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206 BtoB Brandextensions
206 BtoB Brandextensions
206 BtoB Brandextensions
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
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Can B2B Brands be Extended into the Consumer Market?
ABSTR ACT
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.
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Can B2B Brands be Extended into the Consumer Market?
CON TEN TS
Abstract 3
List of tables 8
List of figures 8
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Can B2B Brands be Extended into the Consumer Market?
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 SocialResponsibility (CSR) 26
3.3.3 Environm entalconcern 26
3.4 Summary 27
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Can B2B Brands be Extended into the Consumer Market?
PART III. RESEARCH FIN DIN G S
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Can B2B Brands be Extended into the Consumer Market?
PART IV. CLOSIN G PERSPECTIVES
BIBLIOG RAPH Y 71
APPEN DIX A. QU ESTION N AIRES 78
APPEN DIX B. SPSS OU TPU TS 103
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Can B2B Brands be Extended into the Consumer Market?
LIST OF TABLES
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Can B2B Brands be Extended into the Consumer Market?
CH APTER 1.
IN TRODU CTION
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
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Can B2B Brands be Extended into the Consumer Market?
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. U nderstanding 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).
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Can B2B Brands be Extended into the Consumer Market?
TABLE 1.1 Companies Formerly Operating in Business-to-Business Markets Only
Morgan Stanley 1977 Private wealth Full-service banking Diversification and growth
management
Merrill Lynch 1977 Cash Management Retail brokerage, institutional- and Diversification and growth
Account® investment banking
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Can B2B Brands be Extended into the Consumer Market?
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:
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.
1.3.1 Theoreticalcontribution
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.
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Can B2B Brands be Extended into the Consumer Market?
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 Practicalcontribution
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.
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Can B2B Brands be Extended into the Consumer Market?
PART I.
LITERATU RE REV IEW
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Can B2B Brands be Extended into the Consumer Market?
CH APTER 2.
2.2.2 Benefits
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Can B2B Brands be Extended into the Consumer Market?
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.
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
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Can B2B Brands be Extended into the Consumer Market?
mean to renew interest and improve attitude towards the parent brand (Keller, 2003;
Kapferer, 1997).
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
awareness (Morrin, 1999) and/or diluting the brand meaning. Third, brand extensions
can lead to problems of practical nature, for example a large number of extensions
might confuse or frustrate customers, and there might be problems with retailers being
unwilling to shelf/store all the different extensions. Similarly, Loken and John (1993, p.
79) suggest that “unsuccessful brand extensions can dilute brand names by diminishing
the favorable attitudes that consumers have learned to associate with the family brand
name”.
A principle study in the field of brand extensions is Aaker and Keller’s (1990) study
on how consumers evaluate brand extensions. The authors hypothesize that
“evaluations of brand extensions are based on the quality of the original brand, the fit
between the parent and extension categories and the interaction between the two”
(Bottomley & H olden, 2001, p. 494). Despite the fact that this study per se provides no
evidence that a direct relationship between the quality of the parent brand and the
consumer evaluation of the brand extension exist (Aaker & Keller, 1990; ibid.), the
empirical generalizability of Aaker and Keller’s (1990) model is well supported in
Bottomley and H olden’s (2001) secondary analysis, which examines seven replication
studies. Based on their findings, Bottomley and H olden (2001) draw three general
conclusions: (1) The quality of the parent brand and the fit between the parent brand
and the brand extension are key determinants of consumer evaluations of brand
extensions; (2) Consumer’s brand extension evaluations are also determined by (a) the
dimensions of fit (i.e. the complementarity and transferability of assets and skills)
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Can B2B Brands be Extended into the Consumer Market?
between the parent brand and the brand extension, and (b) to what extent consumers
perceive the brand extension is difficult to produce; (3) Cultural differences influence
how brand extensions are evaluated with respect to relative measurement factors.
W hile Aaker and Keller (1990) and consequent replication studies provide a
rationale for leveraging parent brand equity through brand extensions, from which
economic profits can be extruded, Balachander and G hose (2003) examine the reciprocal
effect of brand extensions on the parent brand. This effect or productivity is measured
by “brand-choice elasticities”, which measure the increase in choice probability that
results from increase in exposure (ibid., p. 11). The findings of Balachander and G hose
(2003) provide strong support to positive spillover effects from advertising of a brand
extension on choice of a parent brand. This reciprocal spillover effect does, however, not
seem to be symmetrical—that is, forward spillover effects from advertising of a parent
brand on choice of a brand extension are limited.
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Can B2B Brands be Extended into the Consumer Market?
evaluation. In the first step, the consumer attempts to match a brand extension (or some
other new object) with the current category. If categorization is successful, in other
words, if there is a match, the affect that is associated with the category type is applied
to the brand extension and so the evaluation process is complete. If there on the other
hand is a poor match between the category and the brand extension, piecemeal
processes are initiated. Affect is then evaluated through a weighted combination of
attributes.
Even if inconsistency implies that the extension is not “integrated” in the parent
category, an inconsistent brand extension can have a negative impact on the parent
brand by “diluting” specific attribute beliefs that consumers have come to hold about an
established brand name, rather than “diluting” the global affect associated with the
established brand name (Loken & John, 1993). The negative impact of an inconsistent
extension depends on the typicality of the brand attribute at stake. H ence, brand
dilution is an important issue when launching new brand or category extensions.
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2.4 Sum m ary
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CH APTER 3.
W hile consumer branding tends to focus much on marketing areas such as consumer
behavior where emotions, perceptions and behaviors are central, B2B branding is less
concerned with the buyer-seller interface and more focused on functionality and
performance. Brand elements (such as brand names) are associated with offerings that
consistently deliver superior functionality and are hence valuable resources (Anderson &
N arus, 2004). B2B branding and brand building are concepts that are gaining in
popularity.
This chapter begins with a brief introduction to corporate strategy, which provides
the starting point to branding topics such as corporate brand strategy, brand identity
and brand architecture. Following this is a review of theory on corporate brand
extensions.
Ind (1997) proposes that successful corporate branding is derived from Porter’s
well-established analytical model of competitive strategy. In this model, corporate
strategy is defined as the search for a favorable competitive position in an industry in
order to establish a profitable and sustainable position against competitive forces
(Porter, 1998). The core of the Porter model is that strategy is defined according to (1)
competitive scope, and (2) competitive advantage, the main point being that firms must
choose between being different and being the lowest cost producer in a certain industry
(Ind, 1997).
An important concept of the Porter (1998) model is the value chain. Porter (ibid.)
argues that a firm’s competitive advantage cannot be understood by looking at a firm as
a whole. Instead, a firm should be disaggregated into activities –that are performed to
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Can B2B Brands be Extended into the Consumer Market?
design, produce, market, deliver and support its offering (e.g. logistics, operations,
marketing and sales, and service). These activities represent the value chain, and if
deconstructed and analyzed properly can constitute a source of competitive advantage.
To link the Porter model of corporate business strategy to corporate branding
strategy, it is useful to first discuss the concept of corporate brand image.
Brand identity is, in general, a set of brand associations that the brand strategist
aspires to create or maintain (Aaker & Joachimsthaler, 2000). Ind (1992, p. 19) states, with
respect to corporate brand identity, that:
“Identity is formed by an organization’s history, its beliefs and philosophy, the nature of its
technology, its ownership, its people, the personality of its leaders, its ethical and cultural values
and its strategies.”
In addition, Keller and Aaker (1997) argue that corporate brands may be more likely to
possess intangible attributes or organizational characteristics that span product classes,
compared to product brands, whose associations are more likely to be product specific.
Anderson and N arus (2004), on the contrary, state that corporate brand elements
may not enclose any intangible meaning –instead they are charged with meaning
through the performance of the supplier and its market offering over time. The value of
the brand, i.e. the brand equity, hence lies in the association that business customers or
suppliers have with offerings that consistently deliver superior functionality and
performance (Anderson & N arus, 2004).
The issue of tangibility versus intangibility is clarified by Mudambi (2002). H er
findings conclude that the importance of intangible or tangible industrial brand
attributes, respectively, is situation- and buyer-dependent. In addition, Mudambi (2002)
proposes that B2B branding in general is more important than commonly believed.
Michell et al. (2001) conclude that tenets of consumer brand equity theory such as
perceived quality, a recognizable image, market leadership, and a differentiated position
in the marketplace are also relevant among industrial buyers. Factors that are associated
with building brand loyalty in consumer markets (i.e. quality, reliability, and
performance) are also relevant in B2B markets.
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Can B2B Brands be Extended into the Consumer Market?
3.2.3 Corporate brand strategy
The choice of business-to-business brand strategy is derived from the fact hat
industrial marketing and buying is increasingly focused on relationships rather than
individual transactions (W ebster & Keller, 2004). Industrial customers want ongoing
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).
M arketing
Identity com m unications Im age
IM AG E IN TERFACE
AU DIEN CES
Financial
Internal
Core values marketing Suppliers
Buyers
Personal
communications
Source:Abratt(1989)
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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
The extent to which management and employees are ‘visible’.
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Can B2B Brands be Extended into the Consumer Market?
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”.
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 localcom 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 socialresponsibility
and environm entalconcern.
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.
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Can B2B Brands be Extended into the Consumer Market?
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.
“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”
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Can B2B Brands be Extended into the Consumer Market?
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.
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Can B2B Brands be Extended into the Consumer Market?
PART II.
CON CEPTU AL FRAM EW ORK
Chapter 4. H ypotheses 29
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Can B2B Brands be Extended into the Consumer Market?
CH APTER 4.
H Y POTH ESES
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.
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Can B2B Brands be Extended into the Consumer Market?
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 parentbrand
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:
Keller and Aaker (1997) propose that marketing activities directed towards
environmental awareness and community involvement increase the perceived likeability
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Can B2B Brands be Extended into the Consumer Market?
and trustworthiness, but has no significant effect on an extension’s perceived quality.
This leads to the fourth hypothesis:
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:
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:
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Can B2B Brands be Extended into the Consumer Market?
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.
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
32
Can B2B Brands be Extended into the Consumer Market?
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:
H ypothesis 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.
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:
H ypothesis 9a:A higher level of perceived parent brand innovativeness w eakens the
im pactof perceived difficulty(to produce an extension) on brand extension evaluation.
33
Can B2B Brands be Extended into the Consumer Market?
H ence, there might be an interaction between brand-specific associations and the
similarity of the extension category. This leads to the following:
H ypothesis 10:A higher levelof perceived category fit betw een the parent brand and
the brand extension strengthens the im pactof perceived extension brand associations.
34
Can B2B Brands be Extended into the Consumer Market?
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.
H1 H igher degrees of know ledge aboutthe business-to-business parentbrand are Broniarczyk & Alba
associated w ith m ore favorable attitudes tow ard the consum er brand (1994)
extension.
H2 H igher quality perceptions tow ard the business-to-business parentbrand are Aaker and Keller (1990)
associated w ith m ore favorable attitudes tow ard the consum er brand
extension.
H3 H igher perceptions of innovativeness tow ard the business-to-business parent Adapted from Keller
brand are associated w ith m ore favorable attitudes tow ard the consum er and Aaker (1997)
brand extension.
H6 The transfer of a business-to-business parentbrand’s perceived quality is Aaker and Keller (1990)
enhanced w hen the productclasses (of the parentbrand and the consum er
brand extension) in som e w ay fittogether. W hen the fitis w eak, the transfer is
inhibited.
H7 If the brand associations of the consum er brand extension are consistentw ith Adapted from
brand conceptof the business-to-business parentbrand, the attitude tow ard Broniarczyk & Alba
the brand extension is positive. (1994)
H8 The relationship betw een the difficulty of m aking the consum er productclass Aaker and Keller (1990)
of the brand extension and the attitude tow ard the brand extension is positive.
H 9a A higher levelof perceived parentbrand innovativeness w eakens the im pact Own construct
of perceived difficulty (to m ake an extension) on brand extension evaluation.
H 10 A higher levelof perceived extension brand associations strengthens the Own construct
im pactof perceived category fitbetw een the parentbrand and the brand
extension.
35
Can B2B Brands be Extended into the Consumer Market?
CH APTER 5.
RESEARCH DESIG N
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.
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
following model was tested:
Q = quality
T = transfer
C = complement
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Can B2B Brands be Extended into the Consumer Market?
S = substitute
D = difficult
α = intercept
ε = error term.
Lastly, there might be some interaction effects. The first interaction effect is
between IN N OVATIVEN ESS and DIFFICU LT, and the second interaction term is between
37
Can B2B Brands be Extended into the Consumer Market?
TRAN SFER and BRAN D CON CEPT CON SISTEN CY, corresponding to H ypothesis 9 and 10
respectively. This leads to:
(3) Y = α + β1K + β2Q + β3T + β4B + β5D + β6I + β7C + β8E + β9ID + β10BT + ε,
Parent brand H1
knowledge
Parent brand
perceived quality H2
Parent brand
environmental H8 Attitude
concern towards
brand
extension
Brand concept
H4
consistency
H 10
Transfer H3
Difficult
H5
H 11
Parent brand
innovativeness H6
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Can B2B Brands be Extended into the Consumer Market?
5.3 M ethodology
The current research follows the approach used in the quantitative analysis in
Aaker and Keller’s (1990) study and replication studies. In these studies, qualitative
analyses are also performed prior to the quantitative analysis. Since the current study
aims to validate the Aaker and Keller (1990) in a B2B context for the sake of
generalizability and reproducibility, the current study will exclusively be of quantitative
nature.
The quantitative part tries to formally assess the consumer’s evaluation of brand
extensions through measuring attitude for different variables. In other words,
hypotheses 1 to 10 will be operationalized through a new model adapted from Aaker
and Keller (1990) and other theories discussed in chapter two and three.
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Can B2B Brands be Extended into the Consumer Market?
Table 5.1 Overview of B2B Brands and B2C Extensions
S Assurance, tax and legal, and financial Private tax planning service,
advisory services Institute of Accountancy
(Executive MBA education),
off-shore banking service
Intel P Chips, boards, systems, and software Portable MP3 music player,
components notebook PC
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Can B2B Brands be Extended into the Consumer Market?
EN VIRON MEN TAL CON CERN ) where (1 = not at all, 7 = very). A third 7-point scale
measured the three fit variables (TRAN SFER, BRAN D CON CEPT CON SISTEN CY, and
DIFFICU LT) where (1= totally disagree, and 7 = totally agree). This scale was also used to
assess the likelihood of brand extension trial (TRIAL). A fourth 7-point scale measured
the familiarity about the parent brand (KN OW LEDG E) where (1 = not at all, and 7 = very).
In Likert-type scales, the neutral points (4) can be considered to be natural
origins5. As in the original Aaker and Keller (1990) model and consequent replication
studies, the measured ordinal scales can be interpreted as interval scales. This allows for
using multiple regression as an analytical method.
Multiple-item rating scales are often use in social sciences research to measure
abstract constructs (Aaker et al., 1998). By having several items that measure the same
so-called construct, the problem of having single unrepresentative questions is solved
(ibid.). The greater the number of initial items generated, the better will be the final
scale. The larger the scale, the greater is the reliability, but shorter scales are easier for
respondents to answer. H ence, a balance between brevity and reliability has to be struck
to determine the optimal scale.
Multiple-item scales were developed for the variables IN N OVATIVE, CSR,
TRAN SFER, BRAN D CON CEPT CON SISTEN CY, and DIFFICU LT by means of 7-point Likert-
scales. Several items relevant for each variable were generated to form constructs. The
multiple-item scales were evaluated in the pilot-testing of the questionnaire, after which
some items were rephrased for clarity and some were omitted for brevity with respect to
the final length of the questionnaire. The final set of multiple-item constructs can be
seen in table 5.2.
5
This solves the problem of the absence of a real zero in the scale (van Riel et al., 2001).
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Can B2B Brands be Extended into the Consumer Market?
TABLE 5.2 Multiple-scale items
Innovative
This brand is modern and up-to-date
This brand invests in R&D
This brand introduces the latest product/service features
Corporate SocialResponsibility
This brand is involved in helping its community
This brand is socially responsible
Transfer
The competences of Reuters are useful to make this extension
The resources of Reuters are useful to make this extension
D ifficult
This brand extension will be difficult to make
Reuters is out to make short-term profits with this brand extension
5.5.1 Pilot-testing
Pilot-testing can be used to test the questionnaire on a small sample of
respondents to identify and eliminate potential problems (Martin & Polivka, 1995). A
paper version of the questionnaire along with additional pages with open-ended
questions concerning question content, wording, sequence, form, layout, question
difficult and instructions were handed out to ten graduate students enrolled at the
Faculty of Economics and Business Administration of Maastricht U niversity in the
N etherlands. The respondents of the pilot-test were similar to those who were included
in the subsequent survey, i.e. they were drawn from the same population.
Some changes were made to the first version of the questionnaire, including
removal of some brand extensions to make the questionnaire length shorter. Some
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Can B2B Brands be Extended into the Consumer Market?
questions were also rephrased for sake of clarity. The pilot-testing as well as the final
version of the questionnaire can be found in appendix A.
Frequency Percentage
Paper 35 34.0 %
Online 68 66.0 %
Frequency Percentage
M ale 59 57.3 %
Fem ale 44 42.7 %
Total 103 100.0 %
Frequency Percentage
Dutch 49 47.6 %
G erm an 20 19.4 %
Other 34 33.0 %
Total 103 100.0 %
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Can B2B Brands be Extended into the Consumer Market?
A total of 103 students were sampled out of which 66% were sampled via the
Internet and 34% sampled via regular paper questionnaires. Respondents varied in age
between 19 and 29 years old, 57% were male and 43% were female. In terms of
nationality, two thirds of the sample consisted of two large groups:47% were Dutch and
19% were G erman.
44
Can B2B Brands be Extended into the Consumer Market?
PART III.
RESEARCH FIN DIN G S
45
Can B2B Brands be Extended into the Consumer Market?
CH APTER 6.
6
One item measured the difficulty to make an extension, while the other item measured the ease to make an
extension.
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Can B2B Brands be Extended into the Consumer Market?
different ways of splitting the scale items (Cronbach, 1951). This coefficient varies
between 0 and 1, where a value of 0.6 or less generally indicates unsatisfactory internal
consistency reliability (Malhotra & Birks, 2003). An important property of Cronbach’s
alpha is that its value tends to increase as the number of scale items increases. Therefore,
the coefficient alpha may be artificially inflated by including several redundant scale
items (Peterson, 1994).
The reliability analysis for the dependent variable and the five independent
variable constructs reveled that all measures had an alpha coefficient exceeding 0.7
except for the construct DIFFICU LT ( = 0.21) (see table 6.1). The results from the
reliability analysis indicated that the scale variance would be reduced the most if the
item corresponding to the ease to make an extension (labeled DIFF2; see appendix B.1)
was removed. Consequently, this item of the DIFFICU LT construct was eliminated from
further analyses.
Because the multiple-item scales only included two or three items per construct,
the problem of artificially inflated coefficients is considered not to be an issue in the
current study.
Innovative 0.87
Transfer 0.93
Difficult 0.21
6.2.2 M ulticollinearity
Multicollinearity is when two or more independent variables are correlated with
each other. W hen highly correlated independent variables are present in a regression
model, the results are confusing and interpretation of estimated variables is difficult
(McClave et al., 1998). The original Aaker and Keller study (1990) and replication studies
(Sunde & Brodie, 1993; Bottomley & Doyle, 1996; van Riel et al., 2001) have all noted a
presence of multicollinearity between main effects and interaction terms.
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Can B2B Brands be Extended into the Consumer Market?
In the current model, multicollinearity caused by a high correlation between
main effects and the interaction term was also present. This was indicated by the
Variance Inflation Factors (VIFs) of the independent variables, as shown in table 6.2. The
VIF scores indicate to what extent each independent variable is explained by the other
independent variables (H air et al., 1998). A VIF score of four or higher is considered to be
indicative of severe collinearity (Olsen, n.d.).
A method was developed by Lance (1988) to deal with the effects of
multicollinearity. This method, called “residual centering” is a two-step regression that
“serves to substantially reduce multicollinearity among first-order terms in polynomial
regression equations for any given independent variable” (N eter et al., 1990, p. 411).
Lance (1988) argues that the benefits of the “residual centering” approach over
conventional OLS regression analysis in the presence of high degrees of multicollinearity
between the main and interaction terms are fourfold:(1) multicollinearity between the
exogenous variables is substantially reduced; (2) standard errors are reduced; (3) main
and interaction effects are separated; and (4) the relative importance of the main and
interaction variables can easier be identified.
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Can B2B Brands be Extended into the Consumer Market?
TABLE 6.2 VIF Scores of Regression Variables Before and
After Residual Centering
Before After
Indep endent variables Residual Residual
Centering Centering
Interaction effects
Innovativeness × Difficult* 18.91 13.93*
Brand concept consistency ×
Transfer * 29.71 1.13*
Replications of Aaker and Keller’s (1990) model by N ijssen and H artman (1994) and by
Bottomley and Doyle (1994) apply Lance’s (1988) residual centering regression
approach, arguing that their researches offer an improved view on the interaction
effects.
Following N ijssen and H artman (1994) and like Bottomley and Doyle (1994) as well
as Riel et al. (2001), the residual centering technique was applied in the current study. In
this two-stage regression procedure each interaction variable (e.g. IN N OVATIVEN ESS ×
DIFFICU LT) was regressed on its two component parts (i.e. IN N OVATIVN ESS and
DIFFICU LT in the example) using OLS regression. The resulting residuals (e.g.
IN N OVATIVEN ESS × DIFFICU LT[Residual]) were then used in place of the respective
interaction term when estimating the full effects model using OLS (cfr. Bottomley &
Doyle, 1994).
Multicollinearity was successfully eliminated for independent variables
IN N OVATIVE and BRAN D CON CEPT CON SISTEN CY, and the interaction term BRAN D
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Can B2B Brands be Extended into the Consumer Market?
CON CEPT CON SISCEN TY × TRAN SFER, whose VIF scores fell below 2.89 or lower after
residual centering. For the independent variable TRAN SFER, and for the interaction term
IN N OVATIVEN ESS × DIFFICU LT, multicollinearity was only partially eliminated (VIF scores
remain above four). N o multicollinearity could be eliminated for the variable DIFFICU LT.
Exhibit 6.4 summarizes the VIF scores of regression variables before and after residual
centering.
As a consequence of the high VIF scores, the interaction term IN N OVATIVEN ESS ×
DIFFICU LT was omitted from further analysis, after which multicollinearity was totally
eliminated (VIF < 2.89). The variable DIFFICU LT was kept in the model. N ote that its VIF
score after the removal of the interaction term is well below four. Exhibit 6.5 shows the
results of this action.
Interaction effects
Innovativeness ×
Difficult[Residual] removed
Brand concept consistency ×
Transfer [Residual] 1.14
50
Can B2B Brands be Extended into the Consumer Market?
6.2.3 Regression analysis results
After residual centering and omitting one interaction term, the hypothesized
model can be summarized as follows:
(4) Y = α + β1K + β2Q + β3I + β4C + β5E + β6T + β7B + β8D + β9BT[Residual]+ ε,
The hypothesized model (4) was formally tested by means of linear regression. The
analysis included the data from the 103 respondents, giving a total sample size of 1,133.
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Can B2B Brands be Extended into the Consumer Market?
0.62. This compares favorably with the original Aaker and Keller (1990) model and
replications studies. The regression model was also tested for each brand as well as for
services and products. The adjusted R 2 values of these tests are shown in table 6.6b.
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Can B2B Brands be Extended into the Consumer Market?
TABLE 6.4 Comparison Effects of Original and Replication Studies (t values are in parentheses)
Aaker Sunde and N ijssen Bottomley Bottomley Van Riel et Van Riel et Current study1
and Brodie and and Doyle and Doyle al. (2001) al. (2001)
Keller (1993) H artman (1996) U K (1996) N Z Services G oods
(1990) (1994)
Quality N /A 0.38 (5.3) 0.25 (9.1) 0.22 (11.2) .25 (12.91) 0.15 (9.38) 0.17 (6.78) 0.07* (2.39)
Transfer 0.24 0.21 (3.1) 0.58 (18.9) 0.31 (13.6) .26 (12.48) 0.34 (13.5) 0.41 (13.1) 0.27* (8.41)
Complement 0.17 0.29 (4.2) 0.01 (0.3) 0.31 (13.2) .30 (14.48) 0.38 (18.7) 0.20 (7.59) NA
Substitute 0.08 0.13 (1.9) .08 (2.7) 0.18 (7.67) .19 (8.86) 0.06 (3.40) 0.19 (7.13) NA
Difficult N /A 0.00 (0.1) Omitted 0.02 (1.22) .03 (1.59) -0.09 (-4.1) –0.16 (–5.3) -0.06* (-3.03)
53
Can B2B Brands be Extended into the Consumer Market?
TABLE 6.5 Regression Results:Main and Interaction Effects (residually
centered)
Predicted
direction of Std.
hypotheses b Error Beta T-value
Interaction effects
H 9:Innovativeness × Difficult -/+ Omitted
H 10:Transfer × Brand concept
consistency[Residual] + -0.02 0.01 -0.03 -1.50
Controlvariables
Service brand -0.05 0.07 -0.02 -0.75
R2 0.62
Adjusted R2 0.61
Sample size n 1133
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Can B2B Brands be Extended into the Consumer Market?
TABLE 6.6a Full Model at Brand Level (residually centered, t-values in parentheses)
TABLE 6.6b Full Model at Brand Level (residually centered, t-values in parentheses)
Ernst & Young S 0.24**** 0.34**** -0.15*** Omitted 0.00 206 0.63
(3.57) (4.95) (-3.15) (-0.05)
Saatchi & Saatchi S 0.28*** 0.29**** -0.07 Omitted -0.02 206 0.60
(3.52) (4.02) (-1.55) (-0.34)
55
Can B2B Brands be Extended into the Consumer Market?
6.2 H ypothesis Testing
6.2.3 H 3:Innovative
The beta coefficient for the variable IN N OVATIVE is significant at P<0.000 with a
moderate effect (0.13). The third hypothesis is therefore accepted. On a brand level, we
reject H 3 except for the Ernst & Young brand for which the beta coefficient is 0.18
(P<0.01).
In sum m ary, the third hypothesis is accepted atP=0.00. Ata brand level, w e m ustreject
H 3 w ith exception of the brand Ernst& Young.
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Can B2B Brands be Extended into the Consumer Market?
CSR beta coefficient for brands are inline with the aggregate beta with exception for the
beta for the Saatchi & Saatchi brand, which is 0.38 (P<0.000).
To sum up, the fourth hypothesis is rejected atboth an aggregate level(P<0.000) and a
brand level(allbrands;P<0.01).
6.2.6 H 6:Transfer
The beta coefficient for the variable TRAN SFER is significant (P<0.00) and highly
substantial (0.27). Thus, the sixth hypothesis is accepted. The effect of TRAN SFER is inline
with findings from previous replication studies. On a brand level, TRAN SFER is
significant for all of the five brands tested at P<0.05, although their effect vary between
0.20 for Reuters and 0.36 for Intel.
In sum m ary, the third hypothesis is accepted at P=0.00. At a brand level, w e accept H 3
for all brands.
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Can B2B Brands be Extended into the Consumer Market?
of the fifth hypothesis. W e can therefore not accept the eighth hypothesis. On a brand
level, only the beta coefficient for the brand Ernst & Young is significant (P<0.01). It too is
negative, with a beta of -0.15.
To sum m arize, w e cannot accept the eighth hypothesis because of sign reversal. The
beta coefficient is insignificant on a brand level w ith exception for Ernst & Young.
N evertheless, because of sign reversalw e cannotacceptthe eighth hypothesis for this brand.
6.2.9 H 10:Interaction effect betw een Transfer and Brand concept consistency
The moderator variable TRAN SFER x BRAN D CON CEPT CON SISTEN CY[Residual]
shows no significance (P>0.10). W e must therefore reject the tenth hypothesis. On a
brand level, the moderator variable shows no significance except for the brand Boeing,
for which the beta coefficient is negative (-0.13) at P<0.000.
In sum m ary, w e reject the tenth hypothesis at an aggregate level. W e also reject the
hypothesis at a brand levelfor allbrands except for Boeing for w hich w e accept it at a 0.000
significance level.
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Can B2B Brands be Extended into the Consumer Market?
TABLE 6.7 Summary of H ypothesis Testing
Aggregate
level
H yp othesis results Brand levelresults
Interaction effects
H 9:Innovativeness × Difficult N /A N /A
H 10:Transfer × Brand concept
consistency[Residual] Rejected Accepted for Boeing brand only
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Can B2B Brands be Extended into the Consumer Market?
TABLE 6.8 Extension Level Means
Attitude
tow ard Parent Parent Environ- Brand
brand brand brand m ental concept
Brand extension extension know ledge quality Innovative concern CSR Transfer Difficult consistency
Intel N otebook PC 5.08 5.58 5.67 6.22 3.62 3.90 5.57 2.85 5.31
Reuters 24-H our N ews TV
Channel 5.02 4.21 5.31 4.55 3.45 3.89 5.49 3.26 5.28
Intel Portable MP3 player 4.82 5.58 5.67 6.22 3.62 3.90 5.00 3.33 4.41
Reuters N ews Radio
Station 4.68 4.21 5.31 4.55 3.45 3.89 5.40 3.33 5.00
Ernst & Young Private tax
planning service 4.61 4.99 5.17 4.61 3.31 3.81 5.40 3.12 5.15
Boeing Flight simulator
video game 4.30 5.27 5.55 5.46 3.62 4.01 4.83 3.62 4.42
Saatchi & Saatchi Institute
of Advertising 4.24 2.69 4.55 4.38 3.52 3.73 4.67 3.77 4.40
Saatchi & Saatchi
Marketing & Advertising
books 4.22 2.69 4.55 4.38 3.52 3.73 4.50 3.84 4.36
Ernst & Young Institute of
Accountancy 4.06 4.99 5.17 4.61 3.31 3.81 5.16 3.89 4.44
Boeing "U ltra-tough"
travel luggage 4.06 5.27 5.55 5.46 3.62 4.01 3.53 3.50 3.56
Boeing Chronograph
wristwatch 3.16 5.27 5.55 5.46 3.62 4.01 2.95 4.06 2.40
Average 4.39 4.61 5.28 5.08 3.52 3.88 4.77 3.51 4.43
Standard deviation 0.55 1.06 0.40 071 0.12 0.11 0.84 0.37 0.85
Standard
Brand M ean Deviation
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Can B2B Brands be Extended into the Consumer Market?
6.3 Discussion and Interpretation
6.3.3 Innovative
Parent brand innovativeness has a positive effect (0.13) on brand extension
evaluation. Thus, Keller and Aaker’s (1997) prediction also holds in the case of consumer
brand extensions of B2B brands. As mentioned in Section 3.3.1, not much research has
been done with respect to brand innovativeness (most research has been done in the
are of consumer innovativeness). The results show that innovativeness is a stronger
predictor of the dependent variable than parent brand quality. There might be two
reasons for this phenomenon: (1) Innovativeness may be a salient attribute of brand
quality, at least partially (i.e. there is an interaction effect between QU ALITY and
IN N OVATIVEN ESS); and (2) the quality of B2B may be too abstract for consumers to
evaluate, while innovativeness can be more easily judged.
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Can B2B Brands be Extended into the Consumer Market?
On a brand level, only the Ernst & Young brand showed significance for the
innovativeness coefficient (0.18), indicating that innovativeness is brand-specific.
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Can B2B Brands be Extended into the Consumer Market?
The effect of environmental concern was hypothesized to be zero, but turned out
to be positive. This fact alongside the positive effect of corporate social responsibility
indicates that consumers to a certain extent take ethical considerations when evaluating
parent brands.
6.3.6 Transfer
The first fit variable, TRAN SFER is significant and its effect is substantial (0.27). This
is an important finding that indicates that current skills and resources of a company are
perceived as being transferable from business markets to consumer markets.
This finding was also relevant across all brands with a notably higher beta
coefficient for the Intel brand (0.36) compared to the other brands. A likely explanation
for the higher beta of the Intel brand may be the high extension attitude scores for the
two Intel brand extensions (see table 6.8).
The beta coefficients are the same (0.26) for product and service brands, implying
that consumers do not distinguish between skills and resources in making services or
goods respectively.
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Can B2B Brands be Extended into the Consumer Market?
6.3.8 D ifficult
A positive relationship between extension attitude and perceived difficulty of
producing the extension was hypothesized. Although the variable Difficult was
significant, the hypothesis was rejected because of sign reversal, i.e. the beta coefficient
turned out to be negative (-0.06). This might indicate that some brand extensions were
perceived to be too difficult to make and that this leads to negative extension
evaluation. This might be an important distinction in comparison to “traditional” brand
extensions that operate in the same market etc. For example, in the original Aaker and
Keller (1990) study and replication studies with exception from van Riel, Lemmink and
Ouwersloot’s (2001) study, the Difficult beta coefficients were positive. In the latter study
(van Riel et al., 2001), which tested service brand extensions, the Difficult beta was
negative. In other words, the more difficult an extension is to produce, the higher will be
the evaluation, except in cases when the extension is a service and the parent brand is a
product brand, or –as concluded in the current study –when the extension is a consumer
product/service and the parent brand is a business-to-business brand. This suggests that
there is an invisible “barrier” that brands face when extending brands to unrelated
markets.
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Can B2B Brands be Extended into the Consumer Market?
different variables were used in the regression analysis of the current model. Van Riel et
al. (2001) propose that the possible explanation for the high adjusted R2 of their model
could be explained by the fact that brand extensions have become more common over
the years and the explanatory power of the used constructs have been reinforced by
successful extensions (and thus positive extension evaluations). This seems like a
plausible explanation in the case of consumer brand extensions of business brands:
consumers are able to “make sense” out of these type of extensions.
The model of the current study also seems to have a better fit for products than
services, with respective adjusted R2 values of 0.64 and 0.58.
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Can B2B Brands be Extended into the Consumer Market?
PART IV .
CLOSIN G PERSPECTIV ES
Chapter 7. Conclusions 67
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Can B2B Brands be Extended into the Consumer Market?
CH APTER 7.
7.2 Conclusions
The current study has shown that it indeed is possible to extend business-to-
business brands into the consumer market. It presented the brand extension model of
Aaker and Keller (1990), which was modified to fit the current context by drawing
theories from Broniarczyk and Alba (1994) and Keller and Aaker (1997). More specifically,
this study provided evidence 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. H ence,
abstract factors facilitate extension acceptance beyond the limitations of product-
related similarity. Corporate branding attributes such as innovativeness and corporate
social responsibility also play a large role. The goodness of fit of the current model also
seems to be higher for product brands than services.
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Can B2B Brands be Extended into the Consumer Market?
their unreliability and low validity (Churchill, 1979). Multiple-item scales is one solution,
but the emphasis should be on constructing better measures of brand equity, in order to
fully assess the extent to which a brand can be leveraged.
A second concern relates to the one-sidedness of the current study. It measured
only consumer acceptance of the brand extensions. A relevant question in the context of
the current research would also address the attitudes of existing B2B customers when
launching consumer brand extensions. In other words, the reciprocal impacts of
consumer brand extensions on brand equity can be measured with respect to both
consumers and business-to-business customers.
A third concern relates to the fit variables. Because of the non-applicability of the
fit variables Substitute and Complement used in previous replication studies, only two fit
variables were used (Transfer and Brand concept consistency). Brand concept
consistency proved to be a useful factor, probably because of its abstractness. Future
studies on brand extensions could include Brand concept consistency as well as the
original fit variables Substitute and Complement to further examine whether the
abstractness of the former or the concreteness of the latter two are superior in attitude
formation.
A fourth limitation relates to the number of brands used in the study. Only five
brands were used, all of which were well-known global brands. Differences in adjusted
R2 on a brand level suggest that there are attributes unique to each brand, which are not
measured by Brand concept consistency. A more detailed study on brand extensions
could take into account numerous factors such as previous extensions (cfr. Keller &
Aaker, 1992), effects of extensions on a company’s brand portfolio (cfr. Dacin & Smith,
1994), or brand architecture (e.g. how brand architecture facilitates brand extension
acceptance).
A fifth limitation concerns the way the brand extension were presented. Since
each brand extension was presented only as a non-branded generic product and
without any accompanying text or visual cues, the extent to which a true assessment of
the quality and likelihood of trial by the consumer might have been limited. Related to
the brand extension presentation is the absence of pricing. Van Riel et al. (2001) suggest
that consumers may use “price clues” to assess [service]quality (Zeithaml, 1988).
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Can B2B Brands be Extended into the Consumer Market?
7.4 Im plications
69
Can B2B Brands be Extended into the Consumer Market?
CSR is a trend or whether it will remain as an important attribute. N evertheless, a B2B
company should be aware of the difference in ethical values among consumers and
industrial buyers.
Another corporate brand attribute that facilitates brand extension acceptance is
innovativeness. A company should therefore strive to build an innovative reputation and
form a philosophy of constantly launching advanced products or services.
An important practical constraint with respect to the current model is that it is
only tested on B2B brands. The validity or importance of the above is hence not
confirmed in cases after a brand makes the transition from B2B to both B2B and
consumer brand. Some time after a transition is made, i.e. when the former B2B brand is
both a B2B and B2C brand, consumers may evaluate the brand extensions according to
the original model by Aaker and Keller (1990). This pinpoints the context-specificity of
the current model.
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Can B2B Brands be Extended into the Consumer Market?
BIBLIOG R APH Y
Aaker, D. A., Kumar, V. and Day, G . S. (1998) Marketing Research (6th Ed.). N ew York:John
W iley & Sons.
Albaum, G . (1997). “The Likert scale revisited – and alternative version”. Journal of the
M arketResearch Society, 39(2), 331-48.
Berthon, P., H olbrook, M.B. and H ulbert. J.M. (2003). “U nderstanding and managing the
brand space”. M IT Sloan M anagem entReview , 44(2), 49-54.
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Bhattacharya, C. B. and Sen, S. (2003). “Consumer-company identification:a framework
for understanding consumers'relationships with companies”. Journalof M arketing,
67(2), 76-88.
Bottomley, P. A. and H olden, S. J. S. (2001). “Do we really know how consumers evaluate
brand extensions? Empirical generalizations based on secondary analysis of eight
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Brody, C. J. and Dietz, J. (1997). “On the dimensionality of 2-question format Likert scale
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Brown, T. J. and Dacin, P. A. (1997). “The company and the product: corporate
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Cronbach, L. J. (1951) “Coefficient alpha and the internal structure of tests”,
Psychom etrica, 16, 297-334.
de Ruyter, K. and W etzels, M. (2000). “The role of corporate image and extension
similarity in service brand extensions”. Journalof Econom ic Psychology, 21(6), 639-
660.
H air, J. F., Anderson, R. E., Tatham, R. L. and Black, W . C. (1998). M ultivariate D ata Analysis
(5th Ed.). U pper Saddle River, N J:Prentice H all.
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H enderson, J. M. and Quandt, R. E. (1980). M icroeconom ic theory: a m athem atical
approach. N ew York:McG raw-H ill.
Keller, K. L. (2003). “Brand equity dilution”. M IT Sloan M anagem entReview , 45(1), 12-14.
Keller, K. L. (2003). Strategic Brand M anagem ent:Building, M easuring, and M anaging Brand
Equity. U pper Saddle River:Prentice H all.
Keller, K. L. and Aaker, D. A. (1997). “Managing the corporate brand: the effect of
corporate marketing activity on consumer evaluations of brand extensions”.
Cambridge, MA:Marketing Science Institute.
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Lance, Charles E. (1988), “Residual centering, exploratory and confirmatory moderator
analysis, and decomposition of effects in path models containing interactions,”
Applied PsychologicalM easurem ent, 12(2), 163-175.
Loken, B. and John, D. R. (1993). “Diluting brand beliefs:when do brand extensions have
a negative impact?”. Journalof M arketing, 57(3), 71-85.
MacInnis, D. J. and N akamoto, K. (1990). “Examining factors that influence the perceived
goodness of brand extensions”. W orking Paper #54, Karl Eller G raduate School of
Management, U niversity of Arizona.
Malhotra, N . K. and Birks, D. F. (2003). M arketing Research:An Applied Approach (3rd Ed.).
H arlow:Prentice-H all.
McClave, J. T., Benson, P. G . and Sinich, T. (1998). Statistics for Business and Econom ics (7th
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Mervis, C. B. and Rosch, E. (1981). “Categorization of N atural Objects”. AnnualReview of
Psychology, 32, 89-115.
Michell, P., King, J. and Reast, J. (2001). “Brand values related to industrial products”.
IndustrialM arketing M anagem ent, 30(5), 415-425.
Morrin, M. (1999). “The impact of brand extensions on parent brand memory structures
and retrieval processes”. Journalof M arketing Research, 36(4), 517-526.
N eter, J., W asserman, W . and Kutner, M. H . (1990), Applied Linear Statistical M odels:
Regression, Analysis of Variance, and Experim entalD esigns. Burr Ridge, IL:Irwin.
Porter, M. (1998). Com petitive Advantage -Creating and Sustaining Superior Perform ance.
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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”. Journalof Service Research, 3(3), 220-231.
Sunde, L. and Brodie, R.J., (1993). “Consumer evaluations of brand extensions: Further
empirical evidence”. InternationalJournalof Research in M arketing, 10, 47-53.
The 100 Top Brands (2004, August). Business W eek, 3864, 68-71.
U rde, M. (1999). “Brand orientation: a mindset for building brands into strategic
resources”. Journalof M arketing M anagem ent, 15(1-3), 117-133.
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.
77
Can B2B Brands be Extended into the Consumer Market?
APPEN DIX A. QU ESTION N AIR ES
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!
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).
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Can B2B Brands be Extended into the Consumer Market?
Nationality Dutch German Other, namely
If you are an exchange student: do you study business, economics, etc. in your home country?
Yes No
79
Can B2B Brands be Extended into the Consumer Market?
SURVEY ON BRAND EXTENSIONS
Dear participant,
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.
INSTRUCTIONS
80
Can B2B Brands be Extended into the Consumer Market?
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
Also consider the following brand extensions, and please write down your immediate associations to
these in the empty box:
81
Can B2B Brands be Extended into the Consumer Market?
Now, please indicate your opinion on the previously mentioned hypothetical brand extensions by
marking the appropriate number (1-7).
82
Can B2B Brands be Extended into the Consumer Market?
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
Also consider the following brand extensions, and please write down your immediate associations to
these in the empty boxes:
83
Can B2B Brands be Extended into the Consumer Market?
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
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
84
Can B2B Brands be Extended into the Consumer Market?
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
Also consider the following brand extensions, and please write down your immediate associations to
these in the empty boxes:
85
Can B2B Brands be Extended into the Consumer Market?
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
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
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
86
Can B2B Brands be Extended into the Consumer Market?
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
Also consider the following brand extensions, and please write down your immediate associations to
these in the empty boxes:
c) Intel® Notebook PC
87
Can B2B Brands be Extended into the Consumer Market?
Now, please indicate your opinion on the previously mentioned hypothetical brand extensions by
marking the appropriate number (1-7).
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
88
Can B2B Brands be Extended into the Consumer Market?
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
3) Also consider the following brand extensions, and please write down your immediate association
to these in the empty box:
a) Boeing chronograph wristwatch
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Can B2B Brands be Extended into the Consumer Market?
4) Now, please indicate your opinion on the previously mentioned hypothetical brand
extensions by placing a tick in the appropriate box.
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
90
Can B2B Brands be Extended into the Consumer Market?
PERSONAL INFORMATION
Nationality
Dutch
German
Other, namely:
91
Can B2B Brands be Extended into the Consumer Market?
PILOT-TESTING FEEDBACK FORM
Please give your opinions, suggestions, and possible corrections concerning the following aspects:
Instructions
Content of questions
Sequence of questions
92
Can B2B Brands be Extended into the Consumer Market?
Question difficulty
93
Can B2B Brands be Extended into the Consumer Market?
A.2 Questionnaire (Finalversion)
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.
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!
94
Can B2B Brands be Extended into the Consumer Market?
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
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).
95
Can B2B Brands be Extended into the Consumer Market?
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
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).
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
96
Can B2B Brands be Extended into the Consumer Market?
• 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
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
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
97
Can B2B Brands be Extended into the Consumer Market?
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
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).
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
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
98
Can B2B Brands be Extended into the Consumer Market?
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
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).
99
Can B2B Brands be Extended into the Consumer Market?
• 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
100
Can B2B Brands be Extended into the Consumer Market?
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
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).
“Chronograph wristwatch”
POOR OUTSTANDING
How do you perceive the overall quality of this brand extension? 1 2 3 4 5 6 7
101
Can B2B Brands be Extended into the Consumer Market?
• 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
PERSONAL INFORMATION
Nationality
Dutch
German
Other, namely:
102
Can B2B Brands be Extended into the Consumer Market?
APPEN DIX B. SPSS OU TPU TS
B.1 Reliability Analyses
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)
N of Cases = 1124.0
N of
Statistics for Mean Variance Std Dev Variables
Scale 8.7696 8.1597 2.8565 2
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)
N of
Statistics for Mean Variance Std Dev Variables
SCALE 15.2812 14.6106 3.8224 3
Item-total Statistics
Reliability Coefficients
Alpha = .8667
103
Can B2B Brands be Extended into the Consumer Market?
B.1.3 Corporate SocialResponsibility
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)
N of Cases = 1125.0
N of
Statistics for Mean Variance Std Dev Variables
Scale 7.7644 6.0290 2.4554 2
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)
N of
Statistics for Mean Variance Std Dev Variables
SCALE 9.5552 8.9507 2.9918 2
Item-total Statistics
Reliability Coefficients
Alpha = .9304
104
Can B2B Brands be Extended into the Consumer Market?
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)
N of
Statistics for Mean Variance Std Dev Variables
SCALE 8.8357 10.5723 3.2515 2
Item-total Statistics
Reliability Coefficients
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)
N of
Statistics for Mean Variance Std Dev Variables
SCALE 7.4702 5.1497 2.2693 2
Item-total Statistics
Reliability Coefficients
Alpha = .2058
105
Can B2B Brands be Extended into the Consumer Market?
B.2 Regression Analyses
B.2.1 Fullm odelbefore residualcentering
Variables Entered/Removed
Model Summary
ANOVA
Model Sum of df Mean F Sig.
Squares Square
106
Can B2B Brands be Extended into the Consumer Market?
Coefficients
107
Can B2B Brands be Extended into the Consumer Market?
B.2.2 Fullm odelafter residualcentering
Variables Entered/Removed
1 Innovativeness*difficulty . Enter
(resid), Transfer,
Environmental concern,
Transfer*brand concept
consistency (resid),
Parent brand
knowledge, Parent
brand quality,
Corporate social
responsibility,
Innovative, Brand
concept consistency,
Difficult
Model Summary
ANOVA
108
Can B2B Brands be Extended into the Consumer Market?
Coefficients
109
Can B2B Brands be Extended into the Consumer Market?
B.2.3 Fullm odelafter residualcentering and om itted m oderator variable
Variables Entered/Removed
Model Summary
Model R R Adjusted R Std. Error
Square Square of the
Estimate
ANOVA
Model Sum of df Mean F Sig.
Squares Square
110
Can B2B Brands be Extended into the Consumer Market?
Coefficients
111
Can B2B Brands be Extended into the Consumer Market?
B.2.4 Regression at brand level:brand 1
Model Summary
Model +Brand =
Reuters
(Selected)
ANOVA
112
Can B2B Brands be Extended into the Consumer Market?
Coefficients
113
Can B2B Brands be Extended into the Consumer Market?
B.2.5 Regression at brand level:brand 2
Model Summary
Model +Brand =
Ernst &
Young
(Selected)
ANOVA
114
Can B2B Brands be Extended into the Consumer Market?
Coefficients
115
Can B2B Brands be Extended into the Consumer Market?
B.2.6 Regression at brand level:brand 3
Model Summary
Model +Brand =
Saatchi &
Saatchi
(Selected)
ANOVA
116
Can B2B Brands be Extended into the Consumer Market?
Coefficients
117
Can B2B Brands be Extended into the Consumer Market?
B.2.7 Regression at brand level:brand 4
Model Summary
Model +Brand =
Intel
(Selected)
ANOVA
118
Can B2B Brands be Extended into the Consumer Market?
Coefficients
119
Can B2B Brands be Extended into the Consumer Market?
B.2.8 Regression at brand level:brand 5
Model Summary
Model +Brand =
Boeing
(Selected)
ANOVA
120
Can B2B Brands be Extended into the Consumer Market?
Coefficients
121
Can B2B Brands be Extended into the Consumer Market?
B.2.9 Regression: Service brands
Model Summary
Model Service
brand =
Service
brand
(Selected)
ANOVA
122
Can B2B Brands be Extended into the Consumer Market?
Coefficients
123
Can B2B Brands be Extended into the Consumer Market?
B.2.10 Regression: Product brands
Model Summary
Model Service
brand =
Product
brand
(Selected)
ANOVA
124
Can B2B Brands be Extended into the Consumer Market?
Coefficients
125
Can B2B Brands be Extended into the Consumer Market?