Consumer Evaluations of Brand Extensions: Can B2B Brands be Extended into the Consum er M arket? Maastricht U niversity Faculty of Economics and Business Administration September 2004 Master Thesis International Management Studies Author: Leon Phang ID number: 982261 Supervisor: Dr. H ans Ouwersloot
125
Embed
1. Consumer Evaluations of Brand Extentions B2B to B2C
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
�
�
�
�
�
�
Consumer Evaluations of
Brand Extensions:
Can B2B Brands be Extended
into the Consum er M arket?
�
�
Maastricht U niversity
Faculty of Economics and Business Administration
September 2004
Master Thesis International Management Studies Author: Leon Phang ID number: 982261 Supervisor: Dr. H ans Ouwersloot
Can B2B Brands be Extended into the Consumer Market?
2
“Branding adds spirit and a soul to what would
otherwise be a robotic, automated, generic
price-value proposition. If branding is ultimately
about the creation of human meaning, it follows
logically that it is the humans who must ultimately
provide it.” – David Aaker
Can B2B Brands be Extended into the Consumer Market?
3
ABSTRACT
Brand extensions allow companies to leverage the equity in established brands, and
thereby reducing risk associated with launching new products. A plethora of brand
extension studies have been done in recent years. H owever, there is a paucity of
research investigating business-to-business brand extensions. This thesis examines
whether business-to-business brands can leverage their brands in the consumer market
through brand extensions. A new model is developed by combining Aaker and Keller’s
brand extension model with theories from business-to-business branding as well as
other consumer branding concepts, and tested quantitatively to understand how
consumer evaluate brand extensions. The results of the present study show support for
this new model. More specifically, the results indicate that in the context of business-to-
business brand extensions, consumers use the transferability of skills and resources, and
brand concept consistency with the parent brand category as major cues to evaluate
extensions. Innovativeness and corporate social responsibility are also relevant cues. As
a consequence of these findings, branding strategies that stretch business-to-business
brands into the domain of consumer markets can be successful in cases where
consumers perceive a fit with respect to skills and resources, and brand concept, and
when the parent brand is perceived as being innovative and socially responsible.
Can B2B Brands be Extended into the Consumer Market?
4
CON TEN TS
Abstract 3
List of tables 8
List of figures 8
CH APTER 1. IN TRODU CTION 9
1.1 Background: Leveraging the Brand Across Sectors 9
1.2 Problem Statement 11
1.3 Contributions of the Study 12
1.3.1 Theoretical contribution 12
1.3.2 Practical contribution 13
1.4 Thesis Outline 13
PART I. LITERATURE REVIEW
CH APTER 2. CON SU M ER BRAN D EXTEN SION S 15
2.1 Introduction to the Chapter 15
2.2 Consumer Brand Extensions 15
2.2.1 Brand Extension D efinition 15
2.2.2 Benefits 15
2.2.3 D raw backs 17
2.3 Concepts for Evaluating Brand Extensions 17
2.3.1 Extension reaction 17
2.3.2 Spillover and substitution effects 18
2.3.3 Categorical and piecem eal evaluation processes 18
2.3.4 Brand-specific associations 19
2.4 Summary 20
CH APTER 3. BU SIN ESS-TO-BU SIN ESS BRAN DIN G 21
3.1 Introduction to the Chapter 21
3.2 Corporate Branding Decisions 21
3.2.1 Corporate strategy 21
3.2.2 Corporate brand identity 22
Can B2B Brands be Extended into the Consumer Market?
5
3.2.3 Corporate brand strategy 23
3.2.4 Corporate brand architecture 24
3.3 Corporate Brand Extensions 25
3.3.1 Innovativeness 25
3.3.2 Corporate Social Responsibility (CSR) 26
3.3.3 Environm ental concern 26
3.4 Summary 27
PART II. CONCEPTUAL FRAMEW ORK
CH APTER 4. H YPOTH ESES 29
4.1 Introduction to the Chapter 29
4.2 Knowledge About the Parent Brand 29
4.3 Attitude Towards the Parent Brand 29
4.4 Innovation 30
4.5 Corporate Social Responsibility 30
4.6 Environmental Concern 31
4.7 Transfer 31
4.8 Brand Associations 32
4.9 Perceived Difficulty 32
4.10 Moderating Factors 33
4.11 Summary 35
CH APTER 5. RESEARCH DESIG N 36
5.1 Introduction to the Chapter 36
5.2 The H ypothesized Model 36
5.2.1 The original m odel of Aaker and Keller 36
5.2.2 The current model 37
5.3 Methodology 39
5.4 Questionnaire Development 39
5.4.1 Brands and brand extensions 39
5.4.2 Scaling and m ulti-item scales 40
5.5 Data Collection 42
5.5.1 Pilot-testing 42
5.5.2 Sam pling and response 43
Can B2B Brands be Extended into the Consumer Market?
6
PART III. RESEARCH FINDIN G S
CH APTER 6. AN ALYSIS, RESU LTS AN D IN TERPRETATION S 46
6.1 Introduction to the Chapter 46
6.2 Reliability, Collinearity and Regression Analyses 46
6.2.1 Reliability assessm ent 46
6.2.2 M ulticollinearity 47
6.2.3 Regression analysis results 51
6.2 H ypothesis Testing 56
6.2.1 H1: Parent brand know ledge 56
6.2.2 H2: Parent brand quality 56
6.2.3 H3: Innovative 56
6.2.4 H4: Corporate Social Responsibility 56
6.2.5 H5: Environm ental concern 57
6.2.6 H6: Transfer 57
6.2.7 H7: Brand concept consistency 57
6.2.8 H8: D ifficult 57
6.2.9 H10: Interaction effect betw een Transfer and Brand concept consistency 58
6.3 Discussion and Interpretation 61
6.3.1 Parent brand know ledge 61
6.3.2 Parent brand quality 61
6.3.3 Innovative 61
6.3.4 Corporate Social Responsibility 62
6.3.5 Environm ental concern 62
6.3.6 Transfer 63
6.3.7 Brand concept consistency 63
6.3.8 D ifficult 64
6.3.9 Interaction effects 64
6.3.10 General discussion of the current m odel 64
Can B2B Brands be Extended into the Consumer Market?
7
PART IV. CLOSIN G PERSPECTIVES
7. CON CLU SION S 67
7.1 Summary of the Findings 67
7.2 Conclusions 67
7.3 Limitations and Directions for Future Research 67
7.4 Implications 69
7.4.1 Theoretical implications 69
7.4.2 Managerial implications 69
BIBLIOGRAPHY 71
APPENDIX A. QU ESTION NAIRES 78
APPENDIX B. SPSS OU TPUTS 103
Can B2B Brands be Extended into the Consumer Market?
8
LIST OF TABLES
Table 1.1 Companies Formerly Operating in Business-to-Business Markets Only 11
Table 1.2 Expansion to Consumer Markets 11
Table 4.1 H ypotheses and Their References to Literature 35
Table 5.1 Overview of B2B Brands and B2C Extensions 40
Table 5.2 Multiple-scale Items 42
Table 5.3 Response Profile: Sampling Type 43
Table 5.4 Response Profile: G ender 43
Table 5.5 Response Profile: N ationality 43
Table 6.1 Cronbach’s Alpha Coefficients for Multiple-Item Constructs 47
Table 6.2 VIF Scores of Regression Variables Before and After Residual Centering 49
Table 6.3 VIF Scores of Regression Variables After Omitting Interaction Term 50
Table 6.4 Comparison Effects of Original and Replication Studies 53
Table 6.5 Regression Results: Main and Interaction Effects 54
Table 6.6 Full Model at Brand Level 55
Table 6.7 Summary of H ypothesis Testing 59
Table 6.8 Extension Level Means 60
Table 6.9 Perceived Quality of Parent Brands 60
LIST OF FIG U RES
Figure 3.1 An Integrated Approach to Communications 23
Figure 5.1 H ypothesized Model 38
Can B2B Brands be Extended into the Consumer Market?
9
CH APTER 1.
IN TRODU CTION
1.1 Background: Leveraging the Brand Across Sectors
The changing market dynamics and heightened competition of the global economy has
amplified the role of brands to an unsurpassed level. Brand marketers seek ways to
achieve growth while reducing both the cost of new product introductions as well as the
risk of new product failure. A popular way of launching new products has therefore been
to leverage the equity of an existing brand into a new sector, market, or product
category – a so-called brand extension.
A brand extension strategy can be beneficial because it reduces the new product
introduction costs and also increases the chance of success (Kapferer, 1994). The
rationale behind brand extensions is simple: when a strong brand has been established,
the brand has moved beyond the functional product into a realm of values. It makes
economical sense to try to deliver the same emotional benefits in a different market
(Mortimer, 2003). Since awareness of a certain brand already exists, costs of launching a
new product will, ceteris paribus, be lower than in the absence of a strong brand. The
main objective of brand extensions is hence to leverage the intangible qualities of a
brand since the functional benefits can generally be imitated (U rde, 1999).
Since brand extensions imply launching new products, a key issue is to what
extent these extensions are successful. A theoretical starting point to this discussion is
the concept of brand orientation, which can be defined as “an approach in which the
processes of the organization revolve around the creation, development, and protection
of brand identity in an ongoing interaction with target customers with the aim of
achieving lasting competitive advantages in the form of brands” (ibid., p. 117-118).
Brand orientation is an additional degree of sophistication to market orientation. In
other words, what is demanded by customers at any given moment in time is not
necessarily the same as what will reinforce the brand as a strategic resource. Market
orientation can therefore be a source of conflict to a brand’s long-term development
when achieving competitive advantage is the aim. Ideally, a firm is both market-oriented
Can B2B Brands be Extended into the Consumer Market?
10
and brand-oriented. Keller (2003) argues along the same line concerning brand
extensions –it is not a question of whether a brand should be extended, but rather
where, when, and how it should be extended. Simply put: extend the brand –if it is
possible. Reality shows that companies do this to a large extent: in the 1990s, 81 percent
of new products were brand extensions (Mortimer, 2003), for previously reasons
mentioned. This is not to say that brand extensions are risk-free –it is crucial to know
where the ‘boundaries’ of the brand are. Understanding these limits is not a simple
matter, however. As an example, the deodorant brand Lynx made an unsuccessful
attempt to stretch itself into hair care products. On the other hand, U nilever’s razor
brand G illette successfully stretched into after shaves and deodorants. Thus, even if the
product category of the extension is intuitively related to the product category of the
parent brand, there can still be a lack of fit. On the other hand, brand extensions do not
necessarily have to stick to their parent category. The department store chain Marks &
Spencer launched financial services, although it was a totally different area than
retailing. N evertheless, it worked well, because its customers associated the parent
brand and the financial services with trust.
Virtually all discussions of branding are structured in a consumer marketing
context (Aaker, 1996). That is not to say that industrial or business-to-business branding
is not as important and valuable as consumer branding. Some of the world’s most
powerful brands are B2B brands: ABB, Caterpillar, Cisco, Dupont, FedEx, G E, H ewlett
Packard, Intel, and Siemens1 (W ebster & Keller, 2004). An interesting question then is:
what if the business-to-business brand wants to make a stretch into the consumer
market? This may seem confusing, but many now-famous consumer brands have once
been business-to-business brands and now serving both sectors (see tables 1.1 and 1.2).
The global mobile phone brand N okia started out in forestry (B2B) in 1865, and then
began selling rubber boots in the 1960s, and it was not until the 1980s when it started
making mobile phones, for which it is now famous. Other examples include Philips,
Mitsubishi, Microsoft and IBM, three companies that through new innovations began
selling new products to consumers. This historical perspective highlights one fact:
brands are in constant flux. A stretch from B2B to the consumer market is perhaps not
that far-fetched or uncommon.
1 N ote that some of these brands are promoted to end-customers, giving them some characteristics of consumer brands. Yet, they can be considered as industrial brands with respect to the development of purchase specifications, the buying process and the actual purchase (which usually made by a B2B buyer) (W ebster & Keller, 2004).
Can B2B Brands be Extended into the Consumer Market?
11
TABLE 1.1 Companies Formerly Operating in Business-to-Business Markets Only
Com pany nam e Country Founded Initial business at year 1
Microsoft U S 1975 BASIC computer programming language
IBM US 1911* Tabulating machines
Morgan Stanley U S 1935 Investment banking
Merrill Lynch U S 1907 Stocks and bonds brokerage
Philips N etherlands 1891 Carbon-filament lamps
Vattenfall Sweden 1909 H ydro-electric powerplants
Mitsubishi Japan 1870 Shipping
N okia
Finland 1865 Forestry
Source: Com pany w ebsites
TABLE 1.2 Expansion to Consumer Markets
Com pany nam e Year N ew offering B2B Offering at tim e
Driver for strategic expansion to B2C m arket
Microsoft 1981 MS-DOS BASIC computer programming
language
Innovation
IBM 1981 IBM 5150 Personal computer
Mainframes, industrial computing systems
Innovation
Morgan Stanley 1977 Private wealth management
Full-service banking Diversification and growth
Merrill Lynch 1977 Cash Management Account®
Retail brokerage, institutional- and investment banking
Diversification and growth
Philips 1927 Radio Lamps, medical X-ray tubes Innovation
Vattenfall 1996 Electricity, heating, telephony
Public utility (domestic electricity) Deregulation
Mitsubishi 1917 Automobiles H eavy industries Diversification and decentralization
N okia 1960s Rubber boots Industrial rubber and cables, radio technology
Diversification
Source: Com pany w ebsites
1.2 Problem Statem ent
In order to determine whether a brand extension is able to capitalize on its parent
brand whilst avoiding or minimizing potential disadvantages, it is crucial to understand
how the extensions are evaluated by consumers. The success of a brand extension is
largely determined by how customers evaluate the extension (Klink & Smith, 2001).
N umerous academic studies on brand extensions have been made. A landmark study in
Can B2B Brands be Extended into the Consumer Market?
12
this area was made by Aaker and Keller in 1990. In the current study, the issue of brand
extension evaluation will be investigated in a different context, namely that discussed in
the previous section. In other words, this paper tries to answer the problem statement:
Can business-to-business brands be extended into the consum er m arket?
The purpose of this research is also to: (1) determine whether a broad replication of
Aaker and Keller’s (1990) brand extension model is feasible with respect to the current
context, (2) link theory from consumer branding to corporate branding; (3) examine
whether concepts of evaluating brand extensions can be successfully combined to form
an effective model for predicting extension acceptance in the research context; and (4)
determine the relative importance of these concepts.
1.3 Contributions of the Study
1.3.1 Theoretical contribution
Aaker and Keller’s (1990) framework has been subject to substantial scrutiny as a
widely replicated study (Bottomley & H olden, 2001), and has also been confirmed in
marketing textbooks. W hile the series of so-called close replications confirm the
generalizability of Aaker and Keller’s (1990) predictions (Bottomley & H olden, 2001),
Barwise (1995) argues that a model which does not stretch beyond Aaker and Keller’s
(1990) choice of brand extensions is of limited scope and therefore of negligible value.
Replications are seen as crucial for empirical generalization (Leone & Schultz, 1980;
Barwise, 1995) and knowledge development (H ubbard et al. 1994; Bottomley & H olden,
2001). Furthermore, it can be argued that those academic research publications that are
peer-reviewed are worthy of replication (Bottomley & Doyle, 1996). Barwise (1995)
contends that a high-quality empirical generalization should be “characterized by its
scope, precision, usefulness and link with the theory”, and usefully defines a domain
which excludes most marketing practice, teaching and exercise.
The current study is a broad replication of Aaker and Keller’s (1990) model in the
sense that it does not generalize across brand extensions2, but does attempt to make a
generalization of the model by expanding the scope of which it has previously studied.
Scope can be defined as the domain (e.g. sectors, countries, situations) of which an
2 That is, it does not use the core brands of Aaker and Keller’s (1990) study.
Can B2B Brands be Extended into the Consumer Market?
13
empirical generalization holds. Concerning the scope, this study will examine whether
Aaker and Keller’s (1990) predictions are extra-sectoral, that is, whether parent brand
equity built up in one sector can be leveraged through brand extensions in another
sector.
Besides empirical replication, an additional contribution of the present study is
model development. Bottomley and Doyle (1996) point out “brand concept consistency”
as a better facilitator of brand extension acceptance than product-related similarity
(used in the A&K model). The present study will therefore integrate “brand concept
consistency” with Aaker and Keller’s (1990) to confirm Bottomley and Doyle’s (1996)
proposal.
A last contribution of the present study is to add to the relatively small but
growing supply of business-to-business/industrial branding theory.
1.3.2 Practical contribution
It may be of particular interest for managers to know whether their B2B parent
brands can be extended into the consumer market, especially when a strategic
opportunity arises, and consumer brand value can be created and delivered. In such an
event, the findings of the present study could tell managers whether brand extension
would be accepted by consumers. The findings of the study would also pinpoint which
of the brand extension factors they should focus on if an extension strategy is pursued.
1.4 Thesis Outline
The thesis is structured as follows. The first part is a literature review on brand
extension concepts and theories from both a consumer and business-to-business
perspective. This sets the stage for the second part, the conceptual framework. In this
part, hypotheses that are built on the theories of the preceding chapters are presented.
This is followed by the research design of the current study. The third part contains the
research findings, where the empirical data is analyzed, hypotheses tested and
interpreted. The final parts of the thesis are the closing perspectives, where a summary
and conclusion of the findings are given. Implications of the study, both theoretical and
managerial are mentioned, as well as limitations and directions for future research.
Can B2B Brands be Extended into the Consumer Market?
14
PART I.
LITERATU RE REV IEW
Chapter 2. Consumer Brand Extensions 15
Chapter 3. Business-to-Business Branding 21
Can B2B Brands be Extended into the Consumer Market?
15
CH APTER 2.
CON SU M ER BRAN D EXTEN SION S
2.1 Introduction to the Chapter
The discussion on brand extensions begins with a consideration of a firm’s sources of
growth. As a useful perspective, Keller (2003) proposes the so-called Ansoff’s
product/market expansion grid, which categorizes various growth strategies “according
to whether they involve existing or new products and whether they target existing or
new customers or markets (ibid., p. 577)”. An important point in the context of growth
strategies is that new-product introductions are crucial for a firm to sustain its long-term
competitive advantage (Keller, 2003). N ew-product introductions can, in turn, be
executed in three general ways: (1) as a new brand that is individually designed for the
new product; (2) as an application of an existing brand; and (3) as a combination of a
new brand with an existing brand. H ence, brand extension is a managerial topic.
N evertheless, for the purposes of the current study, the literature review in this chapter
will be of more theoretical nature, focusing on potential advantages and disadvantages,
as well as different theoretical concepts for how consumers evaluate brand extensions.
2.2 Consum er Brand Extensions
2.2.1 Brand Extension D efinition
According to Keller (2003, p. 577), a brand extension is defined as “when a firm
uses an established brand name to introduce a new product”. This is analogous to
approach (2) and (3). Brand extensions are made on an ad hoc basis or according to a
strategy to create a range brand (Aaker, 1996).
2.2.2 Benefits
The benefits of brand extensions is a much-discussed subject. Keller (2003)
distinguishes two kinds of benefits: (1) benefits that relate to the acceptance of the
brand extension, and (2) benefits that relate to the parent brand image. Kapferer (1997)
Can B2B Brands be Extended into the Consumer Market?
16
also makes a distinction between brand extensions and their benefits from an
operational point of view, and proposes that brand extensions that are intended to
boost sales should be distinguished from new products that carry brand image and exist
to fuel the brand.
2.2.2.1 Benefits related to brand extension acceptance
Brand extensions allow consumers to draw conclusions and form expectations
about the potential performance of a new product (i.e. the brand extension) based on
their existing knowledge about the brand (Keller, 2003). Provided that a strong brand
name is present, the perceived risk by consumers is substantially reduced when
familiarity and knowledge about the parent brand is present (Keller, 2003; Aaker & Keller,
1990). Benefits of introducing new products also include different ways of achieving
operational efficiencies. A favorable parent brand reduces costs associated with gaining
distribution since retailers are more positive to stock and promote a brand extension
(ibid.). Another benefit relates to marketing communications: since brand awareness
already exists, promotional activities (including introductory and follow-up advertising
and other marketing programs) of a brand extension can be less intensive and thus less
costly than those of a totally new brand and product (Keller, 2003; Kapferer, 1997). Other
efficiencies includes avoiding costly development of brand names, logos, symbols,
packages, characters, slogans, etc. (Keller, 2003).
2.2.2.2 Benefits relating to the parent brand im age
Brand extensions also have positive spillover effects on the parent brand. Firstly,
extensions can clarify the brand m eaning to consumers and define the boundaries of the
domain in which it competes (Keller, 2003). Second, by improving the favorability of an
existing brand association, adding a new brand association, or a combination of these, a
brand extension can enhance the parent brand image (ibid.). Consistent with this view
are the findings of Morrin (1999), which propose that consumer exposure to brand
extensions will increase parent brand awareness in terms of recognition and recall.
Similarly, Balachander and G hose (2003) find evidence of beneficial spillover effects of
advertising of a child brand, for example a brand extension, on choice of a parent brand.
A third benefit involves brand revitalization—a new or rejuvenated product can be a
Can B2B Brands be Extended into the Consumer Market?
17
mean to renew interest and improve attitude towards the parent brand (Keller, 2003;
Kapferer, 1997).
2.2.3 D raw backs
Keller (2003) mentions several drawbacks of brand extensions. First, the image of
the parent brand can be hurt irrespective of the success or failure of the extension. This
happens when the attributes of the extension are seen as inconsistent or conflicting
with the corresponding attributes of the parent brand. Second, brand extensions may
obscure the identification of the brand with its original categories, reducing brand
relationships with reliable suppliers of quality products and services. In a business-to-
business context, a brand is a relationship between buyer and seller.
Abratt (1989) presents a model (figure 3.1) which provides with a structure for
looking at a corporate brand. The underlying thought behind the model is to view
corporate brand management in a holistic point way: external and internal marketing
communications are interrelated. In other words, there must be a “fit” between the
corporate brand identity, the employees’ view of identity (the internal environment), the
marketing communication, and stakeholders (the external environment).
Corporate mission
Corporate philosophy
Core values
Corporate culture
FIG U RE 3.1 An Integrated Approach to Communications
Identity
Marketing communications
strategy
Employees’ view of identity
Products and services
Customers
G overnment
Local communities
Financial
Suppliers
Buyers
Media
Influential groups
Im age
IMA
GE
INT
ER
FA
CE
AU
DIE
NC
ES
M arketing com m unications
Personal communications
Internal marketing
Source: Abratt (1989)
Can B2B Brands be Extended into the Consumer Market?
24
An important aspect of this model are the so-called ‘feedback-loops’, which
suggest that the “marketing communications strategy, although based on the reality of
the identity, is a dynamic force” (Ind, 1997, p. 51). This implies that although the
corporate image and employees’ view of the corporate brand identity are transmitted
from the corporate identity via marketing communications, there are also backflows of
information (‘feedback’) from customers and other audiences to employees and the
marketing communications. The corporate identity and image are hence in a constant
flux and adjustment, in order to achieve a sustainable advantageous position for the
organization.
Consistent with Abratt’s (1989) idea of feedback loops is G riffin’s (2002) view that
all corporate branding strategy decisions stem both external and internal factors.
External factors are, theoretically, any factors that affect a corporate brand. Brand
strategy decisions try to reduce the uncertainty that is caused by external factors – brand
strategy is ‘outside-in’. Internal factors are the corporate values and culture, as well as
business exposure3. The more exposure a company has, the greater is the need for
consistent communications to stakeholders. H ence, brand strategy is also ‘inside-out’.
3.2.4 Corporate brand architecture
Brand architecture is defined by Rajagopal and Sanchez (2004, p. 236) as “the
organizing structure of the brand portfolio that specifies brand roles and the nature of
relationships between brands and different product-market brand contexts”. Aaker and
Joachimsthaler (2000) describe it as the medium by which the brand team functions as a
unit to create synergy, clarity, and leverage. A brand portfolio includes all the brands and
sub-brands attached to product-market offerings, including co-brands with other firms
(ibid.).
Very little academic research has been conducted with respect to brand
architecture, and there is to date no research in the context of business-to-business
branding. W ebster and Keller (2004) do however suggest that through observation,
industrial brands often use branding strategies that organize their brand portfolio under
a company “blanket brand” consistent with Aaker and Joachimsthaler’s (2000)
definitions of sub-brands and branded house strategies. Sub-brands are brands
connected to a master or parent brand and augment or modify the associations of that
master brand. H ence, the parent brand is the primary frame of reference. In a branded
3 The extent to which management and employees are ‘visible’.
Can B2B Brands be Extended into the Consumer Market?
25
house strategy, the role of the parent brand is to be a dominant driver across multiple
offerings. The difference between a sub-brand strategy and branded house strategy is
that in the later the role of the parent brand is more prominent. As Aaker and
Joachimsthaler (2000) describe it, it is like “putting a lot of eggs in one basket”.
3.3 Corporate Brand Extensions
Keller and Aaker (1997) examined how various types of corporate marketing
activities (communication activities portraying a firm as innovative, environmentally
concerned, and involved with the community) would influence corporate credibility (i.e.
perceived expertise, trustworthiness, and likeability) and thus have a positive effect on
brand extension evaluation. In their study, four hypothetical corporate brand extensions
outside the current brand offering were presented alongside corporate descriptions that
emphasized one of the following three types of attributes: (1) A firm’s reputation of
being innovative and philosophy of launching technologically advanced products; (2) a
firm’s policy to offer “environm entally friendly” products and to manufacture products in
an environmentally safe fashion; and (3) a firm's philosophy to im prove the quality of life
in local com m unities through various activities and programs.
The findings of Keller and Aaker (1997) suggest that corporate marketing efforts
can be beneficial as it improves perceptions and evaluations of a corporate brand
extension. Creating a positive corporate image and executing a corporate brand
strategy can thus facilitate new product acceptance. The three types of brand attributes
mentioned above can be categorized into innovativeness, corporate social responsibility
and environm ental concern.
3.3.1 Innovativeness
An innovative brand image involves being perceived as being modern and up-to-
date, investing in research and development, utilizing state-of-the-art manufacturing
technologies, and introducing the latest product features (Keller, 2003). Though this
suggests that positive brand attributes that signal innovativeness are important,
surprisingly little research has been done in this field. Indeed, most research in the topic
of innovativeness in marketing has been in the area of consumer innovativeness and the
innovation diffusion4 (Roerich, 2004). In this line of research it is argued that different
4 For example, the rate of adopting new technologies.
Can B2B Brands be Extended into the Consumer Market?
26
individuals have different predispositions to adopt or buy new products (ibid; Ostlund,
1974). An important point to make is that although innovative brand attributes is
favorable for building brand equity, the extent to which this is successful also depends
on how “innovative” the target audience is.
Marketing activities that emphasized innovation have a significant impact on
corporate brand extension evaluation as it leads to the favorable perceptions of
corporate expertise and to presumptions that the corporate brand extension will also be
innovative (Keller & Aaker, 1997). Emphasis on innovation is the only type of marketing
activity that enhances the customer’s perceived “fit” of the brand extension to the
parent brand, as well as evaluations of specific product attributes. H ence, marketing
efforts to emphasize innovation significantly increases both perceived quality and
purchase likelihood score for the brand extension.
3.3.2 Corporate Social Responsibility (CSR)
Much has been written about corporate social responsibility (CSR) in recent years.
Kitchen (2003) argues that companies undeniably have responsibilities within their
surrounding community, and that these responsibilities must be clarified and aligned
with the companies’ core businesses. Since these responsibilities are relationships and
promises, CSR is ultimately a function of the brand (ibid.). H ence, Kitchen (2003) defines
CSR as:
“The brand-specific duties and resultant actions of commercial organizations in relation to their
communities of need – defined and delivered outside the core transactional context of the
business” (ibid, p. 10).
Similarly, Keller and Aaker (1997) define CSR as “a firm's philosophy to improve the
quality of life in local communities through various activities and programs”
3.3.3 Environm ental concern
Keller and Aaker (1997) define environmental concern as “a firm’s policy to sell
"environmentally friendly" products and to manufacture products in an environmentally
safe fashion”. Corporate marketing efforts that emphasize environmental concern
enhance perceptions of corporate trustworthiness and likeability as well as inferences
that the corporate brand extension is environmentally aware.
Can B2B Brands be Extended into the Consumer Market?
27
3.4 Sum m ary
Business-to-business branding is buyer-focused and corporate brand image is
more likely to span product classes. H ence, much focus of current literature is on
corporate brand identity and communication of intangible brand attributes.
Observations indicate that product or service portfolios of B2B companies are often built
around one “blanket brand” consistent with branded-house and sub-brand strategies.
Virtually no academic research in the field of corporate brand extensions has been
published to date. Keller and Aaker (1997) did however examine in their working paper
how corporate marketing activities portraying a firm as innovative, environmentally
concern, and involved with the community might lead to positive corporate credibility
and thus have a positive effect on brand extension evaluation. Only perceived
innovativeness had a significant impact on corporate brand extension evaluation,
because emphasis on innovation was the only type of marketing activity that enhanced
the perceived fit between the corporate parent brand and the extension.
Can B2B Brands be Extended into the Consumer Market?
28
PART II.
CON CEPTU AL FRAM EW ORK
Chapter 4. H ypotheses 29
Chapter 5. Research Design 36
Can B2B Brands be Extended into the Consumer Market?
29
CH APTER 4.
H YPOTH ESES
4.1 Introduction to the Chapter
Since this study is a broad replication of Aaker and Keller’s (1990), the original model will
be modified in order to be consistent with the scope of the study.
The dependent variable of the model is the overall attitude towards the business-
to-consumer brand extension, operationalized as the average of perceived quality of the
business-to-consumer brand extension and the likelihood of trial.
4.2 Know ledge About the Parent Brand
A prerequisite for drawing conclusions about the quality of a brand is to be familiar
with it. H ence, there has to exist a brand node in the consumer’s memory with a variety
of associations linked to it–this is conceptualized as brand knowledge (Keller, 2003).
Information stored in the memory network can be verbal, visual, abstract, or contextual
in nature. Brand knowledge can be characterized in terms of two components: brand
awareness and brand image (ibid.). If consumers are to appreciate the appropriateness
of the brand extension, knowledge of the brand-specific association is required
(Broniarczyk & Alba, 1994). Thus the first hypothesis is:
H ypothesis 1: H igher degrees of know ledge about the business-to-business parent
brand are associated w ith m ore favorable attitudes tow ard the consum er brand
extension.
4.3 Attitude Tow ards the Parent Brand
Attitude is conceptualized in this study as consumer’s perception of the brand’s
overall quality. Aaker and Keller (1990) propose a relation between perceived quality of
parent brand and consumers’ attitude toward the extensions in unrelated product
categories. As the perceived quality (termed QUALITY) of the parent brand is higher, the
transfer of positive attitudes toward the extension is also higher.
Can B2B Brands be Extended into the Consumer Market?
30
Zeithaml (1988) defines perceived quality as a global assessment of a consumer’s
judgment about the superiority or excellence of a product, and also concludes that
perceived quality is a construct that is on a higher level of abstraction compared to a
specific product attribute. Following this last finding, it could then be argued that
despite the absence of any prior experience with a business-to-business brand,
consumer attitudes of that brand might still be present. H ence, it will be expected to find
similar results for business-to-business parent brands with business-to-consumer brand
extensions. Keller and Aaker (1997) mention that corporate brand equity lies in the
association of consistent delivery of superior functionality and performance that
customers or suppliers have with a firm’s offering. This leads to the second hypothesis:
H ypothesis 2: H igher quality perceptions tow ard the business-to-business parent brand
are associated w ith m ore favorable attitudes tow ard the consum er brand extension.
4.4 Innovation
The following hypotheses (H 3, H 4 and H 5) relate to Keller and Aaker’s (1997) study
on corporate brand extensions. Since their study examines the impact of different types
of corporate descriptions on brand extension evaluation, the hypotheses will be
formulated in order to fit the original model of Aaker and Keller (1990).
Keller and Aaker (1997) propose that marketing efforts that emphasize innovation
leads to favorable perceptions of corporate expertise and thus has a positive impact on
corporate brand extension evaluation. For the purposes of the current study, it is then
reasonable to assume that a parent brand that is perceived to be innovative will lead to
a more favorable brand extension evaluation compared to a brand which is not
perceived as innovative. The third hypothesis then becomes:
Hypothesis 3: H igher perceptions of innovativeness tow ard the business-to-business
parent brand are associated w ith m ore favorable attitudes tow ard the consum er
brand extension.
4.5 Corporate Social Responsibility
Keller and Aaker (1997) propose that marketing activities directed towards
environmental awareness and community involvement increase the perceived likeability
Can B2B Brands be Extended into the Consumer Market?
31
and trustworthiness, but has no significant effect on an extension’s perceived quality.
This leads to the fourth hypothesis:
Hypothesis 4: Perceptions of corporate social responsibility of the parent business-to-
business brand has no effect the on the attitude tow ards the consum er brand
extension.
4.6 Environm ental Concern
Following Keller and Aaker’s (1997) findings that marketing efforts emphasizing
environmental concern only has a modest impact on an extension’s perceived quality,
the fifth hypothesis is:
H ypothesis 5: Perceptions of environm ental concern of the parent business-to-business
brand has no effect on the attitude tow ards the consum er brand extension.
4.7 Transfer
As proposed by Aaker and Keller (1990), the transfer of positive attitudes is also
influenced by the similarity between the corporate brand and the extension. This follows
the categorization theory and category-based processing, where consumers evaluate a
new brand extension as to how well this “fits” with the parent brand. Similarly, Boush
and Loken (1991) propose that affect associated with the original brand is transferred to
the extension when similarity between the two products is high. Following this, if
consumers perceive a “fit” between a business-to-business brand and a consumer
product class, they will transfer perceptions of quality to the new brand extension.
The first dimension of fit is the variable TRAN SFER, which is defined as the degree
in which the overall skills of the corporate brand can be helpful for the development of
the brand extension. In this case, if the parent brand organization’s resources and
abilities are useful for making the consumer brand extension, the transfer of positive
attitudes is expected to be higher. Therefore, the sixth hypothesis is:
Hypothesis 6: The transfer of a business-to-business parent brand’s perceived quality is
enhanced w hen the product classes (of the parent brand and the consum er brand
extension) in som e w ay fit together. W hen the fit is w eak, the transfer is inhibited.
Can B2B Brands be Extended into the Consumer Market?
32
4.8 Brand Associations
Aaker and Keller (1990) identify two additional dimensions of fit: the first one is
COMPLEMEN T, which is related to the product; the second one is SU BSTITU TE, which is
related to the producer. W hen the product of the parent brand and the brand extension
can be consumed jointly to satisfy some need, it is said that they complement each
other (H enderson & Quandt, 1980). On the other hand, when the brand extension can be
used instead of the parent brand product, they are substitutes.
Substitutability is in this model a generally weak predictor, since relatively few
brand extensions represent true substitutes (Bottomley & H olden, 2001). In the case of
an extra-sectoral movement, the brand extension can by definition not substitute for the
product of the parent brand. The Substitute dimension will hence be omitted from
further analyses. The original microeconomic definition of complementarity is limited for
current purposes, as according to above given definition it involves joint consumption
of two product classes. In the case of an extra-sectoral movement, it is not possible for a
brand extension to complement the original brand, since the customers for the original
brand and brand extension respectively are different (i.e. business-to-business and
consumers). H ence, the Complement dimension has to be replaced in order to fit the
model.
A useful alternative measure for complementarity is the concept of brand
associations (Broniarczyk & Alba, 1994; Section 2.3.4), which proposes that consumer do
not only evaluate the brand extension based on the perceived product category fit (c.f.
H ypothesis 6), but that their assessment are driven primarily by the associations of the
brand. In other words, if a person considers a brand extension to be relevant with the
original brand concept, the attitude towards the extension will be positive.
The seventh hypothesis is:
H ypothesis 7: If the brand associations of the consum er brand extension are consistent
w ith brand concept of the business-to-business parent brand, the attitude tow ard the
brand extension is positive.
4.9 Perceived Difficulty
Aaker and Keller (1990) introduce a last variable: DIFFICU LT. This denotes the
perceived difficulty in designing or producing the brand extension product. If the
Can B2B Brands be Extended into the Consumer Market?
33
extension is perceived to be too easy or difficult to make, consumers’ attitude towards
the extension will be negative. This is because a quality brand combined with a trivial
product class is viewed as either incompatible with the parent brand or exploitative by
means of a premium pricing strategy (Aaker & Keller, 1990; Bottomley & H olden, 2001).
Intermediate levels of perceived difficulty lead to a favorable attitude, as suggested by
Kapferer (1997).
In the current study, it is reasonable too assume that consumers will evaluate the
difficulty of designing and making consumer brand extensions of business-to-business
parent brands as they would with “normal” brand extensions. Thus, the eighth
hypothesis is:
Hypothesis 8: The relationship betw een the difficulty of m aking the consum er product
class of the brand extension and the attitude tow ard the brand extension is positive.
4.10 M oderating Factors
In addition for testing for the effects described so far, some interaction effects will
be assessed.
First, it is expected that the effect of difficulty to make a brand extension will be
weakened in the case of higher levels of perceived innovativeness of the parent brand.
This is because an innovative parent brand might be perceived as being more capable of
producing brand extensions that are difficult to make. Reasoning in the same way, an
innovative parent brand might be perceived as being less capable of producing brand
extensions that are easy to make (easy is assumed to be the linear opposite of difficult).
H ence, the following will be tested:
Hypothesis 9a: A higher level of perceived parent brand innovativeness w eakens the
im pact of perceived difficulty(to produce an extension) on brand extension evaluation.
Hypothesis 9b: A higher level of perceived parent brand innovativeness strengthens the
im pact of perceived ease (to produce an extension) on brand extension evaluation.
Second, evaluation of a brand extension need not correspond to evaluation of that
brand in its original category because the value of a brand association differs depending
on the benefits sought within a particular product category (Broniarczyk & Alba, 1994).
Can B2B Brands be Extended into the Consumer Market?
34
H ence, there might be an interaction between brand-specific associations and the
similarity of the extension category. This leads to the following:
Hypothesis 10: A higher level of perceived category fit betw een the parent brand and
the brand extension strengthens the im pact of perceived extension brand associations.
Can B2B Brands be Extended into the Consumer Market?
35
4.11 Sum m ary
Exhibit 4.1 below lists all hypotheses and also refers to its academic source from
which the concept was drawn to form each specific hypothesis.
TABLE 4.1 H ypotheses and Their References to Literature
H ypothesis Literature reference
H 1 H igher degrees of know ledge about the business-to-business parent brand are associated w ith m ore favorable attitudes tow ard the consum er brand extension.
Broniarczyk & Alba (1994)
H 2 H igher quality perceptions tow ard the business-to-business parent brand are associated w ith m ore favorable attitudes tow ard the consum er brand extension.
Aaker and Keller (1990)
H 3 H igher perceptions of innovativeness tow ard the business-to-business parent brand are associated w ith m ore favorable attitudes tow ard the consum er brand extension.
Adapted from Keller and Aaker (1997)
H 4 Perceptions of corporate social responsibility of the parent business-to-business brand has no effect the on the attitude tow ards the consum er brand extension .
Adapted from Keller and Aaker (1997)
H 5 Perceptions of environm ental concern of the parent business-to-business brand has no effect on the attitude tow ards the consum er brand extension.
Adapted from Keller and Aaker (1997)
H 6 The transfer of a business-to-business parent brand’s perceived quality is enhanced w hen the product classes (of the parent brand and the consum er brand extension) in som e w ay fit together. W hen the fit is w eak, the transfer is inhibited.
Aaker and Keller (1990)
H 7 If the brand associations of the consum er brand extension are consistent w ith brand concept of the business-to-business parent brand, the attitude tow ard the brand extension is positive.
Adapted from Broniarczyk & Alba (1994)
H 8 The relationship betw een the difficulty of m aking the consum er product class of the brand extension and the attitude tow ard the brand extension is positive.
Aaker and Keller (1990)
H 9a A higher level of perceived parent brand innovativeness w eakens the im pact of perceived difficulty (to m ake an extension) on brand extension evaluation.
Own construct
H 9b A higher level of perceived parent brand innovativeness strengthens the im pact of perceived ease(to m ake an extension) on brand extension evaluation.
Own construct
H 10 A higher level of perceived extension brand associations strengthens the im pact of perceived category fit betw een the parent brand and the brand extension.
Own construct
Can B2B Brands be Extended into the Consumer Market?
36
CH APTER 5.
RESEARCH DESIG N
5.1 Introduction to the Chapter
This chapter will provide with the research design of the present study. First, the
hypotheses brought forward in the previous chapter are operationalized through the
development of a new model. An argument for the choice of method for executing the
new model is then provided. A description of questionnaire development and sampling
procedure follows.
5.2 The H ypothesized M odel
5.2.1 The original m odel of Aaker and Keller
Aaker and Keller (1990) hypothesized that “the consumer’s attitude towards the brand
extension is a positive function of the quality of parent brand, the fit between the
parent’s brand category and the extension category (measured in terms of the
transferability of skills and expertise from one category to the other and the
complementarity and substitutability of one category and the other), the interactions of
quality with three fit variables, and the degree of difficulty in designing and making a
product in the extension category” (Bottomley & H olden, 2001, p. 495). Formally, the
Ostlund, L. E. (1974). “Perceived innovation attributes as predictors of innovativeness”.
Journal of Consum er Research, 1(2), 23-29.
Peterson, R. A. (1994). “A meta-analysis of Cronbach’s coefficient alpha”, Journal of
Consum er research, 21, 381-91.
Porter, M. (1998). Com petitive Advantage -Creating and Sustaining Superior Perform ance.
N ew York: Free Press.
Can B2B Brands be Extended into the Consumer Market?
77
Rajagopal and Sanchez, R. (2004). “Conceptual analysis of brand architecture and
relationships within product categories”. Brand M anagem ent, 11(3), 233-247.
Riel, A.C.R. van, Lemmink, J. and Ouwersloot, H . (2001). “Consumer evaluations of service
brand extensions”. Journal of Service Research, 3(3), 220-231.
Roerich, G . (2004). “Consumer innovativeness: concepts and measurements”. Journal of
Business Research, 57(6), 671-677.
Sunde, L. and Brodie, R.J., (1993). “Consumer evaluations of brand extensions: Further
empirical evidence”. International Journal of Research in M arketing, 10, 47-53.
The 100 Top Brands (2004, August). Business W eek, 3864, 68-71.
Thomas, R. L. (1997). M odern Econom etrics –an Introduction. Essex: Addison-W esley.
U rde, M. (1999). “Brand orientation: a mindset for building brands into strategic
resources”. Journal of M arketing M anagem ent, 15(1-3), 117-133.
U rde, M. (2003). “Core value-based corporate brand building”. European Journal of
M arketing, 37(7/8), 1017-1040.
W ebster, F. E. Jr. and Keller, K. L. (2004). “A roadmap for branding in industrial markets”.
Brand M anagem ent, 11(5), 388-402.
Yoo, B., Donthu, N . and Lee, S. (2000). “An examination of selected marketing mix
elements and brand equity”. Journal of the Academ y of M arketing Science, 28(2),
195-211.
Zeithaml, V. A. (1988). “Consumer perceptions of price, quality, and value: a means-end
model and synthesis of evidence”. Journal of M arketing, 52, 2-22.
Can B2B Brands be Extended into the Consumer Market?
78
APPEN DIX A. QU ESTION N AIRES A.1 Pilot-testing Questionnaire
THESIS SURVEY: PILOT-TESTING Hello,
I am conducting a survey for my final thesis on brands. To make my survey as robust as possible, I
am performing a pilot-test (of the questionnaire I will be using later in my research) for which you
have been invited. Instructions are as follows:
• Your task is to fill out the questionnaire like you usually do, but in addition to the
questionnaire questions I would like you to also think about the quality of the questionnaire
itself.
• You can write down your opinions on the questionnaire on the FEEDBACK FORM which is
found on the last two pages.
• You are also allowed to make notes/markings on the questionnaire itself, but if you do,
please make sure that these are readable.
• Since the pilot-testing only samples a small number of people, it is important that you do
your best to answer all questions of the feedback form.
• Please be as thorough and clear as possible!
The “real” questionnaire starts on the next page.
Please return this questionnaire to me as soon you can. Thanks for your help!
Leon
Please write down your personal details (you can skip this part in the actual questionnaire).
Name Age Gender � Male � Female
Can B2B Brands be Extended into the Consumer Market?
79
Nationality � Dutch � German � Other, namely
Study programme � IB � IM � IES � FE � INF � Exchange student
If you are an exchange student: do you study business, economics, etc. in your home country?
� Yes � No
Year of study � 1 � 2 � 3 � 4 � 5 or more
Can B2B Brands be Extended into the Consumer Market?
80
SURVEY ON BRAND EXTENSIONS
Dear participant,
My name is Leon Phang, and I am conducting a survey for my final thesis on
brands.
I am curious about what you think about different business-to-business brands and
their hypothetical brand extensions.
Please help me do this survey by taking the time to fill out this questionnaire. All
information will be treated in the strictest confidence and results will be produced in
the form of aggregated data only.
Thank you for your time and help.
INSTRUCTIONS
As mentioned, this questionnaire is about business-to-business (B2B) brands and hypothetical
brand extensions. A brand extension is a new product that uses an already existing brand name.
You will be asked about your opinion about 5 different brands. The questionnaire will take some
time and effort to fill out, so please try to do your best and make both your and my time worthwhile!
Can B2B Brands be Extended into the Consumer Market?
81
BRAND 1 OUT OF 5 Consider the following brand:
Now, please write down your immediate associations with this brand in the empty box:
POOR OUTSTANDING How do you perceive the overall quality of this brand? 1 2 3 4 5 6 7 NOT AT ALL VERY This brand is modern and up-to-date 1 2 3 4 5 6 7 This brand invests in R&D 1 2 3 4 5 6 7 This brand introduces the latest product/service features 1 2 3 4 5 6 7 This brand is concerned with the environment 1 2 3 4 5 6 7 This brand is involved in helping its community 1 2 3 4 5 6 7 This brand is socially responsible 1 2 3 4 5 6 7
Also consider the following brand extensions, and please write down your immediate associations to
these in the empty box:
a) Reuters 24 hour news TV channel
b) Reuters news radio station
Can B2B Brands be Extended into the Consumer Market?
82
Now, please indicate your opinion on the previously mentioned hypothetical brand extensions by
marking the appropriate number (1-7). a) Consider the brand extension Reuters 24 hour news TV channel again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Reuters are useful to make this extension 1 2 3 4 5 6 7 The resources of Reuters are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Reuter brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Reuter brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
b) Consider the brand extension Reuters news radio station again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Reuters are useful to make this extension 1 2 3 4 5 6 7 The resources of Reuters are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Reuter brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Reuter brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
83
BRAND 2 OUT OF 5 Consider the following brand:
Now, please write down your immediate associations with this brand in the empty box:
POOR OUTSTANDING How do you perceive the overall quality of this brand? 1 2 3 4 5 6 7 NOT AT ALL VERY This brand is modern and up-to-date 1 2 3 4 5 6 7 This brand invests in R&D 1 2 3 4 5 6 7 This brand introduces the latest product/service features 1 2 3 4 5 6 7 This brand is concerned with the environment 1 2 3 4 5 6 7 This brand is involved in helping its community 1 2 3 4 5 6 7 This brand is socially responsible 1 2 3 4 5 6 7
Also consider the following brand extensions, and please write down your immediate associations to
these in the empty boxes:
a) KPMG Private tax planning service
b) KPMG Institute of Accountancy (Executive MBA education)
c) KPMG Offshore banking service
Can B2B Brands be Extended into the Consumer Market?
84
Now, please indicate your opinion on the previously mentioned hypothetical brand extensions by
marking the appropriate number (1-7). a) Consider the brand extension KPMG Private tax planning service again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of KPMG are useful to make this extension 1 2 3 4 5 6 7 The resources of KPMG are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the KPMG brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the KPMG brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
b) Consider the brand extension KPMG Institute of Accountancy (Executive MBA education)
again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of KPMG are useful to make this extension 1 2 3 4 5 6 7 The resources of KPMG are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the KPMG brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the KPMG brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
c) Consider the brand extension KPMG Offshore banking service again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of KPMG are useful to make this extension 1 2 3 4 5 6 7 The resources of KPMG are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the KPMG brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the KPMG brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
85
BRAND 3 OUT OF 5 1) Consider the following brand:
2) Now, please write down your immediate associations with this brand in the empty box:
POOR OUTSTANDING 3) How do you perceive the overall quality of this brand? 1 2 3 4 5 6 7 NOT AT ALL VERY 4) This brand is modern and up-to-date 1 2 3 4 5 6 7 5) This brand invests in R&D 1 2 3 4 5 6 7 6) This brand introduces the latest product/service features 1 2 3 4 5 6 7 7 This brand is concerned with the environment 1 2 3 4 5 6 7 8) This brand is involved in helping its community 1 2 3 4 5 6 7 9) This brand is socially responsible 1 2 3 4 5 6 7
Also consider the following brand extensions, and please write down your immediate associations to
these in the empty boxes:
a) Saatchi & Saatchi marketing & advertising books
b) Saatchi & Saatchi Institute of Advertising (executive training courses)
c) Saatchi & Saatchi Espresso Bar & Café
Can B2B Brands be Extended into the Consumer Market?
86
Now, please indicate your opinion on the previously mentioned hypothetical brand extensions by
marking the appropriate number (1-7).
a) Consider the brand extension Saatchi & Saatchi marketing & advertising books again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Saatchi & Saatchi are useful to make this extension 1 2 3 4 5 6 7 The resources of Saatchi & Saatchi are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Saatchi & Saatchi brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Saatchi & Saatchi brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
b) Consider the brand extension Saatchi & Saatchi Institute of Advertising (executive
training courses) again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Saatchi & Saatchi are useful to make this extension 1 2 3 4 5 6 7 The resources of Saatchi & Saatchi are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Saatchi & Saatchi brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Saatchi & Saatchi brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
c) Consider the brand extension Saatchi & Saatchi Espresso Bar & Café again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Saatchi & Saatchi are useful to make this extension 1 2 3 4 5 6 7 The resources of Saatchi & Saatchi are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Saatchi & Saatchi brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Saatchi & Saatchi brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
87
BRAND 4 OUT OF 5 Consider the following brand:
Now, please write down your immediate associations with this brand in the empty box:
POOR OUTSTANDING How do you perceive the overall quality of this brand? 1 2 3 4 5 6 7 NOT AT ALL VERY This brand is modern and up-to-date 1 2 3 4 5 6 7 This brand invests in R&D 1 2 3 4 5 6 7 This brand introduces the latest product/service features 1 2 3 4 5 6 7 This brand is concerned with the environment 1 2 3 4 5 6 7 This brand is involved in helping its community 1 2 3 4 5 6 7 This brand is socially responsible 1 2 3 4 5 6 7
Also consider the following brand extensions, and please write down your immediate associations to
these in the empty boxes:
a) Intel® Portable MP3 Music Player
b) Intel® Home Wireless (wi-fi) Network Hardware
c) Intel® Notebook PC
Can B2B Brands be Extended into the Consumer Market?
88
Now, please indicate your opinion on the previously mentioned hypothetical brand extensions by
marking the appropriate number (1-7).
a) Consider the brand extension Intel® Portable MP3 Player again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Intel are useful to make this extension 1 2 3 4 5 6 7 The resources of Intel are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Intel brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Intel brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
b) Consider the brand extension Intel® Home Wireless (wi-fi) Network Hardware again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Intel are useful to make this extension 1 2 3 4 5 6 7 The resources of Intel are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Intel brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Intel brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
c) Consider the brand extension Intel® Notebook PC again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Intel are useful to make this extension 1 2 3 4 5 6 7 The resources of Intel are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Intel brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Intel brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
89
BRAND 5 OUT OF 5 Consider the following brand:
Now, please write down your immediate associations with this brand in the empty box:
POOR OUTSTANDING 3) How do you perceive the overall quality of this brand? 1 2 3 4 5 6 7 NOT AT ALL VERY 4) This brand is modern and up-to-date 1 2 3 4 5 6 7 5) This brand invests in R&D 1 2 3 4 5 6 7 6) This brand introduces the latest product/service features 1 2 3 4 5 6 7 7 This brand is concerned with the environment 1 2 3 4 5 6 7 8) This brand is involved in helping its community 1 2 3 4 5 6 7 9) This brand is socially responsible 1 2 3 4 5 6 7
3) Also consider the following brand extensions, and please write down your immediate association
to these in the empty box:
a) Boeing chronograph wristwatch
b) Boeing flight simulator computer game
c) Boeing travel luggage
Can B2B Brands be Extended into the Consumer Market?
90
4) Now, please indicate your opinion on the previously mentioned hypothetical brand
extensions by placing a tick in the appropriate box. a) Consider the brand extension Boeing chronograph wristwatch again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Boeing are useful to make this extension 1 2 3 4 5 6 7 The resources of Boeing are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Boeing brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Boeing brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
b) Consider the brand extension Boeing flight simulator computer game again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Boeing are useful to make this extension 1 2 3 4 5 6 7 The resources of Boeing are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Boeing brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Boeing brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
c) Consider the brand extension Boeing travel luggage again. POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Boeing are useful to make this extension 1 2 3 4 5 6 7 The resources of Boeing are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Boeing brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Boeing brand 1 2 3 4 5 6 7 This brand extension is too easy to make 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
91
PERSONAL INFORMATION
Name (this will be used for administrational purposes only)
Age Gender: � Male � Female
Do you study business or economics? � Yes � No
Nationality
� Dutch
� German
� Other, namely:
Can B2B Brands be Extended into the Consumer Market?
92
PILOT-TESTING FEEDBACK FORM
Please give your opinions, suggestions, and possible corrections concerning the following aspects: Instructions Content of questions Wording (spelling, grammar, choice of words etc.) Sequence of questions Form and layout
Please turn to the next page >>
Can B2B Brands be Extended into the Consumer Market?
93
Question difficulty Any other comments, remarks, suggestions, etc?
Can B2B Brands be Extended into the Consumer Market?
94
A.2 Questionnaire (Final version)
SURVEY ON BRAND EXTENSIONS
Dear participant,
My name is Leon Phang, and I am conducting a survey for my final thesis in brand
management.
I am curious about what you think about various business-to-business brands and
their hypothetical brand extensions for the consumer market.
Please help me do this survey by taking the time to fill out this questionnaire, and I
shall be eternally grateful.
All information will be treated in the strictest confidence and results will be
produced in the form of aggregated data only.
Thank you for your time and help.
INSTRUCTIONS
As mentioned, this questionnaire is about strictly B2B brands and hypothetical B2C brand
extensions. A brand extension is a new product that uses an already existing brand name.
You will be asked about your opinion about 5 different brands. The questionnaire will take some
time and effort to fill out, so please try to do your best and make both your and my time worthwhile!
Can B2B Brands be Extended into the Consumer Market?
95
BRAND 1 OUT OF 5
• Consider the following brand
Please indicate your opinion on this brand by marking the appropriate number (1-7).
NOT AT ALL VERY How knowledgeable are you about this brand? 1 2 3 4 5 6 7 POOR OUTSTANDING How do you perceive the overall quality of this brand? 1 2 3 4 5 6 7 NOT AT ALL VERY This brand is modern and up-to-date 1 2 3 4 5 6 7 This brand invests in R&D 1 2 3 4 5 6 7 This brand introduces the latest product/service features 1 2 3 4 5 6 7 This brand is concerned with the environment 1 2 3 4 5 6 7 This brand is involved in helping its community 1 2 3 4 5 6 7 This brand is socially responsible 1 2 3 4 5 6 7
Two hypothetical B2C brand extensions of the above brand will be mentioned.
Please indicate your opinion on these brand extensions by marking the appropriate number (1-7).
• Consider the brand extension
“24-Hour News TV Channel” POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Reuters are useful to make this extension 1 2 3 4 5 6 7 The resources of Reuters are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Reuter brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Reuter brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Reuters is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
• Consider the brand extension
”News Radio Station”
POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Reuters are useful to make this extension 1 2 3 4 5 6 7 The resources of Reuters are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Reuter brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Reuter brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Reuters is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
96
BRAND 2 OUT OF 5
• Consider the brand
Please indicate your opinion on these brand extensions by marking the appropriate number (1-7).
NOT AT ALL VERY How knowledgeable are you about this brand? 1 2 3 4 5 6 7 POOR OUTSTANDING How do you perceive the overall quality of this brand? 1 2 3 4 5 6 7 NOT AT ALL VERY This brand is modern and up-to-date 1 2 3 4 5 6 7 This brand invests in R&D 1 2 3 4 5 6 7 This brand introduces the latest product/service features 1 2 3 4 5 6 7 This brand is concerned with the environment 1 2 3 4 5 6 7 This brand is involved in helping its community 1 2 3 4 5 6 7 This brand is socially responsible 1 2 3 4 5 6 7
Three hypothetical B2C brand extensions of the above brand will be mentioned.
Please indicate your opinion on these brand extensions by marking the appropriate number (1-7).
• Consider the brand extension
“Private tax planning service”.
POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Ernst & Young are useful to make this extension 1 2 3 4 5 6 7 The resources of Ernst & Young are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Ernst & Young brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Ernst & Young brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Ernst & Young is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
97
• Consider the brand extension
“Institute of Accountancy” (Executive MBA education).
POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Ernst & Young are useful to make this extension 1 2 3 4 5 6 7 The resources of Ernst & Young are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Ernst & Young brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Ernst & Young brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Ernst & Young is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
• Consider the brand extension
“Offshore banking service”.
POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Ernst & Young are useful to make this extension 1 2 3 4 5 6 7 The resources of Ernst & Young are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Ernst & Young brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Ernst & Young brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Ernst & Young is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
98
BRAND 3 OUT OF 5
• Consider the following brand
Please indicate your opinion on this brand by marking the appropriate number (1-7).
NOT AT ALL VERY How knowledgeable are you about this brand? 1 2 3 4 5 6 7 POOR OUTSTANDING How do you perceive the overall quality of this brand? 1 2 3 4 5 6 7 NOT AT ALL VERY This brand is modern and up-to-date 1 2 3 4 5 6 7 This brand invests in R&D 1 2 3 4 5 6 7 This brand introduces the latest product/service features 1 2 3 4 5 6 7 This brand is concerned with the environment 1 2 3 4 5 6 7 This brand is involved in helping its community 1 2 3 4 5 6 7 This brand is socially responsible 1 2 3 4 5 6 7
Three hypothetical B2C brand extensions of the above brand will be mentioned.
Please indicate your opinion on these brand extensions by marking the appropriate number (1-7).
• Consider the brand extension
“Marketing & Advertising Books” POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Saatchi & Saatchi are useful to make this extension 1 2 3 4 5 6 7 The resources of Saatchi & Saatchi are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Saatchi & Saatchi brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Saatchi & Saatchi brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Saatchi & Saatchi is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
• Consider the brand extension
“Institute of Advertising” (executive training courses) POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Saatchi & Saatchi are useful to make this extension 1 2 3 4 5 6 7 The resources of Saatchi & Saatchi are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Saatchi & Saatchi brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Saatchi & Saatchi brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Saatchi & Saatchi is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
99
BRAND 4 OUT OF 5
• Consider the following brand
Please indicate your opinion on this brand by marking the appropriate number (1-7).
NOT AT ALL VERY How knowledgeable are you about this brand? 1 2 3 4 5 6 7 POOR OUTSTANDING How do you perceive the overall quality of this brand? 1 2 3 4 5 6 7 NOT AT ALL VERY This brand is modern and up-to-date 1 2 3 4 5 6 7 This brand invests in R&D 1 2 3 4 5 6 7 This brand introduces the latest product/service features 1 2 3 4 5 6 7 This brand is concerned with the environment 1 2 3 4 5 6 7 This brand is involved in helping its community 1 2 3 4 5 6 7 This brand is socially responsible 1 2 3 4 5 6 7
Three hypothetical B2C brand extensions of the above brand will be mentioned.
Please indicate your opinion on these brand extensions by marking the appropriate number (1-7).
• Consider the brand extension
”Portable MP3 Player” POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Intel are useful to make this extension 1 2 3 4 5 6 7 The resources of Intel are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Intel brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Intel brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Intel is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
100
• Consider the brand extension
”Home Wireless (wi-fi) Network Hardware” POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Intel are useful to make this extension 1 2 3 4 5 6 7 The resources of Intel are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Intel brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Intel brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Intel is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
• Consider the brand extension
”Notebook PC” POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Intel are useful to make this extension 1 2 3 4 5 6 7 The resources of Intel are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Intel brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Intel brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Intel is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
101
BRAND 5 OUT OF 5
• Consider the following brand
Please indicate your opinion on this brand by marking the appropriate number (1-7).
NOT AT ALL VERY How knowledgeable are you about this brand? 1 2 3 4 5 6 7 POOR OUTSTANDING How do you perceive the overall quality of this brand? 1 2 3 4 5 6 7 NOT AT ALL VERY This brand is modern and up-to-date 1 2 3 4 5 6 7 This brand invests in R&D 1 2 3 4 5 6 7 This brand introduces the latest product/service features 1 2 3 4 5 6 7 This brand is concerned with the environment 1 2 3 4 5 6 7 This brand is involved in helping its community 1 2 3 4 5 6 7 This brand is socially responsible 1 2 3 4 5 6 7
Three hypothetical B2C brand extensions of the above brand will be mentioned.
Please indicate your opinion on these brand extensions by marking the appropriate number (1-7).
• Consider the brand extension
“Chronograph wristwatch” POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Boeing are useful to make this extension 1 2 3 4 5 6 7 The resources of Boeing are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Boeing brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Boeing brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Boeing is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
• Consider the brand extension
“Flight simulator computer game” POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Boeing are useful to make this extension 1 2 3 4 5 6 7 The resources of Boeing are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Boeing brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Boeing brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Boeing is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
Can B2B Brands be Extended into the Consumer Market?
102
• Consider the brand extension
“Travel luggage” POOR OUTSTANDING How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7 TOTALLY DISAGREE TOTALLY AGREE If this brand extension existed, I would be likely to try it 1 2 3 4 5 6 7 The competences of Boeing are useful to make this extension 1 2 3 4 5 6 7 The resources of Boeing are useful to make this extension 1 2 3 4 5 6 7 This brand extension is consistent with the Boeing brand 1 2 3 4 5 6 7 This brand extension fits with my associations of the Boeing brand 1 2 3 4 5 6 7 This brand extension will be difficult to make 1 2 3 4 5 6 7 Boeing is out to make short-term profits with this brand extension 1 2 3 4 5 6 7
PERSONAL INFORMATION
Name (this will be used for administrational purposes only)
Age Gender: � Male � Female
Do you study business or economics? � Yes � No
Nationality
� Dutch
� German
� Other, namely:
Can B2B Brands be Extended into the Consumer Market?
103
APPEN DIX B. SPSS OU TPU TS B.1 Reliability Analyses B.1.1 Attitude tow ards brand extension R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1. EXTQUAL 4.7767 1.4177 1124.0 2. EXTTRIAL 3.9929 1.7649 1124.0 N of Cases = 1124.0 N of Statistics for Mean Variance Std Dev Variables Scale 8.7696 8.1597 2.8565 2 Item Means Mean Minimum Maximum Range Max/Min Variance 4.3848 3.9929 4.7767 .7838 1.1963 .3072 Reliability Coefficients 2 items Alpha = .7439 Standardized item alpha = .7551
B.1.2 Innovativeness R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1. INNOV1 5.0872 1.3162 1113.0 2. INNOV2 5.0916 1.5555 1113.0 3. INNOV3 5.1024 1.4200 1113.0 N of Statistics for Mean Variance Std Dev Variables SCALE 15.2812 14.6106 3.8224 3 Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted INNOV1 10.1941 7.8148 .6880 .8647 INNOV2 10.1896 6.4074 .7344 .8298 INNOV3 10.1788 6.5570 .8301 .7335 Reliability Coefficients N of Cases = 1113.0 N of Items = 3 Alpha = .8667
Can B2B Brands be Extended into the Consumer Market?
104
B.1.3 Corporate Social Responsibility R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1. SOCIAL 3.8978 1.3330 1125.0 2. COMMUN 3.8667 1.3036 1125.0 N of Cases = 1125.0 N of Statistics for Mean Variance Std Dev Variables Scale 7.7644 6.0290 2.4554 2 Item Means Mean Minimum Maximum Range Max/Min Variance 3.8822 3.8667 3.8978 .0311 1.0080 .0005 Reliability Coefficients 2 items Alpha = .8468 Standardized item alpha = .8470
B.1.4 Transfer R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1. TRANSFE1 4.7384 1.5765 1124.0 2. TRANSFE2 4.8167 1.5170 1124.0 N of Statistics for Mean Variance Std Dev Variables SCALE 9.5552 8.9507 2.9918 2 Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted TRANSFE1 4.8167 2.3012 .8706 . TRANSFE2 4.7384 2.4854 .8706 . Reliability Coefficients N of Cases = 1124.0 N of Items = 2 Alpha = .9304
Can B2B Brands be Extended into the Consumer Market?
105
B.1.5 Brand concept consistency R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1. BCC1 4.5009 1.6452 1114.0 2. BCC2 4.3348 1.7094 1114.0 N of Statistics for Mean Variance Std Dev Variables SCALE 8.8357 10.5723 3.2515 2 Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted BCC1 4.3348 2.9219 .8790 . BCC2 4.5009 2.7066 .8790 . Reliability Coefficients N of Cases = 1114.0 N of Items = 2 Alpha = .9352
B.1.6 D ifficult R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A) Mean Std Dev Cases 1. DIFFI1 3.5067 1.5741 1125.0 2. DIFFI2 3.9636 1.4635 1125.0 N of Statistics for Mean Variance Std Dev Variables SCALE 7.4702 5.1497 2.2693 2 Item-total Statistics Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted DIFFI1 3.9636 2.1419 .1150 . DIFFI2 3.5067 2.4779 .1150 . Reliability Coefficients N of Cases = 1125.0 N of Items = 2 Alpha = .2058
Can B2B Brands be Extended into the Consumer Market?
106
B.2 Regression Analyses B.2.1 Full m odel before residual centering Variables Entered/Removed
Service brand -5.174E-02 .069 -.018 -.746 .456 .585 1.710 a Dependent Variable: Attitude toward brand extension
Can B2B Brands be Extended into the Consumer Market?
112
B.2.4 Regression at brand level: brand 1 Model Summary
R R Square Adjusted R Square
Std. Error of
the Estimate
Model +Brand = Reuters
(Selected)
1 .727 .528 .507 .9580
a Predictors: (Constant), Transfer*brand concept consistency[Residual], Environmental concern, Difficult, Parent brand knowledge, Innovative, Parent brand quality, Brand concept consistency, Corporate social responsibility, Transfer ANOVA
Model Sum of Squares
df Mean Square
F Sig.
1 Regression 201.360 9 22.373 24.379 .000
Residual 179.874 196 .918
Total 381.234 205
a Predictors: (Constant), Transfer*brand concept consistency[Residual], Environmental concern, Difficult, Parent brand knowledge, Innovative, Parent brand quality, Brand concept consistency, Corporate social responsibility, Transfer b Dependent Variable: Attitude toward brand extension c Selecting only cases for which +Brand = Reuters
Can B2B Brands be Extended into the Consumer Market?
a Dependent Variable: Attitude toward brand extension b Selecting only cases for which +Brand = Reuters
Can B2B Brands be Extended into the Consumer Market?
114
B.2.5 Regression at brand level: brand 2 Model Summary
R R Square Adjusted R Square
Std. Error of the
Estimate
Model +Brand = Ernst & Young
(Selected)
1 .805 .649 .632 .8285
a Predictors: (Constant), Transfer*brand concept consistency[Residual], Innovative, Difficult, Corporate social responsibility, Parent brand knowledge, Environmental concern, Brand concept consistency, Parent brand quality, Transfer ANOVA
Model Sum of Squares
df Mean Square
F Sig.
1 Regression 248.338 9 27.593 40.195 .000
Residual 134.551 196 .686
Total 382.888 205
a Predictors: (Constant), Transfer*brand concept consistency[Residual], Innovative, Difficult, Corporate social responsibility, Parent brand knowledge, Environmental concern, Brand concept consistency, Parent brand quality, Transfer b Dependent Variable: Attitude toward brand extension c Selecting only cases for which +Brand = Ernst & Young
Can B2B Brands be Extended into the Consumer Market?
a Dependent Variable: Attitude toward brand extension b Selecting only cases for which +Brand = Saatchi & Saatchi
Can B2B Brands be Extended into the Consumer Market?
118
B.2.7 Regression at brand level: brand 4 Model Summary
R R Square Adjusted R Square
Std. Error of the
Estimate
Model +Brand = Intel
(Selected)
1 .770 .594 .575 .9211
a Predictors: (Constant), Transfer*brand concept consistency[Residual], Environmental concern, Parent brand knowledge, Parent brand quality, Difficult, Brand concept consistency, Corporate social responsibility, Innovative, Transfer ANOVA
Model Sum of Squares
df Mean Square
F Sig.
1 Regression 242.933 9 26.993 31.817 .000
Residual 166.282 196 .848
Total 409.215 205
a Predictors: (Constant), Transfer*brand concept consistency[Residual], Environmental concern, Parent brand knowledge, Parent brand quality, Difficult, Brand concept consistency, Corporate social responsibility, Innovative, Transfer b Dependent Variable: Attitude toward brand extension c Selecting only cases for which +Brand = Intel
Can B2B Brands be Extended into the Consumer Market?
a Predictors: (Constant), Transfer*brand concept consistency[Residual], Parent brand quality, Difficult, Environmental concern, Transfer, Parent brand knowledge, Brand concept consistency, Corporate social responsibility, Innovative b Dependent Variable: Attitude toward brand extension c Selecting only cases for which +Brand = Boeing
Can B2B Brands be Extended into the Consumer Market?
a Dependent Variable: Attitude toward brand extension b Selecting only cases for which +Brand = Boeing
Can B2B Brands be Extended into the Consumer Market?
122
B.2.9 Regression: Service brands Model Summary
R R Square Adjusted R Square
Std. Error of the
Estimate
Model Service brand = Service
brand (Selected)
1 .766 .587 .580 .8580
a Predictors: (Constant), Transfer*brand concept consistency[Residual], Environmental concern, Difficult, Parent brand knowledge, Innovative, Brand concept consistency, Corporate social responsibility, Parent brand quality, Transfer ANOVA
Model Sum of Squares
df Mean Square
F Sig.
1 Regression 635.010 9 70.557 95.847 .000
Residual 447.573 608 .736
Total 1082.583 617
a Predictors: (Constant), Transfer*brand concept consistency[Residual], Environmental concern, Difficult, Parent brand knowledge, Innovative, Brand concept consistency, Corporate social responsibility, Parent brand quality, Transfer b Dependent Variable: Attitude toward brand extension c Selecting only cases for which Service brand = Service brand
Can B2B Brands be Extended into the Consumer Market?