The Impact of Brand Concept on Brand Relationship in a Fitness Product Context

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1 The Impact of Brand Concept on Brand Relationship in a Fitness Product Context Jin-Long Chen, Department of Leisure and Sport Management, National Taipei University, New Taipei City, Taiwan Chih-I James Chien, Department of Leisure and Sport Management, National Taipei University, New Taipei City, Taiwan ABSTRACT The present study investigates that brand concept as an effective brand strategy substantially influences brand relationship from the perspective of fitness product brand. A survey of fitness exercise participants was conducted. For study purpose, a sample of 440 fitness exercise participants was taken from sports centers and fitness clubs in Taipei City. The study finds that brand concept has a more effective impact on brand relationship via brand identification than the other two paths (brand concept brand image brand relationship and brand concept brand identification brand image brand relationship). The study further provides a conceptual framework for understanding how brand concepts affect brand relationship. Based on the findings, it was suggested that developing a suitable brand concept is an effective brand strategy. Keywords: brand strategy, brand concept, fitness product, brand relationship INTRODUCTION People acknowledge fitness exercise as crucial to maintaining good health, therefore, the level of participation in these activities has grown continuously. Tharrett and Peterson (2006) identified fitness activities, such as running, biking, Pilates, yoga, aerobic dance, biking, aquatics, and weight training. The growing popularity of fitness exercise has driven the development of fitness activity product markets. In the global sports product market, renowned brands such as Nike, Adidas, and Under Armour have continued to expand their product lines to the fitness sector. In addition, several brands have focused on manufacturing sports products that focus on specific fitness activities such as aerobics, yoga, and aquatics. For example, the fashion brand HILL has become Europe s leading brand of professional fitness wear, aerobics apparel, and yoga accessories. To develop and manage the fitness exercise product market, it is critical for fitness product brands to optimize suitable brand strategies to strengthen brand power and form a connection with target consumers. Brand strategy is a set of integrated approaches used by brand owners to achieve their objectives (Alamro & Rowley, 2010). The objective of brand strategy is to develop distinctive features of various services or products provided by an organization (Keller, 1998) in order to differentiate the organization from its competitors. In this article, brand concept is considered a substantial tactical aspect of brand strategy. A brand concept is a firm-selected brand meaning, the importance of which is based on the needs of consumers (functional, symbolic, and experiential needs) that remain consistent over the life of the brand (Park, Jaworski, & MacInnis, 1986; Frank & Krake, 2005). In other words, the firm-selected brand meaning specifies a brand relative to competing brands, and it occupies a distinct and valued place in the target customers minds. Brand relationships have been defined as connections between a person and The Journal of International Management Studies, Volume 11 Number 1, February,

2 brand that is voluntary or enforced interdependently between the person and brand (Blackston, 2000; Chang & Chieng, 2006). Consumers therefore engage in certain types of relationships with a brand which is a result of emotions such as love and joy (Sahay, Sharma, & Mehta, 2011). Marketing practitioners seek to establish relationships between brand and consumers because consumer-brand relationships have become a competitive imperative and the dominant paradigm of marketing (Hess & Story, 2005). In order to enhance consumer-brand relationships, a suitable brand concept should be employed in brand development. Previous researches have paid attention to the relevant issue about fitness center (Williams, Pedersen, & Walsh, 2012; Williams, Rhenwrick, Wright, Choi, Kim, & Vickey, 2014), however, no study discusses brand strategy about fitness exercise product issues from the perspective of brand concept, brand identification, brand image, and brand relationship. Therefore, this study would like to fill the research gap. This paper describes the findings of using a new framework for assessing fitness product brands. We empirically tested the impact of brand strategies (i.e., brand concept) on both moderating variables (i.e., brand identification and brand image) as well as the influence on brand relationship as dependent variable. This study provides a valuable contribution to both academic and marketing practitioners. Theoretically, this study proposes a model and assesses the effects of brand strategy on brand relationship. From a practical perspective, this research can help sports marketing managers to identify appropriate brand strategies for promoting fitness product brands that can enhance consumers brand relationship, as well as establish brand status as perceived by the target market. Figure 1 shows the research framework. Figure 1: Proposed model to analyses the effect of brand concept on brand relationship LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT Brand Concept, Brand Identification, and Brand Image Brand concept has been defined as a firm-selected brand meaning derived from three basic consumer needs (i.e., functional needs, symbolic needs, experiential needs) that maintain consistency of meaning throughout the life of the brand (Park et al., 1986; Frank et al., 2005). A brand with functional concept primarily serves as solving externally generated consumer problem. Symbolic brand concept pertains to products that fulfill internally generated consumer needs for self-enhancement, group membership or ego-identification. Lastly, experiential concept is defined as one designed to provide 72 The Journal of International Management Studies, Volume 11 Number 1, February, 2016

3 sensory pleasure, variety or cognitive stimulation. Therefore, brands can be organized by means of brand concepts (Lanseng & Olsen, 2012). As such brand concepts can be used to refer to the image created in a brand, and product theoretically can be positioned with a functional, symbolic, or experiential image. Therefore, brand concepts are category structures in consumers minds and differentiate brands from other competitors in the same product category (Lanseng et al., 2012). The concept of brand identification is based on social identity theory, which has been applied widely in other disciplines. Social identity theory emphasizes the importance of social group membership to an individual s self-concept and social behavior (Tajfel & Turner, 1986). Applying identification concepts in consumer brand identification is supported by social identity theory, which asserts that people can identify with an organization without requiring formal interaction (Kuenzel & Halliday, 2010). As an extension of this logic, brand identification is based on the sum of brand meanings conveyed as a product, organization, symbol and person (Aaker, 1991). True identification with a brand, however, can be achieved only when the forces, values and vision of the brand are clearly specified through internal and external communication (Roy & Banerjee, 2014). Brand identification prompts individual s personal commitment to emotional involvement with a brand, which inherently incorporates psychological and behavioral dimensions. Keller (2003) defined brand image as the perceptions of a brand as reflected by the brand associations held in consumer memory (p.66). Therefore, brand associations may be understood by dimensions such as attributes, benefits, and attitudes based on consumers experience of the brand (Bosch, Venter, Han, & Boshoff, 2006). According to Bosch et al. (2006), brand image is a synthesis of various brand messages such as brand name, visual symbols, attributes, products or services, and the benefits of advertisements, sponsors, and promotional articles. Consumer perceptions of brand image vary based on how brand messages are decoded to extract meaning and interpret symbols (Nandan, 2005). Brand concept is directly linked to consumers needs that can be used to categorize consumers and differentiate brands from other competitors in the same product category (Lanseng & Olsen, 2012). Based on social identity theory (Tajfel, 1981), a suitable brand concept fits consumers needs then drives consumers to categorize themselves in terms of their favorite brands which establishes the sense of affiliation with brands; consequently, may contributes a heightened sense of group belonging and enhances brand identification. Brand concept is a firm-selected brand meaning derived from basic consumer needs (Park et al., 1986; Frank et al., 2005), which convey a brand purpose to establish brand association in the minds of consumers; consequently, create brand image (Hoeffler & Keller, 2003). Brand concept endues a brand with a meaning, and managers operationalize the meaning in the form of an image (Park et al., 1986). Hence, we present the following hypotheses: Hypothesis1: Brand concept has a positive impact on brand identification. Hypothesis 2: Brand concept has a positive impact on brand image. Brand Identification and Brand Image Brand image originates from the consumer s perception of the brand (Nandan, 2005). Brand image is the total impressions of the information that consumers receive from many sources and accumulates in the memory of consumers in relation to a brand (Herzog, 1963). According to Nandan (2005), a brand message is packaged in terms of brand identification, and it is unpackaged by the consumer in form of brand image. In practice, distribution channel plays a vital role in consumers' perceptions of the brand (Roy & Banerjee, 2014). Consumers do not just consider their relationship with the brand; they also perceive the The Journal of International Management Studies, Volume 11 Number 1, February,

4 relationship with the intermediaries who transmit planned brand identification to consumers (Alexander, Schouten, & Koenig, 2002). In other words, the marketing agents and institutions that own and manage the brand have a critical role to transmit planned brand identification to consumers. As a result, the perception of brand identification at the time of decoding its identification facets shapes the image of the brand in the mind of consumers (Roy & Banerjee, 2014). Previous researches also have proposed that brand identification influence brand image (Martinez & de Chernatony, 2004; Bosch, Venter, & Han, 2006). Therefore, we present the following hypotheses: Hypothesis3: Brand identification has a positive impact on brand image. Brand Identification and Brand Relationship Previous studies have defined brand relationships as connections between a person and brand that is voluntary or enforced interdependently between the person and brand (Blackston, 2000; Chang & Chieng, 2006). Consumer-brand relationships tend to be similar personal and intimate relationships. Brand relationships may be formed through cognitive processes or participation in brand communities (McAlexander, Schouten, & Koening, 2002). The relationship between consumers and brands can produce cognitive benefits, and emotional response to specific brands (Fournier, 1998). Regarding social identity theory, Hogg and Abrams (1988) asserted that the social categorization process generates stereotypical perceptions. In other words, members of a social category or group share specific characteristics that distinguish them from other social categories or groups. Consumers who identify with a specific brand develop a close relationship with the brand and align themselves with the brand. Based on this discussion, we propose the following hypotheses: Hypothesis 4: Brand identification has a positive impact on brand relationships. Brand Image and Brand Relationship Previous studies have argued that a consistent brand image can develop positive consumer-brand relationships (Blackston, 1995; Aaker & Joachimsthaler, 2000). According to Escalas and Bettman (2003), consumers use brands to fulfill their needs and form connections between their self-concept and brand image. Furthermore, Sung and Kim (2010) asserted that these connections are crucial to creating and maintaining consumer-brand relationships. According to self-concept theory, consumers strive to maintain and enhance their self-concept (Graeff, 1996), which is achieved through purchasing and product use. By consuming products, consumers can define, maintain, and enhance their self-concept (i.e., self-image).the frequent application of personality theory to marketing indicates that consumers have self-concepts based on who they define their self-images and ideal self-concepts based on who they aspire to be (Graeff, 1996). Consequently, a consumer's self-concept can be used to influence attitudes and purchasing decisions. Based on this discussion, we present the following hypotheses: Hypothesis5: Brand image has a positive impact on brand relationships. RESEARCH METHOD Data Collection This study applied the questionnaire survey to verify the hypotheses and research framework. Prior to data collection, a content validity test was performed to determine whether the initial survey questionnaire was valid. The content validity assessment was conducted by six experts and scholars. Subsequently, 10 college students who have been regularly engaged in fitness exercise for an average of 74 The Journal of International Management Studies, Volume 11 Number 1, February, 2016

5 more than two years were asked to fill in the questionnaire and to identify the ambiguities in terms, meanings and issues. The data for the current study were drawn from 440 fitness exercise participants who are regular physical activity participants in Taipei City in which is the biggest city in Taiwan. Questionnaires were distributed in sports centers and fitness clubs in Taipei City from February 2013 to May Instrumentation The questionnaires adopted in this study refer to research studies, and these four variables are measured using a five-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree). Several measures are modified from existing validated scales and some measures were developed for use in this study based upon related literature. The three fitness product leading brands, Nike, Adidas, and Under Armour were listed in the questionnaire. Consequently, every respondent was requested to regard one of these brands as the focal brand when answering the questionnaire. The following sections comprise the items and variable constructs. Brand Concept. This work is modified from the conceptual structures of brand concept-image management proposed by Park et al. (1986). Three constructs are proposed: (1) functional (2) symbolic (3) experiential. However, Park et al. did not provide items for measuring the respective factors. An important task has been to develop items to measure the proposed factors. The nine items obtained from literature review and the author s self-development were carefully reviewed and edited by the researcher. Brand Identification. Three constructs and their items were adopted and modified from the works of O ReillyIII & Chatman (1986), Tildesley & Coote (2009), Vandenberg, Self & Seo (1994) and Bosch, Venter, Han & Boshoff (2006). The study proposed three factors: (1) honor connection (2) success sensitivity (3) active presentation. The nine items are developed for measuring the constructs. Brand Image. The current research utilized the structures of brand image suggested by Aaker (1996a) and Aaker (1996b). According to Aaker s conceptual works, the researcher generated 12 items for measuring four factors of brand image: (1) value (2) personality (3) organizational association (4) differentiation. Brand Relationship. The study applied the conceptual works of consumer brand relationship suggested by Fourier (1998) to modify and revise the fifteen items. The items were employed for measuring five factors: (1) love and passion (2) self-connection (3) interdependence (4) commitment (5) intimacy. Data Analyses The data were analyzed using the statistical Package for Social Science (SPSS 14.0). LISREL VII was used to test the hypothesized model. Anderson and Gerbing (1988) suggested that the measurement model was first confirmed and then the structural model was tested. Results We send 440 questionnaires and 440 were returned from 2013 spring. The ratio of questionnaires return was 100%. In the 440 returned questionnaires, there were 412 valid and 28 invalid questionnaires missing values or incomplete answers. The effective rate of response was 94%. The majority of the participants were between the ages of 35-44, with 33% (n = 134), and 31% between 25 and 34 (n = 129). In addition, the participants were generally highly educated with 86% (n = 355) having college degree or graduate degree. The Journal of International Management Studies, Volume 11 Number 1, February,

6 Reliability and Validity The results of reliability and validity test are shown in Table 1. We conduct the reliability analysis through using Cronbach s α coefficient to measure the consistency reliability of the constructs. In our empirical study, Cronbach s α coefficient of all dimensions are larger than Furthermore, we assess the reliability jointly for all items of a construct by computing the composite reliability (CR). We find that CR values of all dimensions are larger than.70 which represents acceptable level of reliability (Fornell & Larcker, 1981). In addition, we compute the average variance extracted (AVE) to confirm the discriminate validity. The results show that all AVE are not smaller than 0.5 which supported for the discriminate validity of the hypothesized model (Batra & Sinha, 2000). Table1: Reliability and validity analyses results α λ CR AVE Brand Concept BC1.67 BC2.80 BC3.82 Brand Identification BID1.79 BID2.92 BID3.89 Brand Image BIM1.78 BIM2.85 BIM3.82 BIM4.77 Brand Relationship BR1.88 BR2.90 BR3.92 BR4.87 BR5.85 α: Charnbach s α; λ: Factor Loading; CR: Composite Reliability; AVE: Average Variance Extracted Measurement Model We employ various fitness indices to examine the validity of the model and fit indices of the proposed measurement model are shown in Table 2. Three types of fit indices, absolute, comparative, and parsimonious fit index, were recommended to assess overall model fit (Kelloway, 1998). The RMSEA was used to measure absolute fit; the CFI was used to measure comparative fit; and the PNFI was used to measure parsimonious fit. In our study, the results of model fit for the hypothesized model indicated acceptable model fit to the data (χ2= , p<.001; χ2/df = 3.03, RMSEA=.065; CFI=.98; PNFI=.79). Table2: Results of Measurement Model Fit Goodness of Fit value Normed chi-square (χ 2 /df ) 3.03 Comparative Fit index(cfi) 0.98 Parsimonious Normed Fit Index(PNFI) 0.79 Root Mean Square Error of Approximation (RMSEA) *p< The Journal of International Management Studies, Volume 11 Number 1, February, 2016

7 Structural Model The structural model fit values are shown in Table 3. The results of model fit indicated acceptable model fit to the data (χ 2 /df = 3.02, RMSEA=.065; CFI=.97; PNFI=.78). Table3: Results of structural model fit Index Values Normed chi-square (χ 2 /df) 3.02 Comparative Fit Index (CFI) 0.97 Parsimonious Normed Fit Index( PNFI) 0.78 Root Mean Square Error of Approximation (RMSEA) *p<.05 The Table 4 displays the structural model with the coefficient and significant relationship between variables and variables are followed the hypothesized direction. In direct effect, brand concept has significant effect on brand identification (H1: β1 = 0.65, t = 10.27, p<.05) and brand image (H2: β2= 0.54, t = 7.25, p<.05). Brand identification has significant effect on brand image (H3: β3 = 0.40, t = 6.07, p<.05). Brand identification significantly influences brand relationship (H4: β4 = 0.72, t = 9.07, p<.05). Brand image has a significantly effect on brand relationship (H5: β5 = 0.18, t =2.70, p<.05). As to indirect effect, brand concept has significant effect on brand relationship through brand identification (β = 0.47, t =8.97, p<.05). Brand concept significantly affect brand relationship via brand image (β = 0.10, t =3.25, p<.05) and significantly influence brand relationship via brand identification/brand image (β = 0.05, t =3.43, p<.05). Table4: Path effect of structural model t Direct Effect H1 BC BID * H2 BC BIM * H3 BID BIM * H4 BID BR H5BIM BR * 2.70* Indirect Effect BC BID BR BC BIM BR BC BID BIM BR * 3.35* 3.43* *p<.05 BC: Brand Concept, BID: Brand Identification, BIM: Brand Image, BR: Brand Relationship DISCUSSION This study builds up a research model to explore the impact of brand concept on consumer brand relationship and to discuss the mediation effects of brand identification and brand image. In other words, this study provides brand concept as a way to enhance brand relationship via the two mediators, brand identification and brand image. All hypotheses proposed in this study are supported. To establish successful brand concept, the study suggests that fitness product brand managers should engage in long-term management of brand concepts to enhance consumer brand relationships. The Journal of International Management Studies, Volume 11 Number 1, February,

8 This study reveals that brand concept has three ways to affect consumers brand relationship. The first way is that brand concept could affect consumers brand relationship indirectly via consumers brand identification. The second way is that brand concept could affect consumers brand relationship indirectly via consumers brand image. The third way is that brand concept could affect consumers brand relationship indirectly via consumers brand identification and brand image. The results of path analysis in this study represent that brand identification moderates the impact of brand concept on brand relationship stronger than the other two paths (brand concept brand image brand relationship and brand concept brand identification brand image brand relationship). The findings may be explained from the reason of specific personal characteristics associated with fitness exercise participants. These participants are focused specifically on health, discipline, and self-challenge (Rogers et al., 2008). They seek to improve themselves by setting and achieving goals that are commensurate with their desire to improve self-performance (Lee & Granzin, 1997). In other words, engaging in physical exercise may reflect their self-discipline and strong commitment to success. Consequently, we infer that fitness exercise participants have developed sense of self-discipline and self-assurance and strongly identify their status as fitness exercise enthusiasts. Hence, they may expect brand concepts to correspond with their internal values which result in brand identification and consequently establish consumer brand relationship. This discussion may explain why brand concept has an effective impact on fitness exercise participants brand relationship through brand identification. There are three academic contributions in this study. First, this research combines the concepts of brand identification and brand image to extend the research on sport marketing and to develop brand relationship from brand concept. Second, there is no prior research discussing the relationship between brand concept and brand relationship in view of fitness product brand. This study proves that brand concept positively affects fitness products consumer brand relationship to fill the research gap. Third, this research indicates that the relationship between brand concept and brand relationship is mediated by brand identification and brand image. There are three practical contributions in this study. First, this research proves that suitable brand concept strategy can not only enhance brand identification and brand image, but also increase brand relationship. If managers plan to improve consumers brand relationship to their fitness product brands, they have to invest long-term efforts in creating a unique brand concept. Second, in this respect, current markets are crowded with numerous fitness product brands, requiring managers to seriously consider how to use brand concept strategies to build a distinctive place in the market for their brands in order to generate consumers brand relationship. Third, managers should raise brand identification and brand image of their consumers. Since there are significant mediation effects of brand identification and brand image in this study, we suggest that managers can enhance brand identification and brand image to improve consumers brand relationship to their fitness product brands. Fitness product brand managers must focus on developing core brand concepts to establish meaningful consumer brand relationships. This recommendation is consistent with the findings of previous studies (Shamir & Ruskin, 1984; Wankel & Berger, 1990). Many people acknowledge the importance of regular exercise and participation in fitness exercise. As a result of this increased attention to healthy lifestyles, consumer demand for various innovative fitness exercise products has increased substantially. If fitness product brands desire to outshine their competitors and obtain substantial market shares, they must create a recognizable brand concept that appeals to fitness-conscious consumers which will help them find their niche in the competitive market. 78 The Journal of International Management Studies, Volume 11 Number 1, February, 2016

9 Academic Implications and Future Research Based on Keller (1993) who proposed that brand knowledge is based on brand associations in consumers memories, the current study provides a conceptual framework for understanding how brand concept affects brand relationships. This study verifies the importance of brand concept itself and extends the theoretical understanding of the influence of brand strategies (brand concept) on dependent variable: brand relationships in a fitness product context. Regarding companies in the fitness exercise product industry, establishing a strong brand is most important. In the future, we can extend the theoretical model into other related sports contexts such as outdoor activity products or women s sport apparel. REFERENCES Aaker, D. (1991). Managing Brand Equity: Capitalizing on the Value of a Brand Name. New York, NY: The Free Press. Aaker, D. A. (1996a). Building Strong Brands. New York, NY: The Free Press. Aaker, D. A. (1996b). Measuring brand equity across products and markets. California Management Review, 38(3), Aaker, D. A., & Joachimsthaler, E. (2000). Brand leadership. New York: Free Press. Alamro, A., & Rowley, J. (2010). Brand strategies of Jordanian telecommunications service providers, Brand Management, 18 (4/5), Alexander, J. H., Schouten, J. W., & Koenig, H. F. (2002). Building brand community. Journal of Marketing, 66(1), Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: a review and recommended two-step approach. Psychological Bulletin, 103, Batra, R., & Sinha, I. (2000). Consumer-level factors moderating the success of private label brands. Journal of Retailing, 76(2), Blackston, M. (2000). Observations: building brand equity by managing the brand s relationships. Journal of Advertising Research, 40, Bosch, J., Venter, E., Han, Y., & Boshoff, C. (2006). The impact of brand identity on the perceived brand image of a merged higher education institution: part one. Management Dynamics, 15(2), Chang, P.L. & Chieng, M.H. (2006). Building consumer-brand relationship: a cross-cultural experiential view. Psychology & Marketing, 23(11), Escalas, J. E. & Bettman, J. R. (2003). You are what they eat: the influence of reference groups on consumers connections to brands. Journal of Consumer Psychology, 13, Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18, 1, Fournier, S.M. (1998). Consumers and their brands: developing relationship theory. Journal of Consumer Research, 24, Frank, B. G., & Krake, J. M. (2005). Successful brand management in SEM: a new theory and practical hints. Journal of Product & Brand Management, 14(4), Graeff, T. R. (1996). Using promotional messages to manage the effects of brand and self-image on brand evaluations. The Journal of Consumer Marketing, 13 (3), Herzog, H. (1963). Behavioral science concepts for analyzing the consumer. In P. Bliss (Ed.), Marketing and the Behavioral Sciences (pp ). Boston, MA: Allyn and Bacon, Inc. Hess, J., & Story, J. (2005). Trust-based commitment: multidimensional consumer-brand relationships. Journal of Consumer Marketing, 22(6), Hoeffler, S. & Keller, K. L. (2003). The marketing advantages of strong brands. Journal of Brand management, 10(1), Hogg, M. A., & Abrams, D. (1988). The social identity approach: Context and content. Social Identifications: A social psychology of intergroup relations and group processes (pp. 6-30). New York, NY: Routledge. The Journal of International Management Studies, Volume 11 Number 1, February,

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11 Williams, A., Rhenwrick, I., Wright, B., Choi, W., Kim, D., & Vickey, T. (2014). Building viable fitness brands: importance of brand communication strategies in attracting potential health club members. International Journal of Sport Management, Recreation, and Tourism, 14, The Journal of International Management Studies, Volume 11 Number 1, February,