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Is corporate rebranding a double-edged sword? Consumers' ambivalence towards corporate rebranding of familiar brands

  • Phang, Grace Ing
    • Asia Marketing Journal
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    • v.15 no.4
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    • pp.131-159
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    • 2014
  • Corporate rebranding has been evident in the qualitative corporate rebranding studies as an imposed organizational change that induces mixed reactions and ambivalent attitudes among consumers. Corporate rebranding for the established and familiar corporate brands leads to more ambivalent attitudes as these companies represent larger targets for disparaging information. Consumers are found to hold both positive and negative reactions toward companies and brands that they are familiar with. Nevertheless, the imposed change assumption and ambivalent attitude, in particular corporate rebranding, have never been widely explored in the quantitative corporate rebranding studies. This paper aims to provide a comprehensive empirical examination of the ambivalence towards rebrandingrebranded brand attitude-purchase intention relationships. The author proposes that corporate rebranding for familiar corporate brands is a double-edged sword that not only raises the expectation for better performance, but also induces conflicted and ambivalent attitudes among consumers. These consumers' ambivalent attitudes are influenced by both the parent brands-related and general attitude factors which further affect their rebranded brand attitude and purchase intention. A total of 156 useable questionnaires were collected from Malaysian working adults; and two established Malaysian airfreight operators were utilized as the focal parent brands. The study found a significant impact of prior parent brand attitudes on ambivalence towards rebranding (ATR). The parent brand attitudes served as anchors in influencing how new information was processed (Mazaheri et al., 2011; Sherif & Hovland, 1961) and closely related to behavioral intention (Prislin & Quellete, 1996). The ambivalent attitudes experienced were higher when individuals held both positive and negative reactions toward the parent brands. Consumers also held higher ambivalent attitudes when they preferred one of the parent brands; while disliked the other brand. The study also found significant relationships between the lead brand and the rebranded brand attitude; and between the partner brands and ATR. The familiar but controversial partner brand contributed significantly to the ambivalent attitudes experienced; while the more established lead brand had significant impact on the rebranded brand attitude. The lead and partner brands, though both familiar, represented different meanings to consumers. The author attributed these results to the prior parent brand attitudes, the skepticism and their general ambivalence toward the corporate rebranding. Both general attitude factors (i.e. skepticism and general ambivalence towards rebranding) were found to have significant positive impacts on ATR. Skeptical individuals questioned the possibility of a successful rebranding (Chang, 2011) and were more careful with their evaluations toward 'too god to be true' or 'made in heaven' pair of companies. The embedded general ambivalent attitudes that people held toward rebranding could be triggered from the associative network by the ambiguous situation (Prislin & Quellete, 1996). In addition, the ambivalent rebranded brand attitude was found to lower down purchase intention, supporting Hanze (2001), Lavine (2001) and van Harreveld et al. (2009)'s studies. Ambivalent individuals were found to prefer delay decision making by choosing around the mid-ranged points in 'willingness to buy' scale. The study provides several marketing implications. Ambivalence management is proven to be important to corporate rebranding to minimize the ambivalent attitudes experienced. This could be done by carefully controlling the parent brands-related and general attitude factors. The high ambivalent individuals are less confident with their own conflicted attitudes and are motivated to get rid of the psychological discomfort caused by these conflicted attitudes (Bell & Esses, 2002; Lau-Gesk, 2005; van Harreveld et al., 2009). They tend to process information more deeply (Jonas et al., 1997; Maio et al., 2000; Wood et al., 1985) and pay more attention to message that provides convincible arguments. Providing strong, favorable and convincible message is hence effective in alleviating consumers' ambivalent attitudes. In addition, brand name heuristic could be utilized because the rebranding strategy sends important signal to consumers about the changes that happen or going to happen. The ambivalent individuals will pay attention to both brand name heuristic and rebranding message in their effort to alleviate the psychological discomfort caused by ambivalent attitudes. The findings also provide insights to Malaysian and airline operators for a better planning and implementation of corporate rebranding exercise.

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A Systematic Literature Review on Organizational Change Readiness Scale (조직변화준비도 측정도구 연구의 체계적 문헌 고찰)

  • 조윤성;홍아정
    • 산업혁신연구
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    • v.35 no.3
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    • pp.25-64
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    • 2019
  • Organizational change is an important organizational phenomenon that can determine the survival and failure of an organization. Organizational effort to respond actively to the pressures surrounding an organization is regarded as a core decision-making area of the organization. Indeed, a variety of efforts have been made to achieve organizational change, with separate academic disciplines such as organizational development and organizational change being established and presented in various organizational change phase models. However, despite these efforts to lead organizational change, success rate of it is only 20% to 25% and most of it fails. One of the key issues pointed out in the various studies that have identified the causes of organizational change failures is the degree of readiness for organizational change. In this regard, readiness for organizational change is regarded to be essential to ensure achievement of organizational change. Prior to increase readiness for organizational change, precise measure the organizational readiness of the current organization is required. By measuring it, organization can identify the areas that need to be supplemented and fulfilled to introduce and implement organizational change. The goal of this research is to review the developed scales for measuring organizational change readiness and to grasp the overall characteristics of them, by dividing into technical characteristics and psychometric properties. To review the scales, a systematic literature review on the studies was conducted.Review indicated that the existing scales were limited to the specific dimension in the conceptual realm of organizational change readiness. In addition, psychometric properties also showed low reliability and validity. Therefore, when measuring the organizational readiness level for domestic organizations, it is necessary to use a scale with a relatively high psychometric basis while pre-specifying the measurement domain (psychological dimension/structure dimension) in advance. In addition, it is required to develop a scale of organizational change readiness in the context of domestic organization with high reliability and validity basis, while taking into consideration the comprehensive concept of organizational change readiness which is being discussed recently.

Directions of Implementing Documentation Strategies for Local Regions (지역 기록화를 위한 도큐멘테이션 전략의 적용)

  • Seol, Moon-Won
    • The Korean Journal of Archival Studies
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    • no.26
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    • pp.103-149
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    • 2010
  • Documentation strategy has been experimented in various subject areas and local regions since late 1980's when it was proposed as archival appraisal and selection methods by archival communities in the United States. Though it was criticized to be too ideal, it needs to shed new light on the potentialities of the strategy for documenting local regions in digital environment. The purpose of this study is to analyse the implementation issues of documentation strategy and to suggest the directions for documenting local regions of Korea through the application of the strategy. The documentation strategy which was developed more than twenty years ago in mostly western countries gives us some implications for documenting local regions even in current digital environments. They are as follows; Firstly, documentation strategy can enhance the value of archivists as well as archives in local regions because archivist should be active shaper of history rather than passive receiver of archives according to the strategy. It can also be a solution for overcoming poor conditions of local archives management in Korea. Secondly, the strategy can encourage cooperation between collecting institutions including museums, libraries, archives, cultural centers, history institutions, etc. in each local region. In the networked environment the cooperation can be achieved more effectively than in traditional environment where the heavy workload of cooperative institutions is needed. Thirdly, the strategy can facilitate solidarity of various groups in local region. According to the analysis of the strategy projects, it is essential to collect their knowledge, passion, and enthusiasm of related groups to effectively implement the strategy. It can also provide a methodology for minor groups of society to document their memories. This study suggests the directions of documenting local regions in consideration of current archival infrastructure of Korean as follows; Firstly, very selective and intensive documentation should be pursued rather than comprehensive one for documenting local regions. Though it is a very political problem to decide what subject has priority for documentation, interests of local community members as well as professional groups should be considered in the decision-making process seriously. Secondly, it is effective to plan integrated representation of local history in the distributed custody of local archives. It would be desirable to implement archival gateway for integrated search and representation of local archives regardless of the location of archives. Thirdly, it is necessary to try digital documentation using Web 2.0 technologies. Documentation strategy as the methodology of selecting and acquiring archives can not avoid subjectivity and prejudices of appraiser completely. To mitigate the problems, open documentation system should be prepared for reflecting different interests of different groups. Fourth, it is desirable to apply a conspectus model used in cooperative collection management of libraries to document local regions digitally. Conspectus can show existing documentation strength and future documentation intensity for each participating institution. Using this, documentation level of each subject area can be set up cooperatively and effectively in the local regions.

An Empirical Study on the Influencing Factors for Big Data Intented Adoption: Focusing on the Strategic Value Recognition and TOE Framework (빅데이터 도입의도에 미치는 영향요인에 관한 연구: 전략적 가치인식과 TOE(Technology Organizational Environment) Framework을 중심으로)

  • Ka, Hoi-Kwang;Kim, Jin-soo
    • Asia pacific journal of information systems
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    • v.24 no.4
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    • pp.443-472
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    • 2014
  • To survive in the global competitive environment, enterprise should be able to solve various problems and find the optimal solution effectively. The big-data is being perceived as a tool for solving enterprise problems effectively and improve competitiveness with its' various problem solving and advanced predictive capabilities. Due to its remarkable performance, the implementation of big data systems has been increased through many enterprises around the world. Currently the big-data is called the 'crude oil' of the 21st century and is expected to provide competitive superiority. The reason why the big data is in the limelight is because while the conventional IT technology has been falling behind much in its possibility level, the big data has gone beyond the technological possibility and has the advantage of being utilized to create new values such as business optimization and new business creation through analysis of big data. Since the big data has been introduced too hastily without considering the strategic value deduction and achievement obtained through the big data, however, there are difficulties in the strategic value deduction and data utilization that can be gained through big data. According to the survey result of 1,800 IT professionals from 18 countries world wide, the percentage of the corporation where the big data is being utilized well was only 28%, and many of them responded that they are having difficulties in strategic value deduction and operation through big data. The strategic value should be deducted and environment phases like corporate internal and external related regulations and systems should be considered in order to introduce big data, but these factors were not well being reflected. The cause of the failure turned out to be that the big data was introduced by way of the IT trend and surrounding environment, but it was introduced hastily in the situation where the introduction condition was not well arranged. The strategic value which can be obtained through big data should be clearly comprehended and systematic environment analysis is very important about applicability in order to introduce successful big data, but since the corporations are considering only partial achievements and technological phases that can be obtained through big data, the successful introduction is not being made. Previous study shows that most of big data researches are focused on big data concept, cases, and practical suggestions without empirical study. The purpose of this study is provide the theoretically and practically useful implementation framework and strategies of big data systems with conducting comprehensive literature review, finding influencing factors for successful big data systems implementation, and analysing empirical models. To do this, the elements which can affect the introduction intention of big data were deducted by reviewing the information system's successful factors, strategic value perception factors, considering factors for the information system introduction environment and big data related literature in order to comprehend the effect factors when the corporations introduce big data and structured questionnaire was developed. After that, the questionnaire and the statistical analysis were performed with the people in charge of the big data inside the corporations as objects. According to the statistical analysis, it was shown that the strategic value perception factor and the inside-industry environmental factors affected positively the introduction intention of big data. The theoretical, practical and political implications deducted from the study result is as follows. The frist theoretical implication is that this study has proposed theoretically effect factors which affect the introduction intention of big data by reviewing the strategic value perception and environmental factors and big data related precedent studies and proposed the variables and measurement items which were analyzed empirically and verified. This study has meaning in that it has measured the influence of each variable on the introduction intention by verifying the relationship between the independent variables and the dependent variables through structural equation model. Second, this study has defined the independent variable(strategic value perception, environment), dependent variable(introduction intention) and regulatory variable(type of business and corporate size) about big data introduction intention and has arranged theoretical base in studying big data related field empirically afterwards by developing measurement items which has obtained credibility and validity. Third, by verifying the strategic value perception factors and the significance about environmental factors proposed in the conventional precedent studies, this study will be able to give aid to the afterwards empirical study about effect factors on big data introduction. The operational implications are as follows. First, this study has arranged the empirical study base about big data field by investigating the cause and effect relationship about the influence of the strategic value perception factor and environmental factor on the introduction intention and proposing the measurement items which has obtained the justice, credibility and validity etc. Second, this study has proposed the study result that the strategic value perception factor affects positively the big data introduction intention and it has meaning in that the importance of the strategic value perception has been presented. Third, the study has proposed that the corporation which introduces big data should consider the big data introduction through precise analysis about industry's internal environment. Fourth, this study has proposed the point that the size and type of business of the corresponding corporation should be considered in introducing the big data by presenting the difference of the effect factors of big data introduction depending on the size and type of business of the corporation. The political implications are as follows. First, variety of utilization of big data is needed. The strategic value that big data has can be accessed in various ways in the product, service field, productivity field, decision making field etc and can be utilized in all the business fields based on that, but the parts that main domestic corporations are considering are limited to some parts of the products and service fields. Accordingly, in introducing big data, reviewing the phase about utilization in detail and design the big data system in a form which can maximize the utilization rate will be necessary. Second, the study is proposing the burden of the cost of the system introduction, difficulty in utilization in the system and lack of credibility in the supply corporations etc in the big data introduction phase by corporations. Since the world IT corporations are predominating the big data market, the big data introduction of domestic corporations can not but to be dependent on the foreign corporations. When considering that fact, that our country does not have global IT corporations even though it is world powerful IT country, the big data can be thought to be the chance to rear world level corporations. Accordingly, the government shall need to rear star corporations through active political support. Third, the corporations' internal and external professional manpower for the big data introduction and operation lacks. Big data is a system where how valuable data can be deducted utilizing data is more important than the system construction itself. For this, talent who are equipped with academic knowledge and experience in various fields like IT, statistics, strategy and management etc and manpower training should be implemented through systematic education for these talents. This study has arranged theoretical base for empirical studies about big data related fields by comprehending the main variables which affect the big data introduction intention and verifying them and is expected to be able to propose useful guidelines for the corporations and policy developers who are considering big data implementationby analyzing empirically that theoretical base.

Study on the Relationships Among Perceived Shopping Values, Brand Equity, and Store Loyalty of Korean and Chinese Consumers: A Case of Large Discount Store (한국과 중국 소비자의 쇼핑 경험가치 지각과 브랜드자산 및 점포충성도의 관계에 관한 비교 연구: 대형 할인점을 중심으로)

  • Hwang, Soonho;Oh, Jongchul;Yoon, Sungjoon
    • Asia Marketing Journal
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    • v.14 no.2
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    • pp.209-237
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    • 2012
  • 1. Research Purpose Consumers rely on various clues to evaluate their decision to patronize a retail store, and store brand is one of them (Dodds 1991; Grewal et al. 1998). As consumers find ever increasing variety of contact points connecting them to specific store, the value of experiential shopping as a means of increasing store's brand equity warrants greater attention from scholars of retail management. Retail shopping values are credited for creating not only cognitive experiences like brand knowledge but also emotional experiences such as shopping pleasure and pride (Schmitt 1999). This may be because today's consumers place emphasis on emotional values associated with shopping pleasure, lifestyle brought to life, brand relationship, and store atmosphere more than utilitarian values such as product quality and price. Many previous literature found this to be true (Ahn and Lee 2011; Mathwick et al. 2001). This brings forth important research issues and questions regarding the roles of shopping experiential values and brand equity with regard to consumer's retail patronage choice. However, despite this importance, research on this area remains quite inadequate (Hwang 2010). For this reason, this study aims to verify the relationships among experiential shopping values, retail store brand equity and tries to link that with customer loyalty by surveying large-scale discount store shoppers in Korea and China. 2. Research Contents In order to carry out the research objective, this study conducted comprehensive literature survey on previous literature by discussing major findings and implications with regard to shopping values and retail brand equity and store loyalty. For data collection, researcher employed survey-based research method where data were collected in two major cities of Korea (Seoul) and China (Bejing) and sampling frame was based on patrons of large discount stores in both countries. Specific research questions raised in this study are as follows; RQ1: How do Korean and Chinese consumers differently perceive of shopping values regarding shopping at large-sclae discount stores? RQ2: Are there differences in consumers' emotional consumption propensities? RQ3: Do Korean and Chinese consumers display different perceptions of brand equity towards large-scale discount stores? RQ4: Are there differences in relationships between shopping values and brand equity for Korean and Chinese consumers? For statistical analysis, SPSS17.0, AMOS17.0 and SmartPLS were employed. 3. Research Results The data collected through face-to-face survey conducted in Seoul and Bejing revealed appropriate data validity and reliability as a result of exploratory/confirmatory factor analysis and reliability tests, andh SEM model yielding satisfactory model fitness. The result of the study may be summarized by three main points. First, as a result of testing differences in consumption dispositions, Chinese consumers showed higher scores in aesthetic and symbolic dispositions, whereas Korean consumers scored higher in hedonic disposition. Second, testing on perceptions toward brand equity of large discount stores showed that Korean consumers exhibited more positive perceptions of brand awareness and brand image than Chinese counterparts. Third, the result of exploratory factor analysis on the experiential shopping values revealed different factors for each country. On Korean side, consumer interest value, aesthetic value, and hedonic value were prominent, whereas on Chinese side, hedonic value, aesthetic value, consumer interest value, and service excellence value were found salient. 4. Research Implications While many previous studies on inter-country differences in retailing area mainly focused on cultural dispositions or orientations to explain the differences, this study sets itself apart by specifically targeting individual consumer's shopping values from an experiential viewpoint. The study result provides important theoretical as well as practical implications for large-scale discount store, especially the impotance of fully exploring the linkage between shopping values and brand equity, which has significant influence on loyalty. Therefore, the specific implications deriving from the result shed some important insights upon the consumption values based on shopping experiences and brand equity. The differences found in store shoppers between the two countries may also provide useful insights for Korean and Chinese retailers who plan to expand their operations globally. Related strategic implications derived from this study is the importance of localizing retail strategy which is based on the differences found in experiential shopping values between the two country groups. Especially the finding that Chinese consumers value consumer interest and service excellence, whereas Koreans place importance on hedonic or aesthetic values indicates the need to differentiate the consumer's psychographical profiles when it comes to expanding retail operations globally. Particularly important will be to pursue price-orienated strategy in China in consideration of the high emphasis on consumer interests and service excellence, but to emphasize the symbolic aspects of brand equity in Korea by maximizing the brand equity associated with aesthetic values and hedonic orientations. 5. Recommendations This study focused on generic retail branded discount stores in both countries, thus making it difficult to tease out store-specific strategies based on specific retail brands. Future studies may benefit fro employing actual brand names in survey questionnaire to verify relationship between shopping values and brand-based store strategy. As with other studies of this nature, this study needs to strengthen the result's generalizability by selecting respondents from a wider spectrum of respondents.

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