Submitted in partial fulfilment of the requirements for the degree
MAGISTER TECHNOLOGIAE: MARKETING
In the
Department of Marketing, Logistics and Sport Management
FACULTY OF MANAGEMENT SCIENCES
TSHWANE UNIVERSITY OF TECHNOLOGY
Supervisor: Prof. Dr. J . A. Watkins Co- Supervisor: Dr. G.A.P. Drotsky
November 2007
i DECLARATION OF COPYRIGHT
I hereby declare that this dissertation submitted for the degree (Magister Technologiae) at the Tshwane University of Technology, is my own original work and has not previously been submitted to any other institution of higher education. I further declare that all sources cited or quoted are indicated and acknowledged by means of a comprehensive list of references.
Luita Pretorius
COPYRIGHTTSHWANE UNIVERSITY OF TECHNOLOGY 2007
ii DEDICATION
This study is dedicated to my husband Willie and children for their love and support
iii ACKNOWLEDGEMENTS
I would like to express my sincere gratitude and appreciation to the following:
God, to whom all praise is due.
My supervisor, Prof. Watkins for sharing his extensive knowledge and expertise, guidance and support.
My co-supervisor Dr. Drotsky for his inputs and support.
Tshwane University of Technology for granting permission to conduct the research.
Tshwane University of Technology for financial assistance.
iv ABSTRACT Author: Luta Pretorius, B Com Marketing (Hon) Degree: Magister Tecnologiae: Marketing University: Tshwane University of Technology Department: Department of Marketing Supervisor: Prof.Dr. J .A. Watkins Co- Supervisor: Dr. G.A.P. Drotsky Date: 9 November 2007 Key words: Tertiary institutions, Tertiary education, Branding, Corporate branding, Brand identity, Consumer behaviour, Service marketing, Corporate identity, Corporate image, Brand management, Customers, Brand equity
Changes in higher education provided the ideal opportunity for universities to distinguish themselves as brands. Building a strong brand in the market is the goal of many organisations due to the fact that it provides a host of benefits. To constantly pre-empt competitors and reinforcing uniqueness of the products or services offered, emphasises the true meaning of any strong brand. The importance of a strong brand emphasises the importance of research in this area. The Tshwane University of Technology faces key challenges in benchmarking themselves to other institutions of higher education in South Africa as well as to establish themselves as the leading University of Technology through the acceptance of their brand by their students.
v The research problem centers on the fact that universities have to implement strategies of branding to maintain and enhance their competitiveness. Furthermore, universities need to develop a competitive advantage based on a set of unique characteristics. From this the analogy can be drawn that the Tshwane University of Technology need to establish how the format of its branding would facilitate student acceptance of the brand, providing them with the benefits of differentiating themselves from competitors and developing a competitive advantage.
This research study aims to stimulate discussion on what the true meaning of branding and what the concept should facilitate or not. The proposed research will contribute to the Tshwane University of Technology and its students, by establishing how the format of its branding facilitates students acceptance.
The research design for this dissertation will be conducted into the social world. The research will be theoretical in nature using the qualitive research paradigm as research basis. Case study research will serve as research method. The sample frame constitutes all first, second and third year students enrolled for the course Marketing Management at Tshwane University of Technology. Data collecting will be facilitated by means of structured questionnaires. The aim of this data collection method, is to establish what the acceptance level of the Tshwane University of Technology brand is amongst its students. The results of this study will identify avenues of implementing strategies to maintain and enhance the competitiveness of the Tshwane University of Technology as well as differentiating it as the leading University of Technology through the acceptance of the brand by students.
vi The objective of this study was to investigate the branding and brand equity of the Tshwane Universtity of Technoloygy through the acceptance of the TUT brand amid its students. Brand awareness, brand quality, brand loyalty, brand reliability, brand feelings and brand equity were selected as measures of investigating the branding and brand equity of the Tshwane University of Technology.
Although results are positive towards the branding and brand equity of the Tshwane University of Technology brand, some areas need attention, as most of the respondents didnt strongly agree with the values. The Tshwane University of Technology needs to reinforce its current situation to build on the current brand equity and maintain a strong brand amid its students.
vii TABLE OF CONTENTS PAGE DECLARATION OF COPYRIGHT i DEDICATION ii ACKNOWLEDGEMENTS iii ABSTRACT iv TABLE OF CONTENT vii LIST OF TABLES xii LIST OF FIGURES xiv GLOSSERY OF TERMS xvi
CHAPTER 1 1 SCOPE OF THE RESEARCH 1.1. INTRODUCTION AND BACKGROUND 1 1.2. THE RESEARCH PROCESS 3 1.3. BACKGROUND TO THE RESEARCH PROBLEM 6 1.3.1 Research problem statement 6 1.4. BACKGROUND TO THE RESEARCH QUESTION 6 1.4.1 The research question 6 1.4.2 Investigative question 7 1.5. THE RESEARCH DESIGN AND METHODOLOGY 7 1.6. RESEARCH ASSUMPTIONS 10 1.7. RESEARCH CONTSTRAINTS 11 1.7.1 Limitations 11 1.7.2 De-Limitations 11
viii 1.8. CHAPTER AND CONTENT ANALYSIS 12 1.9. KEY RESEARCH OBJ ECTIVES 14 1.10. SIGNIFICANCE OF THE PROPOSED RESEARCH 15 1.11. CONCLUSION 15
CHAPTER 2 2 THE CONCEPT OF BRANDING AND BRAND EQUITY :A LITERATURE REVIEW 2.1. DEFINITION OF BRANDING 17 2.2. THE CONCEPT STRONG BRAND 23 2.3. BRAND IDENTITY 32 2.4. CORPORATE BRANDING 38 2.5. BRANDING A SERVICE 45 2.6. BRAND EQUITY 53 2.6.1 MEASURING BRAND EQUITY 57 2.6.1.1 Brand Awareness 578 2.6.1.2 Perceived Quality 61 2.6.1.3 Brand Loyalty 63 2.6.1.4 Brand Associations 64 2.7. CONCLUSION 65
CHAPTER 3 3 BRANDING AND BRAND EQUITY WITHIN THE CONTEXT OF TSHWANE UNIVERSITY OF TECHNOLOGY 3.1. INTRODUCTION AND BACKGROUND OF THE TSHWANE 68
ix UNIVERSITY OF TECHNOLOGY 3.1.1 Vision 71 3.1.2 Mission 71 3.1.3 Values 72 3.2. BRANDING AND BRAND EQUITY WITHIN THE TSHWANE UNIVERSITY OF TECHNOLOGY 72 3.3. KEY ISSUES PERTAINING TO THE BRANDING WITHIN THE TSHWANE UNIVERSITY OF TECHNOLOGY 74 3.3.1 A recognisable brand name conversation 75 3.3.2 Brand elements not considered 76 3.3.3 Issues pertaining to the merge 77 3.3.4 Benefits offered by the Tshwane University of Technology as a Service provider 79 3.3.5 Budgetary constraints 81 3.3.6 Competitive advantage 82 3.4 CONCLUSION 84
CHAPTER 4 4 SURVEY DESIGN AND METHODOLOGY 4.1. INTRODUCTION 87 4.2. LIMITATIONS OF THE RESEARCH 87 4.3. THE TARGET POPULATION 88 4.4. THE CHOICE OF SAMPLING METHOD 89 4.5. MEASUREMENT SCALES 91 4.6. SURVEY DESIGN 92
x 4.7. RESPONDENT BRIEFING 93 4.8. SURVEY QUESTIONS 94 4.9. RESEARCH QUESTIONAIRE 96 4.10. PILOT STUDY RESULTS 102 4.11. STATISTICAL TECHNIQUES 104 4.11.1. Descriptive statistics 105 4.11.2. Inferential statistics 105 4.12. CONCLUSION 107
CHAPTER 5 5 DATA ANALYSIS AND INTERPRETATION OF RESULTS 5.1. INTRODUCTION 108 5.2. DEMOGRAPHIC DESCRIPTION OF THE SAMPLE 109 5.2.1. Biographic information 109 5.2.2. Student related information 113 5.3. RELIABILITY ANALYSIS OF THE BRAND SCALES 116 5.3.1. Brand Awareness 116 5.3.2. Brand Quality 117 5.3.3. Brand Loyalty 118 5.3.4. Brand Reliability 119 5.3.5. Brand Feelings 120 5.3.6. Brand Equity 120 5.3.7. Cronbachs Alpha value summary 121 5.4. DESCRIPTIVE INFORMATION ON BRAND AND BRAND EQUITY SCALES 121
xi
5.5. COMPARISON OF DEMOGRAPHIC GROUPS ON BRAND SCALES 125 5.6. PREDICTING BRAND EQUITY 130 5.7. CONCLUSION 134
CHAPTER 6 6 CONCLUSION 6.1 INTRODUCTION 135 6.2 THE RESEARCH DESIGN AND DATA COLLECTION DESIGN AND METHODOLOGY 135 6.3 THE RESEARCH PROBLEM RE-VISITED 136 6.4 THE INVESTIGATIVE QUESTIONS RE-VISITED 136 6.5 KEY RESEARCH FINDINGS 140 6.6 RECOMMENDATIONS 141 6.6.1. Primary Recommendations 142 6.6.2. Secondary Recommendations 143 6.7 PERSONAL REFLECTION 144 6.8 CONCLUSION 144
BIBLIOGRAPHY 146 APPENDIX 1 162
xii
LIST OF TABLES TABLE 2.1: Brand Report Card List 30 TABLE 4.1: Demographic description of the pilot sample 102 TABLE 4.2: Student related information of the pilot sample 103 TABLE 4.3: Reliability of the brand scales as obtained from the pilot study 104 TABLE 5.1: Cross-tabulation between gender and age 111 TABLE 5.2: Home language 112 TABLE 5.3: Reliability analysis for the Brand Awareness Scale 117 TABLE 5.4: Reliability analysis for the Brand Quality Scale 118 TABLE 5.5: Reliability analysis for the Brand Loyalty Scale 118 TABLE 5.6: Reliability analysis for the Brand Reliability Scale 119 TABLE 5.7: Reliability analysis for the Brand Feeling Scale 120 TABLE 5.8: Reliability analysis for the Brand Equity Scale 121 TABLE 5.9: Descriptive information on the Brand Equity Scale 123 TABLE 5.10: Correlation between Brand Scales 124 TABLE 5.11: Comparison of males and females on Brand Scores: t-test for independent measures 125 TABLE 5.12: Comparison of two groups on Brand Scores: t-test for independent Measures 127 TABLE 5.13: Comparison of the different Sites: ANOVA 128 TABLE 5.14: Comparison of two enrolment groups on Brand scores: t-test for independent measures 130 TABLE 5.15: Model summary of the regression model to predict
xiii Brand Equity 131 TABLE 5.16: Contribution of independent variables to the predicting Brand Equity 131 TABLE 5.17: Contribution of independent variables to the predicting Brand Equity: Females 132 TABLE 5.18: Contribution of independent variables to the predicting Brand Equity: Males 133
xiv
LIST OF FIGURES
FIGURE 2.1: The virtuous circle of a good brand 18 FIGURE 2.2: Brand Definitions and brand evolution 19 FIGURE 2.3: Brand Building influences 28 FIGURE 2.4: Brand Identity planning model 33 FIGURE 2.5: Organisational values 41 FIGURE 2.6: Corporate Brand Building 43 FIGURE 2.7: Aakers Brand identity model 49 FIGURE 2.8: Proposed Service branding model 49 FIGURE 2.9: The Brand Equity model: Capitalising on the value of a Brand Name 56 FIGURE 4.1: Classification of Sampling Methods 90 FIGURE 5.1: Gender distribution 110 FIGURE 5.2: Age distribution 110 FIGURE 5.3: Marital Status 112 FIGURE 5.4: Year of matriculation and first enrolment 113 FIGURE 5.5: Learning site 114 FIGURE 5.6: Type of course studied 114 FIGURE 5.7: Course Year 115 FIGURE 5.8: Mean scores of the Brand Equity Scale 122 FIGURE 5.9: Mean scores of males and females on Brand scales 126 FIGURE 5.10: Mean scores of two age groups on Brand scores 128 FIGURE 5.11: Mean scores of three sites on Brand scores 129
xv
GLOSSERY OF TERMS
Brand: A name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors (Kotler & Keller, 2006:274).
Branding: Endowing products and services with the power of a brand (Kotler & Keller, 2006:319)
Competitive Is a companys ability to perform in one or Advantage: more ways that competitor cannot or will not match (Kotler & Keller, 2006:150).
Brand strategy: The number and nature of common and distinctive brand elements applied to different products sold by the organisation (Kotler& Keller, 2006:150).
Consumers: People who buy products for their own or someone elses uses are called consumers (Duncan, 2002:510).
xvi Customers: A person or an organisational unit that plays a role in the consummation of a transaction with an organisation (Sheth & Mittal, 2004:129).
Divergent: Tending to reach a variety of possible solutions when analysing a problem (Allen, 1990:342).
Marketing: Marketing is a process of planning, and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals (Lamb, Hair, McDaniel, Boshoff & Terreblanche, 2004:5).
Perception: Perception is the process by which an individual selects, organizes, and interprets the information he or she receives from the environment (Sheth & Mittal, 2004:129).
Service: A service is a deed performed by one party for another. A service is experienced, used and consumed (Perreault & McCarthy, 2000:2).
Chapter1 Scope of the Research 1 CHAPTER 1: SCOPE OF THE RESEARCH
1.1 INTRODUCTION AND BACKGROUND
On 1 J anuary 2004, the South African higher education landscape changed forever. Not only were many tertiary institutions merged, but a number of technikons also became universities of technology. The Tshwane University of Technology (TUT) was established following the merger of three technikons namely Technikon Northern Gauteng, Technikon North-West and Technikon Pretoria (Directorate of Corporate Relations, 2004: 4).
Governments drive for the merger was to transform higher education in the country and replace the old system with greater access to meet the increasing human resource needs of the country. The Tshwane University of Technology is now the largest residential higher education institution in the country with sixty three thousand students. According to the Directorate of Corporate Relations (2004:2), the concept University of Technology in a Southern African context is reflected in the way the institution renders its services and conducts its core business.
A University of Technology such as Tshwane University of Technology focuses on: Discipline of specialization in application. Leadership through technology. An innovative and entrepreneurial culture. Chapter1 Scope of the Research 2 Vibrant partnerships.
Changes in the higher education hierarchical structures provided the ideal opportunity for universities to distinguish themselves as brands. Currently, there is general agreement in the marketing literature that a brand is more than a name given to a product or service; it embodies a whole set of physical and socio-psychological attributes and beliefs. In addition, a brand is build upon the companys reputation for efficient service, consistent offering and quality. All of these characteristics impact upon consumers perception and the meaning they attribute to it (Simes & Dibb, 2001:217).
Building a strong brand in the market is the goal of many organisations due to the fact that it provides a host of benefits to an organisation, including being less vulnerable to competitive marketing forces, larger margins, greater intermediary co-operation and support and brand extension opportunities (Delgado-Bellester & Munuera-Aleman, 2005:187). In order to enhance their competiveness, organisations need to create unique features that distinguish their offerings from those of their competitors. By creating a brand that is centered on these offerings, an organisation can make a statement about what customers can expect. Often a brand also incorporates some notions of what a specific organisation represents.
Simes & Dibb (2001:217) citing Gray (2005) and Barich & Kotler (1991), indicate that increasing competition, the rising number of mergers and acquisitions, the characteristics of diverse publics and the power of the media Chapter1 Scope of the Research 3 and public opinion can make it difficult to communicate with consumers. In order to meet the challenges of these dynamics, organisations should attempt to create their own individuality and distinctive features which will distinguish themselves from their competitors (Balmer and Soenen, 1997:34). Investing in branding activities creates brand equity. Equity exists when a customer are aware of the brand, loyal to the brand and perceive the brand as having quality. Awareness, loyalty and quality perception represents the three main components of a successful brand (Seetharaman, Nadzir and Gunalan, 2001:242-256).
As a result, the key challenge for the branding of Tshwane University of Technology is to benchmark it to the merged and established institutions of higher education in South Africa as well as to establish it as the leading University of Technology through the acceptance of the brand by the students.
1.2 THE RESEARCH PROCESS
Remenyi, Williams, Money & Swartz (2002:64-65), explains the research process as consisting of eight specific phases, namely: Reviewing the literature. Formalising a research question. Establishing the methodology. Collecting evidence. Analysing the evidence. Chapter1 Scope of the Research 4 Developing conclusions. Understanding the limitations of the research. Producing management guidelines or recommendations.
According to Hussey, J . & Hussey, R. (1997:15), there are six fundamental stages in the research process, namely: The identification of the research topic. Definition of the research problem. Determining how the research is going to be conducted. Collection of the research data. Analysis and interpretation of the research data. Writing up the dissertation.
In this dissertation the following research process will be followed: Determine the field of study for the proposed research. Identify a specific complex problem within a researchable application area, which furthermore falls within the ambit of the identified field of study and of the niche area of the faculty in which the research study will be undertaken. Conduct a holistic survey of the functional area in which the complex problem exists, to determine the impact of the problem on the specific area of application and the value the proposed research may bring. Conduct an abbreviated literature review on the subject matter being investigated. The purpose being to not only provide insight into the Chapter1 Scope of the Research 5 complexity of the problem, but also to provide insight into the literature pertaining to the field of study of the proposed research. Describe and formulate the research question and associated investigative questions. Select an appropriate research design and methodology, which includes the data collection design and methodology. Determine the key research objectives for the proposed research. Based on the above, formulate a formal research proposal and submit for approval. Establish a structured working relationship with the allocated supervisor. Conduct an in-depth literature review on the subject being researched. Collect, analyze and interpret the research data. Write up the dissertation. Proofread the dissertation and submit for formal vetting.
1.3 BACKGROUND TO THE RESEARCH PROBLEM
In a market where students are recognized as customers, universities have to implement strategies of branding to maintain and enhance their competitiveness (Melewar & Akel, 2005:41). Universities need to develop a competitive advantage based on a set of unique characteristics. Due to the merger between the three technikons ultimately culminating in the formation of the Tshwane University of Technology, the current branding concept is not accepted by stakeholders resulting in competitiveness being sacrificed. Chapter1 Scope of the Research 6
1.3.1 Research problem statement
Against the background to the research problem elaborated upon above, the research problem for this dissertation reads as follows.
The non- acceptance of branding by students of the Tshwane University of Technology impacting adversely on the institutes competitiveness
1.4 BACKGROUND TO THE RESEARCH QUESTION
Organisations use branding to differentiate their product and service offerings from those of their competitors. The brand incorporates a set of products or service features, which are associated with that particular brand name (Baker, 1996:24-46) and identifies the product/service in the market (Cooke, 1996:101-6). The uniqueness of the brand is a crucial attribute and the brand itself plays a vital role in grounding marketing activity. Once created, the brand needs to be communicated and positioned for the relevant audience in the marketplace. In so doing, it is important to ensure that the characteristics match consumers expectations (Simes & Dibb, 2001:217-224).
1.4.1 The research question
Against the background to the research problem statement elaborated upon above, the research question for this dissertation reads as follows: Chapter1 Scope of the Research 7 How can the format of the Tshwane University of Technology branding and brand equity facilitate student acceptance?
1.4.2 Investigative question
The following investigative questions are formulated in support of the research question: What are the opinions of students of the Tshwane University of Technologys brand? How do students respond to the TUT brand elements? To what extent is the Thswane University of Technologys brand equity reported by students?
1.5 THE RESEARCH DESIGN AND METHODOLOGY
The research design for this dissertation will be conducted in the social world. The research will be theoretical in nature using the quantitative research paradigm as research basis. Case study research will be conducted within the ambit of this research study. The unit of analysis, which will be used for data collection in the research, refers to an object in business research. The sample frame for the proposed research constitutes all first, second and third year student enrolled for the course Marketing at the Tshwane University of Technology campuses (Pretoria, Shoshanguve and Ga-Rankuwa). The sample population will be selected through non-probability sampling. This will be conducted through the method of convenience sampling. The sample size Chapter1 Scope of the Research 8 will be 300 second and third year marketing students studying at the Tshwane University of Technology.
The method for collecting data for this research study will be by means of a questionnaire. The questionnaire will use the positivistic approach where structured closed questions will be asked. The aim of this data collection method is to determine what the acceptance and brand equity of the Tshwane University of Technology brand is amid the students.
As case study research will be conducted within the ambit of the research. This concept calls for closer scrutiny. The more salient aspect of case study research described by Yin (1994), are listed as follows: A case study is an empirical enquiry that investigates a contemporary phenomenon within its real-life context, especially when the boundaries between phenomenon and context are not clearly evident. Case study research aim not only to explore certain phenomena, but also to understand them in a particular context. How and why questions are explanatory, and likely to be used in case study research. A case study illuminates a decision or set of decisions- why they were taken, how they were implemented, and with what result. The case study as a research strategy comprises an all-encompassing method-with the logic of design incorporating specific approaches to data collection and data analysis. In this sense, the case study is not Chapter1 Scope of the Research 9 either a data collection tactic or merely a design feature alone, but a comprehensive research strategy. Case study research uses multiple methods for collecting data, which may be both qualitative and quantitative. A case study is typically used when contextual conditions are subject of research.
According to Hussey, J . and Hussey, R. (1997:66), case studies are often described as exploratory research used in areas where there are few theories or a deficient body of knowledge. In addition, the following types of case studies can be identified: Descriptive case studies: Where the objective is restricted to describing current practice. Illustrative case studies: Where the research attempts to illustrate new and possibly innovative practices adopted by particular companies. Experimental case studies: Where the research examines the difficulties in implementing new procedures and techniques in an organization and evaluating the benefits. Explanatory case studies: Where existing theory is used to understand and explain what is happening.
Yin (1994:20-27), emphasis the following five components of a research design, which are especially important for case studies: Chapter1 Scope of the Research 10 Study questions: The case study strategy is most likely to be appropriate for how and why questions, which calls for the initial task being to clarify precisely the nature of the study questions. Study propositions: A study proposition directs the attention to something that should be examined within the scope of the study. For greater clarity, the proposition points to the, reason for the study. Unit of analysis: Should the case study involve a specific person being studied, say a person with a rare medical problem, the individual being studied is the primary unit of analysis. The tentative definition of the unit of analysis is related to the way in which the initial research questions were formulated. Linking data to propositions: A number of ways are open to students to link data to propositions. An approach suggested by Yin is that of pattern matching, whereby several pieces of information from the same case ma be related to some theoretical proposition. Criteria for interpreting findings: If the different patterns are sufficiently contrasting, the findings can be interpreted in terms of comparing at least tow rival propositions.
1.6 RESEARCH ASSUMPTIONS
Assumptions pertaining to this dissertation, the following: The TUT brand is familiar to the TUT Marketing students. Chapter1 Scope of the Research 11 The students taking part in the research are capable to evaluate the TUT brand and brand elements pertaining to the brand. TUT has a brand strategy supporting brand equity.
1.7 RESEARCH CONSTRAINTS
The following limitations and de-limitations will apply to the proposed research:
1.7.1 Limitations
Stakeholders at Tshwane University of Technology for the purpose of this dissertation will be limited to students only. The respondents selected from the sample frame may not know the TUT brand and the background thereof to represent a valid response to the acceptance of the brand.
1.7.2 De-Limitations
The research will be limited to second and third year Marketing students enrolled at Tshwane University of Technology.
Chapter1 Scope of the Research 12 1.8 CHAPTER AND CONTENT ANALYSIS
Chapter 1 The scope of the Research: In this chapter, a high level background will be provided for the scope of the research conducted within TUT. The research process will be explained and the research design and methodology elaborated upon. The research constraints will be listed and detailed overview provided of the chapter and content analysis of the dissertation. The chapter will be concluded with a list of the primary research objectives.
Chapter 2 A literature review Branding and Brand equity: In this chapter the concept branding will be analysed in detail. The importance and reasons for the construction of a strong brand will be highlighted. To achieve maximum brand strength, the scope of brand identity will be placed into perspective of the overall research content. Brands are increasingly viewed as valuable assets and sources of differentiation playing an integral part in marketing strategy (Lim & OCass, 2001:120-36). In addition the concept of service marketing will be analysed. The literature review will further explore and define the concept of brand equity. The conceptualization and structure of brand equity will be discussed including the scope of brand equity, awareness, perceived quality, loyalty and associations. While the measurement of brand equity pertaining to goods has been well researched in marketing literature, the measure of brand equity in the area of services has however received less noteworthy attention. In this respect, an extensive analysis will be conducted on the measuring of brand equity. Chapter1 Scope of the Research 13 Chapter 3 Branding and Brand Equity within the context of the Tshawne University of Technology: In this chapter, branding and brand equity within the context of the Tshwane University of Technology will be analysed to provide the reader with a holistic understanding of the concepts.
Chapter 4 Survey design and Methodology: In this chapter the sample, data gathering and method of analysis of the data will be explained. This research will draw from a convenience sample of three hundred undergraduate (second and third year marketing students) enrolled for the course Marketing at the Tshwane University of Technology. The study will be conducted through qualitative data gathering. The method for collecting data for this study will be by means of questionnaires. The questionnaire will use the positivistic approach where structured closed questions will be asked. The aim of this data collection method is to determine what the acceptance level and brand equity is of the Tshwane University of Technology brand.
Chapter 5 - Analysis and Interpretation of Results: In this chapter, data gleaned from questionnaires and database of the Tshwane University of Technology, will be analysed and interpreted.
Chapter 6 Conclusion: In this chapter the research will be conducted, final analogies drawn and recommendations made.
Chapter1 Scope of the Research 14 1.9 KEY RESEARCH OBJECTIVES
Rix (2004:67) states that a researcher should have a clear idea of what he / she is trying to learn. To accomplish this, objectives must be set for the research project. Aaker, Kumar and Day (2004:50) indicate that the research objective is an exact statement of what information is needed for the research project.
The research objectives for this dissertation read as follows: That the theoretical contribution formulated within the ambit of this dissertation not only has an academic application, but also a practical application in the solving of real-world problems to the benefit of the Tshwane University of Technology and its students. That the impact of the research culminate in a paradigm shift, not only for the Tshwane University of Technology and its students, but also for similar tertiary institutions going forward. Existing body of knowledge pertaining to corporate branding will be expanded upon. The primary reason for the research, which the author contributes to the facilitation of effective branding and brand equity building in the Tshwane University of Technology.
Chapter1 Scope of the Research 15 1.10 SIGNIFICANCE OF THE PROPOSED RESEARCH
The proposed research has the potential to add to the existing body of knowledge in: Implementing strategies to maintain and enhance the Tshwane University of Technologys competitiveness through branding. Effective and consistent communication to relevant stakeholders. Assist the Tshwane University of Technology to understand how the student perceives and responds to the brand. Enabling the Tshwane University of Technology to implement effective brand strategies to help gain sustainable differentiation. Assist the Tshwane University of Technology to benchmark among the merged and established institutions of higher education in South Africa through effective brand strategies. Establish Tshwane University of Technology as the leading University of Technology through the acceptance of the brand by the students.
1.11 CONCLUSION
In this chapter, a holistic perspective was provided of the proposed research. The research process was elaborated upon and the research problem stated. The research question forming the crux of the research and associated investigative questions were formulated. The research design and methodology were case study research forms; the ruling paradigm was explained in detailed. The chapter was concluded with a chapter and content Chapter1 Scope of the Research 16 analysis and key research objectives of the proposed study. In the next chapter a literature review will be conducted on the concept of branding and brand equity. Chapter 2 The Concept of Branding and Brand Equity A Literature Review 17 CHAPTER 2: THE CONCEPT OF BRANDING AND BRAND EQUITY: A LITERATURE REVIEW
2.1 DEFINITION OF BRANDING
The Oxford Dictionary (1990) defines the concept of brand as follows: Brand (noun): a particular make of good, and identifying trademark, label etc. An identified mark burned on livestock or former prisoners etc. with a hot iron, a piece of burning smoldering, or charred wood. In a more modern context, a brand can be defined as an asset that does not have physical presence and the value of which cannot be determined exactly unless it becomes the subject of a specific business transaction in the likes of a sale or acquisition. A further definition by Seetharraman, Nadzir and Gunalan, (2001:242-256) which can be used to define the concept brand, reads as follows: is a name or a symbol and its associated tangible and emotional attributes that is intended to identify the goods or services of one seller in order to differentiated them from those of competitors
The two examples cited of the concept branding, clearly evolved over time indicating that the concept has a commercial application. However, the cited definitions also point to the fact that there are clear tangent plains between the two entities. Almost irrespective of how the word is used, it has always in its passive form translated into the object by which an impression is formed, while in its active form, the process of forming this impression (Clifton & Simmons, 2003:13). Chapter 2 The Concept of Branding and Brand Equity A Literature Review 18 A good brand will represent good quality about the choice that is been made, in buying a product or service. In Figure 2.1, a brand is schematically depicted as a virtuous circle of action and reaction, give and take (Cheverton, 2006:1).
Figure 2.1: The virtuous circle of a good brand. (Source: Cheverton, 2006:2)
Figure 2.1. reflects the multi capability of the concept brand which by implication points to the fact that the concept is much more complex in nature than a name or a slogan, and substantially more than an advertisement (Cheverton, 2006:1). Brand definition represents the sum of a number of different overlapping aspects of the brand, referred to by a number of terms. A brand evolves in response to changing customer expectations, which are The brand Learns The brand promotes and nurtures
The brand is positioned The brand knows what makes you feel good The brand helps you to make your choice You feel good about the choice you have just made Chapter 2 The Concept of Branding and Brand Equity A Literature Review 19 prompted and managed by a process of evolution. From this process graphically depicted in Figure 2.2, ultimately culminates the concept of a brand (Cheverton, 2006:23).
Figure 2.2: Brand definitions and brand evolution. (Source: Cheverton, 2006:23)
A brand is the overall promise an institution projects into the market juxtaposed with the experience by which it is delivered. These two concepts have to be aligned to culminate in the customers total experience of the organisation. It should be recognised that many practicing managers refer to a brand as, having created a certain amount of awareness, reputation, and prominence in the market place (Keller, 2003:3).
According to Styles and Amber (1995: 581-93), two broad philosophical approaches can be identified in defining a brand. The first philosophical approach is represented by the product including the approach which views branding as, an addition to the product. The brand is essentially viewed as an identifier. In this context, branding would be part of the final processes in new product development. Consumers can now experience the brand as a
Customer expectations The brand definition Brand evolution Chapter 2 The Concept of Branding and Brand Equity A Literature Review 20 concept with a set of properties and associations that give a product a specific meaning. A concept represents the way in which one differentiates a certain item among all the things one experience. Any marketer would be partial to have a brand which is meaningful and which can be differentiated from others.
The second approach is the holistic perspective in which the focus is the brand itself. Using the marketing mix, the brand is tailored to the needs and requirements of a specified target group. The elements of the marketing mix are unified by the brand to the extend that the individual elements of the mix are managed in a way, which supports the brand message. Holism is considered important in the building of high brand equity as it rejects practices such as discounting and premium brand for short-term gain (Styles & Amber, 1995: 581-93). A brand is therefore a product, which adds other dimensions that satisfy the same needs of the customer but differentiate the product from other products. As a result, a branded product can be a physical good, a service, a store, a person, a place, an organization or and idea. The brand therefore will contribute to the creation of competitive advantages with product performance. Creating a successful brand entails blending various elements together in a unique way the product or service has to be of high quality and appropriate to consumer needs, the brand name must be appealing and in tune with the consumers perceptions of the product, the packaging, promotion, pricing an all other elements must similarly meet the tests of appropriateness, appeal and differentiation (Keller 2003:3).
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 21 A brand is also defined as a positioning, that relates the product to a particular category, while others define the concept as, a promise by the company to the consumers about what the product will do for them. A brand can also be denoted by the abstract personal and emotional essence of the brand, while a brand is also referred to, as the value the brand provides relative to its cost. More importantly, it is suggested that brands and added value are synonymous (Wood, 2002: 662-669). Another well-respected marketing academic, Harvards Ted Levitt, concurs and argues that, the new competition is not between what companies produce in their factories, but between what they add to their factory output in the form of packaging, services, advertising, customer advice, financing, delivery arrangements, warehousing, and other things that people value (Tybout, Calkin & Kotler, 2005:28).
Keller (2003:9) explains that the source of the product is identified by the brand. Consumers identify and assign accountability to a particular manufacturer or distributor. This results in a special meaning, which consumers attached to a specific brand. Consumers, who like and recognize a brand and have knowledge about it, will effortlessly make a product decision as no additional thought or processing of information is needed. From an economic viewpoint, brands allow consumers to lower search cost for products both internally (how much they have to think) and externally (how much they have to look around). As consumers identify with a specific brand and form a relationship or types of bond, consumers become loyal and trusting of the brand expecting that the brand will behave in certain ways Chapter 2 The Concept of Branding and Brand Equity A Literature Review 22 providing them with utility through consistent product performance and appropriate pricing, promotion and distribution programs and actions. Brands allow the consumer to shop with confidence, and they provide a route map through a bewildering variety of choices (Clifton & Simmons, 2003:18). Brands can serve as symbolic devices, allowing consumers to project their self- image. Certain types of people are associated with the specific brands they have preferentiality to reflecting on different values and traits. By associating with a particular brand, consumers can communicate to other and themselves the type of person they are or aspire to be. Brands can also play a significant role in identifying certain product characteristics that signal the quality of the products to the consumer differentiating it from other competing products (Keller 2003:7-9).
Consumers may potentially face a plethora of different types of risks in buying and consuming products. Brands can reduce the risk when making product decisions. According to Keller (2003:10), the following risks are common when buying consuming products: Functional risk: The product does not perform up to expectations. Physical risk: The product poses a threat to the physical well being or health of the user. Financial risk: The product is not worth the price paid. Social risk: the product results in embarrassment form others. Physiological risk: The product affects the mental well- being of the user. Chapter 2 The Concept of Branding and Brand Equity A Literature Review 23 Time risk: The failure of the product results in an opportunity cost of finding another satisfactory product.
As consumers lives become more complicated, rushed and time starved, the ability of a brand to simplify decision-making and reduce risk, is invaluable (Keller 2003:7-9).
It is possible to draw together many of the approaches attributed to brand definition. An integrated definition can be achieved which highlights a brands purpose to its owner, and considers how this is achieved through consumer benefits. Against this background, a brand is a mechanism for achieving competitive advantage for firms, through differentiation (purpose). The attributes that differentiate a brand provide the customer with satisfaction and benefits for which they are willing to pay (Wood, 2002: 662-669).
2.2 THE CONCEPT STRONG BRAND
Currently, the concept of brand plays an integral part in marketing strategy. This is contributed to the fact that brands have become an important marketing mechanism to the manufacturer (Grace & O Cas, 2002: 96) citing Murphy, (1990) and Matameni & Shahrokhi (1998). Furthermore, brand signals quality levels to customers, and can be effectively used to gain a competitive advantage and secure financial returns for the organisation. To the consumer, a brand identifies the source of the product maker and provides a promise or bond with the maker of the product. The brand thus Chapter 2 The Concept of Branding and Brand Equity A Literature Review 24 becomes the purveyor of advantages to the consumer in terms of both economic and symbolic value (Grace & O Cas, 2002:96). If you want to build a successful brand, you have to understand divergence. You have to look for opportunities to create new categories by divergence of existing categories. And then you have to become the first brand in this emerging new category (Ries & Ries, 2004:3). From the above, the analogy can be drawn that a strong brand will dominate the market. This is in particular evident in the branding literature in discussion of differentiation.
Conceptually, branding appears to be a necessary means of building sales by identifying product and services. Branding is the initial means to build awareness by naming the offer, but also distinguishing the offer from other similar products or services within an established category. Branding is about being different (Kay, 2006:742). Strong brands moreover, has strategic impact such as loyal and less price sensitive customers. The perception differentiation within the context of branding, results in the avoidance of direct competition between organisations. Being different is a key essential that managers need to consider. Differentiation of a brand becomes inadequate if the difference is not meaningful.
Kay (2006:742) points out that brands now increasingly compete for attention, particularly as the number of brands increase and promotional expenditure rise exponentially. If difference is important, effectively communicating meaningful differences becomes more difficult in increasingly crowded markets. The goal is no longer to simplify differentiation, or develop what is Chapter 2 The Concept of Branding and Brand Equity A Literature Review 25 broadly conceptualized as brand meaning. By this reasoning, managing the brand by creating meaningful association is the central task. As a result, the strength of the brand is not due to the strength of creating a difference in customer perception; brand strength is due to the meaning that the brand creates. Managing the meaning of the brand is a critical management task that is essential to successful strong brand strategy. Brands have value, which in turn have meaning (which are important) to customers. Strong brands have considerably more power to consumers than their ability to distinguish an offer from those of competitors.
Consumers react differently to consumption of the product when they had brand knowledge. This consequential to the fact that brand knowledge can affect more than product preference or product choice. Strong brands, are different to the fact that through engendering cognitive response, consumers product preference are influenced through brand knowledge and adding curious quality. There are two distinct types of brand knowledge, namely brand awareness and image. These two dimensions have been generally identified in marketing research (Mackay, 2001:38). Focusing on brand image and awareness is usually viewed as central to the success of building strong brands. According to Esch, Langner, Schmitt and Gues (2006:98) this is not enough. As long-term brand success relationships are key for the fostering of brand trust, brand satisfaction and brand attachment among customers and target groups. Brand building has never been about short- term goals, rather always about long-term goals viewing and generating revenue over the long term. Chapter 2 The Concept of Branding and Brand Equity A Literature Review 26
Tybout, Calkin and Kotler, (2005:8) noted that while branding looks easy, creating and building brands is exceptionally challenging. Effective brand managers should understand the challenges in strong brand manifestation. Challenges are in particularly created where managers are to deal with short term financial concerns such as generating cash, maneuvering the balancing of short-term numbers with long-term brands. Getting the entire organisation to embrace the brand and live up to the brand promise over time, creating the perfect brand positioning and developing the ideal brand portfolio through the brand, message and the product that is throughout consistent reflects some of the issues associated with branding.
Breaching the clutter of large amounts of advertisements and promotions that the consumers are bombarded with (Tybout, et al., 2005:8). Strong brands need to be focused and unique, furthermore, great brands mean something distinct to the customer.
Brand positioning plays a key role in the building and managing of a strong brand by specifying how the brand is related to consumers goals (Tybout et al., 2005:74). Positioning a brand through a clear and consistent image- building campaign is the cornerstone of brand marketing practice (Bhat & Reddy; 1998:32). Positioning is the deliberate, proactive, interactive process of defining, measuring, modifying and monitoring consumer perception of a marketable object. Positioning involves certain related activities, i.e. defining the dimensions of a particular perceptual space which adequately represent Chapter 2 The Concept of Branding and Brand Equity A Literature Review 27 the target audiences perception, measuring objects locations within that space and modifying actual characteristics of the perceptions of consumers via a communication strategy. As a result, the process can be described as iterative and requires deliberate and proactive involvement of the marketer (Blankson & Kalafatis, 1999:106).
It is not easy to build brands in todays competitive market environments. The brand builder who attempts to develop a strong brand can be compared to a golfer playing a course with heavy roughs, deep sand traps, sharp doglegs, and vast water barriers. It is difficult to play in such conditions. As a result, a brand builder is impacted upon competitive pressures and barriers both internal and external to the organisation.
However to be able to develop effective strategies, it is useful to understand these pressures and barriers (Aaker, 2002:26). According to Aaker (2002:27) eight different factors (graphically depicted in Figure 2.3.) can be identified in making brand building complex.
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 28
Figure 2.3: Brand Building influences (Source: Aaker, 2002:27)
Aaker (2003:28) points out that many strong brands exist and maintain their brand equity in the countenance of various pressures e.g. the pressure to compete on price directly effecting the motivation to build brands, further pressures pertain to proliferation of competitors and a reducing strategic positioning that makes implementation less effective, fragmentation in the media and markets and the involvement to multiple brand and products, temptation to change a sound brand strategy, pressures to invest elsewhere and finally pressure of short term results that pervades organisations.
Keller (2003:735) suggests that in the creation of a strong brand and the maximization of brand equity, marketing managers should follow the following strategy: Understand brand meaning and market appropriate products. Properly position the brand. Chapter 2 The Concept of Branding and Brand Equity A Literature Review 29 Provide superior delivery in terms of desired requirements. Employ a full range of complementary brand elements and supporting marketing activities. Embrace integrated marketing communications and communicate with a consistent voice. Measure consumer perceptions of value, and develop a complementary pricing strategy. Establish credibility and appropriate brand personality and imagery. Maintain innovation and relevance for the brand. Strategically design and implement a brand hierarchy and brand portfolio. Implement a brand equity management system to ensure that marketing actions properly reflect the brand equity concept.
According to Kotler and Keller (2006:275) Wall Street equity dealers believe that strong brands result in better earnings and profit performance for firms, which in turn create greater value for shareholders. Much of the recent interest in brands by senior management has been a result of these bottom line financial considerations. The brand report card of Kotler and Keller (2006:275) lists ten key characteristics based on a review of the worlds strongest brands. These key characteristics are listed in Table 2.1.below.
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 30 Table 2.1. Brand Report Card List (Source: Keller, 2000:147) The worlds strongest brands share 10 Attributes
1. The brand excels at delivering the benefits consumers truly desires: Do you focus relentlessly on maximizing customer product and service experience? 2. The brand stays relevant: Are you in touch with your customers tastes, current market conditions and trends? 3. The pricing strategy is based on consumer perceptions of value: Have you optimized price; cost and quality to meet/ exceed customer expectations? 4. The brand is consistent: Are you sure that your marketing programs are not sending conflicting messages? 5. The brand is properly positioned: Have you established the necessary and competitive points of parity with competitors? Have you established desirable and deliverable point of differences? 6. The brand portfolio and hierarchy makes sense: Can the corporate brand create a seamless umbrella to all the brands in the portfolio. Do you have a brand hierarchy that is well thought out and well understood? 7. The brand makes use of and coordinates a full repertoire of marketing activities to build equity: Have you capatilised on the unique capabilities of each communication option while ensuring that the meaning of the brand is consistently represented. Chapter 2 The Concept of Branding and Brand Equity A Literature Review 31 8. The brand managers understand what the brand means to consumers: Do you know what customers like and do not like about your brand? Have you created a detailed research driven portraits of your target customer? 9. The brand is given proper, sustained support: Are the successes of failures of marketing programs fully understood before they are changed? Is the brand given sufficient research and development support? 10. The company monitors sources of brand equity: Have you created a brand charter that defines the meaning and equity of the brand and how it should be treated? Have you assigned explicit responsibility for monitoring and preserving brand equity?
Building a strong brand is not enough and does not transpose into acceptance of the brand. Understanding the dynamics of competition means that brands must be constantly renewed to preempt competitors and reinforce the uniqueness of the brand (Aaker, 2002:26). To be truly successful, marketers must move beyond the standard notion of the marketing mix and become obsessed with developing initiatives, both strategic and tactical which will ensure customer satisfaction with the brand reinforcing trust in it, and fostering a sense of meaningful emotional attachments. (Esch, Langner, Schmitt & Gues; 2006:98-105)
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 32 2.3 BRAND IDENTITY
Brand identity represents a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent the brand and imply a promise to customers from the organisation. Brand identity can facilitate the establishment of a relationship between the brand and the customer by generating a value proposition involving functional, emotional or self-expressed benefits (Aaker, 2002:26). To achieve maximum brand strength, the scope of brand identity should be broad rather than narrow, while the trust should be strategic rather than tactical and there should be an internal as well as external focus to brand creation.
How customers and others perceive the brand, provides useful and imperative information when developing a brand identity. Aakers (2002:78) brand identity planning model (graphically depicted Figure 2.4.) is a useful framework which can be used to ensure the brand identity of an organisation will have depth and texture.
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 33
BRAND CUSTOMER RELATIONSHIP VALUE PROPOSITION Functional benefits, Emotional benefits, Self-expressi ve benefits CREDIBILITY Support other brands Brand as product 1. Product scope 2. Product attributes 3. Quality/Value 4. Uses 5. Users 6. Country of origin Brand as organisation 7. Organization attributes (e.g. Innovation, consumer concern, and trustworthiness 8. Local vs. global Brand as person 9. Personality (e.g. genuine, Energetic, rugged) 10. Brand-customer relationship (e.g. friend, advisor
Brand as symbol 11. Visual imagery and metaphors 12. Brand heritage
Extended Core BRAND POSITION
EXCECUTION Generate alternatives Symbols and metaphors Testing TRACKING Subset of the brand identity and value proposition At a large audience To be actively communicated Providing competitive advantage Chapter 2 The Concept of Branding and Brand Equity A Literature Review 34 The organisation should consider its brand as a product, an organisation, a person and a symbol. The goal is to assist the strategist in considering the different brand elements and patterns that can help clarify, enrich and differentiate an identity. The above-mentioned consideration is not all applicable on one brand identity. Some brands will only be viable for one consideration ensuing the importance of evaluating all of the perspectives and use those that are helpful in articulating what the brand should stand for in the customers mind Aaker (2002:78).
Aaker (2002:78) is of opinion that a brand from a product perspective, should focus on the core elements of a brands identity (usually its strength, value, quality and positioning in the mind of the consumer), which will affect the type of association a customer, will make with the brand constructing a specific desire. The brand as an organization perspective, focus on attributes of the organization such as innovation, a drive for quality, social responsibility, culture, values and programs of the company. The brand as a person can be perceived as being upscale, competent, impressive, trustworthy, fun, active, humorous, casual, formal, youthful or intellectual. Personality can create a stronger brand in several ways. First it can help create a self-expressive benefit that becomes a vehicle for the customer to express his or her own personality. Second, just as human personalities affect relationships between people, brand personality can serve as the basis of a relationship between the customer and the brand. Thirdly, a brand personality may help communicate a products attribute and thus contribute to a functional benefit. A strong symbol can provide cohesion and structure to identity Chapter 2 The Concept of Branding and Brand Equity A Literature Review 35
and make it much easier to gain recognition and recall. Its presence can be a key ingredient of brand development (Aaker, 2002:26).
Aaker, (2002:99) mentioned that a brands value proposition is a statement of the functional, emotional and self-expressed benefits delivered by the brand that provides value to the customer. An effective value proposition should lead the brand to a brand customer relationship and drive purchase decisions. Functional benefits are based on product attributes that provide functional utility to the customer. These benefits relate directly to the functions performed especially those based upon attributes that have tangent planes to the customers decisions and use experience.
If a brand can dominate a key functional benefit, it can dominate a category and will support a strong position relative to its competitors. If a purchase or use of a particular brand gives the customer a positive feeling, that brand is providing an emotional benefit. Emotional benefits add vividness and power to the experience when using the brand. Creating the right feelings when experiencing the brand, can result in a stronger brand. The strongest brand identities have both functional and emotional benefits (Aaker, 2002:26).
Russel Belk (1988:139) a prominent consumer behaviour researcher once wrote, that we are what we have is perhaps the most basic and powerful fact of consumer behaviour. From the above statement the analogy can be drawn that a brand can provide a self-expressed benefit by providing a way for a person to communicate his or her self-image. The importance of making Chapter 2 The Concept of Branding and Brand Equity A Literature Review 36 associations between a brand and particular images, lifestyles, attitudes and emotions, plays a vital role in the choice of a particular brand. Consumers create impressions by themselves, but in creating these impressions, they draw on the images and associations presented by the promoter of the brand. The brand name benefits perceived by the consumer are highly correlated to and therefore can depend to a large extent on product-based benefits. This leads into the maxim that strong brands not only have a better identity, but also a better product. A brand customer- relationship manifests when the brand provides a functional as well as an emotional benefit to the customer. The positive feeling the customer experiences for the brand, can be strong and motivate the customer to like the brand and become a loyal aficionado of the brand (Aaker, 2002:26).
Positioning is the act of designing the companies offering and image to occupy a distinctive place in the mind of the target market. The goal is to identify the brand in the minds of consumers to maximize the potential benefit to the organization. A good branding position helps guide marketing strategist to clarify the brands uniqueness, which goals it helps the consumer to achieve, and how it does so in a unique way. The result of positioning is the successful creation of a customer focused value proposition, serving as a cogent reason why the target market should buy the product (Kotler & Keller 2006:310).
Furthermore, positioning requires that anomalies between the brands be defined and communicated. Deciding on a positioning, requires the Chapter 2 The Concept of Branding and Brand Equity A Literature Review 37 determination of a frame of reference by identifying the target market and the competitors, and in addition identifying the ideal points of parity and points of difference of the brand associations. Once the target market and competitive frame of reference for positioning has been defined and the nature of the competition has been established, marketers can define the appropriate point of difference and point of parity associations. Points of difference represent attributes or benefits consumers associate with a brand and believe that the brand is the best among the competitors. Points of parity are associations that are not necessarily unique to the brand, but may in fact be shared with other brands (Kotler & Keller, 2006:311).
A well-conceived and implemented brand identity and position serve as a powerful asset to an organisation providing a sustainable advantage. Guiding managers in systematic brand strategies, generating new and suitable marketing strategies, providing extension options, and the improvement of a memorable brand, are all advantages provided through the creation of a strong coherent brand identity and position. This culminates in the fact that a brand identity provides value propositions, credibility, and engenders a basis for customer relationships. In constructing one or more of the above- mentioned functions, a brand identity and position can provide a competitive advantage (Kotler & Keller, 2006:311).
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 38 2.4 CORPORATE BRANDING
Among the changes that business make as they move toward globalisation is a shift in marketing emphasis from product brands to corporate branding (Hatch & Schultz 2003:1041). According to Knox and Bickerton, (2000:998) the concept of brand building has recently risen to prominence in both academic and practitioner fields, with a number of authors pointing to the potential economic value inherent in managing and developing the brand, at organization level. According to Simes and Dibb, (2001:217-224), a corporate brand is more than just the outward manifestation of an organisation (its name, logo, and visual presentation). Rather, it is the core of values that defines it. The entity of corporate branding has a higher level of intangibility, complexity and (social) responsibility, making it much more difficult to build a coherent brand.
Corporate branding refers to the strategy in which the brand name and the corporate name are the same (de Chernatony, 2001:157-79). Adored, venerated and coveted by customers and organisations alike, corporate brands represent one of the most fascinating phenomena of the business environment in the twenty first century (Ollins 2000:1041). The importance of corporate brands cannot be overstated. There is an increasing realisation that corporate brands serve as a powerful navigational tool for a miscellany purpose including employment, investment, and most importantly, consumer buying behaviour (Balmer & Gray 2003:972-997). Chapter 2 The Concept of Branding and Brand Equity A Literature Review 39 According to Balmer and Gray (2003:973) corporate branding as a rule represents marks denoting ownership, meaning that a corporate brand is traditionally viewed from the sender-end of the communication model. Within this realm, many institutions i.e. universities, use their coveted brands to represent ownership. Branding in addition is associated with corporate image, however still at the sender end of the equation. Balmer and Gray (2003:973) support the view that corporate branding emphasise the importance of brand values. A brand is seen to encapsulate the additional values that are inherent in or associated with the organisation and its products and services. As a result, corporate branding can be seen as symbols associated with key values. Simes and Dibb, (2001:217-224) conclude that for a postmodern consumer culture, consumers realise that brands are vital in the construction of individual identities. Schmidt (1999:53-67) adopts a somewhat novel approach. The author argues that branding should be concerned with creating pleasurable experiences consumed by the customer.
Corporate brand architecture is defined by core values shared by different products with a common and overall brand identity, which play a decisive part in coordinating the brand building process. The role of a corporate brand is to give credibility in cases such as communications with government, the financial sector, the labour market, and society in general (Urde, 2003:1018- 1040). Furthermore, organisational values, core values and added values are the foundation of a corporate brand. Companies are faced with the challenge of organising their resources and internal processes so that the core values Chapter 2 The Concept of Branding and Brand Equity A Literature Review 40 for which the corporate brand stands, can be strengthened, differentiated and expressed, as added value for consumers (Urde, 2003:1018-1040).
One way to evaluate values, is to view them as values related to the organisation, which pertains to the set of values which unites the organisation within the context of a mission and vision. Secondly, it can be viewed as the recapitulating of the brand, the objective being to define and describe the innermost core of the brand. In this respect, Aaker and J oachimstaler, (2000: 45) are of opinion that, brand essence can be viewed as the glue that holds the core identity together. Thirdly, it can be viewed as values experienced by the customer, and furthermore brands have value because they add value through a value proposition. When viewed holistically, they form the value foundation of a corporate brand (Urde, 2003:1018-1040).
Parallel with the above, the identity can also be divided into three levels, namely the identity of the organisation, the identity of the brand and the identity of the customer. The value creating process is brought about by the interaction between these three levels, which is graphically depicted in Figure 2.5.
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 41
The organisational values is representative of what the organisation stands for and what the core existence of the organization means. These internal values are an important point of departure for the core values, which in turn constitutes the brands identity. The most important task of the core values of an organisation is the guidance in the brand building process. The core values need to fulfill their role and function as being build into the product, expressed in behaviour and reflected in the feel of communication. The exchange and the advantages that a customer associates with a brand are to be regarded as added values. An added value can be functional, emotional or symbolic. This means that added values constitute an important link between the internal and external process (Urde, 2003:1019). The act of
Identity of consumer added values Organisational identity organisational values Brand identity core values Chapter 2 The Concept of Branding and Brand Equity A Literature Review 42 interpreting and reinterpreting affect the image and identity of the corporate brand (Christiansen & Askegaard, 2001:292-315).
Keller (2000:15) defines corporate brand equity as, the differential response by consumers, customers, employees, other firms or any relevant constituency to the words actions, communications, products or services provided by an identified corporate identity. (Urde, 2003:1019) clarify the value creating process as taking internally i.e. within the organisation and externally i.e. in the awareness of customers, which together generate corporate brand equity. This value creating process is graphically depicted in Figure 2.6.
Internally, the brand building process is primarily used to emphasise the relationship between the organisation and the brand. Urde, (2003:1019) states the objective is to ultimately get the organisation to become like the brand they depict. The internal brand identity can be reflected as the organisations own understanding of the brand and its commitment to it. The establishment of a value base such as a vision, organisational values and core values, is a decisive factor in the establishment of an internal brand identity. The organisations relationship with the brand will also affect the total internal relationship towards the brand. The external brand building process is primarily concerned with the relationship and interaction between the brand and the customer.
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 43
Figure 2.6: Corporate Brand Building (Source: Urde, 2003:1023)
The objective of this external process is the creation of value and building follows in the creation of relationship equity where the customer will stick to the brand above and beyond the objective and subjective assessment of its worth (Kotler & Keller 2006:151). The relationship is sustained through effective creation of brand awareness and positive brand associations resulting into brand loyalty. The above framework builds onto the conceptual Mission Vision Organisational values Core Values Brand architecture Product attributes Personality Brand positioning Communication Strategy Internal brand identity
Identity of the consumer Interest & brand sensiti vity Brand Awareness Brand association Added Value Self image Relationship
INTERNAL BRAND BUILDING PROCESS
BRAND EQUITY
EXTERNAL BRAND BUILDING PROCESS Brand loyalty Internal Brand Building Process External Brand Building Process Chapter 2 The Concept of Branding and Brand Equity A Literature Review 44 idea that a brands identity is developed as a continual and ongoing interaction between the identity of the organisation, and the customer. In this way, the organisations values, overall mission, and vision of what is to be achieved beyond generating profit, obtain their true meaning. Brands can therefore be seen as symbols of an organisations efforts and ambition (Urde, 2003:1019).
The link between core values and corporate brand is decisive for a firms brand equity and competitive position. The assumption for creating a corporate brand is that a corporate brand will support all aspects of the firm and differentiate it from its competitors (Urde, 2003:1019). According to Xie and Boggs (2006:347), corporate brands can increase the organisations visibility, recognition and reputation to a greater extend than can product brands.
Balmer and Gray (2003:973) and Hatch and Schultz (2003:1041) list the following aspects, which differentiates corporate branding from product branding. The focus shifts from the product to the organisation. Corporate branding therefore exposes the organisation and its members to a larger extent. The managerial responsibility for product brands usually rest with the middle management marketing function, while corporate brands usually involve strategic considerations at a higher executive level. Chapter 2 The Concept of Branding and Brand Equity A Literature Review 45 Product brands typically target specific consumers, while corporate brands usually target all of the organisations stakeholders, products and services. Product brand management is normally conducted within the marketing department, while corporate branding requires support across the organisation and cross-functional coordination. Product brands are relatively short term compared to corporate brands, which are long term.
As a result corporate branding is more strategic than functional product branding. In this respect, Hatch and Schultz (2003:1041) argue that it engineers interactions among strategic vision, organizational culture and corporate image, to position the organisation in its marketplace, and sets up internal support arrangements appropriate to its strategic importance. In summary, corporate brands pertain to communicating the brands value, afford the means of differentiation from their competition, and enhance the self- esteem and loyalty in which the organisation is held by its stake holders (Balmer, 2001:248).
2.5 BRANDING A SERVICE
Brand managers of services often find that they have much in common with brand managers of consumer or durable goods. For both, brands serve as vehicles of information and are very important with respect to customer expectations, which ultimately culminate in customer satisfaction. Branding plays a special role in service companies, as strong brands increase the Chapter 2 The Concept of Branding and Brand Equity A Literature Review 46 customers trust of an invisible purchase. Strong brands enable customers to better visualise and understand intangible products. They reduce customers perceived monetary, social, or safety risk in buying services, which are difficult to evaluate prior to purchase. strong brands are surrogates when the company offers no fabric to touch, no trousers to try on, no watermelons or apples to scrutinise, no automobile on test-drive (Berry, 2000:128).
A service can be faster, cheaper, and better however will still fail if it does not win the confidence of people that it will keep its promises and tell the truth. the heart of a service brand is not artful packaging, slick advertising, or the company a name embladed on everything from sweatshirts to key chains. The heart of a service brand, and a key to a services success, is the integrity of the people behind it (Beckwith, 2002:55). Moorthi (2002:259) (citing Gale 1994) defines a power brand as, a name that means satisfaction, quality and value to the customer. Understanding customer needs, delivering superior quality on attributes that matter to customers, low cost of quality, overall cost leadership and effective positioning are some of the steps recommended as guideline to building a powerful service brand.
Mackay (2004:210) citing (Zeithhaml et al. 1985; Wolak et al. 1998) affirms that there are a number of characteristics that are commonly used to differentiate between goods and services. They include: Intangibility: Services, unlike products, are an experience. They cannot be touched, felt or tasted in the same way in which products can. Chapter 2 The Concept of Branding and Brand Equity A Literature Review 47 Inseparability: The consumption and production of a service is simultaneous. Products however, are first produced then sold and later consumed. Heterogeneity: In service output, the quality of the service is more difficult to standardise than product output. Perishability: Services unlike products cannot be stored for usage at a later stage.
Tybout, et al., (2005:193) are of the opinion that branding a service is a complicated task. Challenges facing the branding of service brands encompass issue such as services, which are intangible, complex, heterogeneous and process like. Service organisations must confront the fact that the name of the organization serves as the coherent brand for all of its offerings. As a result, the company name is central to its brand identity. When the organisations name is the core brand for all of its services, anything that impacts the perception of the organisation will influence the customers perception of the service offerings.
In service organisations, the customers personal experience with the organisation is the essence and far outweigh the organisations own communications to the customers (e.g. advertising). The experience dominates the formation of customer evaluations (e.g. perception of quality, satisfaction, value and loyalty) and expectations for subsequent service encounters. This results in the fundamental principle of branding in services (Tybout, et al. 2005:193).
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 48 Tybout, et al. (2005:193) noted that the frontline employee represents the brand for the customer. Marketing the brand to employees or internal branding is critical. As a result, employees need to understand the critical role of frontline employees and the role they play in service branding. In many service sectors, customers receive services as a unit or fragmented technology. Customers encountering with self-service technologies can influence customers evaluation and perception of the brand. Brand information diffusion of service brands transpires through tangible aspects such as the look of an organisation or place where services take place, as well as the experience evolution of the customer. A new area for service marketing is found in the interconnectedness of service providers in service networks (Stephen & Morgan 2004). The customers association with a partnered organisation will influence the customers experience with the organisation services, resulting in the issue of brand compatibility when deciding with which organization to partner.
Although there is extensive literature on service marketing available, not much attentention is given to the concept of branding services (Moorthi 2002:259). Moorthi (2002:259) (citing Dobree & Page, 1990) lists five steps for effectively branding services, namely: Building a brand proposition. Overcoming internal barriers. Measuring delivery against proposition. Continual improvement. Expansion. Chapter 2 The Concept of Branding and Brand Equity A Literature Review 49 The cited authors in addition recommend developing a service contract internally, to create ownership for the service brand across all levels of the organisation. Moorthi (2002:259) (citing De Charnatony & McDonald, 1998) is of opinion that the fast moving consumer goods model of branding can be used with modification to build service brands. The important issues that affect branding according to the cited authors are, characteristics of services, importance of symbols in brand building, and empowering staff and consumer participation in developing the brand. This however does not represent a comprehensive approach for branding services. Figure 2.7 represents Aakers brand identity model while Figure 2.8. depicts the proposed service branding model as proposed by Moorthi (2002:261).
Brand and product
BRAND Brand as organisation Brand as person Brand as symbol
Figure 2.7: Aakers Brand Identity model (Source: Moorthi, 2002:261)
Brand as product Brand as process BRAND Brand as organisation Brand as person
Brand as symbol
Figure 2.8: Proposed Service branding model (Source: Moorthi, 2002:261) Chapter 2 The Concept of Branding and Brand Equity A Literature Review 50 Moorthi (2002:260) propose the application of Aakers brand identity framework in adapted form to the economic classification of three types of goods and the seven Ps (product, price, place, promotion, physical evidence, processes and people) of services. Aakers brand identity framework (Moorthi, 2002:261) proposed four elements under which brand identity is developed namely brand as a product, brand as an organisation, brand as a person and brand as a symbol. Any given brand can be described in terms of these four elements. The service marketing mix consisting of product, price, place, promotion, physical evidence, processes and people (seven Ps) of Moorthi (2002:261) maps to the first five Ps to Aakers brand as a product. People along with the organisational culture, values and other issues, form brand as an organisation. Moorthi (2002:259) highlights the process dimension separately as brand as a process, due to fact that customers are intimately involved in the process of delivering the service. Brand as a person and symbol retain their usual meaning in the new model. Moorthi (2002:261) terms the three types of goods according to this classification namely, search goods, experience goods and credence goods. Products have more search properties, while services have more experienced and credence properties. As a result, most services are either experienced or credence goods.
Experienced goods demand tangibles and intangibles, while credence goods involve the greatest intangibility and is mainly chosen for its reputation. Perceived risk is greatest for credence goods and least for search goods. Price setting is progressively more difficult for experience goods than is for Chapter 2 The Concept of Branding and Brand Equity A Literature Review 51 credence goods. Charging a premium is difficult with search goods, but easier with credence goods where the customer tends to be most concerned about quality. Customers will often travel great distances to get the right person for credence goods. Since intangibles play a greater role in experience and credence goods, the thrust of advertising is less information rich and more indirect. Word of mouth becomes essential and the emphasis in credence goods is to educate the customer. The physical evidence is more important in search and experienced goods, but less for credence goods. The core service e.g. expertise is more important the supplementary elements e.g. the aesthetic as for credence goods Moorthi (2002:261).
Brand as a process discuss the variation in customer requirements. While search goods can be standarised, experience goods can also be standarised over a period of time although variation is greater as credence good involves much more variation. In search goods, the customer can be separated from the variables that contribute to the performance of the good. Both in experiential and credence goods, the customer cannot be separated from the variables contributed to the service performance. The organization must be product driven for search goods, innovation driven for experience goods and knowledge driven for credence goods. The skills need thus becomes more varied and complex (Moorthi, 2002:261).
Employee compensation also needs to be higher for credence goods for the depth of knowledge required. The service provider is a routine problem solver for a search good, entertainer for an experienced good and advisor Chapter 2 The Concept of Branding and Brand Equity A Literature Review 52 for credence good. The personified search good becomes a friend, the personified experience good is a spellbinder and the personified credence good is a teacher. The brand as a symbol can be discussed as search goods being useful and reflect convenience. Controversially, experience goods can be lively and have a more enticing slogan. Credence goods should have wisdom portraying slogans that reflect high degree of competence (Moorthi, 2002:261).
There is no arguable question that marketing services, is much different from marketing physical goods. As a result, service organisation that are committed to building and maintaining successful brands over time, have a difficult task ahead of them. It requires thinking about how customers perceive company actions and closely examining how customers interact with firm employees and partners, physical evidence, technology and a host of other aspects of the service Tybout, et al. (2005:193). Organisations should work diligently to ensure that they are creating deliberate associations in the mind of customers maintaining the brands integrity at each point of service contact. Combined with the identified elements contained within the ambit of services and the growing prominence of service marketing, it is the heightened importance of brand equity as a marketing imperative and the need to understand and manage brand associations (Grace & OCass, 2002:96).
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 53 2.6 BRAND EQUITY
While many definitions of brand equity exist, one of the most widely accepted definitions states that brand equity is, The added value with which a given brand endows a product (Farguhar, 1989:7) cited by Bambert and Wehrli, (2005:132).
Brand equity is important due to the quality laden informational content that it provides when consumers process information about a particular product or services. The creation of a brand implies communication of a certain brand image in such a way that all the firms target groups link such a brand with a set of associations (Krishman & Hartline, 2001:328). An attempt to define the relationship between customers and brands culminated in the term brand equity being used in common marketing literature (Wood, 2002:662). According to Del Ro, Vzquez and Iglesias (2001:410) the view of brand equity proposes that: The brand creates value for both consumer and the firm. The brand provides value to the firm by generating value for the consumers. Consumers brand association is a key element in brand equity formation and management.
Feldwick (1996) simplifies a variety of approaches, by providing a classification of the different meanings of brand equity as: The total value of a brand as a separable asset when it is sold, or included in the balance sheet Chapter 2 The Concept of Branding and Brand Equity A Literature Review 54 A measure of the strength of consumers attachment to a brand A description of the associations and beliefs the consumer has about the brand.
The total value of the brand is often called brand valuation or brand value, a term, which financial accountants generally use in the industry. The concept of measuring the consumers level of attachment to a brand can be called brand strength which is synonymous with brand loyalty. The description of the associations can be termed brand image. When marketers use the term brand equity they generally refer to the brand description or brand strength. Brand strength and brand description are sometimes referred to as consumers brand equity, to distinguish it from the asset valuation meaning.
Building brand equity is considered an important part of brand building. Pappu, Quester and Cooksey (2005:143) cite (Cobb-Walgren et al., 1995) who are of the opinion that brand equity brings several advantages to a firm. For example, high brand equity levels are known to lead to higher consumer preferences and purchase intentions. The definition of brand equity can be broadly classified into two categories. Some definitions are based on the financial-perspective, and stress the value of a brand to the firm. Other definitions are based on the consumer perspective, which define brand equity as the value of a brand to the consumer (Pappu et al. 2005:143). When reflecting a consumer or marketing perspective, brand equity is referred to as consumer-based equity. Pappu et al. (2005:143) citing (Mackay et al. 1997:1153) stated, the marketing approach (often referred to as consumer based equity) refers to added value of the brand to the consumer. Chapter 2 The Concept of Branding and Brand Equity A Literature Review 55 Subscribers to this approach tend to focus on the value created by marketing activities as perceived by consumers.
Although Aaker (1991:15) and Keller (1993:8) conceptualized brand equity differently, both authors define brand equity from a consumer perspective based on consumers memory-based brand association. Keller (1993:8) referred to brand equity as customer based brand equity and defined it as, the differential effect of brand knowledge and consumer response to the marketing of the brand. According to Keller (1993:8), customers based brand equity consists of two dimensions, namely brand knowledge and brand image. Aaker (1991:15) provided the most comprehensive definition of brand equity available in literature defining brand equity as, a set of brand assets and liabilities linked to a brand, its name and symbol, that add or subtract from the value provided by a product or services to the firm and /or to that firms customers. In effect, Aaker (1991:15) conceptualised brand equity as, a set of assets or liabilities. Brand awareness, brand associations, perceived quality, brand loyalty and other proprietary assets culminate in the five assets of brand equity, which are referred to as dimensions. From a consumers perspective, brand awareness, brand association, perceived quality and brand loyalty are the four most important dimensions of brand equity (Pappu et al. 2005:143).
Figure 2.9 reflects the potential antecedents and consequences of brand equity (Aaker, 2002:9). First brand equity is a set of assets. Management of brand equity needs to involve investment to create and enhance these assets. Figure 2.9. provides a holistic overview on how brand equity generates value. Chapter 2 The Concept of Branding and Brand Equity A Literature Review 56 (Note that a fifth dimension of assets namely other proprietary assets is included for completeness). The second brand equity dimension creates value in a number of ways.
Figure 2.9: The Brand Equity model: Capatilising on the value of a Brand Name. (Source: Aaker, 2002:9)
Time to Respond to Competitive Threats Anchor to which other Associations can be Attached
Familiarity Linking Signal of Substance/commitment
Reason to Buy
Differentiate/Position
Price Channel Member Interest
Extensions Help process/Retrieve Information Reason-to-Buy Create Positive Attitude/Feelings Competitive Advantage BRAND EQUITY Brand Awareness Perceived Quality Brand Associations Other Proprietary Brand Assets Provides Value to customer by Enhancing Customer's: Interpretation Processing of information Confidence in the purchase decision Use Satisfaction Provides Value to firm by Enhancing:
Efficiency and Effectiveness of Marketing programmes Brand Loyalty Prices/Margin Brand Extensions Trade Leverage Competitive Advantage
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 57 In order to manage brand equity effectively, and to make informed decisions about brand building activities, it is important to be sensitive to the ways in which strong brands create value (Aaker, 2002:9). Third, these dimensions of brand equity can have a positive impact on providing value to the firm as well as to the customer. For example, a brand with strong equity can be leveraged to launch new products and serves as a cue in repeat purchases.
The underlying conceptual logic of strong brand equity is that it is an asset, which is expected to enhance customer value; increase customers purchase intentions and in increase the organisations performance. Brand equity reflects the price premium of a strong brand in combination with the sales it attracts compared to average brands (Baldauf, Cravens & Binder, 2003:220) (citing Aaker, 1996). Finally these dimensions most succinctly represent the assets that are linked to a brand its name, or symbol. The resulting brand equity thus provides a basis for strategic initiatives, which create value directly for customers and the firm (Baldauf, et al., 2003:220).
2.6.1 Measuring Brand Equity
According to Krishman and Hartline (2001: 329), measurement of brand equity has also been a fruitful area of study. In general, there are direct and indirect measures of brand equity. The direct approach is an attempt to assess the value added by the brand to the product (Krishman & Hartline, 2001:328). This approach maps to the accepted definition of brand equity. According to (Aaker, 1991; Keller, 1993) cited by (Krishman & Hartline, Chapter 2 The Concept of Branding and Brand Equity A Literature Review 58 2001:329), the indirect approach focuses on the identification of the potential sources of brand equity. The authors also indicated that Aaker (1991) developed a method to measure consumer based brand equity based on the four dimensions of: Brand awareness, Perceived quality, Loyalty, and Associations
2.6.1.1 Brand Awareness
Brand awareness refers to the strength of a brands presence in the consumers mind. Brand awareness is measured according to the different ways in which consumers remember a brand ranging from recognition (Have you been exposed to the brand?) to recall (What brands of this product class can you recall?) to top of mind (the first brand recalled) to dominant (the only brand recalled) (Aaker, 2002:9). From this the analogy can be drawn that brand awareness points to the strength of the brand in memory, as reflected by consumers ability to identify various brand elements (i.e. the brand name, logo, symbol, character, packaging and slogan) under different conditions.
Brand awareness points to the likelihood that a brand will come to mind and the ease with which it does, having been given different types of cues (Keller, 2003:453). Recognition reflects familiarity gained from past exposure and Chapter 2 The Concept of Branding and Brand Equity A Literature Review 59 simply remembering that there was a past exposure. Thus when a brand choice is made the decision involves the brand of the product or service recognized resulting in the familiar brand having the competitive edge.
Brand recall relates to consumers ability to identify the brand under a variety of circumstances. A brand is said to have recall if consumers can retrieve the actual brand element from memory when given some related probe or cue. Thus brand recall is a more demanding task than brand recognition because consumers are not just given a brand element and asked to identify or discriminate it as one they have or have not already seen (Keller, 2003:453). The ultimate awareness level is brand name dominance, where most customers, when exposed to different brands can only recall and provide the name of a single brand. Consumers are continuously bombarded with marketing messages. The challenge of establishing recall and recognition among the organisations brands are becoming increasingly important as organisations struggle with this challenge.
Keller (2003:453) identifies that several measures of awareness of brand elements can be employed. Choosing the appropriate measure, depends on the relative importance of the brand awareness for consumer behaviour in the category and resulting role it plays in the success of the marketing program of the brand. For example, if research returns that many consumer decisions are made at the point of purchase where the name, logo, packaging and so on will be physically present and visible, the brand recognition will be important. If research returns that consumer decisions are mostly made in the setting away Chapter 2 The Concept of Branding and Brand Equity A Literature Review 60 from the point of purchase, then brand recall will be more important. Even though brand recall may be viewed as less important when consumer decision are made at the point of purchase, brand evaluations and choices will still often depend on what else they recall about the brand given that they are able to recognize it (Keller, 2003:454).
Baldauf, et al. (2003:223) state that a major goal of brand management is the development and maintenance of brand awareness due to the impact of awareness on consumer decision making and overall effect on the organizations value. Generating and maintaining brand awareness is important as only those brands of which customers are aware enter into the customers consideration set of brands for possible purchase, while brand awareness influence the selection of products from consideration.
Two factors are likely to become a pre- requisite for creating successful awareness. First, the provision of resources to create healthy awareness levels. Secondly, using different promotional mix elements in building brand awareness. The strongest brands are managed not for general awareness, but for strategic awareness. It is one thing to be remembered it is quite another to be remembered for the right reason (Aaker, 2002:17)
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 61 2.6.1.2 Perceived quality
Aaker (2002:17) identifies perceived quality as a brand association that is elevated to the status of a brand asset for several reasons, which are listed below: Among all brands associations, only perceived quality has been shown to drive financial performance. Perceived quality is often a major strategic thrust of a business. Perceived quality is linked to and often drives other aspects of how a brand is perceived.
A study by Aaker (2002:18) has demonstrated that perceived quality does drive financial performance. Many firms explicitly consider quality to be one of their primary values and include it in their mission statements. Perceived quality is often the key positioning dimension for corporate brands and other brands that range over product classes. For many brands, perceived quality defines the competitive milieu and their own position within that milieu. Some brands are price brands, others are prestige or premium brands, the perceived quality position are often the defining point of differentiation (Aaker, 2002:19).
Perceived quality is usually the primary focus of what customers are buying. Brand identity is defined by functional benefits, as most studies have pointed to the fact that perception about product benefits are closely linked to perceived quality. According to Pappu et al. (2005:143), perceived quality is Chapter 2 The Concept of Branding and Brand Equity A Literature Review 62 not represented by the actual quality of the product, but the consumers subjective evaluation of the product. Perceive quality also provides customers with a reason to buy and by differentiating the brand from competing brands.
Aaker (2002:19) emphasises the importance of creating perceptions of quality. Generating high quality requires an understanding of the level of influence required and what meaning the market segment associate with it. Perceived quality may differ from actual quality for the following reasons: Consumers may be totally influenced by a previous image of poor quality. Companys may be achieving quality on a dimension that consumers do not consider it as important. Consumers rarely have all the information necessary to make a rational and objective judgement on quality. Consumers may not know how best to judge quality, as they may be looking for the wrong cues.
Baldauf, et al. (2003:223), draw the conclusion that product quality is an organisations essential resource for achieving competitive advantage. Perceived quality is the ability of the product to provide satisfaction relative to the available alternatives.
Chapter 2 The Concept of Branding and Brand Equity A Literature Review 63 2.6.1.3 Brand loyalty
Brand loyalty is the third brand dimension that is useful and appropriate in conceptualising brand equity. A brands value to the firm is largely created by the customer loyalty it commands, while loyalty encourages and justifies brand loyalty programs, which then help create and enhance brand equity (Aaker, 2002:21).
Aaker (2002:21) states that brand loyalty is a key consideration when placing a value on a brand that is purchased. A highly loyal customer base is expected to generate predictable sales and profit stream. The fact that it is much less costly to retain customers than to attract new ones, also comes into consideration. The loyalty of existing customers also represents a substantial entry barrier to competitors.
Pappu, et al. (2005:145) citing (Oliver 1997:392) define brand loyalty as, a deeply held commitment to rebuy or repatronise a preferred product or service constantly in the future, despite situational influences and marketing efforts having potential to cause switching behaviour. Brand loyalty is also conceptualised as an attitudinal perspective due to the fact that attitudinal brand loyalty includes a degree of depositional commitment in terms of some unique values associated with the brand (Chaudhuri & Holbrook, 2001:82). From and attitudinal perspective, brand loyalty was defined as, the tendency to be loyal to a focal brand which demonstrated by the intention to buy the brand as a primary choice (Yoo & Donthu, 2001:3). Chapter 2 The Concept of Branding and Brand Equity A Literature Review 64 While the definitions of brand loyalty based on the behavioural perspective emphasised the consumers actual loyalty to the brand reflected in purchase choices, the definitions on an attitudinal perspective accentuated consumers intentions to be loyal to the brand (Pappu, et al., 2005:145).
2.6.1.4 Brand associations
Aaker (2002:19) emphasise that brand equity is supported in great part by the associations that consumers make with a brand. These associations may include product attributes, a celebrity spokesperson, or a particular symbol. Brand associations are driven by the brand identity, (what the organisation wants the brand to stand for in the customers mind). A key to the building of a strong brand is to develop and implement a brand identity. As a result associations can be seen as an important component of brand equity. Keller (1993:3) believes that brand association contain the meaning of the brand for consumers.
Two other important types of brand associations are brand personality and organisational associations, which influence brand equity. Aaker (1991:17) and Keller (1993:3) identifies that brand personality is a key component of brand equity and is defined in terms of the various traits or characteristics that a brand can assume from the perception of consumers. Aaker (2002:9) argues that a brand association has a level of strength, and that the link to a brand will be stronger when it is based on many experiences or exposures to communications, and when a network of links supports it. Furthermore, Aaker Chapter 2 The Concept of Branding and Brand Equity A Literature Review 65 (2002:9) suggests that brand associations could provide value to the consumer by providing a reason for consumers to buy the brand, and by creating a positive attitude/feeling among consumers.
There is a positive associative relationship among the four consumer based brand equity dimensions, brand awareness, brand associations, perceived quality and brand loyalty. It is envisaged that consumers perception of quality will be associated with their brand loyalty. The more brand loyalty a consumer has, the more likely he or she will perceive that the brand offers superior quality and vice versa. Equally, the more favourable associations consumers have towards a brand, the more their loyalty and vice versa. Consumers, who hold favourable associations with respect to a brand, are also likely to develop favourable perceptions of quality and vice versa. Consumers awareness is likely to be high when they have strong associations for the brand when customers perceive the quality of the brand and vice versa. As a result, consumers perception of quality of a brand is likely to be high when they have strong association with the brand and vice versa (Pappu, et al., 2005:145).
2.7. CONCLUSION
Brands are increasingly being considered as primary capital for many businesses. A brand symbolises the essence of the customers perception of the organisation. The term brand has multiple connotations. On the one end brand constitutes a name, a logo, a symbol, an identity or a trademark. Chapter 2 The Concept of Branding and Brand Equity A Literature Review 66 At the other end of the quantum, a brand embraces all tangible and intangible attributes that the business stands for (Prasad & Dev 2000:23). Prasad & Dev (2000:22) demonstrates that brands differentiate themselves in the minds of the customer. Kholi; Harich and Leuthesser (2004:1) emphasise that a cost effective way for branding is to create a brand name that is inherently strong. A brand name should appeal to the customer.
A strong brand increases the consumers attitude strength toward the product associated with the brand. Attitude strength is build by experience with a product. The consumers brand awareness and associations lead to perceived quality, inferred attributes and eventually brand loyalty. This perception is known as customer-based equity. The advantage of conceptualizing brand equity from this perspective is that it enables marketing managers to consider how their marketing programs improve the value of their brands in the mind of the consumer. (Keller, 1993:4). As a result, effective marketing programs on branding foster greater confidence in consumers. This confidence induces consumer loyalty and willingness to pay a premium price for the brand (Kholi, et al., 2004:1).
A strong brand provides a series of benefits to service organisations such as greater loyalty and higher resiliency to endure crisis situations, higher profit margins, more favourable customer response to price change, and brand extension opportunities (Keller, 1993:4). Kholi, et al. (2004:7) are of the opinion that strong brand equity can cause a significant increase in profitability of the organisation and its performance. In contrast, a lack of brand equity Chapter 2 The Concept of Branding and Brand Equity A Literature Review 67 can damage potential cash flow for oraganisations; should organisations not make efforts to improve customer based brand equity. In the next chapter, branding and brand equity within the context of the Tshwane University of Technology will be elaborated upon.
Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 68 CHAPTER 3: BRANDING AND BRAND EQUITY WITHIN THE CONTEXT OF TSHWANE UNIVERSITY OF TECHNOLOGY
3.1 INTRODUCTION AND BACKGROUND
The historian and scholar Eric Hobsbawm wrote that, political pressures on historyare greater than ever beforemore history today being revised or invented by people who do not want the real past a past that suits their purpose. The defenses of history by professionals are more urgent than ever (Times Higher Education Supplement, 2002:1).
In the South African context, higher education systems were fragmented and institutions were differentiating between race and ethnicity. Historical institutions had the advantages where historical black institutions were disadvantaged in terms of resources that were made available and the social and academic roles that were given to each. However these disadvantages were not just historical. It also related to the underprovided pursuit of excellence and quality outputs of historical black institutions and the contribution to the economic and social reconstruction and development. The South Africa Higher education was challenged to transform its higher education to become more socially equitable internally and promote social equity more generally, thus constructing opportunities for social advancement through equity of access and opportunity (Badat, 2003:1).
Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 69 The five key policy goals and strategic objectives as predetermined by the National Plan of Higher Education are central to achieving the overall goal of the transformation of the higher education system. These goals address issues such as increased access, redress imbalances of the past and ensure that the system produces graduates with appropriate skills and competencies, as well as knowledge and technological skills acquired through research, to contribute to social and economic development (Badat, 2003:1).
A university of technology plays a role in the education and training of technologically literate and skilled people, addressing a crucial factor in the economic success of the country. In line with the National System of Innovation, knowledge and technology should be mastered and creatively utilised by a workforce with experience in selecting and developing the technologies and producing the knowledge that is central to the competitiveness and economic growth of the country as reflected in the Tshwane University of Technologys Institutional Operational Plan (TUT, 2007a). The restructuring of the higher education landscape created a new typology of universities, namely traditional, comprehensive and universities of technology. The Tshwane University of Technology was promulgated as a university of technology (TUT, 2007b).
The Tshwane University of Technology came into being on J anuary 1, 2004, following the merger of the Technikons Northern Gauteng, North-West and Pretoria. The resulting mega-university has six learning sites in the greater Tshwane Metropolis, two of which are in Mpumalanga, and one in Limpopo, Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 70 which have in excess of sixty thousand students and just over four thousand staff. The period 2003 to 2006 could be characterised as one of fundamental change at the Tshwane University of Technology when it was endeavoured to create a new university out of the remnants of the old technikons. The transformation called for the entire policy, governance, institutional, operational, staffing and academic arenas to be reconfigured (TUT, 2007a). The Tshwane University of Technology became a new institution in the restructured higher education landscape of South Africa, with the seat of management residing at the Pretoria Campus (TUT, 2007a). The Tshwane University of Technology is an outcome of the restructuring of the higher education landscape. The institution represents a body of knowledge that will focus on the stimulation of social development and economic growth, contributing to a modernising economy through research and development, technological innovation, technology transfer, entrepreneurial development, and specialising in the application of knowledge and technology. Furthermore, developing a community of skilled graduates with relevant and specialised knowledge and skills within an applicable profession, as well as having an entrepreneurial focus (TUT, 2007a).
The transformation of the Higher Education system from a fragmented to an integrated system, as well as various regulatory changes by means of legislative measures, impacts on all Higher Education institutions. The Tshwane University of Technology faces numerous challenges and its recognition of the shift towards cooperative governance, state and stakeholder accountability, the focus on consultation and negotiation, the Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 71 establishment of an integrated system steered and coordinated by the state, social redress, human resource development priorities, and the production, acquisition and application of new knowledge, guides the institution towards its newly developed vision and mission (TUT, 2007a). The strategic features of a University of Technology have led to the formulation of the vision, mission, goals and objectives and values of the Tshwane University of Technology.
3.1.1 Vision
Cited verbatim (TUT, 2007a), the vision statement of the Tshwane University of Technology reads as follows: To be the leading higher education institution with an entrepreneurial ethos that promotes knowledge and technology, and provides professional career education of an international standard, which is relevant to the needs and aspirations of Southern Africas people.
3.1.2 Mission
Cited verbatim (TUT, 2007a), the mission statement of the Tshwane University of Technology reads as follows: In support of this vision, we create, apply and transfer knowledge and technology of an international standard through cooperative professional career education programmes at undergraduate and postgraduate levels; serve and empower society by meeting the socio-economic development Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 72 needs of Southern Africa through the fruits of our teaching and the skills of our staff and students; extend the parameters of technological innovation by making knowledge useful through focused applied research and development; and establish and maintain a strategic partnership network locally and internationally for the mutual benefit of the institution and its partners.
3.1.3 Values
Cited verbatim (TUT, 2007a) the values of Tshwane University of Technology reads as follows: We are committed to: Quality service. Professionalism. Integrity. Excellence. Equity. Unity in diversity.
3.2 BRANDING AND BRAND EQUITY WITHIN THE TSHWANE UNIVERSITY OF TECHNOLOGY
In a highly competitive business environment, developing a credible brand and corporate identity that is instantly recognisable is important. It is difficult to change the position of well-established brands of the previous technikon infrastructures. As a new institution in the restructured higher education Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 73 landscape of South Africa, the Tshwane University of Technology needs to establish itself as a strong brand underpinning the importance of a national brand with an institutional focus. This focus will be centred on the premis that no individual programme will have a separate brand identity, but will be promoted within the larger institutional brand supporting the corporate identity of the Tshwane University of Technology.
The Tshwane University of Technology is strategically focussed on the marketing of the university, through brand building and on creating awareness of the new brand in the mind of prospective donors, alumni, friends, students, parents and competitors. Through the slogan We empower people, stakeholders are reminded of the institutions commitment of providing quality education and contributing to the transformation process in higher education. This also ensures consistency and uniformity of the institution, resulting in the segmented marketing to approach and to create a challenging and creative learning environment that will contribute added value to all stakeholders and enable them to reach their full potential.
The objective of the Tshwane University of Technology with their current branding, is to raise the university from the status of a mere provider to that of a brand- the new leading brand in higher education by consistently keeping its promise of adding value in the way of delivering services. Underpinning and portraying their message of an institution with commitments for delivering quality professionalism in teaching, research and development, and community services, being a caring organisation, investing in high Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 74 standards of ethics and interaction with all segments of the society served, supporting excellence in holistically developing students to their full potential, and fulfilling responsibility as a citizen of South Africa.
Accepting and trusting the developed brand and focussing on the main asset of equity namely brand loyalty is the primary objective of the university. The effort of developing loyal customers will result in the commitment of Tshwane Universitys stakeholders to use the services consistently on an ongoing basis despite situational influences, which have the potential to cause current stakeholders to switch to other educational institutions.
The Tshwane University of Technology is determined to attain effective brand equity that will encourage the building of a strong brand, which attain objectives ultimately creating greater loyalty towards the Tshwane University of Technology, making it less vulnerable to competition, and larger profit margins.
3.3 KEY ISSUES PERTAINING TO THE BRANDING WITHIN THE TSHWANE UNIVERSITY OF TECHNOLOGY
The following key issues have been identified as having had an influence on the branding and brand equity within the Tshwane University of Technology, namely: A recognisable brand name conversions, brand elements not considered, issues pertaining to the merger, benefits offered by Tshwane Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 75 University of Technology as a service provider, budgetary constraints and competitive advantage.
3.3.1 A Recognisable brand name conversion
The Tshwane University of Technology transformation from a technikon to a University of technology, impacted adversely on its branding. The Tshwane University of Technology, had to merge, define a new institutional type, identify a strategic vision and mission consistent with this definition, reconfigure its shape, size and academic offerings, and had to manage multiple learning sites. The key challenge for Tshwane University of Technology was first the renaming of the newly formed institution as well as to delineate clear definitions or guidelines on the nature and form of this new entity. In addition to the above, this newly established entity had to create a new name, term, symbol, and design to establish a brand with the intention to develop and differentiate a new position in the mind of its stakeholders and competitors. For the new name of the Tshwane University of Technology to be established, the old technikon names had to be abandoned, an action likely to nullify years of branding efforts in terms of creating awareness. As brand names are the prerequisite for brand equity the change of name as in the instance of Tshwane University of Technology has the potential to not only damage the brand equity but also destroy it. The Tshwane University of Technology face issues pertaining to the new brand such as the identification and establishment of brand positioning and values, planning and Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 76 implementation of brand marketing programs, measuring and interpreting brand performance, as well as the growing and sustaining of brand equity. Ultimately, the Tshwane University of Technology has to determine if the newly formed institution and brand image occupies a distinct and valued place in the minds of its stakeholders and competitors. Currently the goal of establishing the Tshwane University of Technology as a brand in the mind of its stakeholders. 3.3.2 Brand elements not considered According to (Keller 2003:175) different brand elements can be selected to build brand equity. The first three elements, namely memorability, meaningfulness and likeability can be characterised as brand building in nature and is concerned with how brand equity can be built through the judicious choice of brand elements. The last three namelly transferability, adaptability and protect ability are more defensive in nature and concerned with how the brand equity contained in a brand element can be leveraged in the face of different opportunities and constraints. The Tshwane University of Technology is deficient in considering especially the first three brand building elements in supporting the new institutions brand and building brand equity. Building the Tshwane University of Technology brand requires a high level of brand awareness. Toward the goal of creating awareness, requires that brand elements can be chosen that are memorable and therefore facilitate the recall and recognition of the service provided. Building awareness can enhance the formation of brand Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 77 association. Forming associations with the brand can culminate in the possibility for the brand playing a major role in the equity of the brand. One of the challenges of the Tshwane University of Technology, is to develop strategies that will sustain positive impressions while at the same time, build brand equity. Brand equity according to Taylor, Celuch and Goodwin (2004:217-227), can be identified as both the level of the individual consumers (e.g. using relationship marketing strategies) and at the aggregate level (through marketing strategies). The understanding of loyalty within the context of the marketing theory can be distributed across more than one brand. As a result, the Tshwane University of Technology need to glean approaches from situations where the assumption can be made that it is possible to secure an irrational and exclusive loyalty from a given customer, as customers may be willing to spread their business around. Marketing strategies also need to be consolidated to support loyalty and build a relationship with the Tshwane University of Technologoy stakeholders ensuring the existence of the institution and its brand. 3.3.3. Issues pertaining to the merger Balmer and Gray (2000:258) are of the opinion that with a continued high number of mergers the business profile of many organisations needs to be altered. Significant outcomes of such change leaves deleterious gap between the companys public image and its true identity. Such incongruence can impact upon financial markets as well as customers, resulting in diminished Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 78 support for the organisation. After the merger on J anuary 1, 2004, the dispersed geographical location of the three learning sites were characterised by varied teaching and learning practices, diverse institutional cultures and ethos, as well as significant infrastructure disparities. The issue of infrastructure inequities of the newly formed Tshwane University of Technology needed to be highlighted as a potential impediment to equitable teaching and learning provisioning across all Tshwane University of Technologys learning sites. The different learning sites had different identities portraying different images of their institution, playing a crucial role in the attitude of the stakeholders. Two of the three merging partners were historically disadvantaged institutions, with significant accumulated infrastructure deficits, when compared to the other merging partner. While the erstwhile technikons that now constitute the Tshwane University of Technology have had previous exposure to external quality assurance, such as the SERTEC (Certification Council for Technikon Education) and ECSA (Engineering Council of South Africa), the creation of the new mega-university has brought about additional challenges from a quality assurance perspective (TUT, 2007b). According to Ivy (2001:267-282), an institutions actual quality is often less important than its prestige, or reputation for quality, as it is the universitys perceived excellence which in fact guides the decision of prospective students and scholars considering offers of employment.
Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 79 3.3.4 Benefits offered by the Tshwane University of Technology as a service provider Burton and Easingwood (2005:1) provide guidance to organisations as service providers stating that consumers have inherently stable tastes, which pertain to preferences for objectives to be achieved via the consumption of certain goods, rather than for the goods themselves. The tastes or preferences determine consumer behaviour specifically influencing the selection of goods and services that make consumers relatively better off in terms of the achievement of their objectives. The above results in the understanding of consumer motivation and the resulting need to differentiate products and services. Kim and Mauborgne (2000:129) argue that managers of service organisations need to benchmark in order to achieve positioning success. The Tshwane University of Technology represents a corporate service brand. The Tshwane University of Technology needs to position itself as the leading University of Technology through providing better benefits to its stakeholders and customers by delivering excellent services. Furthermore, conveying trust and confidence in the Tshwane University of Technology as a Higher education institution. In addition, caring for students and stakeholders needs and providing individualised attention. Internally, employees need to be motivated when in contact with students and stakeholders as well as competitors. Communicating with the students and stakeholders in a language they can understand and listening and reacting to what they say. Benefits are identified as support for Tshwane University of Technology to Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 80 help them with benchmarking their services as quality services (Kim & Mauborgne, 2000:130). The authors claim that a new service product is more likely to succeed if it is correctly priced, possess a sound business model, avoids hurdles to stakeholder adoption and satisfies consumer utility within one of six key categories (commonly referred to as the six utility levers) that is compelling the reasons for consumers to buy a product or service. The defined benefits identified as obvious by Kim and Mauborgne (2000:130) are listed below: Customer productivity: Innovation-aiding consumers to do things better, faster or differently. Simplicity: Services, which are more straightforward to use and easier to understand than existing offerings. Convenience: Availability, ease and consumption Risk reduction: Safety of service consumption process, safety of investment Fun and image: Amusement or enjoyment forms the use/purchase of the service, positive image portrayal (reputation, representation, idea or conception. Environmental friendliness: The capacity of the service to improve or reduce risk to the environment.
Kim and Mauborgne (2000:130) propose a buyer utility model encompassing the six levers. The authors argue that a service must operate at least one of the six levers to be successful. The Tshwane University of Technology Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 81 needs to determine the different benefits, which manifest in the above- mentioned benefit levers and identify those, which are not offered at the institution. The provision of quality services can help to build the brand image of the university to attract new students and keep existing students loyal.
3.3.5. Budgetary constraints According to Hay and Fourie (2002:115-131) in the beginning of the 21 st
Century, many South African further and higher education institutions found themselves in dire financial straits. The effect of all this remains underdetermined, with the Tshwane University of Technology not excluded from this impact. Hay and Fourie (2002:115-131) mentioned some reasons for the current financial state of institutions derive from the following factors that can contribute towards the problem: The fragmented education systems inherited from the previous dispensation. Profound inequities and distortions of the above mentioned systems, incoherent and poor articulation between the various types of further and higher education institutions. Under-prepared students poorly resourced in a socio-economic and academic context. The poor quality of school systems and particularly the collapse of the senior secondary school system with reluctant low entry into higher Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 82 education and high failure rates. Unequal distribution of resources and subsidy amongst further and higher education institutions. Declining state subsidy, mainly as a result of poor economic growth and impact of new legislation. Increased competition in the system. Declining student enrolments.
Most of the above reasons will be part of the issues facing the Tshwane University of Technology resulting in low staff morale impacting upon the image of the institution, bad publicity of the financial state, and uncertainty about the future existence of the institution. The financial situation of the Tshwane University of Technology forces the institution to become imperative in the determination of an image in the minds of the various stakeholders. 3.3.6. Competitive advantage
Ivy, (2001:267-282) citing (Yvas & Schemwell 1996) state that the image portrayed by institutions of higher education plays a critical role in the attitudes of the institutions publics towards that institution. Paramewaran and Glowacka (1995:41) in their study of university images found that higher education needs to maintain or develop distinct images to create a competitive advantage in an increasingly competitive market. This image will impact on a students willingness to apply to that institution for enrolment, or a donor considering and a donation, to or an organisation selecting and institution to contracted research and development. As Higher education Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 83 institutions around the globe face declining student numbers and decreasing fund grants, it has become imperative for higher education institutions to determine their images in the mind of the public Ivy, (2001:267-282). According to Ivy, (2001:267-282) the net result is that all institutions are becoming increasingly aggressive in their marketing activities. In this increasingly competitive environment, the marketers of higher education should be concerned about their positioning and image.
More often than not, images are formed from word of mouth, past experience or as a result of marketing activities of the institution. The Tshwane University of Technology is a new transformed institution with a new brand and brand name that is not established yet. However, the challenge is to position the institution as the leading university of technology amongst other institutions. Kalafatis, Tsogas and Blankson (2000:416) explain that positioning appears to have evolved from market segmentation, targeting and market structure change during the 1960s and the early 1970s. Kalafatis, et al. (2000:416) define positioning as, the deliberate, proactive interactive process of defining and modifying and monitoring consumer perceptions of a marketable object. Supporting the position of a brand is the creation of effective branding resulting in the developing of a corporate identity for the institution differentiating Tshwane University of Technology from other competitors.
Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 84 3.4. CONCLUSION
Winston Chuchill the former British Prime Minsister said: To improve is to change; to be perfect is to change often (Van der Linde, 2006:511). Change is part of our existence. The Tshwane University of Technology faced a great deal of change the past few years. The change in higher education guided the formation of the new institution known as the Tshwane University of Technology. A new institution that needs to be perceived through its stakeholders as a corporate identity that will connect the institution with brand association and social responsibility association that will generate authority for the Tshwane University of Technology brand.
The obvious value of brands is their ability to translate reputation and loyalty among their users into a long-lived reliable profit stream. As a result, the importance of the Tshwane University of Technology as a brand and the power of its equity makes it important for any institution. The main affirmation is that brand equity must be actively managed by Tshwane University of Technology by reinforcing the brand meaning, its existence and if required, adjust the marketing program to identify new sources of brand equity. Reinforcing brand equity culminates in making sure that the stakeholders of the Tshwane University of Technology have the desired knowledge of the brand through the consistent conveying of the brand meaning in terms of awareness and brand image.
Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 85 Brand awareness has a significant positive relationship with an organisations performance Kim and Kim (2004:143). Together with the dimensions mentioned in Chapter two such as brand loyalty, brand awareness, and perceived quality, significantly effects brand equity and the corporate performance. The Tshwane University of Technology needs to measure its brand equity based on the discussed dimension to draw a conclusion on the overall corporate performance linked to the branding of the institution. Furthemore, increasing brand awareness through various promotional and communication strategies may be integral for increasing profit in the institution. Important, is that the perceived quality of a specific brand is found to influence the effect the organisation performance. The conclusion can be drawn that awareness alone is not enough to generate satisfactory institution performance and perceived quality should be managed carefully to produce good financial results. Brand loyalty as a component of brand equity determines the customers commitment to the brand. This then would result in the improvement of the operational performance of an institution-keeping customers satisfied (Kim & Kim, 2004:143). Strong brand equity relates to the performance of an organisation.
Even though effective branding is fundamental to the success of any organisation, the concept remains misunderstood. Organisations tend to perceive branding solely as a marketing activity and fail to appreciate that it should reach out and grab the attention of the consumers attention. More specific, branding should be incorporated into the overall strategic plan with Chapter 3 Branding and Brand Equity within the Context of Tshwane University of Technology 86 systematic support throughout the organisation (Emerald Group Publishing, 2007).
The businesses that will win in the twenty-first century, will be those that have marketers who successfully build measure and manage their business brand equity. The Tshwane University of Technology have to focus and capitalise on every tool to their disposal for positioning the brand, establishing a core brand identity, and continue investing in the brand even if the financial goals are not met.
In the following chapter the sample, data gathering and method of analysis of the data will be analysed.
Chapter 4 Survey Design and Methodology 87 CHAPTER 4: SURVEY DESIGN AND METHODOLOGY
4.1 INTRODUCTION
How can our intellectual life and institutions be arranged so as to expose our beliefs, conjectures, policies, positions, sources of ideas, traditions, and the like whether or not are justifiable - to maximum criticism, in order to counteract and eliminate as much intellectual error as possible? (Bartley, 1962:139). This statement emphasises the importance of research as a tool to be used to achieve the objectives of maximum criticism. The subject of our criticism is human behaviour, something of which we all carry a level of knowledge. That knowledge can however sometimes act as an impediment should one critically fail to examine some aspects of human behaviour because, everyone knows thats true, we have fallen short of the goal of research (Dane, 1990:5). Perreault and McCarthy (1996:155) state that, research in the broadest sense, is search for truth. Research in general is all about constructing, and then analysing and interpreting data (Kent, 2007:2).
4.2 LIMITATIONS OF THE RESEARCH
The research was adversely impacted upon by the following aspects: The research was limited to first, second and third year students enrolled for the course Marketing in the Department Marketing, Sports and Logistics, at the following campuses: Pretoria campus, Shoshanguve Chapter 4 Survey Design and Methodology 88 campus and Ga-Rankuwa campus (excluding the Witbank campus, Arts campus, Pietersburg campus and Nelspruit campus). Stakeholders within the Tshwane University of Technology for the purpose of this dissertation were limited to first, second and third year students only. The respondents that form part of the target organization do not know the Tshwane University of Technology brand and the background thereof to represent a valid response to the acceptance of the brand. Due to the fact that the Tshwane University of Technology prior to the survey became the subject of public scrutiny, it was perceived that this research would draw even more adverse publicity. The sample consists of a group of respondents that already chosen the Tshwane University of Technologys brand. The responses from this group may differ from that of a sample who still needs to make a choice of an institution to study at.
4.3 THE TARGET POPULATION
A target population is defined by Malhorta and Birks (2003:359) as, the collection of elements or object that possess the information sought by the researcher and about which inferences are to be made. The target population should be defined in terms of elements, sampling units, extent and time. Malhorta and Birks (2003:359) state that an element is an object about which or from which the information is desired.
Chapter 4 Survey Design and Methodology 89 The target population for this research can be defined as follows: Element: Registered first, second and third year Tshwane University of Technology students: Pretoria Campus, Soshanguve Campus and Ga- Rankuwa campus. Sample unit: Registered first, second and third year Tshwane University of Technology students enrolled for the course Marketing Management: Pretoria Campus, Soshanguve Campus and Ga- Rankuwa campus. Time: The temporal boundaries within which the research is being conducted. Extend: Students enrolled for the course Marketing: Pretoria Campus, Soshanguve Campus and Ga-Rankuwa Campus.
4.4 THE CHOICE OF SAMPLING METHOD
According to McDaniel and Gates (2001:411), the selection of a sampling method will depend on the objectives of the study, the financial resources available, time limitations and the nature of the problem under investigation. The major alternative sampling methods can be grouped under two headings as depicted in Figure 4.1. namely that of probability sampling methods and non-probability sampling methods.
A number of alternatives under each of these headings are available. Probability sampling according to Chisnall (2005:103) results in every sampling unit in a finite population having a calculable and non-zero probability of being selecting in the sample. The authors are furthermore of the opinion that probability sampling is statistically sounder, and because of the mechanical selection of those who are interviewed, the bias from interviewers interviewing only the most easily available respondents are avoided.
According to McDaniel and Gates (2001:335), non- probability sampling includes elements from the population that are selected in a non-random manner, such as convenience sampling, judgemental sampling and quota sampling. Non-randomness occurs when population elements are selected Sampling method Probability samples Non- probability Systematic Stratified Convenient Snowball Cluster Simple Judgement Quota Chapter 4 Survey Design and Methodology 91 on the basis of convenience. Emory and Cooper (1995:227) states that non- probability sampling may be used if the procedure meets the sampling objectives, it saves cost and time, and it may be superior in theory and it is possible that it may be the only feasible alternative.
The sample population for this research study will be selected through non- probability sampling. This will be conducted through the method of quota sampling. The quota pertains to first, second and third year students enrolled for the course Marketing at the Tshwane University of Technology studying at the three previously mentioned campuses. The logic behind quota sampling according to Emory and Cooper (1995:229), is that certain relevant characteristics describe the dimensions of the population.
4.5. MEASUREMENT SCALES
The survey used in the research is based on the well-known Lickert scale, whereby respondents were asked to respond to each of the statements or questions by choosing a range of agreement choices. (Parasuraman 1991:410).
The advantages in using the popular Lickert scale according to Emory and Cooper (1995:180-181) are: Quick and easy to construct. Each item meets an empirical test for discriminating ability. Chapter 4 Survey Design and Methodology 92 The Lickert scale is probably more reliable than the Thurston scale, and it provides a greater volume of data than the Thurston differential scale. The Lickert scale is also treated as an interval scale.
The most important reason however for choosing the Lickert scale in this research, which is supported by Emory and Cooper (Emory and Cooper 1995:180-181), is the fact that the scale can be used in respondent-centered (how responses differ between people) surveys which is most appropriate to glean data in support of the research problem in question.
4.6. SURVEY DESIGN
Emory and Cooper (1995:269) define a survey, as to question people and record their responses for analysis. The great strength of questioning as a primary data collecting technique is its versatility. The authors state that information can be gathered by a few well-chosen questions.
The statements and questions within the survey have been designed with the following principles in mind: Avoidance of double-barreled questions and statements. Avoidance of double-negative questions and statements. Avoidance of prestige bias. Avoidance of leading questions and statements. Avoidance of the assumption of prior knowledge.
Chapter 4 Survey Design and Methodology 93 The survey was used, which involved face-to-face, personal contact with the respondents in the lecture rooms. Questions were read out from the questionnaire, the respondents responses were recorded by ticking appropriate statements provided in the questionnaire. Particular care was taken to avoid bias in the formulation of the questions. The data collection method used in the surveys, falls within the context of a survey, defined by Hussey & Hussey (1997), as: A sample of subjects being drawn from a population and studied to make inferences about the population.
More specific, the survey conducted in this dissertation falls within the ambit of the descriptive survey as defined by Ghauri, Grnhaug and Kristianslund (1995). The survey which was conducted to collect primary data using the personal interview method is an approach which maps to accepted data collection methods as proposed by Remenyi, Williams, Money and Swartz (2002) and Emory and Cooper, (1995).
4.7 RESPONDENT BRIEFING
Prior to conducting the interviews with the respondents, this author provided each respondent with detailed information pertaining to the issues pertaining to the branding and brand equity of the Tshwane University of Technology. Questions were piloted prior to the research to ensure that the questions were clear and the objective of each well understood. In addition, an overview of the dissertation objectives was provided. This exercise was undertaken to Chapter 4 Survey Design and Methodology 94 ensure that a common understanding of the issues raised in the survey prevailed.
4.8 SURVEY QUESTIONS
McDaniel and Gates (2001:289) define a questionnaire as a set of questions designed to generate the data necessary to accomplish the objectives of the research project. A questionnaire provides standardisation and uniformity in the data gathering process. It standardises the wording and sequences of the questions.
Chisnall (2005:135) is of the opinion that a questionnaire is a method of obtaining specific information about a defined problem. The type of questionnaire depends on the sample population, method of sampling, nature of problem and the sample size. The author also states that questionnaires may be highly structured with formal questions, unstructured with free style questions or a mix of both. However, the questions must be designed to attract respondent to give valid and reliable information. According to Chisnall (2005:135), five classes of information, which are generally useful for marketing decisions, have been identified as follows: Facts and knowledge. Opinions. Motives. Past behaviour. Likely future behaviour. Chapter 4 Survey Design and Methodology 95 The author also identifies three conditions for ensuring true response to questions: Respondents must understand the question. They must be able to provide information requested. They must be willing to provide it.
Questions asked should be carefully designed in a language that is readily understandable by the people being interviewed. Chisnall (2005:144) classify two main types of questions, which are commonly used in surveys, namely open ended questions and closed ended questions. An open-ended question, also known as free answer, calls for a response of more than a few words. The respondent has considerable freedom in phrasing the answer, which could be lengthy and detailed and is in his or her own words. Closed questions call for responses, which are strictly limited. The respondent is offered a choice of alternative replies from which he or she is expected to select an answer corresponding to his or her personal views on a particular subject.
The method of collecting data for this study will be by means of a questionnaire. In the questionnaire, a positivistic approach will be followed where structured closed questions will be asked. The aim of this data collection method is to determine what the acceptance and brand equity of the Tshwane University of Technology brand is amid its students.
Chapter 4 Survey Design and Methodology 96 Delgado-Ballester and Munuera-Alaman (2005:187-196) and Baldouf, Cravens and Binder (2003:220-336) conducted research into perceptions of branding of products. In this research study, the questionnaires used by the above authors have been juxtaposed and adapted by referring to Keller (1993:1-22) customers based brand equity measurements and Aakerss (2002:67) survey to serve a tertiary institution research study. The adapted questionnaire which was used for this research study is listed below for ease of reference.
4.9 RESEARCH QUESTIONAIRE
SECTION A
BIOGRAPHIC AND DEMOGRAPHIC INFORMATION
Please indicate your gender.
Please indicate your age. Under 18 1 18 21 2
22 25 3
26 29 4
30 + 5
Female 1
Male 2
Chapter 4 Survey Design and Methodology 97 Please indicate your home language. English 1 Afrikaans 2
Zulu 3
Xhosa 4
Ndebele 5
Swazi 6
Sotho 7
Tswana 8
Tsonga 9
Venda 10
Other (please specify) 11 14
Please indicate your marital status. Single 1 Live together 2
Married 3
Divorced 4
Widowed 5
Please indicate the year in which you have received your Grade 12 Qualification. 2006 1
2005 2
2004 3
2003 4
2002 5
2001 6
2000 7
Before 2000 8
Chapter 4 Survey Design and Methodology 98 Please indicate the year in which you have registered for the first time at Tshwane University of Technology. 2006 1
2005 2
2004 3
2003 4
2002 5
2001 6
2000 7
Before 2000 8
Please indicate the learning site that you are studying at. GaRankuwa 1
Pretoria 2
Shoshanguve 3
Other (Please specify)
4
Please indicate the programme (Diploma or Degree) that you are enrolled for:
National Diploma: 1 B Tech Degree: 2
Please indicate the year you are currently registered for: 1 st Year 1 2 nd Year 2
3 rd Year 3
4 th Year 4
Please indicate the area where you are currently staying while busy with your studies:
Please indicate the area where you have stayed while you were busy with your Grade 12:
Chapter 4 Survey Design and Methodology 99 SECTION B BRAND AND BRAND EQUITY
SECTION B.1. BRAND AWARENESS
STATEMENTS 1. I know what the TUT logo looks like.
2. I would recognise the TUT logo amongst logos of other tertiary institutions.
3. Some distinct characteristics of TUT comes to my mind when I see the TUT logo.
4. TUT is my favourite tertiary Institution in South Africa.
5. I am proud to study at TUT.
6. I have no difficulty in imagining TUT as a tertiary institution in my mind.
SECTION B.2. BRAND QUALITY
STATEMENTS 1. TUT as a tertiary institution provides top quality education.
2. There is no need for TUT to evaluate certain aspects of their curricula to improve on.
3. TUT maintain high standards of quality.
4. TUT facilities compares to the best in South Africa.
5. TUT has well qualified staff.
6. TUT does not provide excellent quality education.
12. TUT as a tertiary institution is concerned about their students.
13. TUT as a tertiary institution is concerned about society as a whole.
14. TUT as a tertiary institution is admirable.
SECTION B.5. BRAND FEELINGS
STATEMENTS 1. TUT gives me a feeling of warmth.
2. TUT gives me a feeling of professionalism.
3. TUT gives me a feeling of security.
4. TUT gives me a feeling of social approval.
5. TUT gives me a feeling of self-respect.
SECTION B.6. BRAND EQUITY
STATEMENTS 1. It makes sense to study at TUT as opposed to any other tertiary institution that provides the same qualifications.
2. Even if another tertiary institution is close by and offers the same features, as TUT, I would prefer to study at TUT.
Chapter 4 Survey Design and Methodology 102 4.10. PILOT STUDY RESULTS
A pilot study of the questionnaire was conducted amongst 27 students on the Arts Campus. The purpose of the pilot study was to assess the initial reliability of the brand scales and determine if students found any question difficult or have any difficulty in completing any part of the questionnaire.
A brief demographic description of the pilot group is provided in Table 4.1. below.
Table 4.1: Demographic description of the pilot sample (n =27) (Source: Own Source)
Gender Males 63% Females 37% Age 18-21 56% 22-25 30% 26-29 7% 30+ 7% Home language Afrikaans 33% English 36% African 11% Marital status Single 89% Married 7% Widowed 4%
Chapter 4 Survey Design and Methodology 103 In addition to the demographic characteristics, the descriptive data of the student related information is provided in Table 4.2.
Table 4.2: Student related information of the pilot sample (n =27) (Source: Own Source)
Year Matriculated 2005 22% 2004 30% 2003 15% 2002 15% 2000 4% Before 2000 15% Year enrollment 2006 30% 2005 48% 2004 15% 2001 4% Before 2000 4% Program type National diploma 67% B Tech Degree 33% Year of study 2nd year 52% 3de year 44% 4th year 4%
On return of the pilot questionnaires, students were asked if they found any of the questions or instructions difficult to understand. None of the pilot group found the questions or instructions unclear. In addition, as can be seen from Table 4.3. the brand scales all have high reliabilities in terms of the Cronbach alpha test. Gronbachs alpha is an index of reliability associated with the Chapter 4 Survey Design and Methodology 104 variation accounted for by the true score of the underlying construct. Construct is the hypothetical variables (statements) that are being measured. According to Cooper and Schindler (2003:237), Cronbachs Alpha measures the degree to which instrument items are homogenous and reflect the same underlying construct(s). It is also considered as one of the most important reliable estimates. A Cronbachs Alpha Coefficient of more than 0,70 is an acceptable level, indicating reliability and consistency.
Table 4.3. Reliability of the brand scales as obtained from the pilot study (Source: Own Source)
The following represents a detailed description of the statistical techniques used to analyse the data in this chapter. As a starting point, the distinction between inferential and descriptive statistic is being explained, as the techniques used in the study, are categorised into these two groups. Descriptive research is the numerical index that describes or summarises some characteristic of a frequency in a frequency distribution (Frank & Althoen, 1994:10). Inferential statistics include those techniques by which Chapter 4 Survey Design and Methodology 105 decisions about a statistical population or process are made based only on a sample having been observed (Kazmier, 2003:1)
4.11.1 Descriptive statistics
The descriptive statistics used in the current sample include frequencies and means: A frequency can be defined as the number of times a certain value or category appears in the results, which Field (2005:8) explains that when a plot or graph is made to show the number of times that each score occurs, this is referred to as a frequency distribution or histogram. The mean is defined as the average value of a variable (Kidder and J udd, 1986:329)
4.11.2 Inferential statistics
The different inferential techniques used in the study include correlation analysis, t-tests for independent means, analysis of variance and regression analysis: Correlation analysis: A correlation is used when describing the degree of relationship between two variables. In particular, it indicates a linear relationship between variables. The calculation for the correlation coefficient was developed by Pearson and is commonly referred to as the Pearson Product-moment correlation coefficient, or the Pearsons Correlation coefficient (Field, 2005:111). The sign of the Chapter 4 Survey Design and Methodology 106 correlation coefficient (+, -) defines the direction of the relationship. A positive correlation coefficient means that as the value of one variable increases, the value of the other variable increases and as one decreases the other decreases. A negative correlation coefficient indicates that as one variable increases, the other decreases, and vice- versa. T-test for independent means: Salkind (2000:173), describes a t-test as follows: This is a commonly used test to measure the significance of the difference between two means based on two independent, unrelated groups. Independence is explained, as the results in one group that are not influenced by the results in the other group. The t- value will be positive if the first mean is larger than the second and negative, if it is smaller. However, the t-value is seldom interpreted and the p-value is used to gain an indication of the significance of the result Analysis of variance: Kazmier (2003: 116), describes the ANOVA test as the one-way analysis of variance procedure which is concerned with testing the difference among k sample means when the subjects are assigned randomly to each of the several groups. More specific, the ANOVA tests for differences in independent groups, just like the t-test, but the difference is that there are more than two groups involved. Regression analysis: Regression analysis attempts to create a model for the prediction of one variable from another. According to Fields (2005:144), simple regression analysis attempts to predict an outcome variable from a single predictor variable whereas multiple Chapter 4 Survey Design and Methodology 107 regression seeks to predict an outcome from several predictors, as was the case in the study at hand.
4.12 CONCLUSION
In this chapter, a juxtopositioning of descriptive research and exploratory research were used to determine the extent of branding and brand equity of the Tshwane University of Technology. The research study focused on the acceptance of the brand amongst the students. A structured questionnaire with mainly closed ended questioned consisting of 34 statements was used. Non-probability sampling was used focusing on the method of quota sampling. The quota pertains to first, second and third year students enrolled for the course Marketing at the Tshwane University of Technology studying at the three mentioned campuses. The data gleaned will be analysed by using statistical analysis. The analysis and interpretation of the results will be elaborate upon in Chapter 5.
Chapter 5 Data analysis and Interpretation of Results 108 Chapter 5: DATA ANALYSIS AND INTERPRETATION OF RESULTS
5.1 INTRODUCTION
In Chapter 4, the research methodology used in this survey study was elaborated upon in detail. The primary objective of the research survey was to determine students acceptance of the Tshwane University of Technologys brand. Secondary objectives for this study were that the study would contribute to solving real-world problems that will benefit the Tshwane University of Technology and its students. Furthermore, that the impact of the research will culminate in a paradigm shift not only for TUT and its students, but also for similar institutions going forward. In addition, that the research will add value to the existing body of knowledge regarding corporate branding, and that this author contribute to the facilitation of effective branding within the Tshwane University of Technology.
This chapter will present the findings from the empirical section of the research. In addition to the 27 pilot questionnaires completed, a total number of 319 questionnaires were completed by registered, first, second and third year students of the Tshwane University of Technology on the Ga-Rankuwa, Soshanguve and Pretoria Campusses. The questionnaires were collected directly after completion, after which the questionnaires were scrutinised and data captured. Statistical analyses were conducted to aid the discussion of the results gleaned from the research.
Chapter 5 Data analysis and Interpretation of Results 109 The data analysis will be executed in the following format:
The first section, presents the demographic profile of the sample and endeavour to place the rest of the research findings into context. The second section, examines the reliability of the brand scales used in the research. The third section, established the internal reliability of the scales. The descriptive information on the scales is presented to gain an indication of the views of respondents on each brand equity aspect. The fourth section describes the scores attained on the scales and compares it with the different demographic groupings to determine if there are any significant differences in the views of different groups who participated in the survey. The last section, examines the relationship between the different brand equity scales and investigates it by means of correlation and regression analysis.
5.2 DEMOGRAPHIC DESCRIPTION OF THE SAMPLE
5.2.1 Biographic information
Respondents were requested to provide certain personal and biographic information such as their gender, age, home language and marital status. Figure 5.1 presents the distribution of the sample in terms of gender. Sixty three percent of the respondents were female. The result correspond with the gender distribution of the 2007 mid year population estimation, of which 51% of the general South African population is female (Statistics South Africa, 2007). One respondent omitted his/her Chapter 5 Data analysis and Interpretation of Results 110 gender bringing the sample size for this question down to 318. Missing responses are to be expected and accepted to some degree, as the questionnaire was self- administered.
Female 63% Males 37%
Figure 5.1: Gender distribution (n =318) (Source: Own Source)
The age distribution from respondents is presented below in Figure 5.2. Most of the population in the sample falls between the ages of 18 and 21 (60%) and 22 -25 (32%). From the results obtained in Figure 5.2, the analogy can be drawn that most of the students who study at Tshwane University of Technology at the three different campuses are in the age group: 18-21 years.
Figure 5.2: Age distribution (n =319) (Source: Own Source)
Chapter 5 Data analysis and Interpretation of Results 111
An investigation into the ages of males and females (see Table 5.1.) show that females are slightly younger than male students (70% of females are aged 18-21 compared to only 45% of males.) This difference is statistically significant as the chi- square value of 28.09, has a p-value of 0.000, which is less than the 0.05 cut off for significance as set and discussed in Chapter 4.
Table 5.1: Cross-tabulation between gender and age (n =318) (Source: Own Source)
Age > 18 18-21 22-25 26-29 30+ Total Female 4% 70% 23% 3% 1% 100% Male 1% 45% 46% 8% 1% 100% G e n d e r
Total 3% 60% 31% 4% 1% 100%
The home language of respondents is presented in Table 5.2. Only 3% of the sample indicated that they speak English at home and 8% speak Afrikaans. The majority of the sample speaks an African language at home. These results are fairly similar to those of the general population according to the 2001 Census information. African languages account for 78 % of the spoken languages, Afrikaans for 13.3%, English for 8.2% and other for 0.5 % (Statistics SA, 2007). The home language of the respondents may to a certain extend, also provide an indication of the ethnicity of the respondents, although a question on race was not included in the questionnaire. Notwithstanding, the students of the Tshwane University of Technology speaks and understands English, the latter being the language in which lectures are presented. This information will assist the Tshwane University of Technology to identify the language to be used in communicating with students, to ensure that they do understand the information, and to determine possible cultural influences that will culminate in effective brand building for the TUT brand. Chapter 5 Data analysis and Interpretation of Results 112
Table 5.2: Home language (n =319) (Source: Own Source)
Figure 5.3. presents the marital status of the sample. As can be expected from young students, most are unmarried (95%). Three percent accounts for living together and 2% are married. It can be concluded that the students studying at the various campuses are single, as this can influence the way in which the branding and brand equity strategies should be presented and communicated to the students.
95% 3% 2% 0% 0% 20% 40% 60% 80% 100% Single Living together Married Divorced
Figure 5.3: Marital Status (n =318) (Source: Own Source) Chapter 5 Data analysis and Interpretation of Results 113
5.2.2 Student related information
This section presents the results from questions relating to studies at the Tshwane University of Technology. These include the year of matriculation, year of enrolment at the Tshwane University of Technology, learning site, type of studies and subject year registered for, are presented.
Figure 5.4. presents the percentage respondents who matriculated in the given years, and the percentage respondents who enrolled at the Tshwane University of Technology during the corresponding years. Forty Eight percent of students enrolled at Tshwane University of Technology in 2007/2006, 28% enrolled in 2005 and 16% enrolled in 2004, while 8% enrolled before 2004. This information will assist to determine if there is a significant difference between the acceptance of the brand among the students enrolled after the merger (2004-2007), and those enrolled before the merger (2000 2003).
Figure 5.4: Year of matriculation and first enrolment (n =319) (Source: Own Source) Chapter 5 Data analysis and Interpretation of Results 114 Figure 5.5. indicates the learning sites from which the information was collected. Questionnaires were collected from three campuses namely: GaRankuwa (19%), Pretoria (57%) and Shoshanguve (24%). From this the analogy can be drawn that Pretoria campus has the most students studying the subject marketing at the different campuses, following by the Soshanguve campus and the Ga Rankuwa campus.
Figure 5.5: Learning site (n =319) (Source: Own Source)
Nearly all of the respondents are currently busy completing a national diploma. Only 2% of respondents indicated that they are busy with a B Tech degree as reflected in Figure 5.6 below.
B Tech Degree 2% National diploma 98%
Figure 5.6: Type of course studied (n =319) (Source: Own Source) Chapter 5 Data analysis and Interpretation of Results 115 In terms of the year of the study that students are currently in, 33% are registered for their first year, 30% in their second year and 35% in their third year. It is mostly those respondents studying towards a B Tech Degree who are in their 4 th year of studies at the Tshwane University of Technology and represents 2% of the sample.
The majority of students at the various campuses are third year students, while the fourth year students represents the smallest group. The difference between the first, second, third and fourth year student numbers are due to the fact that the intake of first year students always results in a relatively large number of students, which decreases in the second year due to students dropping out. The reason for the high percentage of third year respondents can be attributed to the fact more third year students were used in the survey. They represent a sample that is familiar with branding and is more representative of the true results. This also improve the balance of the distribution between the various years of students, to illustrate better result and represents a true participation of the students in the various years at the different campuses. The above is graphically depicted in Figure 5.7. below.
33% 30% 35% 2% 0% 20% 40% 60% 80% 100% 1ste year 2nd year 3de year 4th year
Figure 5.7: Course Year (n =319) (Source: Own Source) Chapter 5 Data analysis and Interpretation of Results 116 5.3 RELIABILITY ANALYSIS OF THE BRAND SCALES
According to Pallant (2001:87) the most important figure to focus on during a reliability analysis is the Alpha value, which is the Cronbachs alpha coefficient (see Chapter 4, for a detailed discussion on reliability). The Alpha value of 0.7 or above is generally accepted as a good indication of reliability.
Pallant (2001:87) is of the opinion that other information of interest is the Corrected Item Total Correlation, which provides an indication of the degree to which each item correlates with the total scale. Pallant (2001:87) mentions that items with correlations of 0.3 and below show a low correlation with the total scale and may indicate that the item is measuring something different. The Cronbachs alpha coefficient was computed for each of the brand scales as well as the total corrected item total correlation. The results are presented in Table 5.3 to Table 5.8.
5.3.1 Brand Awareness
Tracking an individual branded product or service involves the measurement of brand awareness and image for the particular brand. Table 5.3. represents measures that have been used to collect information for the recall and recognition of the Tshwane University of Technology s brand awareness.
Chapter 5 Data analysis and Interpretation of Results 117 Table 5.3: Reliability analysis for the Brand Awareness Scale (Source: Own Source)
Item Description Corrected Item- Total Correlation 1. I know what the TUT logo looks like. 0.325 2. I would recognise the TUT logo amongst logos of other tertiary institutions. 0.415 3. Some distinct characteristics of TUT comes to my mind when I see the TUT logo. 0.534 4. TUT is my favourite tertiary Institution in South Africa. 0.629 5. I am proud to study at TUT. 0.651 6. I have no difficulty in imagining TUT as a tertiary institution in my mind. 0.601 Cronbachs alpha 0.776
5.3.2 Brand Quality
According to Aaker (2002:17) perceived quality is a brand association that is elevated to the status of a brand asset for several reasons: Among all brand associations, only perceived quality has been shown to drive financial performance. Perceived quality is often a major (if not the principle) strategic thrust of a business Perceived quality is linked to and often drives other aspects of how a brand is perceived.
Keller (2003:82) states that quality correlates directly to brand performance, relating to the way in which the product or service attempts to meet customers more functional needs. Table 5.4. reflects descriptions that were used to test the respondents perception of the brand quality of the Tshwane University of Technologys brand.
Chapter 5 Data analysis and Interpretation of Results 118 Table 5.4: Reliability analysis for the Brand Quality Scale (Source: Own Source)
Item Description Corrected Item- Total Correlation 1. TUT as a tertiary institution provides top quality education. 0.634 2. There is no need for TUT to evaluate certain aspects of their curricula to improve on. 0.498 3. TUT maintain high standards of quality. 0.728 4. TUT facilities compares to the best in South Africa. 0.615 5. TUT has well qualified staff. 0.623 6. TUT does not provide excellent quality education. 0.474 Cronbachs alpha 0.822
5.3.3 Brand Loyalty
Brand Loyalty is the third brand asset category according to Aaker (2002:21), which is appropriate and useful to include in the conceptualisation of brand equity. The following descriptions reflected in Table 5.5. below illustrate the considered brand loyalty that have been tested among the respondents of the Tshwane University of Technology.
Table 5.5: Reliability analysis for the Brand Loyalty Scale (Source: Own Source)
Item Description Corrected Item- Total Correlation 1. I consider myself loyal to TUT. 0.609 2. TUT would always be my first choice for tertiary education. 0.603 3. I will only consider another tertiary institution if TUT is not able to accommodate me. 0.446 4. I identify with people who study at TUT. 0.520 5. I like to talk about TUT. 0.608 Cronbachs alpha 0.775
Chapter 5 Data analysis and Interpretation of Results 119 5.3.4 Brand Reliability
According to Keller (2003:88), brand judgements focus on customers personal opinions and evaluations with regard to a brand. Brand judgements reflect how customers put together different performance and imaginary associations of the brand to form different kinds of opinions. Keller (2003:88) states that brand reliability refers to the extend to which the brand can be seen as a whole in terms of three dimensions of reliability namely, perceived expertise (competent, innovative, and a market leader), trustworthiness (dependable and keeping customers interests in mind, and likeability (fun, interesting, and worth spending time with). More specific how customers see the organisation behind the brand as good at what they are doing, concerned about their customers, and if the organisation is likeable. Table 5.6. below reflects the descriptions used for testing brand reliability of Tshwane University of Technologys brand.
Table 5.6: Reliability analysis for the Brand Reliability Scale (Source: Own Source)
Item Description Corrected Item- Total Correlation 1. TUT has always met my expectations. 0.906 2. I perceive TUT as a tertiary institution. 0.910 3. I have confidence in the TUT name. 0.911 4. I have never been disappointed in TUT as a tertiary institution. 0.909 5. TUT satisfies my most demanding tertiary requirements. 0.906 6. TUT do whatever possible to help me when I experience a problem with my studies. 0.911 7. I have a favourable attitude toward TUT. 0.906 8. I would recommend TUT as a tertiary institution to others. 0.906 9. TUT as a tertiary institution is innovative. 0.912 10. TUT as a tertiary institution have knowledgeable academic staff. 0.911 11. TUT as a tertiary institution is trustworthy. 0.907 12. TUT as a tertiary institution is concerned about their students. 0.908 13. TUT as a tertiary institution is concerned about society as a whole. 0.912 14. TUT as a tertiary institution is admirable. 0.908 Cronbachs alpha 0.915 Chapter 5 Data analysis and Interpretation of Results 120 5.3.5 Brand Feelings
Keller (2003:90) is of the opinion that brand feelings represent customers emotional responses and reactions with respect to a brand. Brand feelings also relate to the social currency evoked by the brand. Table 5.7. below reflects description items testing the brand feelings that the students at the Tshwane University of Technology have about the institutions brand.
Table 5.7: Reliability analysis for the Brand Feelings Scale (Source: Own Source)
Item Description Corrected Item- Total Correlation 1. TUT gives me a feeling of warmth. 0.663 2. TUT gives me a feeling of professionalism. 0.725 3. TUT gives me a feeling of security. 0.628 4. TUT gives me a feeling of social approval. 0.649 5. TUT gives me a feeling of self-respect. 0.655 Cronbachs alpha 0.849
5.3.6 Brand Equity
According to Keller (2003: 50), brand equity depends on factors such as the initial choices for the brand elements making up the brand, the way the brand is integrated and supporting the marketing program, and the associations indirectly transferred to the brand by linking the brand to some entity, for example an institution. Managing brand equity concerns those activities that take a broader and more diverse perspective of a brand s equity (understanding how brand strategies should reflect corporate concerns and be adjusted, if at all over a period of time). Table 5.8. below reflects descriptions of how the students of the Tshwane University of Technology experience the brand equity of the institution. Chapter 5 Data analysis and Interpretation of Results 121 Table 5.8: Reliability analysis for the Brand Equity Scale (Source: Own Source)
Item Description Corrected Item- Total Correlation 1. It makes sense to study at TUT as opposed to any other tertiary institution that provides the same qualifications. 0.676 2. Even if another tertiary institution is close by and offers the same features, as TUT, I would prefer to study at TUT. 0.676 Cronbachs alpha 0.804
5.3.7 Cronbachs alpha value summary
All scales discussed above have Cronbachs alpha values of above 0.7 and can be considered as reliable measures.
5.4 DESCRIPTIVE INFORMATION ON BRAND AND BRAND EQUITY SCALES
A single score per scale is created by obtaining a mean score across all the items/questions that comprise the scale. For example: Awareness =(q1+q2+q3+q4+q5+q6)/6
The mean calculation in SPSS (Statistical Package for the Social Science) accommodates for missing values, adapting the formula to divide by a smaller number should one or more question be missing. The mean scores on each of the different scales are plotted graphically in Figure 5.8. The full descriptive analyses on the scales are presented in Table 5.9. The descriptive information on the individual items are contained within the ambit of Appendix 1.
Chapter 5 Data analysis and Interpretation of Results 122 3.77 4.18 3.75 3.66 3.73 3.58 1 2 3 4 5 Awareness Quality Loyalty Reliability Feeling Equity
Figure 5.8: Mean scores of the Brand Equity scale (Source: Own Source)
Overall, awareness scored very high among respondents (average of 4.18) this is followed by Feelings (3.75), Loyalty (3.73), Equity (3.77), Reliability (3.66). Quality (3.58) is the branding aspect that scored the lowest, although only slightly below Reliability. Of importance the fact that, the different branding aspects scored near equal on the brand equity scale.
Brand Awareness: From the score attained, the analogy can be drawn that the respondents from the Tshwane University of Technology scored high on brand awareness (brand recognition and brand recall) resulting in a positive strength of brand associations that make up the brand image. High brand awareness also raise the consideration set of liking the brand making the TUT brand more acceptable when compared to competitor brands. Brand Feelings: The construct brand feelings among the respondents indicated that the respondents positively responded to emotional responses and reactions with respect to the TUT brand. This resulting in favourable behaviour towards the TUT brand and as mentioned earlier, encounters a positive score when students think of the TUT brand. Chapter 5 Data analysis and Interpretation of Results 123 Brand Loyalty: The construct brand loyalty among the respondents measured positive towards the TUT brand. This reflects a positive attachment the respondents have with the brand, which in turn have a beneficial tendency to be loyal towards the TUT brand. Brand Reliability: The construct brand reliability among the respondents show that the respondents have an above average brand judgement about the brand reliability values. This results in a favourable opinion and association about the TUT brand. Brand Equity: Testing the construct brand equity among the respondents, resulted in a positive relationship the respondents experience with the TUT brand. The tested dimensions measured, created an ideal fit for creating superior brand equity trust amid the respondents. Brand Quality: Brand quality has the lowest score among the respondents when compared to the other elements. This results in low assessment of the experience the students have with the TUT s performance, and influence the way the product or service attempts to meet the customers functional needs.
Table 5.9: Descriptive information on the Brand Equity Scales (Source: Own Source)
Chapter 5 Data analysis and Interpretation of Results 124 The correlation between the different brand scales is depicted in Table 5.10. below. High correlations are evident between all brand scales.
Table 5.10: Correlation between Brand Scales (Source: Own Source)
N 315 314 315 312 308 Pearson Correlation 1 .710(**) .661(**) .567(**) Sig. (2-tailed) .000 .000 .000 Loyalty
N 316 316 313 309 Pearson Correlation 1 .797(**) .634(**) Sig. (2-tailed) .000 .000 Reliability
N 318 315 311 Pearson Correlation 1 .585(**) Sig. (2-tailed) .000 Feeling
N 315 308 Pearson Correlation 1 Sig. (2-tailed) Equity
N
311 ** Correlation is significant at the 0.01 level (2-tailed).
While all correlations are significant, using the r-value as an estimation of effect size (see Chapter 4), the correlations between Reliability and Quality (r =0.755) and between Reliability and Loyalty (r =710) are especially high. Feelings, also shows a high correlation with Reliability (r =634).
As stated before, reliability consists of the way a brand is perceived by its customers through observing the brands expertise, trustworthiness and likeability. In comparison, quality refers to the observation of a brands performance. Feelings however refer the warmth, fun, excitement, security, social approval and self respect one experience when using the brand. From the above results the analogy can be drawn that although the above mentioned constructs not necessarily attaiened the Chapter 5 Data analysis and Interpretation of Results 125 highest score, they do have a high correlation with one another, which make it compulsory for TUT to consider in their brand building, as it plays a vital role in the acceptance of the TUT brand among the students.
5.5 COMPARISONS OF DEMOGRAPHIC GROUPS ON BRAND SCALES
A comparison of certain demographic groups on the brand scale scores, help to determine where perceptions of the brand may differ, helping to create a better understanding of branding and brand equity. The first variable compared with regards to the brand score, is gender. The scores of males and females were compared using the t-test for independent measures, and the results are summarised in Table 5.11. The mean scores of males and females are plotted graphically in Figure 5.9. to assist with the interpretation of results.
Table 5.11: Comparison of males and females on Brand Scores: t-test for independent measures (Source: Own Source)
The only brand aspect where males and females differ, is with regards to Brand Equity as the significance value or p-value, is below the cut off of 0.05 (p =0.000).
t df p-value Awareness 0.517 315 0.605 Quality 0.140 312 0.889 Loyalty 1.229 313 0.220 Reliability 0.834 315 0.405 Feeling 0.966 312 0.335 Equity 3.571 308 0.000 Chapter 5 Data analysis and Interpretation of Results 126
3.94 4.16 4.19 3.78 3.68 3.77 3.59 3.48 3.69 3.62 3.66 3.58 1 2 3 4 5 Awareness Quality Loyalty Reliability Feel ing Equity Females Mal es
Figure 5.9: Mean scores of males and females on Brand scores (Source: Own Source)
Figure 5.9. shows that females have a much higher Brand Equity score than males (3.94 vs. 3.48). This leads into the analogy that female students have higher identification levels and familiarity with the brand and holds probably more strong, favourable and unique brand associations in memory than male students. In determining the differential response between the genders, the Tshwane University of technology can use these results to assist in making up the brand equity of the institution.
In addition , the brand scores were also compared for the age groups. Due to the small sample size in some age categories, the age categories have been collapsed into two categories, namely 21 years and younger and 22 years and older.
Table 5.12 reflects the results of the independent t-test for differences in means and Figure 5.10. reflects the mean scores graphically.
Chapter 5 Data analysis and Interpretation of Results 127 Table 5.12: Comparison of two age groups on Brand scores: t-test for independent measures (Source: Own Source)
It is only with regards to the Loyalty aspect, that the two age groups differ significantly (p <0.05). The graphic depiction of the means indicate that the older group (22 +years), are more loyal than the younger respondents. Demographic factors according to Keller (2003:84), can influence brand users associations of a typical or idealised brand.
Age as a demographic factor plays a role in the results as measured above, due to the fact that the older respondents may have a different association with the brand and experience the loyalty differently than the younger group. Some of the respondents fall in the group of students enrolled before the merger and due to their longer studying period at the TUT have a higher loyalty to the institution. This aspect should be taken into consideration as it may play a unique role in the acceptance of the brand among the students and how it can affect loyalty of the younger group and prospective students in future.
Chapter 5 Data analysis and Interpretation of Results 128 3.68 3.84 4.15 3.81 3.7 3.61 3.52 3.67 4.22 3.7 3.83 3.74 1 2 3 4 5 Awareness Quality Loyalty Rel iabili ty Feeli ng Equity 21 Years and younger 22 years and ol der
Figure 5.10: Mean scores of two age groups on Brand scores (Source: Own Source)
An ANOVA (analysis of variance) test was used to compare the brand perceptions of respondents from the three different campuses: Pretoria Campus, GaRankuwa Campus and Shoshanguve Campus. Table 5.13 presents the results of the ANOVA test and Figure 5.12 graphically depicts the mean scores of each group.
Table 5.13: Comparison of the different Sites: ANOVA (Source: Own Source)
The ANOVA analysis indicates significant differences in terms of all Brand Scales with the exception of Awareness (all p-values <0.05).
F value p-value Awareness 0.761 0.468 Quality 13.711 0.000 Loyalty 4.393 0.013 Reliability 6.899 0.001 Feeling 3.581 0.029 Equity 8.303 0.000 Chapter 5 Data analysis and Interpretation of Results 129 A post hoc test was performed to help identify between which of the three sites that differences are significant. Overall, GaRankuwa has the lowest scores on all branding aspects and are significantly below the other sites in terms of Reliability, Feeling and Equity. Pretoria has a significantly higher perception of quality than the other two sites. Soshanguve scored the highest of the three on the overall brand equity.
3.71 4.25 3.48 3.73 3.81 4.05 4.18 3.31 3.50 3.36 3.23 3.56 3.75 4.15 3.81 3.81 3.73 3.93 1.00 2.00 3.00 4.00 5.00 A w a r e n e s s Q u a l i t y L o y a l t y R e l i a b i l i t y F e e l i n g E q u i t y GaRankuwa Pretoria Shoshanguve
Figure 5.11: Mean scores of three sites on Brand scores (Source: Own Source)
The analogy, which can be drawn is that the differences in the brand scales of the three campuses can be attributed to the fact that the three campuses acted as separate entities and had an own corporate image and identity before the merger. This results in an opinion that the TUT brand is perceived by the students at the different sites as separate as opposed to one brand identity. The Tshwane University of Technology is one brand, a brand that is servicing three sites under one brand identity. These results will assist the institution to focus on the areas of differences and to ensure that the brand building construct must be seen as the same by the students from the three campuses. Chapter 5 Data analysis and Interpretation of Results 130
A further demographic aspect to be evaluated is the difference between respondents who enrolled at different time periods. The enrolment variable is categorised into two groups namely those students enrolling during 2004 or before, and those enrolling in either 2005 or 2006. Differences between these two groups are compared by means of an independent t-test, and the results are presented in Table 5.14.
Table 5.14: Comparison of two enrolment groups on Brand scores: t-test for independent measures (Source: Own Source)
Statistically, there are no differences between the brand perceptions of respondents who joined TUT in 2004 or before, and those respondents who joined in 2005 and 2006.
5.6 PREDICTING BRAND EQUITY
In an attempt to understand Brand Equity and what drives this concept, a regression analysis was performed with the Brand Equity scale being the dependent variable and the Brand Scales, the independent variable (See Table 5.15).
Chapter 5 Data analysis and Interpretation of Results 131 Table 5.15: Model summary of the regression model to predict Brand Equity (Source: Own Source)
Model R R Square Adjusted R Square 1 .666(a) .444 .434 a Predictors: (Constant), Feeling, Awareness, Quality, Loyalty, Reliability
The r-square value indicates how much of the variance in the dependent variable is explained by the model (independent variables). The Branding Scales represent 44% of the variance. According to Pallant (2001: 145) this value is very respectable. When evaluating the actual contribution of each of the independent variables, Pallant explains that when interested in comparing different variables, the standardized Coefficient is compared.
Table 5.16: Contribution of Independent variables to the predicting Brand Equity (Source: Own Source)
As reflected in Table 5.16, reliability has the largest Beta value (0.374) and therefore contributes the most to Brand Equity. After Reliability comes Loyalty with a beta value of 0.165. Brand Quality has a p-value of more than 0.05, and therefore do not make a unique contribution to the predication of Equity. By evaluating the above results it can be concluded that the perception of the brand experience, trustworthiness and likeability forms a significant contribution to the TUT brand. The Chapter 5 Data analysis and Interpretation of Results 132 Loyalty construct rated second in importance followed by Feelings, Awareness and Quality. Using these results together with the scores gleaned from the correlations between the different brand construct used to measure brand equity, the conclusion can be drawn that it will effect the branding and brand equity of the Tshwane University of Technology, and result in better acceptance of the TUT brand.
As males and females showed a difference in their equity scores, but not really in terms of any other variables, a separate regression score was calculated for each gender. For females as reflected in Table 5.17, Reliability is the predominate driver of Equity. Females place value on Loyalty and then Feeling and place a loser value on Awareness. For males controversially, while Reliability still plays a large role, Awareness and Feeling becomes more important.
Table 5.17: Contribution of Independent variables to the predicting Brand Equity: Females (Source: Own Source)
Standardized Coefficients
Beta T Sig. (Constant) 0.090 0.928 Awareness 0.099 1.331 0.185 Quality (0.093) (1.118) 0.265 Loyalty 0.142 1.612 0.109 Reliability 0.407 3.556 0.000 Feeling 0.138 1.415 0.159 Chapter 5 Data analysis and Interpretation of Results 133 Table 5.18: Contribution of Independent variables to the predicting Brand Equity: Males (Source: Own Source)
From the above results, it is clearly evident that the Tshwane University could benefit should they consider the findings of this research, in particular as students have different importance attached to the various brand constructs. Female respondents experience the brand much more trustworthy, likeable and having expertise. Followed by high loyalty, which will contribute, to choosing the brand again if compared to competitors. Also of importance to females are the feelings experience with the use of the brand, focusing thus on warmth, fun, excitement, security, social approval and self- respect.
Compared to the females, male place a high value on experiencing the brand as likeable, trustworthy and having expertise. Feelings are rated second, focusing on warmth, fun, excitement, security, social approval and self-respect. Rated third, awareness forms part of an important construct to the males, resulting in how the respondents experience the brand through recognition and recall, thus forming a perspective on decision making towards a specific brand.
Standardized Coefficients
Beta t Sig. (Constant) (2.653) 0.009 Awareness 0.162 2.032 0.045 Quality 0.041 0.351 0.726 Loyalty 0.155 1.505 0.135 Reliability 0.311 2.100 0.038 Feeling 0.196 1.648 0.102 Chapter 5 Data analysis and Interpretation of Results 134 5.7. CONCLUSION
This chapter presented the empirical section of the research. Firstly, the demographic characteristics of the respondents were explained. Secondly, the reliability of the brand scales used in the questionnaires was examined. Thirdly, the internal reliability of the scales were determined, reflecting the views of the respondents on each brand equity aspect. Fourthly, the scores on these scales were compared for the different demographic groups to establish any significant difference in the views of the different groups. Lastly, relationships between the different brand equity scales were tested and described. In Chapter 6, these results will be summarised and recommendations made.
CHAPTER 6 Conclusion 134 CHAPTER 6: CONCLUSION
6.1 INTRODUCTION
In this concluding chapter, final analogies will be drawn from data analysis conducted within the ambit of Chapter 5. The research design and methodology will be re-stated, and particular reference will be made to the limitations within which the research has been conducted. For the purpose of completeness, the research problem, research question and investigation questions will be re-stated and elaborated upon. Key research finding will be mapped to the research content, while specific recommendations will be made, to not only mitigate the research problem, but to serve an approach for the Tshwane University of Technology to improve its branding and brand equity.
6.2 THE RESEARCH DESIGN AND DATA COLLECTION DESIGN AND METHODOLOGY
Case study research was conducted within the ambit of this research study. This was demonstrated in Chapter 1 (The scope of the research), Chapter 4 (Research Design and Methodology), and Chapter 5 (Research results).
The sample population was selected through non-probability sampling. This was conducted through the method of quota sampling. The quota pertained to first, second and third year students enrolled for the course Marketing Management at the Tshwane University of Technology studying at Pretoria, CHAPTER 6 Conclusion 135 Soshanguve and Ga-Rankuwa campuses. A questionnaire was used where structured closed questions were posed to the respondents. The aim of the data collection method was to determine what the acceptance and brand equity of the Tshwane University of Technology brand is amongst the students of the University.
6.3 THE RESEARCH PROBLEM RE-VISITED
The research problem formulated in Paragraph 1.3.1 of Chapter 1 reads as follows: The non- acceptance of branding by students of Tshwane University of Technology impacting adversely on the institutes competitiveness.
The research in this dissertation, in the opinion of this author can be mitigating successfully should the recommendations that are elaborated upon in Paragraph 6.7 of this chapter be implemented by the Tshwane University of Technology.
6.4 THE INVESTIGATIVE QUESTIONS RE-VISITED
The investigative questions that were researched in support of the research are analysed below.
Investigative Question 1: What are the opinions of students of the Tshwane University of Technologys brand? The survey returned the following: CHAPTER 6 Conclusion 136 Brand Awareness: Respondents scored high on Brand Awareness (brand recognition and brand recall) resulting in a positive strength of brand associations that make up the brand image. High brand awareness also raise the consideration set of liking the brand making the TUT brand more acceptable when compared to competitor brands. Brand Reliability: The construct Brand Reliability have an above average brand judgement pertaining to the brand reliability values. This results in a favourable opinion and association about the TUT brand. Brand Feelings: The construct brand Feelings indicated that the respondents positively responded to emotional responses and reactions with respect to the TUT brand. This resulted in favourable behaviour towards the TUT brand, and as mentioned earlier, returns a positive score when students think of the TUT brand. Brand Loyalty: The construct Brand Loyalty among the respondents measured positive towards the TUT brand. This reflects a positive attachment the respondents have with the brand, resulting in a beneficial tendency to be loyal towards the TUT brand. Brand Quality: Brand Quality has the lowest score among the students when compared to the above construct. This results in low assessment of the experience the students have with the TUTs performance. This also influences the way the product or service attempts to meet customers functional needs. Brand Equity: Testing the construct Brand Equity among the respondents, resulted in a positive relationship which respondents CHAPTER 6 Conclusion 137 experience with the TUT brand. The tested dimensions measured, created an ideal fit for creating superior brand equity trust amid the respondents. Brand scale correlation: The correlation between Reliability and Quality and between Reliability and Loyalty are especially high. Feeling also shows a high correlation with Reliability. Scoring of the branding aspects tested on the various sites: Overall, GaRankuwa has the lowest scores on all branding aspects and is significantly below that of the other sites in terms of Reliability, Feelings and Equity. Pretoria has a significantly higher perception of quality if compared to the other two campuses. Soshanguve scored the highest of the three on the overall brand equity. Investigative Question 2: How do students respond to the TUT brand elements? Memorable: A necessary condition for building brand equity is achieving high level of brand awareness. Brand Awareness scored high among the students of the Tshwane University of Technology. Meaningful: What association did the students form with the Tshwane University of Technologys brand that will enhance the inherent meaning they have with the brand? The respondents had high brand judgement which resulted in favourable opinions and association with the TUT. Likeable: Students had a positive feeling about the TUT brand resulting in favourable behaviour towards the TUT, which include visual and imagery, inherently fun and interest in the brand as well as an CHAPTER 6 Conclusion 138 aesthetically about the brand. This culminate in an inherently likeability they have for the TUT brand. Adaptable: The conclusion can be drawn that the differences in the brand scales of the three campuses points to the fact that the campuses acted as separate entities with their own names, logos, which had their own appearance and had an own corporate image and identity before the merger. The analogy can be drawn that the TUT brand is perceived by the students at the different sites as separate and not as one brand identity. Due to this fact, the TUT brand is not seen as adaptable and flexible. Investigative Question 3: To what extent is the Tshwane University of Technologys brand equity reported by students? Important to students: Respondents returned that the value they add on the construct brand reliability (consisting of experience, trustworthiness and likeability) is very high and as a result reflect a positive perception and experience with the brand. This provides a significant contribution to the building of a stronger TUT brand. The Loyalty construct rated second in terms of importance followed by Feelings, Awareness and Quality. J uxtaposing these results with the scores gleaned from the correlations between the different brand constructs used to measure brand equity, the conclusion can be drawn that this will effect the branding and brand equity of the Tshwane University of Technology, resulting in a better acceptance of the TUT brand. Important to gender: For females, Reliability is the predominant driver of Equity. Female respondents placed value on Loyalty followed by Feeling, CHAPTER 6 Conclusion 139 however they do not place a high value on Awareness. For males controversially, while Reliability still plays a large role, Awareness and Feeling becomes more important. TUT should be aware of the fact that there is a difference between the student in terms of gender and the importance they place on the different construct, as these results can contribute to higher brand equity for the TUT brand. 6.5 KEY RESEARCH FINDINGS
The following findings represent the key research findings of this survey:
The data gathered form the above research study reported that the students participating in the research are aware of the TUT brand and can recognize the brand among competitors brand. Although they do not place extremely high value on the quality of the brand and perceive it as not so important to the predication of the brand equity TUT can use this as an opportunity for improving the image of the university and creating more awareness that will certainly contribute to the quality of the TUT brand, resulting in higher brand equity for the brand. Students judged the brand as reliable resulting in a favorable opinion and association with the TUT brand. Reliability tested as one of the most important construct students compare when judging the brand, making it essential not to overlook when planning brand strategies for building a strong TUT brand. CHAPTER 6 Conclusion 140 The construct brand loyalty among the respondents measured successfully high indicating a positive attachment the respondents have with the brand resulting in a beneficial tendency to be loyal towards the TUT brand. Students feelings indicated that the respondents behaviour are favourably towards the TUT brand and as mentioned earlier encounters positive responses when thinking of the TUT brand. Respondents have a positive relationship with the brand, after testing the various constructs. As mentioned above reliability has the largest beta value and therefore contributes the most to brand equity. After reliability are loyalty, feelings and awareness. Thus the tested dimensions measured successfully created an ideal fit for creating superior brand equity trust amid the respondents. This culminating in a better understanding of the importance of the various brand equity constructs and how it can effect the acceptance the students have about the TUT brand impacting on the institutes competitiveness.
6.6 RECOMMENDATIONS
The following recommendations if implemented, can assist the Tshwane University of Technology to maintain its current branding and brand equity position and enhance its brand in becoming even stronger.
Emphasise the building of one corporate brand: Focus on the family brand TUT employing a corporate branding strategy. Focus the marketing program on one or two key associations: Find the points that is making TUT different from the competitors. Focus on these key associations and reinforce it across the marketing program over time. Identify and partner with a non competitive tertiary institution that target the same market (students) and combine marketing or advertising campaigns that benefits both parties creating exposure that cost less and it worth a fortune. Maximise the contribution of each element that is used to build brand equity: Focus on the areas where respondents rated values indifferent, as it is in this arena that improvements can be affected to ensure a better understanding and building of a stronger TUT brand. Design creative brand building push campaigns: Motivate students to use favourable word of mouth, create unique brand associations, and build on good public relations. Create something extravagant, cheeky or courageous to get radio show hosts and journalist to talk about TUT efforts. Leverage as many secondary associations as possible: Use any entity with potential relevant associations that can signal quality and credibility. The Tshwane University of Technology need to establish branding strategies that will focus on the institutions brand image, striving to CHAPTER 6 Conclusion 142 occupy a distinct and valued place in the minds of its stakeholders and competitors by reinforcing quality at the three campuses delivering excellent services and education. Building awareness can enhance the formation of brand association. Forming associations with the brand can culminate in possibilities that the brand can be use to establish itself better in the minds of the customers, resulting in higher brand equity for the TUT brand. Supporting the position of the brand, creating an image of the Tshwane University of Technologys as the leading university of technology. This can result in the development of a corporate identity for the institution differentiating Tshwane University of Technology from its competitors.
6.6.2 Secondary Recommendations
The proposed research in terms of the above tested objectives will benefit Tshwane University of Technology as follows: Implementing strategies to maintain and enhance Tshwane University of Technologys competitiveness through branding. Effective and consistent communication to all relevant stakeholders. Assist Tshwane University of Technology to understand how the student perceives and respond to the brand. Enabling Tshwane University of Technology to implement effective brand strategies to help gain sustainable differentiation. CHAPTER 6 Conclusion 143 Assist Tshwane University of Technology to benchmark them among the merged and established institutions of higher education in South Africa through effective brand strategies. Establish Tshwane University of Technology as the leading University of Technology through the acceptance of the brand by the students. 6.7 PERSONAL REFLECTION
This author is of the opinion that: The literature study conducted for the purpose of the research mooted an interest in the effect of branding and brand equity and how it can impact upon the acceptance of a brand. The overall experience that the branding and brand equity of The Tshwane University of Technology is positive resulting in specific areas that can be focussed on such as differences in gender and age as well as the challenge of creating and establishing a brand that will be seen indifferent by the three campuses representing the Tshwane University of Technology.
6.8 CONCLUSION
The Tshwane University of Technology faces the challenge of benchmarking themselves against other institutions of higher education in South Africa. The research primarily attempted to identify the acceptance of the Thswane University of Technologys brand amid its students. The analogy can be drawn from the research that a strong brand will dominate the market and that CHAPTER 6 Conclusion 144 branding is about being different. The results from the survey returned that although the brand equity constructs tested positively, TUT should react on the indifferences found in the demographic profile of the students, and which importance they attached to the different brand constructs. It is recommended that the recommendations should be implemented to assist the University to become more known, improve on their offerings quality, and build relationship with the various customers of the University. The implementation of the recommendations in view of the author will culminate in the build of a stronger brand and higher brand equity for the Tshwane University of Technologies brand. Bibliography 146
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