INFLUENCE OF PRODUCT REBRANDING ON CONSUMERS BUYING BEHAVIOUR (A STUDY OF 9-MOBILE)

ABSTRACT

Increasing competition fueled by globalization, blurring boundaries between countries, rise of the Internet and privatization has resulted in a rapid increase in the number of consumer brands. This study seeks to evaluate the influence of rebranding on customer purchase Intention (a study of 9Mobile) in Umuahia, Abia State, Nigeria. The specific objectives were to determine the effect of new product design on consumer patronage of 9Mobile products in the study area, determine the effect of improved product quality on consumer patronage in 9Mobile products in the study area, and analyze the effect of change in product name on customer patronage in 9Mobile products in Umuahia, Abia State, Nigeria. The study employed descriptive statistics, simple linear regression analysis, multiple regression analysis and Pearson correlation coefficient in analyzing the specific objectives.. The socio economic characteristics of the respondents’ shows that 60.71% of the respondents were males; while 39.28% were females. Also, a total 17.85% of the respondents had no formal education, 39.28% had primary school certificate; while 32.14% of the respondents had secondary school certificate of education. Only 10.71% of the respondents had tertiary educational qualification. The Pearson correlation analysis shows that the two variables - new product design and consumer patronage - were positively correlated (r = 0.772***, N= 28, P < 0.001). Results of simple regression between improved product quality and consumer patronage of 9Mobile products in Umuahia, Abia State, Nigeria shows that the r-square value was 0.850; which implies that the variability changes in consumer patronage of 9mobile company products can be accounted for by approximately 85% in improved product quality. That is, consumer patronage accounts for 80% increase in product quality in the study area. It is recommended that each 9mobile company should adopt a combination of promotional mix that can bring about distinct outcomes in terms of turnover, improved market share, customer retention, profitability, and productivity among others. Also, 9mobile company should focus on distinct promotional mix, as the study empirically proved that improved product quality, change in product name and product rebranding is capable of influencing consumer buying decision on sustainable basis.

TABLE OF CONTENTS

Title page                                                                             i   

Table of content                                                            ii-iii   

CHAPTER ONE: INTRODUCTION                       

1.1 Background of the study                                                                              1

1.2 Statement of the problem                                                                             3

1.3 Objective of the study                                                                                  4

1.4 Research Question                                                                                        5

1.5 Research hypothesis                                                                                     6

1.6 Significance of the study                                                                              6

1.7 Scope of the study                                                                                        7

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1          Conceptual Framework                                                                               8

2.1.1            Concept of rebranding

2.1.2          Corporate Rebranding

2.1.3         The evolution of rebranding

2.1.4     Reasons for rebranding

2.1.5     Impact of rebranding

2.1.6          Principles of Rebranding

2.1.7          Rebranding strategy

2.1.8         Effects of Rebranding on Customer satisfaction

2.1.9         Relationship between factors affecting rebranding strategy and the performance of an organization

2.3Theoretical framework

2.3.1 Brief History of 9mobile

2.4 Empirical review    

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Research Design                                                                                                              9

3.2 Study Area                                                                                                                                   9

3.3 Population of the Study                                                                                                  10

3.4 Sample Size Determination                                                                                           10

3.5 Method of Data Collection                                                                                                         11

3.6 Sample Techniques                                                                                                         11

3.7 Scoring Of Instruments                                                                                                  12

3.8 Validity and Reliability of Instrument                                                                          12

3.9 Method of Data Analysis                                                                                                            12

3.10 Model Specification                                                                                                      12

CHAPTER FOUR: RESULTS AND DISCUSSION

4.2  Socio Economic characteristics of 9mobile in Umuahia, Abia state, Nigeria

4.2 Effect of New Product Design on Consumer Patronage of 9Mobile Products in Umuahia, Abia State

4.3 Effect of Improved Product Quality on Consumer Patronage in 9Mobile Products in Umuahia, Abia State, Nigeria

4.4 Effect of Change in Product Name on Customer Patronage of 9MobileProducts in Umuahia, Abia State, Nigeria

4.5 Relationship between Product Rebranding and Purchase Intention of Customers of 9MobileProduct in Umuahia, Abia State, Nigeria

4.6  Factors Influencing Consumers Patronage of 9Mobile Product in Umuahia, Abia    State, Nigeria.

CHAPTER FIVE: SUMMARY, CONCLUSION AND POLICY RECOMMENDATIONS

5.1          Summary of Findings

5.2           Conclusion

5.3          Policy Recommendations

APPENDIX: Questionnaire

LIST OF TABLES

Table 4.1:   Socio Economic Profile of Respondents     

Table 4.2:   Products of 9MobileFirm in Umuahia, Abia State  

Table 4.3:   We are involved in New Products Design?  

Table 4.4:   Pearson Correlation Coefficient Showing the Relationship Existing between New Product Design and Consumer Patronage of 9Moblie Products in Umuahia, Abia State, Nigeria

Table 4.5 (a):   Regression Summary of the Effect of Improved Product Quality on Consumer Patronage of 9Mobile Products in the Study Area

Table 4.5(b): ANOVA Results of Simple Regression Improved Product Quality and Consumer Patronage of 9Mobile Products in Umuahia, Abia State, Nigeria

Table 4.6:    Correlation Coefficient showing the Effect of Change in Product Name and Customer Patronage of 9MobileProducts in the Study Area

Table 4.7: Pearson Correlation Coefficient Showing the Relationship between Product Rebranding and Purchase Intention of Customers on 9Mobile Product

Table 4.8: Multiple Regression Analysis showing the Factors influencing Consumers Patronage of 9Mobile Products in Umuahia, Abia State, Nigeria

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The concept of rebranding can be traced back to 1950’s when rebranding became a vital marketing activity for firms, and thus became the central assets which ought to be treasured for organizations survival and product/service acceptability (Kalu, Anyanwu, Sampson and Udo, 2014). As such, most influential conglomerates in the world economy owe their successes to rebranding of their products in order to gain competitive advantage, high market share and increase organizational performance. Product rebranding involves high complexity such as name, logo, sign, symbol/ design or a combination of these elements, in other to add value to the existing or new product which will help to retain existing customers and attract prospective customers. This concept attributed to identification and differentiation of company's products from their competitors in the minds of the subjects concerned (Ormeno, 2007).

According to Muzellec and Stuart (2007) rebranding is the way a brand is “reborn”. They state that corporate rebranding has different facets. Revolutionary change means that everything is created new by changing three elements of the product name, logo, and slogan and evolutionary changes is when a company changes their logo, slogan, or both. (Aaker, 2011), contends that when a company decides to go through the rebranding process, the overall goal is to show the stakeholders, consumers, and the marketplace that the company has changed.

The concept of rebranding incorporates intangible brand properties such as brand-name awareness, brand loyalty, perceived brand quality and favorable brand symbolism and associations. Rebranding is a strategy used by organizations in other to make it products uniquely different from other competing products in the market and also to gain competitive advantage others competition. Re-branding is most often used when a company is seeking to change the public’s perception of its image or reposition itself in a specific market (Kapferer, 2014).

Furthermore, the surge in global activities propelled business firms by unprecedented advancement in technology, communications, science, transport, and industry that have resulted in substantial changes to business landscape in order to gain competitive advantage and increase shareholders wealth. As such, successful rebranding leads to tangible outcomes since firms with strong brand equity can easily expand demand for their products and services through changes in product design, quality, and internationalization and brand extensions. Rebranding is the creation of a new look and feel for an established products or company. The usual goal of rebranding is to influence a customer’s perception about a product or service (Aaker, 2011).

Product rebranding leads to a process of change in organizations and its market offerings, and it is a key weapon that marketing strategists use to win customers and markets, through the development of sustainable competitive advantage. Product rebranding advantage is possible if the organization’s focus is to build organizational capabilities along with the co­creation of value with the customer, with adequate adaptations to mindsets, skills, behaviors and decision structures in an environment of global resources, flexible, efficient, resilient business processes and focused analytics (Okure and Iseme, 2014).

According to Pennington and Ball(2007) rebranding a products gives such brand better advantage over other products as it motivate customers to purchase more of the company’s brand and commit them to invariably stick to the company’s product or brand. Thus this reduces the marketers selling time and effort and increases the organization’s sales volume (Kotler and Armstrong, 2009).Product rebranding has been seen as relevant marketing strategy which organizations employed to increase sales of products and improve the quality of goods offer for sale at the market place.

In addition, the increasing importance of product rebranding and its effect on organizations sales and business performance cannot be overstated as it has enabled customers to easily differentiate one brand from another through brand names, packaging, shapes, and colour. Rebranding has become a driving force for many organizations because it indicates that such a firm has improved the quality of their product by introducing a different design, logo, symbol, shapes and as such customers use these unique features to easily identify a firms products from other products irrespective of various brands that are circulated in the Nigeria’s market (Kotler, 2009). Company which intends to improve on its marketing has to create good marketing strategies for efficient and effective operations through rebranding or innovation. The strategies may include product branding or rebranding employ to increase sales and profitability of the firm.

1.2 Statement of problem

Although product rebranding enhances the profit of an organization but there are some basic factors which basically hinder effective rebranding projects in most organizations which include the use of incompetent personnel in handling the rebranding project activities, without the consent of the product users, current marketing trend and inability to inject a precede value that will attract consumer patronage (Ormeno, 2007).

Kotler and Keller (2008) asserted that most organizations encounter some problems before getting into development or rebranding of a new products, but the odds weigh heavily against the success. In all, to create successful new products; most companies study their consumers’ preference and, target markets to successfully gain competitive advantage over their competitors. Yet, rebranding can be very expensive and risky, because a new product faces tough odds, as product improvement, modification, and new brands may not increase sales volume as expected by the organization. Although, effective and efficient product rebranding is one among other factors that attract customers to a particular product, still some manufacturers and marketers find it difficult to choose the design, name, size, colour, shapes of the rebranded products and these may have serious negative effects on the consumer purchase decision, growth and survival of the organization.

Furthermore, rapid changes in social, economic, political, organizational, marketing and technological environments have also triggered consumption pattern of a consumer in such a way that acceptable product today tend to be rejected in future due to the aforementioned changes in the business environment. Some organizations sometimes venture into rebranding without the knowledge of the products position or stage in the product life­cycle. This may affect consumer patronage due to inconsistent quality and competitors may modify the rebranded product and come out with more valuable and prolific product that may divert the interest of a consumer (Sunday and Akpan, 2015).

Furthermore, misinterpretation of market situation is also a factor that hinder successful product rebranding because the new product may be excellent in terms of technical specifications but despite its features no customer will be willing to pay for them since their cost is higher than benefits, which implies that the organization concentrate more on product with taking cognizance price and others factors; and many organizations risk complacency once their current product offering is successful, and the fear of pulling investment, resources or consumer attention from existing offering can be biggest hindrance to profitable product innovation. In view of the pre-stated problems there is need to examine how product rebranding triggered consumers purchase intention and decision.

1.3 Objectives of the study

The broad objective of the study is to examine the effect of product rebranding on consumer purchase intention of 9Mobile firms in Umuahia, Abia State.

The specific objectives were to:

i.           determine the effect of new product design on consumer patronage of 9Mobile products in Umuahia, Abia State

ii.         determine the effect of improved product quality on consumer patronage of 9Mobile products in Umuahia, Abia State

iii.           analyze the effect of change in product name on customer patronage of 9Mobile products in Umuahia, Abia State

iv.            ascertain the relationship between product rebranding and purchase intention of customers of 9Mobile  product in Umuahia, Abia State, Nigeria

v.         determine the factors influencing consumers patronage of 9Mobile product in the study area

1.4      Research questions

The following research questions were addressed.-

i.          What is the effect of new product design on consumer patronage on 9Mobileproducts in Umuahia, Abia State?

ii.        What is the effect of improved product quality on consumer patronage on 9Mobileproducts in Umuahia, Abia State?

iii.      What is the effect of change in product name on consumer patronage on9Mobile products in Umuahia, Abia State?

iv.       What is the relationship between product rebranding and purchase intention of customers on 9Mobile products in Umuahia, Abia State.

1.5 Research Hypotheses

In order to address the research objectives and questions and ascertain reliable outcome from the investigation, the following hypotheses stated in null (Ho) forms were tested

H0₁:    New product design has no significant effect on consumer patronage on company           in Umuahia, Abia State.

H0₂:    Improved product quality has no significant effect on consumer patronage on 9mobile products in Umuahia, Abia State.

H0₃:    Change in product name has no significant on consumer patronage on 9Mobile products in Umuahia, Abia State.

H0₄:    There is no significant relationship between products rebranding and purchase   intention of customers on 9Mobile products in Umuahia, Abia State.

1.6 Significant of the study

The study focus on the effect of product rebranding on consumer purchase intention in firm of 9Mobile  Umuahia, Abia State. The study will be of immense benefits to different groups; to management of 9mobie, this study will give management an insight about the usefulness of product rebranding and its importance as management will employ this strategy and used to increase sales of their product. To the customers, the study will enable customers differentiate the firms products from those of other firms in the market as these will increase the sales of the company’s products and invariably positively affect the profitability of the firm.

To the management and consumers of 9Mobile firms, the study will help guild management decision on how well to improve on service delivery as product rebranding will induce consumers patronage, To policy makers, the study will assist management to address its policies as all effort will be channeled towards producing quality product that will give consumers the confidence and, trust to continue dealing with the firm. To customers or consumers, the study will help every potential customers to easily identify a firm products as rebranding makes a product stand out from competition and enables customers to easily pick and make choice base on their purchase decision. The findings and recommendations of the study will assist policy makers in formulating policies that will help in improving 9Mobile company performance through the rebranding in aspects such as brand name, symbol,

To Government, the findings and recommendations will assist government in implementing policies that will reflect the quality of service rendered researchers and students interested in a similar field of study in future will find this work useful conceptual guide and reference material.

1.7 Scope of the study

The study focused on the effect of product rebranding on consumer purchase intention of 9Mobile firm in Umuahia, Abia State. It covered only Umuahia, Abia State. These areas were considered because it was easily accessed by the researcher.

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