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Measuring Customer-Based Brand Equity of Samsung Mobile Phones Among Generation Y

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Measuring Customer-Based Brand Equity of Samsung Mobile Phones Among Generation Y Measuring customer-based brand equity of Samsung mobile phones among Generation Y CHUMA DINISO THESIS Submitted in fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY (Marketing) in the School of Economics and Business Sciences at the University of the Witwatersrand Promoter: DR HELEN DUH Johannesburg November 2017 DECLARATION I, Chuma Diniso, hereby declare that, except where appropriate acknowledgment is made to authors whose studies were cited, this thesis, entitled: “Measuring customer-based brand equity of Samsung mobile phones among Generation Y”, submitted in fulfilment of the requirements for the degree of Doctor of Philosophy in Marketing at the University of the Witwatersrand, Johannesburg, is entirely my own independent work. This thesis has not been submitted before for any degree or professional qualification in this or any other university. November 2017 i ACKNOWLEDGEMENTS On the 24th of January 2017, my younger brother, Lutho passed on and a month later, 21 February, delinquents stole my car. It can only be the grace and favour of God Almighty that I conquered these devastating setbacks which had a potential to destroy me. I am grateful to my Redeemer for the gift of life, strength, resilience and wisdom to undertake and complete this momentous project. Indeed I can testify that: “I can do all things through Christ who strengthens me” (Philippians 4:13). I am indebted to my research supervisor Dr. Helen Duh, who is an extremely gifted, knowledgeable, humble and proficient woman, for her commitment, passion and work ethic. Doc, despite also encountering personal challenges, your unwavering support and guidance during this lonely journey enabled me to achieve this milestone. I will always be indebted to you for being resilient. Your industrious mentality and refusal to embrace mediocrity is contagious and motivational. Dieu vous bénisse. I must express gratitude to my parents (Siyavuya and Winiswa), siblings (Andisiwe, Lazola, Luhle and Lutho) and family members for their support. I would also like to express appreciation to my colleagues at the University of Johannesburg and the University of the Witwatersrand, Ms Seugnet Bronkhorst, Ms Cashandra Jasson, Mr John Davids, Mr Chris Schachtebeck and Ms Irma Watson for giving me access to their respondents during the data collection phase. To my former (Prof. Cecile Nieuwenhuizen) and current (Prof. Geoff Goldman) Head of Department (College of Business and Economics, University of Johannesburg), your financial and emotional support was invaluable. To the Department of Higher Education, the research developmental grant award towards the six months lecturing relief enabled me to complete this project timeously. To the statisticians, Dr. Richard Devey and Ms Jaclyn de Klerk from Statkon, University of Johannesburg, Mr Tinashe Chuchu and Ms Annekee van den Berg, your assistance in conceptualising the questionnaire and preliminary analysis of data is much appreciated. A great thank you to Ms Genevieve Wood for professionally editing this thesis. To my friends and loved ones, I will forever be grateful to you for tolerating my anti-social tendencies when I was busy with this project. Your constant support and prayers are greatly acknowledged and appreciated. ii ABSTRACT Keywords: brand equity, Samsung mobile phones, Generation Y, brand awareness, brand image, perceived quality, brand loyalty, brand satisfaction, brand love and consumption values. Samsung is the leading brand in the mobile phone industry, and is dominant over fierce competitors, such as Apple, Nokia, Huawei and Blackberry. This is evident from the 2016 global market share figures, where Samsung occupies the top position with 21.6%. The Samsung brand is also dominant in South Africa, having captured 46% of the market share. Consumers are also willing to pay a price premium for Samsung mobile phones. For example, as at June 2017, the Samsung S8 smartphone retailed for up to R14,799, with consumers still willing to pay this price. While from an organisation’s perspective the success of Samsung in the mobile phone industry is accredited to the global establishment of production bases, overhaul of quality standards, paradigm shift in management philosophies and substantial investment in marketing and product design, there is a need to understand what drives Samsung’s brand equity from consumers’ perspective. The understanding of Samsung’s brand equity is even more important among Generation Y, due to the fact that they constitute 25% of South Africa’s population, have a high purchasing power for luxury and technological products, and 95% of them own a mobile phone in South Africa. They use their phones to communicate with family and friends, listen to music and watch YouTube videos. For the measurement of brand equity, so that marketers are informed of the performance of their marketing and brand strategies, researchers recommend the examination of its sources. Models devised by Aaker (1996) and Keller (1998) provide various sources of brand equity, but how and which of these sources best influence brand equity has not been determined. Esch, Langner, Schmitt and Geus (2006) recommend that in order to measure brand equity holistically, sources of brand equity, including brand awareness, brand image, perceived quality, brand associations and brand loyalty should be measured in conjunction with other important brand relationship factors such as brand trust, brand satisfaction and brand attachment or love. This is particularly so, because consumers who have a strong relationship with a brand are likely to demonstrate positive attitude towards it. Despite this view, most researchers who have adopted the Aaker (1996) and Keller (1998) models to measure CBBE have not considered the explanatory roles of the brand relationship variables. iii Another important factor ignored in the measurement of sources CBBE are the various values (such as functional, monetary, emotional, customisation, and relational), as proposed by Chuah, Marimuthu and Ramayah (2014), consumers enjoy from the consumption of a brand. Recognising the importance of uncovering the value inferences that consumers hold of a brand, Keller (2003) suggests three types of values or benefits (functional, experiential, and symbolic benefits) consumers may enjoy from a brand. The monetary value, according to other authors, can also be important. How these values lead to brand equity, if at all, were, however, not further explored. This study therefore integrated the Aaker and Keller’s brand equity models, Esch et al. and Chuah et al. brand relationship and consumer value models, respectively, to propose an integrated conceptual model with eighteen hypotheses to measure the sources of Samsung’s mobile phones brand equity among Generation Y. Quantitative methodologies were used to collect data from 651 undergraduate and postgraduate students studying at the University of Johannesburg and University of the Witwatersrand to empirically test the proposed model. The hypothesised relationships in the model were empirically tested using structural equation modeling. The results revealed that out of the eighteen hypotheses tested, twelve were accepted. Specifically, brand awareness, brand image, perceived quality, monetary value and functional value had a positive effect on brand satisfaction. Brand satisfaction positively drives brand love. Consumers who expressed love for the Samsung mobile phone brand were found to be loyal. Brand loyalty, which was found to have a positive impact on brand equity, was influenced positively by monetary value. In addition to brand loyalty, brand equity was influenced positively by perceived quality, monetary value and symbolic value. Overall, 56% of Samsung mobile phone brand equity was explained by brand awareness, brand image, perceived quality, monetary value, functional value, symbolic value, brand satisfaction, brand love and brand loyalty. While it will be important for future studies to identify other factors, which may increase the explanatory power of Samsung’s brand equity among Generation Y in South Africa, this study’s theoretical contribution suggests an integrated conceptual model to holistically measure customer-based brand equity not only in the telecommunication sector, but for other products and sectors. Practically, Samsung and other marketers responsible for managing competing iv brands such as iPhone, Nokia, Huawei can use these findings to develop relevant marketing strategies that resonate with this large and lucrative Generation Y market segment. v TABLE OF CONTENTS DECLARATION i ACKNOWLEDGEMENTS ii ABSTRACT iii TABLE OF CONTENTS vi LIST OF FIGURES xiv LIST OF TABLES xv LIST OF ACRONYMS xvii CHAPTER 1: INTRODUCTION AND BACKGROUND TO THE STUDY 1 1.1 INTRODUCTION 1 1.2 STATEMENT OF THE RESEARCH PROBLEM 2 1.3 RESEARCH OBJECTIVES 4 1.3.1 Primary objective 4 1.3.2 Secondary objectives 4 1.4 PRELIMINARY LITERATURE REVIEW, CONCEPTUAL MODEL AND HYPOTHESES DEVELOPMENT 5 1.4.1 Overview of brand equity, its sources and outcomes 5 1.4.2 Measurement of brand equity 6 1.4.2.1 Aaker (1996) brand equity model 7 1.4.2.2 Keller (1998) customer-based brand equity model 7 1.4.2.3 Esch, Langner, Schmitt and Geus (2006) brand relationship model 8 1.4.2.4 Chuah, Marimuthu and Ramayah (2014) customer-oriented value model 9 1.4.3 Proposed conceptual model of this study 10 1.4.4 Generation Y size, spending power and mobile phone usage 12 1.5 OVERVIEW OF THE RESEARCH METHODOLOGY ADOPTED FOR THIS STUDY 13 1.5.1 Research
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