brand Equity (EBBE}__ __________________________________ __________ ____________ ___ S

1.4 Research Question ___ _____ ____ _____ ___ ______ ___ __________________ _________ ________ __ ____ __ ____ ___ __ ________ _____ _ 6

1.5 Research Issues ---- ------ ------- -- ----- --- ------ --- ----------- -------- --- --- --- -- ---- ---------------------- --- --- -7

1.6 Contribution -- -- -------- ---- ------------------------ ---- ------ ---- -- -- --------- ----- --- --- -- --- ---- -- -------- -------1 0 1. 7 Chapter Organisati on ___ ______ __________ _____ ____ _____ __ __ _____ _____ __ ________________________ __________________ I 0

1. 8 Delimitations __ _________________ ________ _____ __ ________ _________ ___________________________ _____________ ________ ____ 12

1.9 Definitions _____ __ ______________________________________________________ _______ _________ __ ______ _____ ____ ______ __ ___ __ 13

1.10 Chapter Summary ____ ____ _____ ___ __ ____ ___ ________ ____ ____ __ ___ ____ __________ ______ ________ __ ___ ___ ____ _____ ___ __ 15

Chapter 2: Literature Review .................................................................................... 16 2.1 Introduction ____ ____ _____ _________ ___ __ __ ________________ ____ ___________ ____ ______ __ ___ ____ _________ ___ _____ __________ 16

2.2 Why is company brands are increasingly important? __ __ ____ __ ____ _______ ____ _______ _____ ____ 16

2.3 Internal Branding Concept in the Marketing Field and Employer Branding

Concept in the HR fi eld: What do they have in Common? ___ __ ________ _____ __ __ ___________ 19

2.4 Why Brand Equity is used to measure the degree of individual employees'

perception of company brand ____ ___ ____ __ ____ ___ _____ __ __________ _______ __ ____ __ _____ _______ ______ ___ ___ __ _26

Vl

2.5 Employee-Based Brand Equity (EBBE}__ _____ ____ ______ ____ _______ __ ___________ _______ _____ _______ _28

2.6 The Importance of Understanding EBBE _________ __ ________ __ _____________ ____ _______ ___ ___ _____ __ _29

2.7 Customer-based brand equity (CBBE) ____________ __________ ____ __ ____ ___ ____ ___ _____ ___ ___ ____ ___ ___ _32

2.8 Integrated Approach of CBBE _______ __ ___ ___ _____ _____ ___________ _______ _____ ___ _____ _____ _______________ 44

2.9 Application of CBBE to EBBE _________ ___ ___ __ ___ ________________ __ ____ ____ ____ __ _________ ______________ 45

2.10 Organisational Commitment and Brand Commitment ____ ___ ______ ___ __ _________ __ ___ ____ ____ 49

Compliance or Perceived Brand Value ____ ____ __ ___ ______ __ __ __ _____________ ____ ______ ___ _______ ___ __ 52

Internalisation, Perceived Brand Fit, and Person-Organisation Fit ______ __ _____ ____ ____ 55

Organisational Identification __ __ ___ ____ _______ __ ___ __ __ _____ ___ __ __ __ ___ ______ ____ ___ __ _____ __ _______ _____ _ 57

2.11 Organisational Behaviour (the Outcomes of EBBE)___ _______ __ ______ __ _________ ______________ 61

Customer-orientation 61

Employee ' s Willingness to Stay with the Company ____ ____ ____ ___ ___ ______ __ __ ______ ________ _ 63

2.1 2 Chapter Summary __ __ ____ ___ ____________ ____ _________ ____ _____ __ _____ ____ _______ __________ ____ __ __ _________ _____ _ 64

Chapter 3:Construct and Model Development ......................................................... 66

3.1 Introduction ___ ____ _____ __ ___ ______ ______ __ _________ ___ ____ ________ _____ ___ __ __ __ ____ _____ ____ ___ ___ ___ _______ ____ ____ 66

3.2 Proposed Framework and Model ___ ____ ______ _______ _____ ________ _______ ____ ___ ____ ______ _____ ________ ___ 67

3.3 Definitions 69

3 .4 The Construct D evelopment ____ ___ ___________ _____ __ ______________ __ _____ ____ ___ __ ___ ____ ___ __ _____ ___ ______ 71

3.4.1 The Favourability and Uniqueness of Brand Associations Constructs ______ 72

3.4.2

3.4.3

3.4.4

3.4.5

3.4.6

The Construct of Brand Consistency and Brand Consistency between

Outside and Within Organisation --- -- ---··················-- ----- ---- ------ ---- ---- ----- -- ----- 75 The Construct of Brand Credibility __ __ __ ________________ ____ ____ ____ ________ _____ __ ____ ___ ____ 76

The Construct of Brand Clarity __ __________ __ ________ ____ __________ __ ________ ___ __ ______ __ _____ __ 78

The Construct of Perceive Value 79

The Construct of Person-organisation Fit ___ _____ _______________ ____ ___ ___ __ ___ __ __ ________ 81

3.4. 7 The Construct of Organisational Identification ____ ___ ____ _________ _______ _______ ________ 82

3.4.8 The Construct of Customer-orientation ___ _____________ ____ _____________________ _____________ 82

3 .4.9 The Construct of Employee Retention ___ ___ ____ ___ __ ____ __ ___ ______ ______ __ ___ _____ _____ ____ 84

3.5 Research Hypotheses ____ __ _____ ____ ___ __ ______ ___ _____ ___ ____ ___ _______ ___ ____ ____ __ _______ _______ _________ _____ 86

3.6 Chapter Summary ________________ ________ _______ __ ____ __ ___ ____ ___ _______ ____ _____ _______ __________________ _______ 91

Chapter 4:Research Methodology ............................................................................. 92

4.1 Introduction 92

Vll

4.2 Sampling Issues ____ _______ ___ __ ___ . _______ _________ ______ ______ ________________ ________ ______ ______________________ 93

4.2 .1 Choice of Respondents ______________ ________ ____ ____________ _______ ___ _______________________ _____ ___ 94

4.2.2 Selection of the Sample _______________ ______ ______________________________ __ ___________ ____________ ___ 94

4.3 Data Collection Procedure 96

4. 3 .1 Literature Search ___________________ _____ __ ---------- ----------- ------- -------- -------- -------------------98 4.3.2 Questionnaire Development ___________ ____________________________________________________________ _ 98

4.3.2.1 Stage One: Items Generation __________________ ___ __ ______________ ________________ 99

Measuring EBBE ___ _____________ ______ ______________________________________________________ 101

1 ). Favourability of Brand Associations ______ ___________________________ I 02

2). Uniqueness of Brand Associations ________ ____________________________ I 03

3). Brand Consistency _________ __ _________________________________________________ I 03

4) . Brand Consistency between Outside and Within

Organisation __ ___ ______ ___________________________ _________ ____ ___________________ I 04

5) . Brand Credibility_ __ __ ___ __ ___ ____ _____ __ ___ _________ ______ ____ ___ ____ ______ ____ I 06

6). Brand Clarity ____ ___________________________________________ ____________ __________ I 08

Measuring Brand Commitment _____ _______ __ ______ __ ___ ______ ___________________ ____ I 09

1 ). Perceived Value ____ __ ____ __ ___ _________ __ ________________________ ___ ______ ___ ___ I 09

2) . Person-organisation Fit ___ ____ _______ __ __________ _____ ___ __________________ __ 110

3). Identification w ith Organisation __________ __________ ___ _________________ 111

Measuring Employee Behaviour (Outcome of EBBE) ________________ ___ 112

I) . Employee Retention _____ _____ ____ __________________ __________ ___ ___ __ ________ 112

2) . Customer Orientation ____ __ __ . ______ ___ __ _______ ___ __________________________ 114

4.3.2.2 Stage Two: Expert Advice __ ____ _______________ _______ __ _______________ ___ _______ 115

4.3 .2 .3 Stage Three: Forward-backward Translation ___________________________ 115

4.3.2.4 Stage Four: Pilot Study_ __ ___ _______________ ___________ __ ____ _____ _________________ 116

4.3 .2.5 Stage Five: Protocol _______ _________ ________________________ _____ ________ _________ ___ 117

4.3 .2.6 Stage Six: Quantitative Field Survey ____________________________ ________ __ __ 118

4.3.3 Administration of Survey Instrument ____ __ ______ _____________ __ __ __ ________ ___ ______ ______ _____ 119

Note: Ethical Considerations _______________________ _________ _____________________________________ ___ 120

4. 4 Data Cleaning Methods ___ ____ ___ ____ _____________ ___________ _______________ _________________ _________ _________ 121

4.4.1 Non-response Bias ___________________________ __ ___ ___ ____ ______ _____ ___________ __________ ______ ___________ 121

4.4.2 Replacement of Missing Data ______________________________________________________________________ 122

4.4.3 Test of Normality __________________ __ __ ___ __ ___ ___________________________________________________________ 122

4.5 Data Analysis Strategy _________________________________________________________________________________________ 123

Vlll

Step 1: Test of Sphericity and Measure of Sampling Adequacy _____________________________ 124

Step 2: Reliability Tests ____________________ ______ ________ ________ _______________________ _______ ___ __ _____________ 126

Step 3: Construct Validity Tests _____ ___ __ __ ______ ___________________________________________ ___ _________ _____ 127

Step 4: Convergent Validity __ _______________ ____ _______ ____ _______ ___ _____ __ _____ ____ _____ ____ ___ ______________ 128

Step 5: Discriminant Validity _____ ----- ------ ---- ---- -------------------------- ________ ________ ___ __ __ _________ 128

Step 6: Face Validity _____ __ ______ ______ ____ ___ __ __ ______ ____ ____ ___ ________ ______________ __________ ___ _________ ____ 131

Step 7: Measurement Model Analysis __ __ __ __ __ __ ___ ____ __ __ ____ __ ____________________ ______ ______________ 132

Step 8: Structural Model Estimation Analysis _____ _________ _________________________________________ _ 132

4.6 Confinnatory Factor Analysis ___ _________ ____ ___ _____________________________________________ ___ ___________ 133

Overall Absolute Fit Measures 134

Incremental Fit Measures ____ ________ ____ __ ___ _________ __________________________________ ___ ___ __ _________ 134

4 . 7 Chapter Summary ____ __ ________ ____ _____ _____ ___ _____ _______ __ ______ ______ __ ____ ____________ _________________ _____ 13 5

Chapter 5: Results ..................... ...... ... ...... ... ....... .. ... .. ......... .............. ......... ...... .. .......... 136

5.1 Introduction 136

5 .2 Pi lot Study ______ ___ __ __ _______ ________ ___ __ ________ ______ ____________ ___ _____ ____ _________ __ ________ __ _________________ 13 7

5.3 Main Survey: Sample Statistics and Descriptive Information ______ ____ ______________ ___ ___ 138

5.3.1 Response Information _______ ___ _________ __ _____ _________ ____ ______ _____ _______________ ___ _______________ 138

5 .3 .2 Characteristics of Respondent _____ __ ____ _ ------- -- --------- ----- ----- __________________ ___ __ __ __ ___ 139

5.4 Data Cleaning _____ __ ____ ____ ___ ___ ____ ___ __ ___ ____ __ __ __________ __ __ ___ ______ ___ ______ _____ _____ ___ ________ __ _____ ___ 140

5.4.1 Handling of Non-response Bias __ ______ ____ _____ _________________________ ___ __ ___ ____ __ ___ __ ______ 141

5.4.2 Replacement of Missing Data ___________ ____ __ __ __ _________ ______ ____ ____ _______ ___ ______ ____ ______ l41

5. 4.3 Test of Normality ____ ___ ___ ___ _____ __ ________ __ _______ ________ ____ ____ ________ ______________________ ______ 142

5.5 Reli ab ility, Unidimensionality, Convergent Validity and Discriminant Validity

142

5.5 .1 Reliability and Unidimensionality Test __ ____ _____________ _______ ___ ____ _______________ _____ ___ 142

5.5 .1.1 The EBBE Measurement Model 143

5.5 .1.2 The Brand Commitment Measurement Model __ _____ _____ ________________________ 145

5.5.1.3 The Employee Behaviour Measurement Model ________________ _____________ __ ___ 146

5.5 .2 Convergent Validity _____ ____ __ ____ ______ ___ ______ _____ __ _______ ____ _______ ____________ ________________ __ 147

5 .5 .3 Discriminant Validity ___ ____________ __ _______________________________ __ __ _____ __ _____ ______ _________ ____ 148

5 .6 Confinnatory Factor Analysis _______________________ __ ___ ___ ___ ___ ____ _______________________ ____ _____ __ ___ 148

5.6.1 The Favourability of Brand Associations ____ _________ __________ __ ________________ ____ __ ______ 148

5.6.2 The Uniqueness of Brand Associations __________________ ___ ________ __________ ___ _____ _______ __ 149

IX

5. 6.3 Brand ConsistencY. ......... .............. --- -- ---- --- --- --- ---- ---- ------------------------- -------------150 5.6.4 Brand Consistency between Outside and Within Organisation _________ _____ ____ _ 151

5.6.5 Brand Credibility ___ ________ _____ ______ _____ _____________________________ ___ ____ ___ __ __ ______________ ______ 153

5.6.6 Brand Clarity __________ _______ ______ __________ ___ __ __ __ ___ ___ ______ _____ _______ _______ _____ ____________ ______ 154

5.5.7 Perceived Value·········-·····-------------- --------------- --------·---------------------------------------157 5.5.8 Person-organisation Fit _____ ___________________________ _______ ____________ _________ ___________ _______ ___ 157

5.5.9 Identification with organisation _____ ________ ____________________________________ ___________________ 158

5.5.10 Customer-orientation ____ __ ____ ______ ______ __ __ __ ___________________ ________ ______ ______ __ _________ _ 159

5.5.11 Retention 159

5. 7 Evaluation of the Full Measurement Models--------- -- ------- --------- -- ---- -----················· 161 5.8 Evaluation of the Full Structure Model __________ ___ __ _______ ___________ __ __ __ ___ ___ ____ _____ ___ _______ 166

5.8 . l The Chi-square Test Statistics __ ______ _________ ________ __ __ __ ____ _________ ____ _________ _____ ____ ____ 166

5.8.2 Noncentrality-based Indices ______ ____ ______ _______ ___ _____ ___ ___ ___ ____ ___ __ ____________ __ _________ _ 167

5.8.3 Overall Absolute Fit Measures __ __ __ __________ _________________ ________ _____________ __ _____ ___ _____ 168

5.8 .4 Relative Fit Indices····················-------- --- ------- --- -- ---- --- --- -- --- -- --- -----········-········--168 5.9 Hypothesis Testing ___ ___ ________________ ___________________________ ____________ ___ ___ ______________________ __ _____ 171

5.10 Chapter Summary ______ _______________ ____ _______ ________ _____ ___ ___________ ________ __ ___ __ ___ _________ ____________ 175

Chapter 6: Research Discussion and ConcJusion .......................... .... ...................... -177

6.1 Introduction ___ ____ __ ____ ___ _________ __ _____________ __ __ ___ ___ __________________ __________________ ___ ___________ ___ ____ 177

6.2 Summary of the Chapters ________________ __ ____ ____ ____ __ ____ __ __ ____ ____ _________ ___ _____ _______ ___ ____ ___ ____ 177

6.3 Summary of the Research Findings···---············-··-··--------··------------------------------------ -179 6.4 Discussion and Hypotheses Testing ______ __ ____________ _______ _____ ____ ____ _____________________ _________ 193

6.5 Research Discussion ..... ..... ...... .. .. ---··················-···················-·····--- --- ------------ ------200

6.5 .1 Implications of the Role of EBBE in Structural Model ·····--- -- ------- ---------- --- _200

6.5 .2 Implications of the Role of EBBE and Brand Commitment in Structural

Model 201

6.5.3 Implications of the Role of Brand Commitment and Employee Behaviour

in Structural Model···········------------------------·········-·······------------ ------ --------- --- -----201

6.6 Contributions of Research Findings ____ ······----- -- ---- --- -- -------- --- -··········---- --- ------ ----- ----203 6.6.1 Theoretical Contributions ___ ____ _____ ___ ________________ __ ___________ _________________________________ 203

6.6.2 Methodological Contributions __ _________________________ ______ _____ ________________________________ 206

6.6.3 Contributions to Company Branding Practice ____ ___ ______________________________________ _207

6.7 Limitations 209

x

6. 8 Future Research ___ ___ __ ________ ____ ___ ___ ____ ___ __________ ___ __ ___ _______ ___ ___ _____ ___ _____ _______ ___ _____ ___ __ ____ 210

6.9 Conclusion ___ ___ ___ __ _________________ __ ____ __ _______ __ __ _____ ___ _____________ ______ _____ _____ ___________ _______ _______ 2 l 2

Reference ...................................................................................................................... 213

Appendix A: Questionnaire (English version) ............................................................ 235

Appendix B: Questionnaire (Thai version) ................................................................ .240

Appendix C: Institutional Consent Form .................................................................... 245

Appendix D: Results ..................................................................................................... 246

Appendix E: Results of CFA ....................................................................................... 261

XI

Publications from Thesis Related Research

Refereed Conference Papers:

Supornpraditchai, T., Lings, I.N. & Jonmundsson, B. 2006, 'Employee-Based Brand

Equity', paper presented to the UTCC International Conference in Business 2006:

Revolution for the New Era Competition,Bangkok, Thailand.

Supompraditchai , T. , Miller, K.E., Lings, I.N. & Jonmundsson, B. 2007, 'Employee-

Based Brand Equity: Antecedents and Consequences', paper presented to the ANZMAC

Conference 2007, Department of Marketing, University of Otago.

Xll

List of Acronyms

HR

HRM

CBBE

EBBE

BCB

OCB

POF

co soco

Human Resource

Human Resource Management

Customer-based Brand Equity

Employee-based Brand Equity

Brand Citizenship Behaviour

Organisational Citizenship Behaviour

Person-organisation Fit

Customer Orientation

Selling Orientation-Customer Orientation

Xlll

List of Figures

Page

Figure 2.1 Employer Branding Framework _____ _____________________ _______________ __ __ __ __ ________ 22

Figure2.2 Benefit Outcomes of Company Branding from Marketing and HR

Perspective ____ ___________________ _____ __________________________________________________________ ____ 25

Figure2.3 Han's (2005) Five Dimension of EBBE _______ ____ _____ ___ __________________ ________ 29

Figure2.4 Associative Network Model 34

Figure2.5 Keller's (1993) Dimensions of Brand Knowledge __ ____ ______ ____ ___ _______ __ .37

Figure2.6 Erdem and Swait's (1998) CBBE Framework ____ __ __________________________ ___ 41

Figure2.7 Sweeney and Swait's (1999) CBBE model __________ ___ __ _______ __________ __ ____ __ 45

Figure2.8 Relationships between the Constructs of Organisational Citizenship

Behaviour and Brand Citizenship Behaviour _____________________________________ 52

Figure3.1 Proposed EBBE Model and its Outcome ___________________________________________ 68

Figure 3.2 Hypothesised Relationships between the Constructs in the Conceptual

Model ----- -- ------- ----------- ------ -- --- ---- ----- --- ----- --------- --------- ----- ------------- ---------91

Figure4.1 Research Process 97

Figure4.2 Three Main Segments in the Theoretical Model ____________________ ________ ____ I 00

Figure5.1 Unidimentionality of Brand Credibility ____________ _________________________________ 155

Figure5.2 Unidimentionality of Brand Confidence _______ ___ ___ __ ___________ __ ________________ 157

Figure5.3 Unidimentionality of Employee Retention ___ ___ ____________________________ __ _____ 161

Figure5.4 CF A Model for all Constructs 166

Figure5.5 The Full Structural Model 1 71

Figure5.6 Path Hypotheses Testing __ _____ ______ ___ ________ ______ _______ ____ ___ __________ ___________ __ _ 174

Figure6.1 Conceptual Model ____ _________ __ ________ __ ____ ____ _______ ______ _____ __ ________ _______ ___ ____ ___ 183

XIV

List of Tables

Table 2.1

Table 3.1

Table 4.1

Table 4.2

Table 4.3

Table 4.4

Table 4.5

Table 4.6

Table 4.7

Table 4.8

Page

A Comparison of the two different approaches of CBBE ________ __ ________ 42

Dimension of EBBE and its Outcome ______________ __ ____ ___ __ _________ ________ ______ 85

Research Questions and Research Hypotheses ___ ________ ____ ___ _________ ___ __ __ 93

Measures of Favourability of Brand Associations __________ ____________ ___ ___ _ I 02

Measures of Uniqueness of Brand Associations __________ __ ___________ ________ _ I 03

Measures of Brand Consistency _______ _______ _____ __ _______________ ____ ___ ______________ I 04

Measures of Brand Consistency between Outside and Within

Organisation ____________ __ ____ ___ __ ___________________________ __________ ______ ________________ _____ I 06

Measures of Brand Credibility ______________________________________________ ________ __ ___ I 07

Measures of Brand Clarity __ _____ _____ ______ __ ______ ___ ___________ __ _____ __ __ ____ __________ I 08

Measures of Perceived Value ___ _____________________________________________ _________ ____ I 09

Table 4.9 Measures of Person-organisation Fit __ _____________ ____________________________ ____ __ _ 110

Table 4.10 Measures ofldentification with Organisation _____ _______ ____ __________ __ ____ ____ 111

Table 4.11 Measures of Employee Retention __ __ ___ __ _________ _____________________________________ 113

Table 4.12 Measures of Customer Orientation _______________ ____________ __ ____________________ ___ 114

Table 4.13 Test of Sphericity and Measure of Sampling Adequacy _____ __ _____________ 125

Table 4.14 Discriminant Validity Test Using A VE and Correlation Methods ____ 130

Table 5.1 The Results of the Pilot Study ____________________________________________________________ 248

Table 5.2 Final Instrument for the Main Survey __ __ ______ ___ ______ ________________________ _____ 250

Table 5.3 Respondent Characteristics ___________ _______ _________ ________ ___ __ _____________ ____ _____ __ 140

Table 5.4 Non-response Bias _______ ___ _________________ _____ __ __ __ __ ____ ______ ___ ________ _________________ 25 l

Table 5.5 Test of Normality _______ ___________________ _____ ___ ___ _____ __ _____ ______ ___ _______ ______ _____ ___ 253

xv

List of Tables (continued)

Page

Table 5.6 Factor Analysis of Items for the Main Survey _______ ____ ___ ____ __________ ______ _255

Table 5.7 EBBE Reliability Test Result _________________________________________ ____________________ 257

Table 5.8 Reliability Test Result of Brand confidence _________________________________ ____ _259

Table 5.9 Brand Commitment Reliability Test Result _____ _____________ _____ ___ ________ _____ 260

Table 5.10 Employee Behaviour Reliability Test Result ________ _____________________________ 261

Table 5.11 Communalities ----------------- ---- ---- -- ----- -- ---------- ------ --------- ---- -- ----- --- ----- -- ---262

Table 5.12 Measures for the CFA Model of Favourability of Brand Associations

---- --------------------- ---- ------------ -- ----- ------ ------ ------- ----------- ---- ----- -- -- ------- ---------- 149

Table 5.13 Measures for the CFA Model of Uniqueness of Brand Associations

----- -- --- ----- ----- --- ---- -- --------- ---- ------ --- ----- ---- -------------------- ---- --- --- ----- ---- ---- --- --150

Table 5.14 Measures for the CFA Model of Brand consistency ___ ______________ ____ _____ 151

Table 5.15 Measures for the CFA Model of Brand consistency between Outside

and Within Organisation _________ _________ _____________ _____________________________________ 152

Table 5.16 Measures for the CFA Model of Brand Clarity_ ___ ______________ __ ______________ 155

Table 5.17 Measures for the CF A Model of Perceived Value ___ ___________ ___ ____________ 157

Table 5.18 Measures for the CF A Model of Person-organisation Fit ___________ ______ _l 58

Table 5.19 Measures for the CFA Model ofldentification with Organisation ____ 158

Table 5.20 Measures for the CFA Model of Customer Orientation _____________________ 159

Table 5.21 The Results of CFA for the Full Measurement Model _______________________ 162

Table 5.22 The Results of Hypotheses Testing _______________ ____________ __ _________ _________ _____ 177

Table 6.1 Summary of Hypotheses Testing ______________________ ______________ _________ ____ _____ _ 182

XVI

List of Tables (continued)

Table 6.2

Table 6.3

Page

Goodness of Fit Measures of Complete data, "High perceived value"

Model and "Low perceived value" Model __ ___ __ __ ______ ___ ___ __ ____ __ ____________ 196

SEM Path Coefficients and t-values for "High perceived value" and

"Low perceived value" __ __ ___ ____ ___ __ _____ _________________ ______________________ ___ _______ _ 198

XVll

Abstract

This dissertation examines the importance of company branding strategy aimed at

company employees. The focus of brand equity research to date has been to advance

the knowledge and understanding of the relationship between the brand and the

customer. However, brand equity can also affect a company's employees. This study

proposes a theoretically structured approach to measure brand equity from the employee

perspective, and its outcomes. This study incorporates theoretical customer-based

brand equity (CBBE) approaches of information economics and cognitive psychology

to develop and test the employee-based brand equity (EBBE) framework. The present

study employed a conceptual framework which addresses the relationship between

brand equity and employee. This approach allows the researcher and practitioner to

explore the perception of the company brand from the individual employee perspective.

Driven by the recognition of a need for empirical validation, the present study was

guided by the research question: What is the role of brand equity for the employee? The

following interrelated sub-questions have been formulated: ( 1) How can employee-

based brand equity be conceptualised and measured? (2) What are the outcomes of

employer brand equity? In this study it is hypothesised that where employees perceive

their employer brand to have high equity, they are more able to deliver the company's

brand promise to customers and are more likely to stay longer with the company.

XVlll

Using the literature review as the point of departure, a conceptual EBBE framework was

developed. A six-step approach was applied to ensure the comprehension of the

measures. Using structural equation modelling (SEM) as the data analysis method, all

major fit indices indicate satisfactory results. The results support hypothesised

relationships between constructs in the conceptual model. The findings in this research

confirm the necessity of understanding EBBE, which can enhance employee's brand

commitment such as perceived value, person-organisation fit and identification with

organisation. The empirical results of this study demonstrate that EBBE has a

significant and positive impact on employees' brand commitment. Moreover, this study

confirms that brand commitment affects employee behaviour, such as customer-

orientation and retention.

XIX