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ACKNOWLEDGEMENTS

I owe thanks to several people who have played important roles in facilitating the progress of my post graduate program at Kingston University and the completion of this dissertation. This dissertation wouldnt have been possible without the expert guidance and support from my supervisor Stavros P. Kalafatis. He has made available his support in a number of ways, right from the initial to the final stages of this dissertation. I thank Stavros for all the prompt responses and forever remain indebted for the valuable insights and motivation he has provided. Next I would like to thank my course director (MA Marketing, Kingston University) Patricia Harris for her endless support that began during the early stages of this post graduate course and continued throughout the course of this dissertation. Next I would like to thank my beloved family for their long distance support and their confidence in my abilities. Finally, I thank my friends and colleagues for their scholarly interactions and camaraderie.

Business-to-Business Brand Extension into Consumer Market Vivek Narayanan MA Marketing Dissertation, Kingston University 2009/2010

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ABSTRACT

Leveraging a brand name into a new product category through brand extension facilitates the success of the new brand extended and considerably reduces the cost involved in introducing a new product. In the recent years several brand extension studies have been conducted, however their application in the business-to-business context remains limited. This study attempted to examine whether B2B brand equity can be leveraged in the consumer market through brand extension. In-order to substantiate this aim, Phang et al. (2004) B2B to B2C brand extension model was replicated which measured consumers attitude towards the consumer brand extension of a B2B parent brand. Besides testing the generalizability and reproducibility of Phang et al. (2004) the current study also examined cross-sector brand extensions with the selection of category based extensions. The overall attitude or the extension acceptance was measured through a set of variables, namely, Brand Knowledge, Quality, CSR, Innovativeness, Transfer and Difficult. Quality of the parent brand was found to be the only determinant factor for all the consumer brand extensions. In contrast to Phang et al. (2004) findings skills and resources of the parent B2B brand was not perceived as transferrable to the category extensions, thus indicating the risk involved with extending a brand into a different category. As a result of these findings it was concluded that companies must direct their marketing activities in-order to enhance their reputation as being socially responsible and innovative which will facilitate the success of their brand extensions. Furthermore category extensions for B2B brands must be employed only if necessary.

Business-to-Business Brand Extension into Consumer Market Vivek Narayanan MA Marketing Dissertation, Kingston University 2009/2010

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TABLE OF CONTENTS

Chapter 1 Introduction __________________________________________________________________________ 7 1.1.Background __________________________________________________________________ 8 1.2.Aim and Objective ____________________________________________________________ 11 1.3. Organization of the Dissertation ________________________________________________ 11

Chapter 2 Literature Review ____________________________________________________________________ 13 2.1. Brand and branding __________________________________________________________ 14 2.1.1. Definition of Brand Then and Now _______________________________________ 14 2.1.2. Business-to-Business Branding ____________________________________________ 15 2.1.3. B2B-Consumer Market Dimensions Continuum ______________________________ 18 2.1.3.1. Contextual Conditions _______________________________________________ 18 2.1.3.2. Psychological Conditions _____________________________________________ 18 2.1.3.3. Product Variables ___________________________________________________ 19 2.1.3.4. Marketing Communication variables ___________________________________ 20 2.2. Brand Extension _____________________________________________________________ 20 2.2.1. Definition of Brand Extension _____________________________________________ 21 2.2.2. Types of Brand Extensions ________________________________________________ 23 2.2.3. Benefits of Brand Extensions ______________________________________________ 24 2.2.4. Drawbacks of Brand Extension ____________________________________________ 25 2.2.5. Consumer Evaluation of Brand Extensions __________________________________ 26 2.2.5.1. Aaker and Kellers (1990) Consumer Evaluation of Brand Extension _________ 27 2.2.5.2. Business-to-Business Brand Extension: Application of Aaker and Keller (1990) 28 2.3. Problem Statement ___________________________________________________________ 29

Business-to-Business Brand Extension into Consumer Market Vivek Narayanan MA Marketing Dissertation, Kingston University 2009/2010

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Chapter 3 Methodology ________________________________________________________________________ 30 3.1. Research Hypotheses _________________________________________________________ 31 3.1.1. Brand Knowledge _______________________________________________________ 31 3.1.2. Attitude towards the parent brand _________________________________________ 32 3.1.3. Innovativeness __________________________________________________________ 32 3.1.4. Corporate Social Responsibility ___________________________________________ 33 3.1.5. Fit between the original brand and extension: Transfer ________________________ 33 3.1.6. Difficulty ______________________________________________________________ 34 3.1.7. Moderating Factors _____________________________________________________ 34 3.2. Research Design _____________________________________________________________ 35 3.2.1. The current model ______________________________________________________ 37 3.3. Purpose of study _____________________________________________________________ 38 3.4. Type of Investigation _________________________________________________________ 38 3.5. Extent of Interference _________________________________________________________ 38 3.6. Study Setting ________________________________________________________________ 39 3.7. Measures and Measurements ___________________________________________________ 39 3.8. Sampling Design _____________________________________________________________ 40 3.8.1. Definition of Population __________________________________________________ 41 3.8.2. Sampling Frame ________________________________________________________ 41 3.8.3. Sampling Procedure _____________________________________________________ 42 3.8.4. Sample Size ____________________________________________________________ 43 3.9. Data collection Method ________________________________________________________ 43 3.9.1. Quantitative Method ____________________________________________________ 44 3.10. Questionnaire Design ________________________________________________________ 44 3.10.1. Specifying the data required _____________________________________________ 45 3.10.2. Questionnaire Administration Method _____________________________________ 46 3.10.3. Questionnaire Content __________________________________________________ 46 3.10.4. Questionnaire Drafting__________________________________________________ 47 3.10.5. Piloting _______________________________________________________________ 48

Business-to-Business Brand Extension into Consumer Market Vivek Narayanan MA Marketing Dissertation, Kingston University 2009/2010

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Chapter 4 Analysis and Results __________________________________________________________________ 49 4.1. Reliability assessment _________________________________________________________ 50 4.1.1. Cronbachs alpha _______________________________________________________ 50 4.2. Regression Analysis___________________________________________________________ 51

Chapter 5 Discussion and Conclusion _____________________________________________________________ 62 5.1. Results and Discussion ________________________________________________________ 63 5.2. Summary of Findings and Conclusion ___________________________________________ 68 5.2.1. Theoretical Implications __________________________________________________ 69 5.2.2. Managerial Implications _________________________________________________ 69 5.2.3. Limitations and Suggestions for Future Research _____________________________ 70 REFERENCES _________________________________________________________________ 71

APPENDIX Appendix 1: Questionnaire Design __________________________________________________ 79

Business-to-Business Brand Extension into Consumer Market Vivek Narayanan MA Marketing Dissertation, Kingston University 2009/2010

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LIST OF TABLES

Table 1.1: Companies formerly operating in Business-to-Business markets only..9 Table 4.1: Reliability Assessment (Croncbachs Alpha)...51 Table 4.2: Estimation of the model and overall fit - Initial Results...52 Table 4.3: ANOVA Results (Significance Value).53 Table 4.4: Collinearity Statistics (VIF and Sig Value Initial Results)55 Table 4.5: Statistical Significance of Independent Variables56 Table 4.6: Estimation of the model and overall fit (R2 and Adjusted R2 Final Results)57 Table 4.7: Independence of Error Terms (Durbin Watson Results)..59 Table 5.1: Beta Coefficient and Sig Value63 Table 5.2: Beta Coefficient value for Business-to-Business Product and Service Brands64 Table 5.3: Phang et al. (2004) Full Model.64 Table 5.4: Tang et al. (2008) Regression Results for Industrial Brands65 Table 5.5: Summary of Hypotheses Testing..68

LIST OF FIGURES

Figure 1: B2B-C