CITY UNIVERSITY OF HONG KONG. Wmf~m*~ Brand Rejuvenation: The Case of Playboy in China ~~~4~~:~~~~~0T~~ Submitted to College of Business

Transcription

1 CITY UNIVERSITY OF HONG KONG Wmf~m*~ Brand Rejuvenation: The Case of Playboy in China ~~~4~~:~~~~~0T~~ Submitted to College of Business jllj~1m in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Ijlljff;f1I!~~±~lli: by CHAN Chun Tung, John 1llItJID!:[ June 2009 =~~1L1fAJj

2 Abstract This study explores the revitalization of ageing brands through brand rejuvenation strategies in the Chinese fashion market. The customer-based brand equity model from Keller (1998) is employed and expanded with sequential exploratory designs in order to examine the role of brand personality and brand extension in the process of brand rejuvenation. The study also explores other brand elements, such as brand image and brand awareness. A shopping center intercept survey was conducted to collect data in five cities that are most representative of China: Beijing (Northern), Shantou (Southern), Shanghai (Eastern), Chengdu (Western) and Wuhan (Central). The sotvey was also conducted in 27 provincial cities. Of the 7,000 infotmants, 4,705 responses are considered valid in this study. The empirical tests, using structural equation modeling, support the research hypotheses. Specifically, brand personality, brand extension, and supporting marketing programs can be effective brand strategies for rejuvenating ageing brands. In addition, brand image, brand awareness and brand relationships can serve as mediating variables of the three rejuvenation strategies. These empirically valid rejuvenation strategies can help companies with ageing brands revitalize or lengthen their brand lifecycles. Keywords: Brand Rejuvenation, Customer-Based Brand Equity, Brand Personality, Brand Extension, Brand Image, Brand Awareness, Brand Loyalty, Brand Relationship

3 Contents Abstract...i Acknowledgements... ii List of Tables... 5 List of Figures... 6 CHAPTER 1 Introduction The Branding Phenomenon Problems, Issues, Challenges, and their Significance... l0 1.3 Research Purpose and Questions Theoretical Perspective Potential Contributions of this Study...18 CHAPTER 2 Literature Review Branding Current Status of Brand Development in China Current Status of Domestic Brands in China Problems with Brand Development in China Brand Equity Definition of Brand Equity... '" The Value of Brand Equity Relationship between Brand Equity and Brand Equity Dimensions Relationship among Brand Equity Dimensions Relationship between Brand Equity and Brand Rejuvenation Brand Rejuvenation Theoretical Base Related Theories Customer-Based Brand Equity Reasons for the Use of Customer-Based Brand Equity Summary CHAPTER 3 Conceptual Model and Hypothesis Development Conceptual Model Brand Personality... 53

4 3.2.1 Brand Personality Dimension Framework Brand Personality in Brand Rejuvenation Brand Extension Significance of Brand Extension Conditions for Brand Extension Customer Evaluation of Brand Extension Brand Extension in Brand Rejuvenation Marketing Supporting Programs Product Strategy Price Strategy Channel Strategy Communication Strategy Brand Image Retaining Vulnerable or Recapturing Lost Customers Identifying Neglected Segments Attract New Customers BrandAwareness Identifying Additional or New Usage Opportunities Identifying New and Completely Different Ways to Use the Brand Brand Relationships Brand Loyalty Summary... 7I CHAPTER 4 Research Methodology Research Design Phase I: Qualitative Research Focus Group Preparation Focus Group Findings Summary of Focus Group Findings Case Study Case Study Summary Phase II: Quantitative Research Variable Definition and Data Sources Survey Procedures

5 4.3.3 Pretest... 9I Sample Sampling Method Statistical Procedures Profile ofrespondents Measurement Model Structural Equation Modeling Analysis (Hypothesis Testing) Relative Importance of Brand Rejuvenation Contributors and Perceived Value in Determining Brand Rejuvenation Consequences Relationship between Contingent Variables and Brand Loyalty Dimension Summary CHAPTER 5 Research Findings Roles of Brand Personality, Brand Extension, and Supporting Marketing Programs in Brand Rejuvenation Most Frequently Mentioned Brand Rejuvenation Strategies Salient Features Within Factors Brand Rejuvenation Strategies and Brand Loyalty Recapture-Drivers Measurement Scales of Major Constructs in Brand Rejuvenation Progress Key Brand Personality Contributions to Brand Rejuvenation Key Brand Extension Contributions to Brand Rejuvenation Key Supporting Marketing Programs' Contributions to Brand Rejuvenation Brand Loyalty Recapture: Brand Rejuvenation Performance Determinants of Brand Loyalty I Mediating Constructs of Brand Loyalty Summary CHAPTER 6 Research Conclusion Contributions and Implications of the Study Limitations of the Study Future Research Directions References

6 Appendix 1 Key Constructs and Variables Appendix 2 Pretest Questionnaires Appendix 3 Fonnal Questionnaires Appendix 4 Photo Evidence

7 List of Tables Table 1 Ten Most Valuable Brands in the World 11 Table 2 Deletion and Modification ofinitial Questionnaire Items 92 Table 3 Profile of Respondents (n = 4,705) 96 Table 4 Profile of Playboy Consumer Respondents (n = 2,623) 97 Table 5 Profile of Playboy Dealer Respondents (n =3 99) 99 Table 6 Profile of Non-Playboy Consumer Respondents (n = 1,220) 100 Table 7 Profile of Non-Playboy Dealer Respondents (n = 463) 101 Table 8 Reliability of Each Factor 102 Table 9 Construct Loadings and T-Values 104 Table 10 Correlation Matrix between Brand Personality and Five Dimensions 105 Table 11 Regression Analysis Results among Brand Personality, Brand Extension, Supporting Marketing Program, and Brand Loyalty 105 Table 12 Regression Analysis Results among Brand Personality, Brand Extension, Supporting Marketing Program, and Brand Image 111 Table 13 Regression Analysis Results among Brand Personality, Brand Extension, Supporting Marketing Program, and Brand Awareness 112 Table 14 Regression Analysis Results among Brand Personality, Brand Extension, Supporting Marketing Program, Brand Image, Brand Awareness, and Brand Relationship 112 Table 15 Correlation Matrix: The Relationship between Contingency Variables and Brand Loyalty 114 Table 16 Analysis and Discussion of Research Questions and Hypotheses 117 5

8 List of Figures Figure 1 Brand Lifecycle Curve 8 Figure 2 Lifecycle of a Rejuvenation Brand 9 Figure 3 Brand Lifecycle Curve for Playboy 14 Figure 4 The Concept of Brand Equity 16 Figure 5 The Conceptual Framework of Brand Equity 16 Figure 6 Building Customer-Based Brand Equity Model 18 Figure 7 Causes and Remedies Decision Making 37 Figure 8 The Theoretical Base: A Model of Building Customer-Based Brand Equity 39 Figure 9 Marketing Advantages of Strong Brands 40 Figure 10 Conceptual Model 52 Figure 11 Dimensions of Brand Personality 54 Figure 12 Sequential Exploratory Designs 73 Figure 13 Path Diagram for Confirmatory Factor Analysis 103 Figure 14 Goodness-of-Fit Statistics for SEM Analysis on Conceptual Model 108 Figure 15 Path Coefficients of Variables in SEM Analysis on Conceptual Model 110 6