Influencing Factors on Extended Brand’s Imageoaji.net/articles/2015/352-1435911044.pdf · Manag....

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*Corresponding author: Fereydon Mesbahi Daryan, PhD Student, Department of Business Management, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran. E-Mail: [email protected]

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Management and Administrative Sciences Review

Volume 4, Issue 3

Pages: 523-538

May 2015

e-ISSN: 2308-1368

p-ISSN: 2310-872X

Influencing Factors on Extended Brand’s Image

Fereydon Mesbahi Daryan1*, Dr. Nasrin Jazani2, Dr. Houshang Assadolah3, and Dr. Akbar Alam Tabriz4

1. PhD Student, Department of Business Management, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran

2. Professor, Department of Business Management, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran

3. Professor, Department of Business Management, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran

4. Professor, Department of Industrial Management, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran

Managing intangible assets in recent decades has gained noticeable prominence and brand as a key intangible asset made brand management as a fundamental issue for most of company’s activities. Company’s goals regarding brand/s are keeping and utilizing them for developing their competitive market share. Different strategies are available for such purpose and brand extension is one of the most important one. In fact brand extension exploits main brand’s capabilities for developing product portfolios to other categories. Since, brand extension can have positive and negative effects on main brand’s image, investigation of influencing factors on extended brand image is a challenging topic in management issues.in this study, in order to keep generalizability and market oriented approach, vast exploration has been conducted to develop a model of influencing factors on extended brand image and then a proposed model has been evaluated in Fast Moving Consuming Goods market.

Keywords: Brand extension, Brand Image, Consumer attitude towards extension strategy, Perceived fit, Market leader’s brand power

INTRODUCTION

t is seen in the present competitive world that tangible assets no longer are able to create a sustainable competitive advantage and

intangible assets are focused on. Today, natural resources, financial resources, and infrastructure resources do not determine competitiveness, and

due to the technological and financial markets, tangible assets can be achieved by a certain justification plan. However, assets, such as systems, human resources, culture, organizational values, and brands, which are intangible and cannot be acquired from formal markets, determine

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Manag. Adm. Sci. Rev. e-ISSN: 2308-1368, p-ISSN: 2310-872X Volume: 4, Issue: 3, Pages: 523-538

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competitive advantage (Hitt , Ireland & Hoskisson, 2001; Keller, 1998). Therefore, the concept brand and how to use it as an intangible asset that some researchers believe that it cannot be copied (Sondoh, Omar, & Wahid, 2007), is one of the key and challenging issues for creating competitive advantage in the present era (Kapferer, 2008; Keller, 2003). According to Kapferer (2008), the main capital of many businesses is their brand. For decades, value of any business was determined by its properties, factories, and equipment; however, at present thinkers concluded that real value of a firm is in a place out of it; that is in the potential and actual customers' minds and perceptions (Kapferer, 2008). Brand is an important signal for a customer that can reflect valuable information into the individual's mid in a moment and facilitate the transaction. Of course, it is clear that brand, in addition to a name and capability of rereading the related information of the customers' minds, has extra capabilities and functions and play a strategic role in forming and extending the firms' activities (Miller & Muir, 2004). In addition to the ability for creation of the market's share, brands are able to grow businesses and achieve the goals of the developmental plans, and brand management cannot play their key role regardless of such abilities. Different strategies can be defined in the area of using a brand to develop businesses, such as multi branding strategies, extension of a new brand, line extension, and brand extension (Aaker, 1990; Aaker, 1990). Among above-mentioned strategies, extension of a new brand and brand extension are related to the introduction of new products of a new category. In addition to various benefits, the brand's expansion strategy requires fewer investment and resources and therefore has been the focus of attention of leading businesses; however, precision in the usage of the strategy, due to the negative effects, which can have the major brand, is one of the key issues in management (Aaker, 1996). The marketing and strategic management researchers have found that all issues of branding depended on the customers' perceptions and subjective beliefs and any strategy that was designed regardless of the perceptions and beliefs would not certainly produce good results. Any brand attracts some concepts and associations and all activities of a brand pay attention to the strengthening or weakening of such relationships and associations, and businesses of the brand extension strategy try

to transmit useful associations from the main brand to a new product category with minimal negative effects on the main brand (Reddy, Holak, & Bhat, 1994). Therefore, proper understanding of the effects that the brand strategy can have on the brand associations is one of the requirements of using the brand extension strategy and as the brand association forms the brand image, it is of high importance to study a model in the strategic plans of businesses that can examine the factors affecting the extended brand image. Following the fundamental studies of Aaker (1990), Keller (1998), and Kapferer (2001) on the brand management and its strategies, other researchers have conducted studies on the brand extension in order to highlight different aspects of this strategy. Those studies could be generally divided into three groups. 1. Studies that have been done on the effects of brand extension on the firms and their assets (Olson, 2008; Isita Lahiri, 2009; Colin Jevons, 2005; Thorbjornsen, 2005; Reast, 2005; Teresa Montaner, 2009). 2. Studies that have been done on the effects of the extension strategy on the consumer's attitude and brand image (Teresa Montaner, 2009; Muge Arsalan, 2010; Manthana Jarlhem, 2003; Shuk-Ching Liu, 2009; Mehdi Seltene, 2008; del RõÂo, VaÂzquez, & Iglesias, 2001). 3. Studies that were based on the study of the factors affecting the brand extension strategy and somehow could indicate the executive methods that result in the success of the above-mentioned strategy (Xin Liu, 2010; Judith Forney, 2005; Eva Martinez, 2008; Isabel Buil, 2009; Cochen Wu, 2007; Kwon Jung; Mary Zimmer, 2004; John Story, 2005).

Although several studies have been conducted on the "brand extension strategy", there are some limitations in the studies that are given in the following classification:

1) Typical approach: as the factors involved in the brand extension are not one-dimensional and can be managed and planned in interaction with external environment, the studies should be generally able to analyze environmental factors along with internal factors. However, most studies have an introverted approach that only have considered the decisions of the firms' managers and don't have dealt with the dynamic behavior of competitors in a product that has been developed in that way.


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2) Overall variables: one of the problems found in most of the management studies is the existence of variables that are an overall construct whereas it cannot be decided based on the overall variables when applying and implementing a stage. For instance, the concept fitness is a general and overall one and can cover every feature of the strategy from the fitness of the extended product category to the image fitness, which have substantial differences in executive nature and each of them can have certain outcomes for decision-makers, all of which have been generally included by the researchers in one concept.

According to the limitations of previous studies, it seems that it is necessary to design an extended model with a market oriented approach to explore the strategy of brand extension.

This study reviewed the related literature, interviewed senior managers of the active firms in Fast Moving Consuming Goods (FMCG) to identify the effects of such industries on the extended bran image, and then tested the recommended model.

THEORETICAL FRAMEWORK AND REVIEW OF THE LITERATURE

The concept of branding can be defined as the ground of semantic network theories that themselves are subset of the cognitive theory of meaning. GottlobFrege has produced the informal concept of sense and reference that have been mentioned by other researchers as intention and extension. Intentions and sense actually indicate a set of attributes, which are summarized into a word, and extension is actually associations that forms sense (Collins & Quillian, 1969; Collins & Loftus, 1975; Laird, Herrmann, & Chaffin, 1984). Brand has a sense as a word based on the semantic network theories that is made up of a series of associations and the concept branding implies sense-making and pertinent associations and the strategy of brand extension implies the extension of such senses into a new product category (Keller, 2001). Sicne the senses of main brand and the category of a new product cannot be jointly mixed, they can strengthen or weaken the senses and associations in the senses of main brand and this is the main challenge of the brand extension in order to determine what factors can manage mutual interactions between the main brand and its image

in the customers' mind with the new product calss that are in line with the strategic objectives of businesses. Brand extension: according to the definition given by American marketing association: "brand extension is the line of a new product that is introduced under the main brand as the previous products" (Dictionary: American Marketing Association, 2014). It is clear by the definition that the brand extension strategy is the extension strategy of marketing with the new brand strategy, multi brand strategy, and line extension strategy, each of them can have different advantages and disadvantaged depending on the circumstances. The new brand strategy refers to the introduction of a product into a product category different from the main brand under a new bran whereas multi brand strategy refers to the extension of the products of the product category of main brand but with new characteristics and new brand, in both of which the main brand do not play a role in the extension strategy. In contrast, there are the line extension and brand extension strategies where the line extension strategy refers to the introduction of extension of the products of the product category of main brand but with new characteristics under the main brand and the strategy of brand extension implies the introduction of a product in a product category different from in the main brand under the main brand. According to the provided information, the brand extension and new brand strategies are two strategies introduced for a product that differs from the category of a product with the main brand (kotler, & Armstrong, 2009). Some researchers have provided other classes for the extension strategy. For instance, Pitta and Katsanis (1995) and Keller (2003) have divided the brand extension into horizontal and vertical extension where horizontal extension includes the line extension and category extension and vertical extension divides into up scale and down scale. In fact, vertical extension refers to the index of price-quality and does not involve any change in the product category of main brand (Pitta & Katsanis, 1995). Although, there are different categorizations of the brand extension strategy, most studies of the brand extension have conducted on the basis of using main brand in the product category different from that of the main brand. Among these, the brand extension strategy is attracted by the businesses as one of the most important extension strategies with regard to the advantages, such as


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high possibility of trial by available customers (Ambler & Styles, 1997; Aaker, 1990; Pitta & Katsanis, 1995), decrease in the marketing overhead (in particular, communication costs) (Pitta & Katsanis, 1995; Buday, 1989), increase in the brand value (Randall, 2000; Kapferer, 2001; Ambler & Styles, 1997), decrease in the failure risk compared to the new brand strategy (Randall, 2000; Aaker, 1990), increase in the share of market (Kim & Lavack, 1996; Kapferer, 2001), and increase in competitiveness (Weilbacher, 1995; Randall, 2000). In spite of the fact that the advantages of brand extension are significant, there are disadvantages in the brand extension, such as dilution of the image and trust to the main brand, brand confusion, sales cannibalization (Balachander & Ghose, 2003; Quelch & Kenny, 1994; Sinapuelas & Sisodiya , 2010; Loken, Joiner, & John, 1998; Milberg, Park, & McCarthy, 1997).

HYPOTHESES AND CONCEPTUAL MODEL

Three classes of the factors affecting the extended brand image have been determined on the basis of the review of literature and interview with the senior managers of the active firms in Fast Moving Consuming Goods through semantic network theories:

1) Perceived fitness (category fitness and image fitness)

2) The consumer's attitude to the extension strategy

3) Market leader’s brand power in the extended product market (market dominance by the leader market (the market power) and market leader expertise (power of expertise). Figure 1 shows the recommended model based on the above-mentioned factors.

FIGURE 1 HERE

Perception of fitness: one of the issues that have been considered in previous studies is the concept perception of fitness. Such studies are divided into two groups. 1. Studies that have been conducted on the factors affecting the fitness perception. 2. Studies that have investigated the effects of the fitness perception on the consumer's attitude to the extension. The first group of studies has determined factors focusing on the cases that strengthened or

weakened the fitness perception. For instance, advertising, repetition, priming, improving association salience, and psychological mood (present mood) of the consumer are factors that affect the perceived fitness (Lane, 2000; Pryor & Brodie, 1998; Kim, Lavack, & Smith, 2001; Romeo, 1991). The second group of studies investigated the effects of fitness and the factors modulating such effects. For instance, in addition to the study of direct and indirect effects of fitness on the consumer's attitude to extension, such factors as consumer expertise, consumer's mood (present mood), and personality traits, including innovation have been examined from a modulating perspective (Broniarczyk & Alba, 1994; Flaherty & Pappas, 2000; Klink & Smith, 2001). Fitness has been generally investigated in these studies and its different aspects have not been shown in the models; however, some studies have referred to different levels of fitness and distinguished natural and perceived concepts in fitness. As fitness can have substantial differences from the category of product and the perceptional perspective in the nature and in associations with other concepts, this study has specifically considered fitness as category fitness and image fitness independently. The hypotheses formulated for the investigation of relationship between the image fitness and category fitness and the brand image and consumer's attitude to extension are as follows:

H1: Image fitness has a significant positive effect on the consumer's attitude to the brand extension strategy.

H2: Category fitness has a significant positive effect on the consumer's attitude to the brand extension strategy.

H3: Image fitness has a significant positive effect on the empirical image after extension.

H4: Category fitness has a significant positive effect on the empirical image after extension.

H5: Image fitness has a significant positive effect on the symbolic image after extension.

H6: Category fitness has a significant positive effect on the symbolic image after extension.

H7: Image fitness has a significant positive effect on the functional image after extension.


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H8: Category fitness has a significant positive effect on the functional image after extension.

Market leader’s brand power in the extended product market: businesses work in the competitive environment in current competitive world and the philosophy of production and sales no longer can lead the firm's activities but philosophy of marketing can create sustainable competitive advantage with regard to the customers' needs and demands in a competitive context. In fact, the main asset of firms in the present world is the concepts that exist in the customers' minds to the firm brand compared to the competitors. Based on the semantic network theories, concepts and the strengths and weaknesses, associations of these concepts to pertinent association are not formed in vacuum

Based on the semantic network theories, concepts, the strength and weaknesses of their attachment to pertinent associations are not formed in vacuum.

and customers consciously compare each signal received in their minds with available concepts through mental processes. In a competitive environment, the first concept that is compared in the activities of branding and particularly in the brand extension strategy is the concepts and associations in that product category. For instance, when the concept of carbonated drinks is introduced to a consumer, the first concept that comes in their mind is the brands in the market (e.g., Coca Cola and Pepsi). Therefore, possibility of the establishment of a relationship between a new brand with the product category of carbonated drinks compared to the strength of relationship between carbonated drinks and the brand Pepsi or brand Coca Cola is determined in the customers' minds. Inattention to this point caused that Virgin's firm with a very high brand power in the category of mineral water experienced a failure after making decision on the brand extension to the category of carbonated drinks with regard to high fitness of the product category and could not establish a relationship between Virgin's brand and category of carbonated drinks in the customers' minds (Kapferer, 2008; Stead, 2011; Aaker & Joachimsthaler, 2000; Russell, 2012).

According to Kapferer (2008), only brand is not sufficient and in spite the fact that Virgin brand had a high index in knowledge of brand at the global level it could not conquer its main competitors only

through a strong brand and high fitness of extension in the market. In most previous studies, investigation of the factors affecting the brand extension and brand image have been further concentrated on internal factors and controlled by the firms; however, in some of these studies, sometimes the market and existing competitors have been examined implicitly (Sullivan, 1992). They intended to understand what factors must be considered providing a brand with strong brand equity wants to enter a new category through a market-oriented aspect, in fact, there are pre existed concepts, brands, and associations facing a new category of products that must be taken into account.

They intended to understand what factors must be considered when a brand with strong brand equity wants to enter a new category through a market-oriented aspect, in fact, they think although brand equity may be high but there are pre existed concepts, brands, and associations facing a new category of products (in the minds of consumers) that must be taken into account.

Thus, the study has explored to develop a market oriented model of the power of market brand in the market of a product that its main brand extends to it from two aspects of market power and expertise power. Hypotheses of the study are:

H9: The market power has a significant negative effect on the consumer's attitude to the brand extension strategy.

H10: The expertise power has a significant negative effect on the consumer's attitude to the brand extension strategy.

H11: The market power has a significant negative effect on the empirical image after extension.

H12: The expertise power has a significant negative effect on the empirical image after extension.

H13: The market power has a significant negative effect on the symbolic image after extension.

H14: The expertise power has a significant negative effect on the symbolic image after extension.

H15: The market power has a significant negative effect on the functional image after extension.

H16: The expertise power has a significant negative effect on the functional image after extension.


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Brand image: in a socio-psychological view, image means a cultural synthesis that refers to an external entity and goes beyond it and attaches that external object to experiences, impressions, values, beliefs, and aspirations (Dobni & Zinkhan, 1990). Thus, image is a subjective view of an objective concept that is produced by social environment (Coulter & Zaltman, 1994). It can be generally said that the concept image is composed of two key sections of emotional and functional, in which the emotional section is more prominent (Palacio, Meneses, & Pérez, 2002). In addition, studies conducted on the consumer's behavior and advertising, the symbolic aspect of image has also been introduced (Ballantyne, Warren, & Nobbs, 2006; Heath & Scott, 1998).

In definitions that have been given on the brand image in marketing, Hsieh, Pan, & Setiono's (2004) opinions can be mentioned: "a successful brand image helps the consumers to determine the needs that a brand can meet, and distinguish a brand with its competitors in their minds, by which it is most likely to purchase the brand by the consumers (Hsieh, Pan, & Setiono, 2004). kotler (2000) believes that "brand image is a set of perceptions of the brand that is maintained by its associations in the consumer's mind and a similar definition has been also given by Keller (1998) and Aaker (1990) meaning that brand image is a set of the brand associations that has been organized significantly. Keller (1998) believes that image brand is constituted of three sections: 1) empirical section that indicates an impression that a consumer acquires from the consumption of a product related to the brand, 2) symbolic section that represents social advantages, which can include social approval and self-impression in a society, and 3) functional section that is related to internal features of a product or service. In fact, functional advantages refer to existential and natural aspects of a product or service, and empirical and symbolic advantages are related to emotional and mental aspects of brand (Park, Jaworski, & Maclnnis, 1986). As the effects of different factors (fitness, market brand power, and the consumer's attitude to the brand extension strategy) on the brand image seem to be different based on three-dimensional categorization, this study has examined the concept of brand image in more detail. Hypotheses related

to the consumer's attitude to extension and its effects on the brand image are as follows:

H17: The consumer's attitude to extension has a significant positive effect on the empirical image after extension.

H18: The consumer's attitude to extension has a significant positive effect on the symbolic image after extension.

H19: The consumer's attitude to extension has a significant positive effect on the functional image after extension.

METHODOLOGY

Participants: population of the study is all individuals who come in each of five large supermarkets of Tehran (Velenjak (Sasan), western town of Kharazm, western town of Gol Afshan, Hedayat square, Farman (Farmanie)). Due to the large and unlimited population, the study used a sampling method and participants were randomly selected to answer 384 questionnaires. Fast Moving Consuming Goods market was investigated in the study. The brand Takdane was considered as the main brand, and two product groups of spaghetti (as a product having a high fitness with Takdane products) and shampoo (as a product having a low fitness with Takdane products) were analyzed as the extended products of the brand Takdane.

Validity of the instrument: as the measurement instrument of previous studies has been used in this study, factor analysis method was used to examine validity. Therefore, AMOS has been used to analyze and investigate fitness of the measurement instrument. The study employed chi-square/degrees-of-freedom ratio, goodness of fit index, normed fit index, comparative fit index, root mean square error of approximation. Tables 1 to 4 show the results.

TABLES 1-4 HERE

DATA ANALYSIS AND FINDINGS

Hypothesis-testing

According to the recommended model, multi group method of a set of structural equations methods has been used to determine "whether there is a significant difference among the path coefficients


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between two groups of spaghetti and shampoo." Two constrained and unconstrained models have been estimated and compared by AMOS in this method. An unconstrained model is one, in which no path coefficients remain fixed; in other words, each group can have different path coefficients. However, in a constrained model, the researcher assumes all coefficients of the intended path to be equal for groups. In fact, what is important in comparing the groups in a structural model is goodness of fit index of the constrained and unconstrained models so that for instance, if goodness of fit index of an unconstrained model is significantly better than that of constrained model, the researcher would concluded that the structural model has a different fitness with the group data. Then, as the س ي پ جرب post-empirical تcomparisons in variance analysis, the researcher studies the critical values obtained from the comparison of each path coefficient in the groups and tries to find the path coefficient that resulted in the significant difference of the model fitness with the data of groups. However, if the goodness of fit indices obtained for the constrained model is significantly better than that of the unconstrained model, the researcher could concluded that structural model has an equal fitness with the data of groups and no path coefficients have a significant difference with each other in the groups.

As mentioned earlier, it is assumed in the constrained model that path coefficients of groups (spaghetti and shampoo) are equal to each other and the unconstrained model assumes that path coefficients of groups (spaghetti and shampoo) are not equal to each other. Goodness of fit indices for two constrained and unconstrained models have been calculated and compared to each other. Table 5 shows goodness of fit indices of the structural constrained model and structural unconstrained model.

TABLES 5 & 6 HERE

Chi-square goodness of fit index has been used to determine the difference between groups. According to Table 6, comparison of goodness of fit indices of the constrained and unconstrained models in two groups (spaghetti and shampoo) showed that difference of chi-square in the two

496.816) is significant with regard to their degree of freedom (Δdf) (Table 6). Therefore, it

could be said that two groups (spaghetti and shampoo) are different in their coefficients in the present study and are not equal. If chi-square is statistically significant, we conclude that there is a difference between the groups at least in each pair of the corresponding coefficients. Table 7 reports the path coefficients individually.

TABLES 7 & 8 HERE

CONCLUSION

According to the results and previous studies, the issue of brand extension could be stated as follows: in fact, extension is to establish some new associations from the main brand to the new product, and strengths and weaknesses of such associations and their negative and positive effects on the main brand are affected by different factors that have been explored with a market oriented approach in the study. In general, it could be said that associations put in a range from whole to the part, in which the capability of transmission of the concepts from bran to the product and vice versa can be different depending on the circumstances.

DISCUSSION

Based on study results, the following analyses could be done. Fitness of category and image: results indicated that fitness of category and image in a category of a product that had a lower fitness did not actually affect the consumers' attitude and in fact the consumers could not establish the necessary relationship from the fitness view. However, this relationship established in the products with a high fitness and showed that the consumers' attitude to extension could be affected by a high categorical fitness and induction of the existence of image fitness between the main brand and the extended product. The consumers' attitude to extension: according to the results, the consumers' attitude to the brand extension strategy had a direct effect on the brand image in different dimensions and the considerable result was the significance of difference of the effect between two groups of spaghetti and shampoo in the components of empirical and symbolic images so that the relationship is stronger in the spaghetti group than that of the shampoo group. It implies that the consumers' attitude to the extension


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strategy is one of the most important determinants to the effectiveness on the brand image, and significance of the effect in the attitude to extension on the empirical and symbolic images could be analyzed as follows: as the components of empirical and symbolic images were emotional and subjective aspects of the brand, they had a greater effect than the fitness of the extended products.

Market brand power: the significance of difference in the path of expertise power to the consumer's attitude shows that the perception, which the consumers actually hold of the market brand power in the extended product market, has a negative effect on the consumers' attitude to the extension strategy. It means that the higher the market brand power in the category of the extended product, the weaker the consumers' attitude to welcome the brand extension would be. Therefore, there are a significant difference in the degree of effectiveness of the component of expertise power between two groups and it could be said that the lower the fitness of the extended product with the products of main brand, the greater the effect of the market expertise power would be. This issue actually confirms that consumers of the products of lower fitness suffer from some confusion in the capability of main brand to introduce a new product from a specialized view and thus the negative effect of the market expertise power becomes greater. Therefore, it seems that in extending to the products with higher fitness, managers should try to transmit their abilities in introduction of a new product to the consumer market. On the one hand, the negative effect of the market power of the competitor brand shows that the brand extension is not a subjective concept and its success and failure are determined in a dynamic interaction with the target market and the decision-maker managers should prepare appropriate marketing plans to cover the market before the initiation of extension.

LIMITATION/FUTURE RESEARCH

Among the main limitations of the study, the most important one was field studies. The fact that statistic population was (all individuals who come in each of five large supermarkets of Tehran), made the process of data gathering too slow and arduous. To develop the results obtained here, following recommendations are made for future studies:

- Prioritizing influencing factors using Fuzzy MCDM

- Developing a model for effects of Brand Image on Brand reputation in Iranian Companies

- Identifying difference between Porter's strategy effects on Brand image.

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APPENDIX

Table 1: goodness of fit indices of the tested model of the image and category fitness (in two groups of spaghetti and shampoo)

(χ2/d.f.) (GFI) (NFI) (CFI) (RMSEA)

1.53 0.96 0.95 0.99 0.041 Spaghetti Image fitness

1.62 0.97 0.98 0.96 0.081 Shampoo

2.87 0.98 0.97 0.98 0.07 Spaghetti Category

fitness 0.845 1 0.99 1 0.000 Shampoo

Table 2: goodness of fit of the tested model of the consumer's attitude to the brand extension


1.02 0.97 0.96 0.98 0.03 Spaghetti The consumer's

attitude to

extension 2.03 0.96 0.98 0.96 0.04 Shampoo

Table 3: goodness of fit of the tested model of market leader’s brand power


2.88 0.99 0.99 0.99 0.07 Spaghetti Market

leader’s

brand

power

Market

power

2.39 0.96 0.93 0.97 0.07 Shampoo Expertise

power

Table 4: goodness of fit of the model tested of the image after the extension of brand


1.37 0.98 0.98 0.99 0.031 Spaghetti Brand

image

Empirical

advantages

Symbolic

advantages

1.56 0.99 0.98 0.99 0.038 Shampoo Functional

advantages


535

Table 5: goodness of fit indices of the structural unconstrained model and structural constrained

model

Group Goodness of

fit indices

2 df /df2 RMSEA GFI AGFI CFI AIC

Spaghetti

and

shampoo

Unconstrained

model 89.319 26 4.962 0.079 0.96 0.87 0.97 0.317

Constrained

model 586.135 41 14.296 0.186 0.76 0.22 0.78 768.135

Table 6: comparison of the goodness of fit indices of two constrained and unconstrained models

Group Goodness of fit

indices

2 df p NFI IFI RFI TLI

Spaghetti and

shampoo Unconstrained

model 496.816 15 0.000 0.19 0.192 0.394 0.411


536

Table 7: standardized path coefficients of the groups (spaghetti and shampoo) in separation and critical value of the difference in their coefficients

Path Spaghetti Shampoo Critical

value

Difference in

paths in two

groups of

spaghetti

and

shampoo

From To

Image fitness Consumer's

attitude

0.27** 0.02 2.73 Significant

Category

fitness

Consumer's

attitude

0.22** 0.001 2.71 Significant

Image fitness Empirical image 0.59** 0.67 -2.81 Significant

Category

fitness

Empirical image 0.45** 0.27** 0.589 Insignificant

Image fitness Symbolic image 0.44** 0.63** -1/67 Insignificant

Category

fitness

Symbolic image 0.04 0.10* -0.71 Insignificant

Image fitness Functional

image

0.15* 0.51** -3.48 Significant

Category

fitness

Functional

image

0.22** 0.18* 0.152 Insignificant

Market power Consumer's

attitude

-0.44** -0.46** 0.766 Insignificant

Expertise

power

Consumer's

attitude

-0.10* -0.13** -2.33 Significant

Market power Empirical image -0.26** -0.21** 1.96 Insignificant

Expertise

power

Empirical image -0.11* -0.25** -2.99 Significant

Market power Symbolic image -0.17** -0.12* 1.99 Significant

Expertise

power

Symbolic image -0.06 -0.03 -1.17 Insignificant

Market power Functional

image

-0.21** -0.18** 1.191 Insignificant

Expertise

power

Functional

image

-0.09* -0.10* -0.171 Insignificant

Consumer's

attitude

Empirical image 0.50** 0.25** 4.56 Significant

Consumer's

attitude

Symbolic image 0.36** 0.15** 2.83 Significant

Consumer's

attitude

Functional

image

0.11* 0.09* 1.24 Insignificant

*Critical values greater than ± 1.96 are significant

* p < 0.05 ** p < 0.01


537

Table 8: Result of Hypotheses Testing

Hypo

thesis

Path spaghet

ti

Hypothesis-

testing in the

spaghetti group

Shampo

o

Hypothesis-

testing in the

spaghetti group

From To

H1 Image fitness Consumer's

attitude

0.27** Accepted 0.02 Rejected

H2 Category

fitness

Consumer's

attitude


H3 Image fitness Empirical

image


H4 Category

fitness

Empirical

image

0.45** Accepted 0.27** Accepted

H5 Image fitness Symbolic image 0.44** Accepted 0.63** Accepted

H6 Category

fitness

Symbolic image 0.04 Rejected 0.10* Accepted

H7 Image fitness Functional

image

0.15* Accepted 0.51** Accepted

H8 Category

fitness

Functional

image

0.22** Accepted 0.18* Accepted

H9 Market power Consumer's

attitude

-0.44** Accepted -0.46** Accepted

H10 Expertise

power

Consumer's

attitude

-0.10* Accepted -0.13** Accepted

H11 Market power Empirical

image


H12 Expertise

power

Empirical

image

-0.11* Accepted -0.25** Accepted

H13 Market power Symbolic image -0.17** Accepted -0.12* Accepted

H14 Expertise

power

Symbolic image -0.06 Rejected -0.03 Rejected

H15 Market power Functional

image


H16 Expertise

power

Functional

image

-0.09* Accepted -0.10* Accepted

H17 Consumer's

attitude

Empirical

image

0.50** Accepted 0.25** Accepted

H18 Consumer's

attitude

Symbolic image 0.36** Accepted 0.15** Accepted

H19 Consumer's

attitude

Functional

image

0.11* Accepted 0.09* Accepted


538

Figure 1: The Model for Influencing Factors

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