Corporate Branding and Customer’s Purchase Preferences in Mobile Phone Telecommunication Essay

HALMSTAD UNIVERSITY SCHOOL OF BUSINESS AND ENGINEERING INTERNATIONAL MARKETING, 60P Corporate branding and customer’s purchase preferences in mobile phone telecommunication Authors: Aitzaz Saeed Rehan Arshad Supervisor: Venilton Reinert Abstract: This research is carried out to know the role of corporate branding in mobile phone telecommunication along with different influencing factors involved in the purchase of mobile telephone connections. This thesis discusses corporate branding from consumer’s point of view that how much they value it and what type of role it has.

This is a quantitative study. A questionnaire is used in order to investigate corporate branding and other influencing factors involved in purchase decision of the customers. Population selected for this study is “Students of Halmstad University”, who are studying here. The analysis of this study reveals different set of results while making comparison between literature and empirical. It investigates the relative importance of the corporate branding to the customers in mobile phone telecommunication industry while making purchase decision.

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The finding of this study provided useful information which is helpful not only for the students but also for the brand managers of mobile telecom operators that how they can improve their company’s strategic position for longer period of time through corporate branding to trigger more customers and for a good brand. Key words: Corporate branding, Services & Quality, Loyalty & Trust, Price, Switching and Mobile Telecom service providers Acknowledgement: This study is dedicated to all those who were helpful, encouraging, and supportive and who gave us precious advices during the whole process of this writing.

Especially the invaluable assistance received from our supervisor Venilton Reinert is unforgettable. We are also very elated and gratefully appreciate our families for their moral and financial support. Table of Contents: 1. Back ground: …………………………………………………………………………………………………………………… 4 1. 1 Introduction: ………………………………………………………………………………………………………………… 4 1. Problem: ………………………………………………………………………………………………………………………. 6 1. 3 Purpose: ………………………………………………………………………………………………………………………. 7 1. 4 Research Question: ……………………………………………………………………………………………………….. 7 2. Methodology: …………………………………………………………………………………………………………………… 2. 1 Method of Research:……………………………………………………………………………………………………… 8 2. 1. 1 Qualitative Method: ………………………………………………………………………………………………… 8 2. 1. 2 Quantitative Method: ……………………………………………………………………………………………… 8 2. 2 Types of Research: ………………………………………………………………………………………………………… 2. 2. 1 Descriptive Research:………………………………………………………………………………………………. 9 2. 2. 2 Exploratory Research: ……………………………………………………………………………………………… 9 2. 2. 3 Explanatory Research:……………………………………………………………………………………………… 9 2. 3 Population and sampling of research: ……………………………………………………………………………… 9 2. 3. Population: ………………………………………………………………….. ………………………………………… 9 2. 3. 2 Sampling:……………………………………………………………………………………………………………… 10 2. 4 Sources of data collection: ……………………………………………………………………………………………. 10 2. 4. 1 Primary data:………………………………………………………………………………………………………… 10 2. . 2 Secondary data: ……………………………………………………………………………………………………. 10 2. 5 Data collection tools: …………………………………………………………………………………………………… 11 2. 5. 1 Interview: …………………………………………………………………………………………………………….. 11 2. 5. 2 Observation:…………………………………………………………………………………………………………. 11 2. . 3 Survey:…………………………………………………………………………………………………………………. 11 2. 5. 4 Questionnaire: ……………………………………………………………………………………………………… 11 2. 6 Analysis: …………………………………………………………………………………………………………………….. 12 2. 6. 1 Proposition strategy: ……………………………………………………………………………………………… 2 2. 6. 2 Explanatory strategy: …………………………………………………………………………………………….. 12 2. 6. 3 Descriptive Frame work: ………………………………………………………………………………………… 12 2. 7 Validity and Reliability:…………………………………………………………………………………………………. 13 2. 7. 1 Validity: ……………………………………………………………………………………………………………….. 3 2. 7. 2 Reliability:……………………………………………………….. …………………………………………………… 13 3. Literature Review: …………………………………………………………………………………………………………. 15 1 3. 1 Corporate Branding and Brand Management: ………………………………………………………………… 16 3. 1. 1 Corporate branding:………………………………………………………………………………………………. 6 3. 1. 2 Brand Management: ……………………………………………………………………………………………… 17 3. 2 Customer and Corporate Branding in Telecommunication: ………………………………………………. 17 3. 3 Service quality: ……………………………………………………………………………………………………………. 18 3. 4 Brand Image: ………………………………………………………………………………………………………………. 18 3. Customer loyalty: ………………………………………………………………………………………………………… 19 3. 6 Trust: …………………………………………………………………………………………………………………………. 19 3. 7 Switching: …………………………………………………………………………………………………………………… 20 3. 8 Price: …………………………………………………………………………………………………………………………. 0 3. 8. 1 Pricing Strategies: …………………………………………………………………………………………………. 21 3. 9 Scandinavian Customer: ………………………………………………………………………………………………. 23 4. Empirical Data: ………………………………………………………………….. …………………………………………. 24 4. 1 Tele2Comviq: ……………………………………………………………………………………………………………… 24 4. Telenor: ……………………………………………………………………………………………………………………… 25 4. 3 Telia Sonera:……………………………………………………………………………………………………………….. 25 4. 4 3:……………………………………………………………………………………………………………………………….. 25 4. 5 Demographic Trends: …………………………………………………………………………………………………… 26 4. Brand: ………………………………………………………………………………………………………………………… 27 4. 7 Service & Quality:………………………………………………………………………………………………………… 28 4. 8 Loyalty and Trust:………………………………………………………………………………………………………… 29 4. 9 Price: …………………………………………………………………………………………………………………………. 0 4. 10 Switching: …………………………………………………………………………………………………………………. 32 4. 10. 1 Past switching: ……………………………………………………………………………………………………. 32 4. 10. 2 Expected Switching: …………………………………………………………………………………………….. 33 5. Analysis: ………………………………………………………………………………………………………………………… 34 5. Importance of corporate branding in mobile phone telecommunication: ………………………….. 34 5. 1. 1 Affect of Brand Image on Market Share: ………………………………………………………………….. 34 5. 1. 2 Attachment with the Brand and Role of Corporate Brand: …………………………………………. 34 5. 2 Service & Quality:………………………………………………………………………………………………………… 35 5. 2. 1 Services and the brand: …………………………………………………………………………………………. 5 5. 2. 2 Quality and the brand: …………………………………………………………………………………………… 35 5. 3 Loyalty and Trust:………………………………………………………………………………………………………… 36 5. 4 Price: …………………………………………………………………………………………………………………………. 37 2 5. 4. 1 Impact of price: …………………………………………………………………………………………………….. 7 5. 4. 2 Price Vs brand: ……………………………………………………………………………………………………… 37 5. 4. 3 Price for services: ………………………………………………………………………………………………….. 37 5. 5 Switching: …………………………………………………………………………………………………………………… 38 5. 5. 1 Switching in past: ………………………………………………………………………………………………….. 8 5. 5. 2 Switching in future: ……………………………………………………………………………………………….. 38 6. Conclusion: ……………………………………………………………………………………………………………………. 39 6. 1 Further Research and managerial implications: ………………………………………………………………. 40 7. References: …………………………………………………………………………………………………………………….. 1 7. 1 Literature: ………………………………………………………………………………………………………………….. 41 7. 2 Internet: …………………………………………………………………………………………………………………….. 44 8. Appendix 1: ……………………………………………………………………………………………………………………. 45 3 Corporate branding and customer’s purchase preferences in mobile phone telecommunication 1.

Back ground: Brands are used from the times of Greek and Roman, at that time there were sign boards in the way of shop which guide the path of the shop also there were engraved stones to communicate with customers that a particular shop has these things. Those sign boards on the way, out the shop and engraved stones showed products which the shop had. That was an era of illiteracy and these were the best ways to communicate with customers (Rierzebos, 2003). Most of the countries used patents to establish legal aspects by 1890. From 1800 to 1925, it was the era of giving names to the products (Joseph, 1995).

From these beginnings branding is a major component of marketing strategy to retain customers and for growth. Some businessmen today think that there is no need for branding but American’s say that there would be no trustworthy market place and no sure, without trade mark brands (Joseph, 1995). In the decade of 1980s, main focus was “takeover” brands (Joseph, 1995). That is more focus on acquiring the established brands instead of developing the new ones because many argue that developing a new brand would not be possible and carrying out R would be a difficult task.

But this strategy was not dominant but has an influence. During this period many brands began to suffer. The firms have changed their focus toward branding. Firms are more focusing on strengthening existing brands (Joseph, 1995). One phenomenon involved in strengthening the brands is corporate branding; corporate brand is defined as “where all product/service value shared by a common and over all brand identity (Xie & Boggs, 2006). At early time corporate branding processes were initiated by top management of the organization.

While execution responsibility for the corporate branding strategies was more a function of marketing, as marketing plays important role in defining organizations place in the market, but the problem with this myth is that corporate branding becomes fixed into short term and tactical focus and thus organization loses long term, strategic focus (Xie & Boggs, 2006). Corporate branding is just like sugar coating, something that you could wrap around the organization which did not necessarily relate to what was inside. The goal of corporate branding is to standardize and streamline organization’s communication process.

But visionary companies don’t agree with this, they say that being consistent in your communication is not essential instead the all functions of the organization should be loyal to underlying vision and values of the organization (Xie & Boggs, 2006). 1. 1 Introduction: Organizations develop brands as a way to attract and keep customers by promoting value, image, prestige, and lifestyle. By using a particular brand, consumer develops positive image about the brand (Ginden, 1993). Branding is a technique to capture consumers psychologically.

Organizations are taking advantage of psychology of human beings by developing attractive brands (Ginder, 1993). Kotler et. al. , (1999) discuss four brand name strategies which include, (i) Individual names (every product/service has its own brand name), (ii) Blanket family names (all 4 products/services have one brand name like corporate brand), (iii) Separate family names (firm offers different products/services having different characteristics so products/services with similar characteristics have a family brand name) and (iv) Company Trade name with individual product/service names.

There are four general branding strategies available for any company to manage their brands at different stages of the business, these are line extension, brand extension, multi brands and new brands ( Kotler et. al. , 1999). In today’s world, where competition is high and no company wants to loose its position in the market, companies are inconsistent in using branding strategies (Kotler et. al. , 1996). This divergence is not unique to a single industry; it exists in every industry (Kotler et. al. 1996). Terms like umbrella branding, mixed branding, mixed endorsement and mono brands are quite common now days (Saunders & Guoqun, 1997). In some cases customer do get confused with co-branding techniques but this brand confusion accompanies an increased recognition of the value of the brands (Uncles et. al. , 1995). It is hot discussion now a day that either the companies should follow a strategy in which the company name is used across whole range of brands or it is more feasible to keep its name off.

Lisa (2000), explains brand management through brand description, and brand strength, which creates brand value and also it creates market power. Out come of brand strength is not brand value but implies market share and profit as outcome. Market description is not quantifiable as it is a marketing aspect whereas brand strength is quantifiable in accounting terms. Lisa (2000), also emphasize on managing the brand equity (brand equity is related to amount of power and value in market place.

A brand’s equity is defined as loyalty, perceived quality, name awareness, strong associations, and other assets such as patents (Chu Mei Liu, 2002). Corporate brand management is a dynamic process which involves continuous adjustment of the values, culture and image of the brand (Laforet & Saunders, 1994). Multiplicity of names which appear on brands have meanings that could relate to brand history, structure, acquisitions or it could be an attempt to impress stakeholders including customers (Laforet & Saunders, 1994).

Laforet & Saunders (1994), argue that for customers corporate name is a name like any other. One more thing is that names have different associations so it is very unlikely that all corporate names have the same value. Like many corporate names are advertised more prominently than some others and some are associated with smaller players in the market. Uncles et. al. , (1995) suggest that many western firms do not recognize the value of corporate brand. One reason for this could be that firms are afraid that their different brands may get mixed and customer may get confused by this.

The presences of corporate names help products at the start up. Later in the product life cycle or product development stages dual association of corporate and brand names increases the value of the brand (Saunders & Guoqun, 1997). In all cases presence of corporate names to a brand increases the consumer’s perception of the brands and preference for it. And more interestingly customers feel happy to see a corporate name and brand names instead of brand name alone (Saunders & Guoqun, 1997). Corporate branding in service sector is quite a difficult task.

It is basically blend of functional and emotional values. Like brand image is the central component of branding as it reflects the meaning that consumers attach with the brand. And especially in service sector there must be presence of corporate in service brands because service brand values appear to be most salient for consumers at corporate level (O’ Loughlin et. al. 2004). 5 Today the emergence of the brands is considered as key organizational asset. The old saying that “a good product sells itself” sounds believable but it does not work anymore (Gylling & Lindberg-Repo, 2006).

Corporate brand not only contributes to the customer based image of the organization but also the images held and formed by all the stakeholders. Links between corporation and stakeholders can be different from the links between the customers and the corporation but equally important (Gylling & Lindberg-Repo, 2006). Telecom is going under dramatic changes. More and more competition is emerging in Telecom sector (Leisen & Vance, 2001). Service quality has become more important rather than technical aspects in the Telecom sector (Leisen & Vance, 2001).

Delivering quality services is an essential ingredient for establishing and maintaining loyal and profitable customer base. Service quality is “the delivery of excellent or superior services relative to customer expectations” (Leisen & Vance, 2001, pp. 308). Excellent service is a profitable strategy because it results in more new customers, more business with existing customers and fewer lost customers (Johnson & Sirkit, 2002). Superior service quality can help firms become more profitable and help them sustain a competitive advantage in their served market (Johnson & Sirkit, 2002).

Service quality serves as a base for customer satisfaction and this high level of satisfaction leads to customer loyalty and increased customer loyalty is the single most driver of long-term financial health (Johnson & Sirkit, 2002). Organizations stress further on corporate brands in order to achieve consumer loyalty because consumers are highly considered, but there is little knowledge available to practitioners and academics about it (Anisimova, 2007). Corporate brand is a vital interpreter of consumer loyalty (Anisimova, 2007).

Anisimove, (2007) suggest that, when corporate brand observed as totality, corporate values, utilitarian and symbolic by consumers, this creates loyalty in consumers. Price has been observed as an important element affecting products and services offered by an organization. Pricing becomes more important for a new product or service (Munnukka, 2005). Satisfaction is a highly important factor to predict price sensitivity of a mobile phone consumer, while other predictors are also available which are innovativeness, services package, demographics, geographic and etc (Munnukka, 2005). . 2 Problem: In telecommunication sector most of the companies around the world follow corporate branding strategies. In which they place corporate name prior to every individual product/service brands or packages that they offer to consumers either in shape of postpaid or prepaid. Most of the customers purchase mobile phone connections just because of corporate name and these corporate names are heavily promoted. And this makes customers to purchase a particular brand. Companies usually promote corporate name more than product/service brands or packages.

Corporate names are of more importance for the companies. It is also seen that companies promote brand names only when the company wants to highlight any particular feature associated with that particular brand or package. The core maintenance factor for managing a brand in telecommunication is to keep subscriber base which can gain through customer loyalty and believes on service provider (Aydin & Ozer, 2005). A unique brand defines mainly features of a service and latest technology that support such features, which may dominant on corporate brand after a certain period of time.

Service brands especially in mobile telecommunication primarily reflect skin texture of a service. In this sector there are different segments of age, gender and so on. Mostly companies have two Brands for 6 their post paid customers and pre paid customers and then there are many packages under two brands to attract different segments, while some have different brands for each segment. 1. 3 Purpose: It is seen the most of the companies in mobile phone telecommunication promote more their corporate name than the product/service they offer to the customers.

The purpose of this study is to analyze the role of corporate branding in mobile telecommunication industry. What are reasons that make customers purchase mobile phone connection of any particular company. Either it is because of corporate brand or it is because of the service, loyalty, price or any other reason. This research will examine that in mobile phone telecommunication either corporate brand is sufficient for a long term customer base, and that brand association or there are any other factor for long time survival of the company.

As product/service brands are not long term brands as compared to corporate brand in mobile phone telecommunication so focus will be to know about corporate brand and its presence in the consumer’s mind. Corporate brand has more dominant reflection in mind of mobile phone consumers and which has long lasting association with consumers. This research is carried out to find out the approximate solution of identified problem with the help of literature and Questionnaire. 1. 4 Research Question: What is the role of corporate branding in mobile phone telecommunication? 2. Methodology: This section will explain how the research was carried out with research question, problem area, research technique, gathering empirical data analysis of data and finally the answer of the research question. This part is necessary for authors and for readers. Researcher has the track to do the work, whereas readers can judge the accuracy of the result and also how it comes. There are many parts of dissertation and every part needs a method that how it is the part of dissertation. There are always some statements, where readers find ambiguities.

To overcome these ambiguities, it needs some justifications to satisfy readers about the research. There are two schools of thoughts for research base, one is science or positivism and other is hermeneutics (Amaratunga & Baldry 2001). In positivism researcher has scientific point of view that empirical should have some experiences. Positivism wants to build all sciences in one way and for the use of all people. All knowledge should be made of logical and mathematical language. Hermeneutics is opposite to positivism. It is the knowledge of interpretation.

The purpose of hermeneutics is to find out the deeper meaning of empirical finding. This study also follows the pattern of Hermeneutics. 2. 1 Method of Research: These are two research methods which are used for the collection and analysis of the empirical data. These are qualitative and quantitative. Research method is being chosen according to research question, so that it should be help full to find out the answer of research question (Maxwell, 1996). 2. 1. 1 Qualitative Method: Qualitative approach is basically focused on specific situations or people and its base is on words rather than numbers (Maxwell, 1996).

There are two main sources to gather data the first is, in depth interviews and second one is group discussion. In qualitative approach purpose full sampling is used, in which particular settings, persons or events are selected (Maxwell, 1996). In qualitative research data is gathered from small number of individuals or small samples rather than collecting data from large samples. Qualitative research has long been used by survey and experimental researchers who are interested in identifying unanticipated phenomena and influences (Maxwell, 1996). . 1. 2 Quantitative Method: Quantitative approach is totally depending on numeric data. The aim of this approach is to classify features, count them and explain the things which are observed during research in statistical models (Gorard, 2001). In this approach researchers are very clear about their objective of study. The study is designed before the data collection. This type of approach involves some tools for data collection e. g. questionnaires or equipments (Gorard, 2001). The objective of quantitative research is to seek measurements and nalysis of target concepts by using data collection instruments. This type of approach is also useful in measuring customer attitudes, satisfaction, and commitment and for some other market data (Gorard, 2001). Based on the present theory, this research is following the pattern of quantitative research as this study is customer base and using a questionnaire to know about customer attitude and 8 commitment towards corporate brand. This approach is best suited to research purpose and research question. 2. 2 Types of Research:

According to Mcnabb (2002), there are main three types of research; these are descriptive, exploratory and explanatory. Descriptive and exploratory types of research are for quantitative method while explanatory research is for qualitative method (Mcnabb, 2002). 2. 2. 1 Descriptive Research: In order to develop snapshot of a particular situation, Descriptive research design is used (Mcnabb, 2002). It involves large samples which are used to give description of an event or define attitude, opinions or behaviors that are measured or observed in a particular environment (Mcnabb, 2002).

Focus of the descriptive research is to describe a particular situation i. e. giving answers to questions like what is happening or what has happened (Mcnabb, 2002) e. g. the research could be used in order to find out what age group is buying a particular brand of Cola. 2. 2. 2 Exploratory Research: In exploration researcher are more interested to get data from those sources that give in depth information (Emory & Cooper, 1991). According to them, In exploratory research, field of research is new or unclear that needs exploration to get some knowledge about problem.

It is used to gather preliminary investigation which provides platform for further research (Emory & Cooper, 1991) e. g. everybody knows that 3G mobile exist but it does not mean that everybody knows how they function. Exploratory research can help in this matter. Exploratory research is time and money saving. 2. 2. 3 Explanatory Research: The purpose of the explanatory research is broader than that of descriptive research (Mcnabb, 2002). It is useful in qualitative research. Explanatory research is conducted to build theories that explain and predict natural and social events (Mcnabb, 2002).

Typical objectives of this type of research include explaining why some phenomenon occurred, interpreting a cause-and-effect relationship between two or more variables, and explaining the differences in two or more group’s responses (Mcnabb, 2002). It goes on to identify the reasons and causes, e. g. descriptive research might discover that 10% parents abuse their children but explanatory is more interested to know why they abuse. This research is descriptive by nature because it deals with customer purchases, frequency of purchasing a connection due to brand, price, service and quality, loyalty and trust.

This study is more structured and less flexible as it involves closed questions which make it a descriptive. 2. 3 Population and sampling of research: Another step is designing the research or planning the research is to identify the target population and selecting appropriate sample from it. The researcher must determine how many people to interview and who they will be; what sort of events to observe and how many there will be; or how many records to inspect and which ones (Emory & Cooper, 1991). 2. 3. 1 Population: Population for a study is that group (usually of people) about whom the researcher wants to draw conclusions (Babbie, 2005).

It is never possible to study all the members of the population that interest researcher. In every case, researcher selects a sample among the population (Babbie, 2005). 9 2. 3. 2 Sampling: Sampling issue is important because it is seldom possible for a researcher to collect evidence from all members of the population being studied. In order to deal with this, most of the time researcher has to choose or select a subset of all possible informants in the target population; this selection is referred as sampling (Remenyi et. l. , 1998). “The group you wish to study is termed as population and the group actually involve in your research is the sample” (Gorard, 2001 pp. 10). Sampling is a base for every research in different ways and the purpose of the sampling is to know about target population (large number of cases) with small number of cases, less time, less cost and through effective statistical tools (Gorard, 2001). Sampling is useful in cost saving and time saving as well. Sampling is the short cut method to find out the require results.

It is very difficult to examine the whole population. Sample must be large enough as possible, to find out the better results and also good data for empirical section. Because results gathered from sample are sometimes generalized to whole population (Gorard, 2001). One sampling technique is simple-random sampling, Gorard (2001) states that simplerandom sampling is usually used in marketing research. This type of technique is used when researchers are interested in population, standing at railway station, shopping mall or outside a student union (Gorard, 2001).

There is a confidence interval in quantitative method of research which gives an indication of the accuracy of the findings as estimated for the population. This interval is defined in terms of a standard error. The standard error is equal to standard deviation. This is a quantitative study, so this requires a population and the population for this research is students of Halmstad University Sweden which comprise of 5024 students and sample of 357 students has been chosen with an error of 5%. This sample is enough to generalize the results to selected population.

As this research involves simple-random sampling, researchers are stopping those students who got convenience and willing to fill out the questionnaire. Halmstad University has different departments with local and international students, so researchers went to every department and gathered data from all departments in order to diminish the biasness. The purpose of sampling is to find out the result of whole population with a smaller number of cases (Gorard, 2001). 2. 4 Sources of data collection: There are two sources of data collection, first is Primary data while other s secondary data. These are usually used in marketing research. 2. 4. 1 Primary data: Primary data is new data which is collected by researcher to do a particular research to find out the answer of research question (Yin, 1994, Gorard, 2001). In this research primary data is gathered through questionnaire. The questionnaire is filled by the sample population which consists of students of Halmstad University, who are mobile phone users. 2. 4. 2 Secondary data: Secondary data is the data which is collected for some other purposes or the data which is gathered by previous researchers.

This study includes the secondary data from articles, books, data bases and internet. This data is a necessary part of the research especially in social sciences to value and compare primary data. Secondary data in shape of literature review is guide lines for data analysis, which is also useful in finding the answer of research question (Gorard, 2001). 10 to value and compare primary data. Secondary data in shape of literature review is guide lines for data analysis, which is also useful in finding the answer of research question (Gorard, 2001). . 5 Data collection tools: There are many tools available for gathering empirical data but it depends upon research question and purpose of study that which tool is used for study. Instruments of research include interview, observation, survey and questionnaire (Emory & Cooper, 1991). 2. 5. 1 Interview: Interview is a very important and reliable tool for data collection (Yin, 1994). Most of the interviews are open ended in nature, which are used for qualitative study. Interviews are biased as well (Yin, 1994). 2. 5. 2 Observation:

Observation is suitable for a special type of case study i-e if researcher wish to study a specific site, researcher make a visit and observe the things which are required by the research (Yin, 1994). Sometimes it requires more than one visit to make better observation and it is used for qualitative studies (Yin, 1994). 2. 5. 3 Survey: Survey tool requires questions and answers of these questions are being used for analysis, it is more efficient and cost saving than observations and it is also easy (Emory & Cooper, 1991).

There are many mediums available for data collection and survey, which can be a telephone, email, surface mail or direct interaction with respondent (Emory & Cooper, 1991). These mediums need something to communicate, to gather required information. For this researcher has two options interview or questionnaire, which can be comprised of open ended or closed questions but depending upon research method (Emory & Cooper, 1991). Response rate is very low through telephone, email and surface mail, so direct interview or questionnaire is the best way to gather data. . 5. 4 Questionnaire: The questionnaire is the medium of communication between researcher and respondent. Two types of questions are there for questionnaire but it depend upon research that either it is qualitative or quantitative (Gorard, 2001). If research is qualitative then open ended question are there in a questionnaire. Such type of questions need heavy information instead of yes or no, while closed question are easy to answer which lead to yes and no format or lead to a brief reply(Gorard, 2001).

Yin (1994), argues that a questionnaire contains questions approximately related to the theory discussed in literature review, so questions are almost allied to literature review in questionnaire. As this research has a quantitative base so questionnaire used in this research is closed questions. Through this questionnaire information will be gathered according to the theory presented in the literature review. Table below give a little glance of the information which will be gathered and discussed later on in the empirical part. 11 Topic

Specific Information investigated • Gender information • Mobile connection • Type of connection • Brand, Service & Quality, Price, Loyalty & Trust Attachment with the brand Customer satisfaction Brand Switching information Satisfaction for service and quality Connection chosen and importance of service Switching information Importance of price Impact of price on purchase decision Switching due to price Price paid for services • Time since using this particular brand • Loyalty with brand or loyalty with services • Trust preferences • Runoff from existing brand

General Information Brand Service & Quality Price • • • • • • • • • • Loyalty & Trust In the empirical section of the research the data is represented graphically with numbers and percentages with the help of Microsoft Excel. The data which is used in empirical is obtained from the questionnaire. 2. 6 Analysis: Yin, (1994) states three strategies for analysis of a case study these are, 2. 6. 1 Proposition strategy: Proposition or hypotheses is a very general and preferred strategy. In this strategy some propositions are made according to research question and these ould also help in relevant data collection. This type of strategy is used when researchers have to answers to “how” and “why” (Yin, 1994). 2. 6. 2 Explanatory strategy: Second analytical strategy is based on explanations. This type of strategy is used, when researchers are very well known about research question and problem related to this question. In short this type of strategy is involved in a situation, when problem is more centered then scattered. Explanatory strategy is suitable for causal study (Cause and Effect relationship). 2. 6. 3 Descriptive Frame work:

A third general analytical strategy is developing a descriptive frame work for organizing a cases study (Yin, 1994). Descriptive frame work involves obtaining information concerning the current status of the phenomena to describe “what exists” with respect to variables or conditions in a situation (Yin,1994). The methods involve range from the survey which describes the status, the correlation study which investigates the relationship between the variables, to developmental 12 studies which seek to determine changes over time. Descriptive framework emphasis on determining the frequency with which something occurs.

Constructing a preliminary related theory prior to empirical data collection is helpful in finding the answer of a research question (Yin, 1994). This study is following same technique. The research includes the theory related to this topic. The theory has been reviewed and explained under different headings. Empirical data collected is analyzed with the help of literature review. There are main notations which help researchers to produce theories, these are induction and deduction. Induction is previous theory base while deduction is derived from a particular work.

Pure deduction might prevent the researcher benefiting from existing theories (Perry, 1998). This study is following the pattern of induction, as this study analyzes the empirical data with the help of literature review. 2. 7 Validity and Reliability: 2. 7. 1 Validity: Validity means “Does the research focuses on what it is meant to? (Oulton 1995)”. Validity is particularly connected to topics that are investigated and how these topics can come up with theories which can be understood and agreed upon and how these topics can be operational (Oulton 1995).

Yin, (1994) gives two types of validity; these are internal validity and external validity. Internal validity is needed at the stage of data analysis and external validity is at research design (Yin, 1994). The data collected for case study must be valid, air tight; evidence must be convergent either through interview or documentary proof (Yin, 1994). This research involves questionnaire with closed questions to gather data and 357 students of Halmstad University filled out this questionnaire without any repetition. This questionnaire contains all possible questions which are required to answer the research question.

External validity deals with generalization of the study’s findings, whether findings are generalizable beyond the case study (Yin, 1994). As this research is comprised of population of Halmstad University, so the findings are not generalizeable beyond the immediate case study but it can be generalized to population of Halmstad University. 2. 7. 2 Reliability: Reliability of a study or research is compulsory to minimize errors, biasness and to overcome copy of another research (Yin, 1994). The objective of reliability is to make a study in a way that if someone else makes the same research, then he/she finds the same results.

The study is reliable in a way that it is conducted in Halmstad University through closed questions and also this is a quantitative research. The data gathered from questionnaire is presented in empirical in graphical shape with percentages and if someone conducts the same research in the future in Halmstad University then the results must be offset with these results. 2. 8 Critical Reflection: Population sample in this study is from Halmstad University, so the results of this study cannot be generalized to whole population of Halmstad or Sweden.

Focus of this study was to know about different factors involved in corporate branding and product service branding in mobile phone telecommunication. These can have different values for different people belonging to 13 different segments of life. As most of the students who were used as sample are young, so the results cannot be generalized to age groups because they might have different intentions for research question of this study. Also as telecommunication sector is rapidly growing industry in every part of the world, so factor (mentioned in this study) which are important today might not be important in future.

This study does not include probability sampling; it is based on judgmental or non random sampling. 14 3. Literature Review: Brand decision is a crucial matter and also it is a long time process, Kotler (1994) defines the process of branding decision as it involves many steps like brand or no brand, what type of brand is needed e. g. manufacturing, distribution. Then brand name decision, it is the most critical area which needs high attention. Brand name decisions are associated with operations of business. It also depends that how much a firm can invest in brand decision making process.

Brand name decision is the most important factor in branding decision and for brand management. There are four main strategies for branding which are discussed by Kotler 1994; Product Category Existing Existing Brand ame New Line Extension Multi Brand New Brand Extension New Brand Kotler, 1994, PP-454 Line extension applies in a situation when product is existing and company extends the same brand. In line extension there is something new to existing product like size, packing and so on. Line extension can be performed with corporate branding strategy.

In brand extension product is new but brand name is old. In this situation old brand name has already recognition in the market so new product gets instant recognition and earlier acceptance. This strategy is also suitable for corporate brand. But it should be a high quality product and also it needs less advertisement expense (Kotler, 1994). Brand extension must be carried on in a sense that the new products have some features related to product /service’s use otherwise firm has to suffer for its existing brand.

In the situation where new brand name with existing product is offered by the company, a separate brand name to each product to strengthen new product or defending the old brand from the effects of the new one brand (Kotler, 1994). New brand names are applied to new products which belong to new category because none of the existing brand name suits the new category of product /service. To avoid the risk associated with the new product/service companies do not use the existing brand name even in the case of corporate brand in order to save its reputation. Although it is costly but is necessary for a profitable business (Kotler, 1994). 5 3. 1 Corporate Branding and Brand Management: 3. 1. 1 Corporate branding: The role of the corporate brand is to give credibility in cases such as communication with government, the financial sector, the labor market and society in general (Urde, 2003 referred in Xie & Boggs 2006). “Corporate branding represents an opportunity for organizations to enhance and sustain their distinctiveness through linking corporate characteristics to products and services, thereby, allowing unique synergies to be developed (Anisimova, 2007, pp. 395)”. Corporate image is the overall impression of an organization.

Corporate image is the result of a process (Maclnnis & Price, 1987 referred in Ozer, 2004). This process includes ideas, feeling, consumption and experience retrieved from past usage. These all make an image of the organization (Yuille & Catchpole, 1977 referred in Ozer, 2004). However as multinationals are moving from branding of the products towards corporate branding researchers are paying more attention to the effect of corporate branding (Olins, 2000 referred in Souiden et. al. 2006). Different approaches and explanations have been proposed by different researchers for corporate branding.

Olins ,1989(referred in Souiden et. al. 2006 ) gives three different approaches for structuring corporate identities: the monolithic (i. e. use one name and a visual style), the endorsed (i. e. the corporate identity is used in association with the name of subsidiaries whose visual styles can be different), and the branded (i. e. the corporation’s products are under different brand names and appearances). Multinationals are becoming aware of the importance of the names and trying to establish and create strong links between their corporate names and product names.

Marketing theories suggest that corporate branding will boost the consumer awareness about the products as well as about the corporation (Souiden et. al. 2006). A corporate brand is not necessarily limited to a single corporation (Xie & Boggs, 2006). Balmer (Referred in Xie & Boggs, (2006) argue that corporate identity is an important asset for a corporation where its goals, values and ethics differentiate it from its competitors. However, Xie & Boggs, (2006) states that it depends upon the market culture, market size and market circumstances, whether corporate branding is good strategy or any other branding strategy.

These are wholly depending upon customer’s knowledge about market and product. Corporate branding enables a firm to use one vision. It can increase firm’s visibility, recognition and reputation to a great extent as compared to the product/service brands (Xie & Boggs, 2006). Strong corporate recognition attracts the customers as well as employees. Corporate brand leads to better corporate image in the mind of investors, employees and as well as in the minds of the customers. Corporate image is built after experiencing and consuming better and satisfactory services to the customers (Ozer, 2004).

Explain that corporate image is directly proportional to customer loyalty in three sectors telecommunication, retailing and education. Customer’s pre-purchase behavior about services has direct effect on corporate image (Ozer, 2004). Corporate branding involves all the stakeholders, has a multidisciplinary character and is targeted to internal as well external interests and networks. Corporate brands have small values that define the each brands offered by the firms and these values are intrinsic to the firm and part of its core ideology (Balmer, 2002 referred in Souiden et. l. 2006). Using corporate brand for marketing purpose is cost effect and has economic viability for many companies and also management of corporate brands become easier as compared to a portfolio of country or region specific brands each having its own particular characteristic. Corporate brands are differentiated; they can be communicated and are power sources of brand equity. 16 3. 1. 2 Brand Management: Commitment for corporate branding is high in the sector of media and telecommunication, especially among top level management (Einwilles & Markuswill, 2002).

Brand management is an integrated process which comprises of four main levels i-e planning, organizing, guiding and controlling (Einwilles & Markuswill, 2002). Planning is the most important factor for corporate branding for example branding team, brand name decision, branding strategies etc. Brand management depends upon innovation, in terms of better and smart services with unique promotional mix, new prices and consumer demanded availability (Kay, 2006). Brands have been described as one of the identifying and differentiating products and brand management has been restricted to product and product line decisions (Uggla, 2006).

Defining brand is a very difficult task, there is no proper definition for the brand, it can be product, corporation, any person or any place. In brand management Brand is the unit of analysis i-e every aspect of the brand management is defined around the brand. For many product brand organizations like Unilever brand core value revolves around product itself where as for many others like MacDonald’s core brand value revolves around the corporate brand and brand is an extended part of this corporate identity. Brand must be distinct from others and it is difficult for many organizations (Kay, 2006). Managing the brand by creating meaningful association is central task” (Kay, 2006 pp. 746). Managing the meaning of a brand seems to be more critical part of a brand management. Now days social and cultural obligations are there for brand management especially in Europe and other developed countries. 3. 2 Customer and Corporate Branding in Telecommunication: In mobile telecommunication, purchase settings are continuous and different than the purchase settings of retails stores etc (Ranaweera & Prabhu, 2003). In this industry most of the customers maintain long term relationships with the operators (Ranaweera & Prabhu, 2003).

Where factors like trust, image, and satisfaction are not easy to measure. But also factors like switching are easy to measure because in this industry switching is more than simply walking to another Store. Because it requires considerable time and effort due to the presence of switching barriers and switching decision is made after considerable thought. And most importantly this sector provides an environment of high automation which makes the customers Think Twice before leaving (Ranaweera & Prabhu, 2003). The linkage between core values and corporate brand is described by a firms brand equity and competitive position (Ozer, 2004).

A customer has brand building in his mind through the process of controlled and uncontrolled communication (Ozer, 2004). Today, for every firm a critical question for its success is that how it can maintain its current customers and how it can make them loyal to the brands. Loyal customers pay important role in building businesses by making different moves like buying more, by paying premium prices and most importantly providing companies different sets of new customers by positive word of mouth (Ganesh et. al. referred in Aydin and Ozer, 2004).

In fact telecommunication companies lose their customer quite regularly. So it’s very challenging task for the mobile phone operators to retain existing customers as well as bringing new customers towards their brands and creating loyalty in them. It happens in almost every industry but especially in telecommunication services, it is said that when customers are connected to a particular service provider or operator then their long term relationship with the operator is of great importance for the success of the company in the competitive market (Gerpott et. al. 001 referred in Aydin and Ozer 2004). Another factor which is very important in telecommunication industry is price. Price is a very 17 sensitive issue in this industry, which is very dynamic factor in this industry; customers are very price sensitive in this industry. Kay, (2006) argues that brand meanings are incorporated into the lives of consumers so brands are social or cultural property rather than company property. There are many factors which are seen valuable by customers during the process of decision making or during purchase of the connection of a particular service operator.

These may include; 3. 3 Service quality: Service quality is the overall judgment of the customer about the excellence and superiority of the service. As there are some basic attributes associated with service quality like; services are intangible, services are heterogeneous (means that their price often varies with respect to the provider and customer), services can not be stored means that services are consumed with they are produced; it means services can not be separated from their production.

The degree of perceived risk is highest when customer can not evaluate the service quality before purchasing (Ozer et. al. 2005). Service satisfaction is among the most important factors which affect the customer loyalty and buying behavior ( Munnukka, 2005). It has a direct relationship between price of the product or service being offered by a firm. It means there is a trade off between the price and service quality and through this satisfaction there can be increase or decrease in sensitivity towards other factors involved in long term relationship between customer and the operator (Munnukka, 2005).

Improving service quality in the eyes of the customer creates “true customer” through high customer satisfaction (Zeithaml et. at. 1990 referred in Munnukka, 2005). Fundamental aim of every firm is to seek and manage customer satisfaction. Because of the attributes of the service quality it is difficult to measure service quality than the product quality. Service quality is also critical from firm’s point of view (Ozer and Aydin, 2005).

There are two main things that explain contribution of the service for the profitability of the firm; first service quality is being regarded as one of the few means of creating differentiation and creating competitive edge which creates new customers and second service quality enhances the customer’s inclination to buy again, buy more, to buy other services, to become less pricesensitive and to tell others about their favorable experiences (Venetis & Ghauri, 2000)*. All these have positive effect on customer loyalty. 3. 4 Brand Image:

It is very fast era, in these days information about corporation and news from all over the world can spread within few minutes which effects reputation of corporate image and ultimately corporate brand (Einwilles & Markuswill, 2002). Corporate brand seldom convey the full and satisfactory message to consumer (Kay, 2006). There must be a symbol associated with brand name so audience has memorable associations. Brand manager needs to take a different view of promotional activities of a particular brand, as consumer reacts differently, when he has knowledge of a specific brand.

In corporate branding, corporate brand must be strong, have meaning, distinctive associations and good reputation that a customer easily recognize. “Corporate identity should consistently relate to what is central to the organization and this can support corporate branding” (Kay, 2006 pp. 756). 18 Souiden et. al. , (2006), states that sales and market share is directly affected by corporate image and building up for loyal customers. Communication would be easy with all stake holders with strong corporate image of an organization.

Corporate image helps a firm to build up good reputation in the market and it is the trust of the customers with output of expected attributes (Souiden et al. 2006). 3. 5 Customer loyalty: “A deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having potential to cause switching behavior” (Oliver,1997 referred in Ozer, et. al. 2005, pp. 90).

Corporate name recognition, the product image, corporate reputation and corporate loyalty/commitment helps the consumer to value a product of a particular company (Souiden et al. 2006). In GSM mobile phone sector the main condition for protecting subscriber base is to win customer loyalty. Customer loyalty is key necessity for maintaining brand’s life over a long period. And to achieve this aim companies must measure customer satisfaction and trust time to time (Ozer et. al. 2005). Even though it is not possible to satisfy the customers by 100% but firms still pursue this.

When barriers are high for the customers firms still want to satisfy the customers and make them loyal even if they are not satisfied (Ranaweera & Prabhu, 2003). 3. 6 Trust: In telecommunication services it is frequently pointed out that once a customer is attached with a particular service provider or operator, then their mutual trust and long term relationships are of great importance to the success of the company in competitive markets than they are in other industry sectors (Gerott et. al. 2001 referred in Ozer et. al. 2005).

Trust is a stronger emotion than satisfaction and that it may therefore better predict customer retention ( Ranaweera & Prabhu, 2003). When one party believes that actions of the other party will be beneficial for itself then there exists trust between the two. In case of any brand, trust plays an important role in developing long term relationship between the customer and the brand and consequently it results in customer loyalty. When a customer has trust in a brand it means customer has positive buying behavior towards the brand (Ozer & Aydin 2005).

In this context trust works in preserving longterm relationship between the partners. There exists a consistent relationship between firm and customer loyalty through trust. Trust is a process that is based on the ability of a party to continually meet its obligations and on estimation of the costs versus rewards of staying in the relationship. Therefore to trust a brand, customers should not only focus on the positive outcomes delivered by the product/service brand but customer should also keep it in mind that these positive outcomes will continue in the future (Ozer & Aydin, 2005).

And this will also have positive impact on the service provider. One important thing that is reflected by trust is credibility and credibility affects the long-term relationship of the customer and the service provider by reducing the perception of the risk 19 associated with opportunistic behaviors of the firm (Ganesan 1994). Trust also reduces the uncertainly prevailing in the environment. Customer trusts operator in the GSM sector reduces uncertainty associated with the services which were delivered previously or which are yet to be delivered. 3. 7 Switching:

Switching is basically the cost involved in switching from one service provider to another. Switching cost is not only the cost in monetary terms but it can also be the sum of economic, psychological and physical costs (Ozer et. al. 2005). This may also include the time involved in switching from one service provider to another. This switching cost stems from the buyer’s decision making process and the then implementation of the decision. This five stage decision making process includes; • • • • • Need recognition Information search Evaluation of the alternatives Purchase decision Post purchase behavior

For example a customer considering switching cost should ideally evaluate operators with regard to different criteria, such as coverage area, billing procedures, customer services or added values, purchasing a new GSM service etc (Ozer et. al. 2005). Whereas psychological cost is the perceived cost stemming from social bonds that form in the course of time e. g. during to contact with the staff of a particular operator. Switching cost directly affects the loyalty of the customer and has a moderator affect on both customer satisfaction and trust, it is a quasi moderator (Ozer et. al. 2005).

As switching cost is increased, the strength of relationship between trust and commitment is also increased. Switching cost is consumer specific, therefore switching costs discourage a customer from demanding a rival firm’s brand. The customer perceives high risk regarding a brand he/she has never used especially in service sector because service quality can not be evaluated before purchasing (Ozer et. al. , 2005). A customer who has collected information about any brand in order to decrease anxiety about a wrong purchase decision will use all previous purchase experiences (Ozer & Aydin, 2005).

If the customer wants to switch the brand then he/she will compare the switched brand and the previous brand. Therefore if the switched brand is better than the previous brand then higher will be the alternative’s uncertainty. 3. 8 Price: In marketing research all P’s of marketing mix are important but to make it clear and valid, involve only one P or maximum two Ps from marketing mix (Yen, 1994). So this research includes one P which is pricing and is more important in service sector, because consumer have to pay every time when he/she consumes a particle service.

So this is the most critical factor in obtaining, more loyal customers. Organisations are believe to spend thousand hundred dollars in product development but it is difficult to spend 1% on the research to find out perceptions of customers on various price levels (Fifield, 1998). “ There are several factors which will probably 20 influence your organisation’s pricing policy, factors such as, the competitor’s price, the position of the product in the life cycle, company positioning policy, perceived level of differentiat

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