The effect of brand extensions on parent-brand relationship quality

A recognized brand name that provides a competitive advantage is considered one of a firm’s most valuable assets. Many firms have benefitted from their well-established brand name by adopting the strategy of brand extension (Aaker and Keller, 1990). Many academic studies have examined the methods used to introduce successful brand extensions, and analysed how consumers evaluate the brand extensions (Aaker and Keller, 1990; Barone, 2005; Bath, 1997; Bottomley and Holden, 2001; Edelman, 2003; Fedorikhin, Park and Thomson, 2008; Kwun, 2004; Lockhart and Ford, 2005). Some researchers have suggested that brand extension strategies may carry the risk of diluting important consumer trust in the parent brand (Martinez and Pina, 2003; C. W. Park, Milberg and Lawson, 1991). Furthermore, some studies have focused on the role of the parent brand in brand extensions (Apostolopoulou, 2002; Bath, 1997; Bhat and Reddy, 2001; Yeung and Wyer Jr, 2005). Brand extensions may have a positive or a negative influence on the parent brand, so it is important to understand the specific impact on dimensions such as brand image, brand awareness, and customer-brand relationships. This study will carry investigate the effects of brand extensions on the relationships customers have with the parent brand.

Conceptualizing and measuring brand relationship quality

Many consumer markets are now characterized by a high degree of market saturation and an increasing level of competition, in particular from retailer brands. Furthermore, consumers face an ever increasing level of product variety. For instance, about 30,000 new products in the fast moving consumer goods (FMCG) market have been launched in Germany in a single year representing about 600 products per week. The increasing number of consumer brands thus has led to a form of “brand inflation” in FMCG markets. In addition, the role of consumers in the marketplace has changed as well. Consumers are more price sensitive, they have higher expectations with regard to product quality and customer service, and they rely rather on word-of-mouth communication than on traditional advertising. In addition, it appears that consumers have become more critical with regard to the perception of brands. High levels of price competition have led to a decreasing level of brand awareness and increased switching intentions of brands. As a consequence, the role of customer loyalty has become an increasingly important topic for businesses in consumer markets.

Service Brand Relationship Quality: Hot or Cold?

Customers’ long-term brand relations are crucial drivers of a service brand’s sustainable competitive advantage. This research empirically examines the quality of customer-service brand relationships in the context of an airline’s frequent flyer program. The authors show that service brand relationship quality (BRQ) involves both a hot (based on emotions) and a cold (based on objectrelevant beliefs) component. They find that these two components have different implications for a service brand’s performance and are at least partially driven by different antecedents whose relative importance changes over time. Specifically, cold BRQ is important for word-of-mouth behavior and is strongly driven by partner quality (i.e., the generalized assessment of the brand in its role as a relationship counterpart). Hot BRQ, on the other hand, has a stronger impact on willingness to pay a price premium and consideration set size. In early stages of a customer-brand relationship hot BRQ is more strongly driven by self-congruence (i.e., consumer’s perception of the fit between his/her self and the brand’s personality), in later stages partner quality becomes more relevant. The authors discuss the implications of their findings for the development of BRQ and the implementation of alternative growth strategies in a services context.

The impact of service orientation on relationship quality and future intentions

This paper examines the impact of service orientation (SO) on relationship quality, and its consequences for consumer behaviour in the travel industry. Specifically consumers' positive behavioural intentions, perceptions of switching costs, and consumer activism are examined as consequences of relationship quality (RQ). A sample of leisure and business travellers on a cross sea ferry were surveyed using a consumer intercept methodology. We find that SO has a significant and positive impact on RQ and that RQ has a positive impact on positive behavioural intentions and perceptions of switching costs. Both RQ and switching costs were found to reduce consumer activism. The implications of these findings for service managers and academics are discussed and directions forfuture research presented.

Teacher-child relationship quality for young children with parent reported language concerns

Previous research has demonstrated the importance of the qualities of the teacher-child relationship on children’s development. Close teacher-child relationships are especially important for children at risk. Positive relationships have been shown to have beneficial effects on children’s social and academic development (Birch & Ladd, 1997; Pianta & Stuhlman, 2004). Children with language difficulties are likely to face increased risks with regard to long term social and academic outcomes. The purpose of the current research was to gain greater understanding of the qualities of teacher-child relationships for young children with parent reported language concerns. The research analyses completed for this thesis involved the use of data from the public-access database of Growing Up in Australia: The Longitudinal Study of Australian Children (LSAC). LSAC is a longitudinal study involving a nationally representative sample of 10,000 Australian children. Data are being collected biennially from 2004 (Wave 1 data collection) until 2010 (Wave 4 data collection). LSAC has a cross-sequential research design involving two cohorts, an infant cohort (0-1 year at age of recruitment) and a kindergarten cohort (4-5 years at age of recruitment). Two studies are reported in this thesis using data for the LSAC Kindergarten Cohort which had 4983 child participants at recruitment. Study 1 used Wave 1 data to identify the differences between teacher-child relationship qualities for children with parent reported language concerns and their peers. Children identified by parents for whom concerns were held about their receptive and expressive language, as measured by items from the Parents’ Evaluation of Developmental Status (PEDS) (Glascoe, 2000) were the target (at risk) group in the study (n = 210). A matched case control group of peers (n = 210), matched on the child characteristics of sex, age, cultural and linguistic differences (CALD), and socio-economic positioning (SEP), were the comparison group for this analysis. Teacher-child relationship quality was measured by teacher reports on the Closeness and Conflict scales from the short version of the Student-Teacher Relationship Scale (STRS) (Pianta, 2001). There were statistically significant differences in the levels of closeness and conflict between the two groups. The target group had relationships with their teachers that had lower levels of closeness and higher levels of conflict than the control group. Study 2 reports analyses that examined the stability of the qualities of the teacher-child relationships at Wave 1 (4-5 years) and the qualities of the teacher-child relationships at Wave 2 (6-7 years). This time frame crosses the period of the children’s transition to school. The study examined whether early patterns in the qualities of the teacher-child relationship for children with parent reported language concerns at Wave 1 predicted the qualities of the teacher-child relationship outcomes in the early years of formal school. The sample for this study consisted of the group of children identified with PEDS language concerns at Wave 1 who also had teacher report data at Wave 2 (n = 145). Teacher-child relationship quality at Wave 1 and Wave 2 was again measured by the STRS scales of Closeness and Conflict. Results from multiple regression models indicated that teacher-child relationship quality at Wave 1 significantly contributed to the prediction of the quality of the teacher-child relationship at Wave 2, beyond other predictor variables included in the regression models. Specifically, Wave 1 STRS Closeness scores were the most significant predictor for STRS Closeness scores at Wave 2, while Wave 1 STRS Conflict scores were the only significant predictor for Wave 2 STRS Conflict outcomes. These results indicate that the qualities of the teacher-child relationship experienced prior to school by children with parent reported language concerns remained stable across transitions into formal schooling at which time the child had a different teacher. The results of these studies provide valuable insight into the nature of teacher-child relationship quality for young children with parent reported language concerns. These children experienced teacher-child relationships of a lower quality when compared with peers and, additionally, the qualities of these relationships prior to formal schooling were predictive of the qualities of the relationships in the early years of formal schooling. This raises concerns, given the increased risks of poorer social and academic outcomes already faced by children with language difficulties, that these early teacher-child relationships have an impact on future teacher-child relationships. Results of these studies are discussed with these considerations in mind and also discussed in terms of the implications for educational theory, policy and practice.

Investigating relationships between relationship quality, customer loyalty and cooperation : an empirical study of convenience stores' franchise chain systems in Taiwan

Franchising has been widely accepted as an effective way to conduct and expand businesses. However, a franchise system is not a guarantee of success in the market. A successful franchise system should rely on a close and strong franchising relationship. Franchising is an important relationship management business. Franchising arrangements normally last for a number of years, so the franchisor and franchisee in the arrangement relationship are usually motivated to cooperate with each other. In addition, highly loyal franchisees may be obtained through a successful long-term franchising relationship. Over the last few decades, there has been a tremendous wave of interest in franchising relationships. However, little research has been conducted to determine the reasons for long-term franchising relationships. As a result, this study focuses on the important elements that might lead to a successful long-term franchising relationship. This study attempts to examine empirically three essential constructs (relationship quality, cooperation and customer loyalty), which might lead to successful long-term franchising relationships between franchisees and franchisors among the convenience stores in Taiwan. Mailed questionnaires were utilised to collect the research data. A total of 500 surveys were mailed randomly to the manager/supervisor of convenience stores’ franchisees among the four main franchisors (7-ELEVEN, Family, Hi-Life and OK) in Taiwan. The final sample size is 120, yielding a response rate of 24 per cent. The results show that relationship quality positively influences the cooperative relationships between franchisors and franchisees. Relationship quality is also positively correlated with franchisees’ loyalty. Additionally, the results indicate that the cooperative relationships between franchisors and franchisees are significantly associated with franchisees’ loyalty.

Establishing a quality franchise relationship in Taiwan : Investigating relationships between relationship quality, loyalty and cooperation

Franchised convenience stores successfully operate throughout Taiwan, but the convenience store market is approaching saturation point. Creating a cooperative long-term franchising relationship between franchisors and franchisees is essential to maintain the proportion of convenience stores...

Investigating relationships between relationship quality, customer loyalty and cooperation : an empirical study of convenience stores' franchise chain systems

Small business has been shown to contribute significantly to a nation’s economic development. Small business owners typically confront challenges, uncertainty, and risks while operating new businesses. Franchising has become a way to minimize the risks of small business management (Chiou et al., 2004); however, a franchise system is not a guarantee of business success (Lee and Karkovista, 2001). A poor franchising relationship between franchisors and franchisees can result in franchise failure, such as termination and closure, or franchisee exit (Frazer and Winzar, 2005).

Investigating relationships between relationship quality, customer loyalty and cooperation : an empirical study of convenience stores' franchise chain systems

Franchising has become a way to minimise the risks of small business management. There has been little research into the factors that promote franchise relationship success. This study attempts to empirically examine the important elements (relationship quality, customer loyalty and cooperation), which might promote a successful long-term franchising relationship between franchisors and franchisees within the context of convenience stores in Taiwan. A model of these relationships was developed and tested. A total of 500 surveys were mailed to a random sample of convenience stores’ franchisee owners among the four main franchisors in Taiwan. The results show that relationship quality positively influences the cooperation between franchisors and franchisees and is positively correlated with franchisee loyalty. Additionally, the cooperative behaviour between franchisees and franchisors is significantly associated with franchisees’ loyalty.

Festival Images: brand image and stakeholders' brand relationship types at the Edinburgh Festival Fringe.

The Edinburgh Festival Fringe (The Fringe) is the largest arts festival in the world and it has inspired the creation of similar festivals world-wide. Since its conception in 1947, the Fringe has demonstrated significant growth in visitor numbers; ticket sales; and its economic contribution. Despite this, the sustainable future of Edinburgh’s festivals is debated as Edinburgh, ‘the Festival City’, faces threats from other festival destinations. Festivals position Edinburgh creatively in contrast to the city’s traditionally perceived image as a cultural-historic centre. Despite this, little research has been undertaken into the creative and cultural significance of Edinburgh’s festivals, including the Fringe. This interdisciplinary research grounded in marketing, tourism, and festival and event management; and underpinned by constructivism, presents an understanding of types of brand relationships that exist between the Fringe and its primary stakeholders. This is achieved through defining both the Fringe brand image and its primary stakeholders; and applying these definitions to the development of a typology of Fringe-stakeholders’ brand relationships. The significance of this study is evident within its topic of inquiry and the research methods applied. In the little-considered arena of arts festivals and their stakeholders, this is the first in-depth study into the Fringe as a festival and festival brand. Within this, the definition of a Fringe brand image contributes to understanding the cultural and creative significance of the Fringe. Furthermore, this research contributes a unique understanding of the types of stakeholders that are engaged with the Fringe. The types of brand relationships that exist between these stakeholders and the Fringe are another significant contribution to knowledge and understanding. While specific to the present context, these findings may prove transferable to further festivals or events, and related areas and industries. The contribution made by this research to the methodological developments in festival and event studies is of additional significance. The application of visual research methods, including semiotic analysis and photo-elicitation within phenomenological interviews, has previously been applied in marketing, consumer, and tourism research, but not to the understanding of festival brands and stakeholders’ brand relationship types. Findings of this research illustrate that existing marketing and consumer brand frameworks and stakeholder theories are applicable to festivals. Further, it is possible to define ‘a’ Fringe brand image which is subjective and contradictory. The unique open-access and organic, operational model of the Fringe facilitates its many contributors, and consumers. Fringe stakeholders may be categorised according to their level of engagement with the Fringe (as primary or secondary) and their particular stakeholder role(s), which are varied and multiple. Fringe-stakeholder brand relationship types are overwhelmingly positive; and are based upon interpersonal relationship dimensions (including friendships, marriages, kinships and partnerships). Fringe-stakeholder brand relationship types can be classified therefore as having similar dimensions to those brand relationship types previously described for consumer products and brands.