University of Stellenbosch Business School (USB)

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Browsing University of Stellenbosch Business School (USB) by browse.metadata.advisor "Boshoff, Christo"

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    The development of a new instrument to measure client-based corporate reputation in the service industry
    (Stellenbosch : Stellenbosch University, 2014-12) Wepener, Marie Louisa; Boshoff, Christo; Van der Merwe Smit, Eon; Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
    ENGLISH ABSTRACT: The link between a favourable corporate reputation and business benefits is well established. Most executives recognise the importance of a favourable corporate reputation in building a competitive advantage for their organisations. However, the measuring of a corporate reputation, particularly in the service industry, has remained problematic. This study addresses this lingering gap in the literature and focuses on the development of an instrument to measure the client-based corporate reputation of organisations functioning in the service industry. This includes the identification of the factors (dimensions) that clients of large service organisations consider when they evaluate the reputations of organisations. Large organisations functioning in two sectors, the banking sector and the airline sector, were selected as the focus in this study. Groundwork for the design of a reputation-measuring instrument included the clarification of key terms (e.g. corporate identity, corporate image, corporate brand and corporate reputation). It also included a review of corporate reputation from various perspectives (e.g. organisational studies, economics, strategy and corporate communication). It also included discussions on scale development and the various approaches to the conceptualisation and operationalisation of corporate reputation. This study followed mainly a positivistic paradigm, involving quantitative methods. However, two qualitative methods were also used: a focus group discussion to identify patterns of thinking used by clients to assess corporate reputation and the expert-panel method to obtain the inputs of a panel of experts. Six large-scale surveys in three waves served as primary data sources. Large samples of the target population were used to obtain data that was statistically analysable. Secondary data sources included an extensive literature review. To develop the measurement scale, a series of steps was used to refine, purify and replicate the instrument. The process started with an exploratory factor analysis and concluded with an invariance analysis. The data was analysed during three waves of data collection. A variety of statistical techniques was used to assess the construct validity of the proposed instrument, including unidimensionality, convergent validity, reliability, discriminant validity, nomological validity, model fit and invariance. The outcome is a 19-item instrument using five dimensions to measure the client-based corporate reputation of large organisations in the service industry. These dimensions are Emotional appeal, Corporate performance, Social engagement, Good employer and Service points. This study contributes to the existing literature by the development of a valid and reliable instrument that can be used to measure a service organisation’s client-based corporate reputation before embarking on a reputation-enhancement programme. This study proposes that the measurement of an organisation’s client-based corporate reputation is a crucial starting point to assess the gap between where it is and where it wants to be in terms of its corporate reputation, and to manage its reputation accordingly. By using the proposed instrument, managers will be able to track their organisations’ corporate reputation over time, both overall and at the level of the five dimensions separately.
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    Trademark and brand dilution : an empirical investigation
    (Stellenbosch : Stellenbosch University, 2014-04) Kruger, Hannelie; Boshoff, Christo; Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
    ENGLISH ABSTRACT: The Constitutional Court in the Republic of South African indicated in 2006 (Laugh It Off Promotions CC v SAB International (Finance) BV t/a Sabmark International (Freedom of Expression Institute as amicus curiae), 2006 (1) SA 144 (CC)) that a senior trademark cannot be provided with anti-dilution protection if the senior trademark cannot demonstrate a probability of substantial economic harm. In the United States of America, legislation (Trademark Dilution Revision Act of 2006) corrected an earlier Supreme Court decision (Moseley v Victoria's Secret Catalogue, Inc., 537 U.S. 418 (2003)), and as a result evidence of a probability of dilution is now required to provide a senior trademark with anti-dilution protection. Senior trademarks experienced mixed success in courts in the Republic of South Africa as well as the United States of America when requesting anti-dilution protection. The reason is that when empirical evidence is offered of trademark dilution the nature of the evidence is usually limited and the method of obtaining it is often flawed. The response of brand managers to trademark infringement also seems to be limited to decisions contemplating litigation. Therefore, to assist both the legal and marketing fraternity when trademark infringement is thought to occur, this study investigates the nature and extent of trademark dilution. A literature review revealed the elements and forms (tarnishing and blurring) of trademark dilution and the motivation for using the concept ‘brand’ and the construct ‘brand equity’ to conceptualise trademark value. The limitations of previous research in measuring trademark dilution and commentary on court decisions provided the basis of the conceptualisation of trademark dilution as an undesirable effect on customer-based brand equity, operationalised as brand attitude. Brand attitude is a higher level brand value creator and five sub-components (affect, cognition, attitude valence and stability, attitude accessibility, purchase intention) were identified that measures brand attitude accurately. Brand attitude is also preceded by brand familiarity and leads to brand loyalty. Furthermore, brand attitudes can also be explained according to four types of decision-making processes: the type of decisions (high and low involvement) and type of motivations (informational and transformational). The purpose of this study was to investigate the nature and extent of trademark dilution, (tarnishing and blurring) on components of customer-based brand equity. The study used an experimental research strategy and an electronic survey instrument (Qualtrics) with self-administered questionnaires. Six hypotheses were formulated to assess whether trademark tarnishing and blurring had an effect on any component of customer-based brand equity when trademarks/brands were considered collectively and individually. The study was designed as a 3 x 2 x 2 factorial experiment. It consisted of three factors (type of dilution; type of decision; type of motivation) with different levels (undiluted/tarnish/blur; high involvement/low involvement; informational/transformational). Twelve different questionnaires were administered to a convenience sample of 3 441 potential respondents. The data generated by the 12 questionnaires was analysed using ANOVA and Mann-Whitney U tests. The results suggested that trademark tarnishing did have statistically significant effects on components of customer-brand equity as far all trademarks/brands were concerned and that the effect of trademark tarnishing and blurring were different when all trademarks/brands were considered together. Tarnishing and blurring had statistically significant effects on components of customer-based brand equity when individual trademarks/brands were considered, but the effect seemed to be specific to the type of decision (high/low involvement) taken and not the type of motivation (informational/transformational) involved. Tarnishing and blurring, when compared, had different and similar, but varying in intensity, effects on components of customer-based brand equity for individual trademarks/brands. Tarnishing and blurring, when considered separately, had different and similar, but varying in intensity, effects on components of customer-based brand equity. The study made a theoretical contribution which should be of value to members of the legal and marketing fraternity. The study showed in the first instance that trademark tarnishing and blurring are independent constructs that had different or similar, but varying in intensity, effects on components of customer-based brand equity. The effect of trademark dilution, tarnishing and blurring, is not limited to brand recall and recognition and brand attitude accessibility. Trademark tarnishing also had different or similar, but varying in strength, effects on individual trademarks/brands, as did trademark blurring. The type of decision (high or low) and type of motivation (informational or transformational) therefore play a role in the unique effect trademark tarnishing or blurring will have on components of customer-based brand equity. Secondly, the effect of trademark tarnishing and blurring may not be unfavourable by implication. In fact, blurring had a positive effect on components of customer-based brand equity, at least after a single exposure. This finding implies that trademark tarnishing has a more severe and faster effect on customer-based brand equity compared to trademark blurring. A brand manager will, as a result of the study, know how to respond, if at all, when a junior mark emerges that is similar to their senior trademark and seemingly dilutes the senior trademark. An attorney whose client requests anti-dilution protection will know, as a result of the study, whether litigation is indeed the answer to the problem. The study provides insight, not only regarding the nature of trademark dilution, as explained by the impact of trademark tarnishing and blurring on specific components of customer-based brand equity, but also regarding the extent of trademark dilution. Trademark dilution has an effect on trademarks/brands, but the effect, be it in respect of a specific component or the intensity of the effect on the component, may not be what is expected. Based on the results of this study several recommendations can be offered to brand managers and trademark attorneys. Brand managers (senior trademarks) should not respond to junior marks using their brands (senior trademarks) without first assessing the nature and extent of the effect of the junior mark on the senior trademark’s customer-based brand equity. Similarly, attorneys should also first examine the nature and extent of trademark dilution and advise their clients accordingly. Once the nature and extent of trademark dilution have been determined, a brand manager can customise his response according to the component of customer-based brand equity affected as well as the intensity of the effect. Attorneys can support at least part of their arguments to obtain anti-dilution protection for their clients, on very exact indications of the effect of use by a junior mark on customer-based brand equity.