EFFECTS OF CORPORATE REBRANDING ON THE

PERFORMANCE OF HIGHER LEARNING INSTITUTIONS:

A CASE OF UNITED STATES INTERNATIONAL

UNIVERSITY-AFRICA

BY

MASHETI HASSAN SALEH

UNITED STATES INTERNATIONAL UNIVERSITY-AFRICA

SUMMER 2016

EFFECTS OF CORPORATE REBRANDING ON THE

PERFORMANCE OF HIGHER LEARNING INSTITUTIONS:

A CASE OF UNITED STATES INTERNATIONAL

UNIVERSITY-AFRICA

BY

MASHETI HASSAN SALEH

A Research Project Report Submitted to the Chandaria School of

Business in Partial Fulfilment of the Requirement for the Degree

of Masters in Business Administration (MBA)

UNITED STATES INTERNATIONAL UNIVERSITY-AFRICA

SUMMER 2016

ii

STUDENT’S DECLARATION

I, the undersigned, declare that this is my original work and has not been submitted to any other

college, institution or university other than United States International University-Afr ica.

Signed: ________________________ Date: ________________________

Masheti Hassan Saleh (633973)

This research proposal has been presented for examination with our approval as the appointed

supervisors.

Signed: ________________________ Date: ________________________

Prof. Katuse, Paul

Signed: ________________________ Date: ________________________

Dean Chandaria School of Business

iii

COPYRIGHT

© 2016 Copyright, Masheti Hassan Saleh.

All rights reserved.

iv

ABSTRACT

The purpose of this study was to investigate the effect of corporate rebranding on the

performance of higher learning institutions in Kenya with a specific focus on the United States

International University Africa (USIU-A). The study was guided by the following research

questions: What are the economic implication of rebranding in higher learning institutions in

Kenya? What are the effects of corporate rebranding on product quality? And finally, what are

the effects of rebranding on the image of the higher learning institutions in Kenya?

This study adopted a descriptive research design, that is, this research design involved the

observation and description of the behavior of a subject without influencing the outcome of

the respondent in any way. The study’s target population was the 435 employees of USIU-A.

The study used a simple random sampling technique and a sample size of 87 respondents was

randomly selected. This technique was the most appropriate because it allowed the researcher

to ensure that each case in the population had an equal chance of being incorporated in the

sample. Both closed and open ended questions was used in the questionnaires to collect data.

Effective and efficient data analysis process was ensured through the coding and sorting of the

questionnaires and analysis was done using descriptive and inferential analysis in the statistical

package for social sciences (SPSS). For easy interpretations and understanding figures and

tables was used for the presentation of the results and findings.

Findings on the economic effect of rebranding on high learning institutions established that:

rebranding objectives for the university should take into account of what is to be achieved by

the brand in the broader context; successful rebranding is the one that can maintain the number

of students in the institution, and maintain student exchange through students memory of the

university; and the objectives of rebranding are to increase intakes of students and maintain a

large population of students at all times were the highly significant factors. The study also

established a positive significant factors between economic effect of rebranding and the

performance of high learning institutions.

The findings on the effect of corporate rebranding on product quality established that: there is

a better understanding of brand strategy in education branding; rebranding management as a

whole, contain a significant component known as brand equity; and corporate rebranding has

v

a range of growth strategies that give a central role to innovation as a driver of growth were

the highly significant factors.

Finally the findings on the effects of rebranding on the image of the organization established

that: environmental scanning is the monitoring, assessing, and distributing of information from

the external and internal environment; the university still needs to promote its brand by

leveraging on specific areas such as research and development; and there has been resistance

from employees to the new brand logo were the highly significant factors.

The study concludes that economic effect of rebranding is crucial to the performance of high

learning institutions. The study also concludes that corporate rebranding have a positive

significant effect on the quality of products. This showed that corporate rebranding in high

learning institutions has a positive significant impact on the quality of education programs

provided by the institution. Finally it’s the study’s conclusion that the university still needs to

promote its brand by leveraging on specific areas such as research and development and

university website plays a crucial role in the marketing of rebranded logos and products.

The study recommends that rebranding for the university should take into account what is to

be achieved by the brand in the broader context as well as help maintain the number of students

in the institution, and maintain student exchange through students memory of the university

and finally increase intakes of students and maintain a large population of students at all times.

It is the study’s recommendations that high earning institution to invest more in innovation as

it is the driver for growth of the institutions. Finally the study also recommends that the

institution needs to promote its brand by leveraging on specific areas such as research and

development. It is also the study’s recommendations that further studies be carried out on the

implications of corporate rebranding on the growth of high learning institutions in Kenya.

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ACKNOWLEDGEMENT

I would like to acknowledge the following persons for their significant contribution to this

study. First and foremost the Almighty God for His mercy and the gift of life, I would also like

to register my appreciation to my supervisor Prof. Paul Katuse whose valuable input made it

necessary for the accomplish of this project. Finally to my family and friends, you will be

always remembered for relentless contributions and support. Thank you all.

vii

DEDICATION

I dedicate this project to my family

viii

TABLE OF CONTENTS

STUDENT’S DECLARATION ............................................................................................. ii

COPYRIGHT ......................................................................................................................... iii

ABSTRACT ............................................................................................................................ iv

ACKNOWLEDGEMENT ..................................................................................................... vi

DEDICATION....................................................................................................................... vii

CHAPTER ONE ..................................................................................................................... 1

1.0 INTRODUCTION............................................................................................................. 1

1.1 Background of the Study ................................................................................................. 1

1.2 Problem Statement .......................................................................................................... 4

1.3 Purpose of the Study ....................................................................................................... 5

1.4 Research Questions ......................................................................................................... 5

1.5 Importance of the Study .................................................................................................. 5

1.6 Scope of the Study........................................................................................................... 6

1.7 Definition of Terms ......................................................................................................... 7

1.8 Chapter Summary ............................................................................................................ 7

CHAPTER TWO .................................................................................................................... 8

2.0 LITERATURE REVIEW ................................................................................................ 8

2.1 Introduction ..................................................................................................................... 8

2.2 Economic Effect of Rebranding on Institutions of High Learning ................................. 8

2.3 Effects of Corporate Rebranding on Product Quality ................................................... 14

2.4 Effects of Rebranding on the Image of the Organization.............................................. 18

2.5 Chapter Summary .......................................................................................................... 23

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CHAPTER THREE .............................................................................................................. 24

3.0 RESEARCH METHODOLOGY .................................................................................. 24

3.1 Introduction ................................................................................................................... 24

3.2 Research Design ............................................................................................................ 24

3.3 Population and Sampling Design .................................................................................. 24

3.4 Data Collection Methods ............................................................................................... 26

3.5 Research Procedure ....................................................................................................... 27

3.6 Data Analysis and Method ............................................................................................ 27

3.7 Chapter Summary .......................................................................................................... 28

CHAPTER FOUR ................................................................................................................. 29

4.0 RESULTS AND FINDINGS .......................................................................................... 29

4.1 Introduction ................................................................................................................... 29

4.2 General Information ...................................................................................................... 29

4.3 Economic Effect of Rebranding on Institutions of High Learning ............................... 32

4.4 Effects of Corporate Rebranding on Product Quality ................................................... 37

4.5 Effects of Rebranding on the Image of the Organization.............................................. 43

4.6 Chapter Summary .......................................................................................................... 50

CHAPTER FIVE .................................................................................................................. 51

5.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS ............................. 51

5.1 Introduction ................................................................................................................... 51

5.2 Summary ....................................................................................................................... 51

5.3 Discussion ..................................................................................................................... 52

5.4 Conclusions ................................................................................................................... 57

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5.5 Recommendations ......................................................................................................... 58

REFERENCES ...................................................................................................................... 60

APPENDICIES ..................................................................................................................... 65

Appendix I: Cover Letter .................................................................................................... 65

Appendix II: Questionnaire ................................................................................................. 66

xi

LIST OF TABLES

Table 3.1: Sample Size ........................................................................................................ 26

Table 4.1: Highly Significant Factors ................................................................................. 32

Table 4.2: Moderately Significant Factors .......................................................................... 33

Table 4.3: Low Significant Factors ..................................................................................... 33

Table 4.4: Cross Tabulation of Level of Education and Rebranding and Market Value .... 34

Table 4.5: Cross Tabulation of Age Bracket and Today’s Universities.............................. 35

Table 4.6: Cross Tabulation of Experience and Rebranding and commercial world ......... 35

Table 4.7: Economic Effect of Rebranding on Institutions of High Learning Employee ... 36

Table 4.8: Regression of Economic effect of Rebranding on High Learning Institutions

(Model Summary) ............................................................................................................... 37

Table 4.9: Highly Significant Factors ................................................................................. 38

Table 4.10: Moderately Significant Factors ........................................................................ 38

Table 4.11: Low Significant Factors ................................................................................... 39

Table 4.12: Cross Tabulation of Gender and Corporate Branding ..................................... 39

Table 4.13: Tabulation of Level of Education and Name Change and Firm’s Value ......... 40

Table 4.14: Cross Tabulation of Age Bracket and Brand Equity........................................ 41

Table 4.15: Cross Tabulation of Experience and Rebranding and Customer retention ...... 41

Table 4.16: Correlation of Effects of Corporate Rebranding on Product Quality .............. 42

Table 4.17: Regression of Effects of Corporate Rebranding on Product Quality (Model

Summary) ............................................................................................................................ 43

Table 4.18: Highly Significant Factors ............................................................................... 44

Table 4.19: Moderately Significant Factors ........................................................................ 45

Table 4.20: Low Significant Factors ................................................................................... 45

Table 4.21: Cross Tabulation of Gender and Customer Loyalty ........................................ 46

xii

Table 4.22: Cross Tabulation of Level of Education and Employees and New Logo ........ 47

Table 4.23: Cross Tab of Age Bracket and Rebranding and Integrity of the University .... 48

Table 4. 24: Cross Tabulation of Experience and University as a Commercial Entity ....... 48

Table 4.25: Correlation of Effects of Rebranding on the Image of the Organization ......... 49

Table 4.26: Regression of Effects of Rebranding on the Image of the Organization (Model

Summary) ............................................................................................................................ 50

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LIST OF FIGURES

Figure 4.1: Response Rate ................................................................................................... 29

Figure 4.2: Gender Representation...................................................................................... 30

Figure 4.3 Education level .................................................................................................. 30

Figure 4.4: Age Bracket ...................................................................................................... 31

Figure 4.4: Age Bracket ...................................................................................................... 31

1

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

Branding is the process of giving an enterprise or product an identity that will allow the creation

of a differentiated position in the market as well as in the mind of stakeholders. Rebranding on

the other hand is redefining the already exist product or organization to make it more appealing

and relevant to the eyes of the customers and the stakeholders. Rebranding as a strategy aims

at defining a company’s core values and beliefs (Aaker, 2009). In this respect, branding enables

companies to communicate the benefits and values that a product or service offers which in

the long run forms the foundation of enterprise’s very identity, or brand heritage. The true

value that successful branding has for an enterprise through brand name can be identified in

how customers are prepared to buy those well-known brand names, thus creating valued or

brand equity for the enterprise (Fill, 2009).

Because of the continuously changing business environment companies adopting new names

are frequently reported in the business press. For example, mergers and acquisitions and

ownership changes are usual. However, changing a corporate brand name suggests the loss of

all the values that the old name signifies in an extremely short course of time; it may nullify

years of effort and can seriously damage or even destroy the equity of the brand (Zhang &

Sood, 2012). Despite the growing interest by practitioners, the phenomenon has as yet received

little academic attention. So far, only a handful of academic studies seem to have concentrated

on it by referring to it as corporate re-branding (Ahonen, 2008).

While branding is concerned with creating a brand identity, rebranding is recreating that

identity. Business adopting new names, slogans or visual identities rebrand in cases of mergers

and acquisitions or change of corporate or business strategy. There are various definitions of

rebranding by different authors for instance; Getty and Thompson (2014) define rebranding as

a continuum from revitalizing a current brand to full name change that involves alterations in

brand values and promises. Similarly, Muzellec and Lambkin (2013) describe rebranding as a

continuum. Whilst both views regard rebranding as a process along a continuum of minor to

2

major change, Muzellec and Lambkin (2013) make the distinction between evolution, which

involves the slogan or logo only, and revolution, which incorporates the elements of slogan

and logo, as well as the name. Furthermore, both define rebranding as the creation of a new

name, term symbol, design or a combination of them for an established brand with the intention

of developing a differentiated (new) position in the mind of stakeholders and competitors

(Zhang & Sood, 2012)).

According to Getty and Thompson (2014), rebranding process comprises four stages:

repositioning, renaming, redesigning and relaunching. Repositioning is required when there is

a decision to create a new position in the minds of customers and other stakeholders. Renaming

is considered when it is necessary to send a strong signal to all stakeholders that the business

is changing its strategy, refocusing its activity or changing ownership. The third stage is

redesign and concerns aesthetics and tangible elements such as logo, offices, advertisements

and other visible elements of the business’s desired position. The fourth and final stage

relaunch, will determine how stakeholders regards the new name and new brand (Randall,

2010).

Getty and Thompson (2014) point out that as corporate and brand images change, and as

restructuring occur due to mergers, acquisitions or sales of brands, brand architectures must

equally adapt and evolve as a result of these changes. Such changes can follow an integration

strategy, where the idea is to unite all elements under one identity or branded house which is

aimed at gaining market share and providing greater visibility. On the other hand, brand

separation aims to disassociate (Zhang & Sood, 2012). By contrast, this strategy leads to a

house of brands architecture. Reasons for rebranding concern conveying the desired message

to the customer and other stakeholders. Rebranding is more than just creating a new name for

a brand but must be focused on reinforcing new message to the market so that the value

proposition becomes more relevant given the market dynamics (Aaker, 2011).

The development of the internet has also made rebranding to become increasingly important

because of the huge amount of choice and variety of products and services offered in almost

every market. And with consumers finding an ever growing availability and accessibility of

products and services, business must adopt ways of remaining competitive and strengthen their

3

visibility in the market. Furthermore businesses are now recognizing the growing importance

of social media amongst consumers. And as business begin to show their presence in the social

media, their marketing strategy must also identify with the new channel to communicate their

brands to stakeholders. According to (Gray 2006, Fill 2009), brand managers have less

influence on managing corporate reputation because consumers now have more influence in

the branding process. In the past, brand owners had more control over their brand but now

consumers have more influence on redefining what brands means to them, how competing

brands differentiate, and how they perceive and attribute brand personality (Fill, 2009).

A brand comprises both tangible and intangible elements and when communicated effectively,

differentiates the product and service, reduces the risk involved in a buying decision, leads to

sustained competitive advantage and ultimately, to long-term profitability. Un-branded

product or services does not deliver any extra value to the customer and is indistinguishable

except in terms of price (Wood, 2010). Successful brands create strong, positive and lasting

impressions, all of which are seen by audience to be of value to them personally. The additional

value that customers perceive in a brand ultimately builds long term loyalty, or brand equity,

which contribute to sustained competitive advantage and to marketing power. Marketing

power allows businesses to carry out their marketing activities more productively, as customers

are respective to the brand; they know what the brand stands for and are aware of the brand

identity (Randall, 2010). Rebranding also include brand image, brand personality, brand

positioning and brand awareness.

The higher education sector globally has witnessed powerful changes during the past decades:

it has become a global business in which education has turned into a service marketed

worldwide. Universities and other higher education institutions are increasingly competing for

the brightest students and academic staff at international level. At the same time, they have

moved towards a business-like, competitive model of operation. Universities are no longer just

institutions of higher learning but also businesses (Gray 2006, Fill 2009) which contradicts the

traditional role of universities as independent institutions creating and disseminating

autonomous knowledge (Fill, 2009).

4

United States international university Africa (USIU-A) is ranked among the best private

university not only in Kenya but in Africa and globally. It is one of the oldest private university

in Kenya. It boast of two accreditation, one by the Western Association for Senior College and

University Commission (WASC) in the United States of America and from the Commission

for University Education (CUE) in Kenya. The institution was established in 1970 and it is

known for providing quality education to its students. The university’s growth has been steady

in the size of the number of students, staffs and infrastructures. The institution rebranded

recently in the year 2014. It is for this reason that the research focuses on USIU Africa to

establish the effect this rebranding have on the performance of the institution (USIU-A, 2016).

1.2 Problem Statement

Due to the generic characteristics of higher education, universities and schools have

paradoxically become harder to distinguish from each other by their features, and the

presentation of a distinct identity has become difficult (Zeithaml, Berry & Prasuraman, 2010).

As Randall (2010) suggests, higher education has moved from its growth stage to a mature

stage industry, and as a result, universities have to move from comprehensive institutions to

more focused entities. It is therefore extremely crucial to determine what makes them unique.

Various studies have been done all over the world focusing on various aspects of branding. For

instance in USA, Keller and Lehmann, (2012) carried out research on brand and branding and

after an extensive review of literature concluded that there still remains a number of

opportunities for research in the area of branding. In Europe Schmitt and Simonson (2010)

investigated effect of internet on branding and found that while there is lower friction in many

dimensions of Internet competition; branding, awareness, and trust remain important sources

of heterogeneity among Internet retailers, while in Malaysia, Zhang and Schmitt, (2011)

researched on the impact of name change on the Malaysian companies around the

announcement date and found no impact on stock return on the announcement date for a

company name change unless it was accompanied by some restructuring plan. Wood, (2010)

investigated the impact of rebranding on customer perception in Hong Kong and found that

brand equity can be improved when rebranding is evaluated positively.

5

In India Gardeklint (2009) focused on brand loyalty in hospitality sector in Goa and found that

customers’ perceptions on tangibles, empathy and reliability contributed to fostering their

loyalty with hotel brand. Finally Muzellec and Lambkin (2013) carried an empirical study on

the impact of branding on consumer choice in Nigeria and recommended that firms should

focus on the company name and packaging and also integrate brand name and brand mark as

supportive elements in fashioning effective branding strategy. Locally, Gruca and Rego (2014)

conducted a study on changing strategies in marketing Kenya’s tourist Art from ethnic brand

to fair trade label. Based on this review, there is no known study in Kenya that has explored

the effect of corporate rebranding on performance of higher learning institution. Therefore this

study seeks to fill this knowledge gap by investigating effects of corporate rebranding strategy

on performance of higher learning institutions in Kenya by carrying out a survey of the United

States International University Africa in Kenya.

1.3 Purpose of the Study

The purpose of the study was to investigate the effect of corporate rebranding on the

performance of higher learning institutions in Kenya with a specific focus on the United States

International University Africa (USIU-A).

1.4 Research Questions

This study was guided by the following research questions:

1.4.1 What are the economic implication of rebranding in higher learning institutions in

Kenya?

1.4.2 What are the effects of corporate rebranding on product quality?

1.4.3 What are the effects of rebranding on the image of the higher learning institutions in

Kenya?

1.5 Importance of the Study

1.5.1 Higher Learning Institutions

The findings of this research is important in enhancing the effort of higher learning institutions

in coming up with strategies on rebranding that can help their operations in setting up

6

management strategies. The research also provides immense knowledge in the way higher

learning institutions should rebrand and thus provide management with information on how

they should adopt new strategies for the benefit of members. In addition, the research study

can facilitate better higher learning institutions management enhancing the knowledge of

Board members in overseeing the management of the institution.

1.5.2 Academicians

The research is of significant value to the scholars on understanding of the application of

rebranding concepts in higher learning institutions. Scholars can also be able to understand the

importance of rebranding and realize their role in the operations of the newly rebranded

institutions. Based on the information obtained, scholars can be able to make sound decisions

on issues of rebranding given that such decisions are not taken by higher learning institutions’

management without consulting members. Therefore their contribution can be enhanced.

1.5.3 Other Organizations

There are many companies that rebranded and repositioned completely or changed some of its

elements. The reasons for rebranding and repositioning vary from company to company, some

might want to get greater market share and some want to rebrand because there might be

difference in what they wanted and what they have right now. Many companies are going

towards rebranding and repositioning that depends on the demand of the market and also

because to acquire the latest marketing strategy according to their customers. The findings of

this study will guide the organizations and give insights in the best ways companies can rebrand

without losing their market.

1.6 Scope of the Study

Corporate rebranding is not limited to higher learning institutions only. However, the study

was restrictive in scope covering only corporate rebranding in higher learning institutions in

Kenya. The study took a case of the United States International University Africa. The study

was carried out between March and April 2016. In generalization of the findings from samples,

there was always a risk of amplifying errors. To counter this the researcher ensured that the

7

response to the questionnaires were up to date and correct values were used in the

questionnaires.

1.7 Definition of Terms

1.7.1 Brand Image

Brand image is all about creating an impression and position in consumer’s mind and

establishing a name, slogan, tagline or design so as to look attractive (Muzellec & Lambkin,

2013).

1.7.2 Corporate Re-branding

Corporate re-branding is defined as “the practice of building anew a name representative of a

differentiated position in the mind frame of stakeholders and a distinctive identity from

competitors” (Muzellec & Lambkin, 2013).

1.7.3 Repositioning

“Repositioning is a source of competitive advantage that gives value to customers at different

stages of marketing and at different contact points” (Lindberg-Repo, 2005, p.80). According

to Keller (2011) repositioning is done for changing the image of the company so that it occupies

a new place and value in the mind of the consumers.

1.8 Chapter Summary

Chapter one presented a background of the problem, problem statement and the purpose of the

study, also presented in the chapter was research questions, significance of the study, scope of

the study and the definition of terminologies. Chapter two will cover the relevant literature

review on corporate rebranding in relation to the research questions. Research design,

methodology and the data collection method will be covered in Chapter three. The study’s

results and findings will be presented in chapter four. Finally, chapter five will give the

summary, discussion, conclusions and recommendations of the study.

8

CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

This chapter presents the relevant literature to the effect of corporate rebranding on the

performance of higher learning institutions in Kenya. The chapter will look at various

literature covered by different scholars.

2.2 Economic Effect of Rebranding on Institutions of High Learning

2.2.1 Effect of Corporate Rebranding on Market Value of the Institution

Rebranding has two dimensions that are evolutionary and revolutionary. Evolutionary

rebranding defines minor changes in product or brand positioning while revolutionary reflect

major change in brand’s positioning, usually in the form of design name or logo (Muzellec &

Lambkin, 2013). Rebranding can be proactive or reactive. Proactive rebranding occurs when

companies wants to grasp future opportunities and productive growth while reactive

rebranding occurs in reaction to events. Koku (2011) describes several reasons for rebranding.

He says that more companies are now going for rebranding and the reasons can be merger and

acquisition, new line of business or to attain more competitive advantages. Schmitt (2013) said

that rebranding makes a totally new image of the product and old identity is usually forgotten.

This financial market perspective derives from the ‘efficient markets’ literature, that forecasts

that in a well-functioning capital market, stock prices are the best available unbiased estimates

of the value of the assets of a firm (Schmitt & Simonson, 2010). It is preferable to use the

financial market valuation than historic accounting measures that fail to incorporate the

expected future returns of rebranding actions. Additionally, by using objective market based

measures, comparisons over time and industries are possible. Muzellec and Lambkin (2013)

presents a framework linking corporate reputation to the creation of shareholder value, based

on the four-part valuation model of (Muzellec & Lambkin, 2013). He claims that a good

corporate reputation will be a part of the firm’s intrinsic value which will be factored into the

firm’s share price. Schmitt and Simonson (2010) find evidence that a strong corporate brand

9

and a favorable reputation contribute to higher stock prices. Successful corporate branding

strategies will provide an opportunity for generating a significant future income stream which,

under the hypothesis of efficient markets, will be reflected on the stock price.

A common approach to analyze this financial market perspective, i.e., the impact of corporate

rebranding in market value, is provided by event study methodology. In marketing, event

studies have been published across research streams linked to product, promotion and services

(Muzellec & Lambkin, 2013) for a met analysis on the subject). Under the promotion research

area, corporate name changes have been analyzed by several researchers including Howe

Zhang and Schmitt, (2011). Most of these studies find a non-significant market reaction as a

consequence of a corporate name change. One possible reason presented by Koku (2011) is

that those changes are anticipated by the market. However, Zhang and Sood (2012) conclude

that a name change has a positive impact on the firm’s value. They claim that name changes

signal to the market that measures to improve the performance will be adopted by the firm,

which can contribute to a positive impact on shareholders’ value.

The Coca-Cola Corporation launched a re-branding campaign in the United Kingdom of their

diet drinks in 2002. Coca-Cola determined that it was necessary to rename their diet products

from Diet Fanta and Diet Dr. Pepper to Fanta Lite and Dr. Pepper Lite. The corporation did

this so that the products were the same as others marketed throughout Europe. However,

interestingly enough, it was decided that Diet Coke would not change its name due to its brand

equity. A significant amount of financial resources have been invested in the product since it

was introduced to the United Kingdom in 1983 (Tom & Peter, 2007).

According to a case study conducted by Ogilvy Public Relations (1999), British Petroleum

merged with Amoco and renamed itself BP beyond Petroleum. The company launched a global

re-branding campaign to redefine the brand now that two companies had successfully merged,

and a few smaller ones merged under one name. The re-branding campaign consisted of an

integrated communications plan consisting tools such as numerous video news releases, town

hall meetings, interviews with key executives, and advertisements. In the immediate aftermath

of the campaign, it was hailed as a success, especially because of the image portrayed as a

more environmentally friendly, socially responsible corporation. However, in recent years, BP

10

has come under criticism, with some saying that the re-branding campaign was just a tool used

to boost the company’s image, as environmentally friendly and their actions have not reflected

the new image. According to Muzellec and Lambkin (2013) it seems BP is investing more in

image than environment. Would a company spend hundreds of millions of dollars in solar

investment just to enhance its reputation? Well, BP has already spent that much just on its

‘beyond petroleum’ re-branding campaign.

2.2.2 Effect of Corporate Rebranding on Perfomance of an Institution

Universities today are not just known as purely educational organizations, in fact, universities

in Malaysia begin working to highlight the uniqueness of each like other corporate

organizations that are able to create financial support. It is found that university ranking is

depending on the organizational distinguish with other universities, intensive branding effort,

high mentality power, behavior of buyers and also the location of the university (Chapleo,

2005).

With this, it is clear that the rebranding is very important that it is able to distinguish a

university with other universities. Of the few studies that have been conducted previously, it

was found that branding is necessary to avoid brand failure in the market by creating the

perception that helps in business, building a quality reputation, increasing sales, delivering the

promise consistently, improving product and process of organization, positioning difference

and user experience, and enabling organizations to maintain a position in the market (Brymer

& Rusten, 2010).

Though rebranding activities in higher education institutions can be said to be relevant in the

commercial world (Roper & Davies, 2007), it is a sector that can be said as not easily

compatible with all the principles. Because the study of branding is still in the early stage, there

are not many studies which carry out study on the brand management as a whole. University

branding by far receives limited observation among academicians. Although this situation is

changing, there is still little evidence to investigate on how and whether the effectiveness of

branding activities at the university should be evaluated and measured. Thus, hopefully this

11

article will ignite the interest of the researchers to conduct studies on a more comprehensive

brand management of higher learning centres in Malaysia in the future.

According to Gray (2003), people in the United States were already at the stage of image

construction at the international level with the enrolment of overseas students since a long time

ago. While in Asia, they are still in the process of rebranding position. Although the use of

rebranding in the education system in the United States is limited, rebranding is said to be a

centre of expertise, which needs to be understood and developed in order to face the increased

competition between universities there (Chapleo, 2011).

Another fundamental issue being debated is the university corporate brand that may be

interpreted in different and complex forms by various stakeholders with different perceptions

which basically adds to the challenge of rebranding activities (Waeraas and Solbakk, 2008).

Maybe some will wonder if the definition of university rebranding is similar to other

commercial organizations (Chapleo, 2011). Although too vast to be fully explored in this study,

this is a scope that may be considered to understand whether the rebranding can be measured

in terms of its effectiveness to a university? In short, it appears that the universities have spent

a large amount of resources in rebranding their institutions (Rolfe, 2003), but as mentioned

before, the literature on rebranding in higher education is limited, although there are claims

that 'higher education and rebranding go back a long way '(Temple, 2006).

The objectives of rebranding are to increase sales, maintain and enhance the development of

the market, create a selling climax, inform and educate the market, create a different

competition, and improve promotion efficiency (Rowley, 1997), create the identity and brand

awareness, assurance of quality, quantity and users satisfaction, and promote products

(Onksvisit and Shaw, 1997). Keller (2012) agrees that it is important to measure the

performance of the brand, but suggest that a monitoring system should be in accordance with

the organization. Keller (2012) states that the brand value chain as a way to understand the

financial impact of brand marketing expenses. Some other models are the Millward Brown

Model, Criteria to Assess the Strength of a Brand (1996) and Young and Rubicam Model,

Brand Asset Valuator (1994), which are widely known. However, all these models are more

focused on the commercial brand products, even if it is found to have high levels of

12

compatibility with higher education field but it is not very comprehensive to a university's

specific situation. Variables such as the stock market ',' premium price 'and' loyalty are the

matrix examples of these models, which may need modification in the concept for higher

education institutions market.

2.2.3 Corporate Rebranding and Brand measurements in an Institution

Rebranding objectives for the university should take into account of what is to be achieved by

the brand in the broader context. Initially, the rebranding was inspired as a way to highlight

the name of the product and to convey legitimacy, prestige and stability of the manufacturer.

Most of the branding concept is clear and unambiguous when it is associated with goods

branding but generally it is more related to the commercial field. De Chernatony and

McDonald (2005) assert that successful brands provide a sustainable competitive advantage

and greater profitability and improved market performance. These concepts, although

practically challenging to measure in any sector, become the priority especially when used for

higher education.

Holt (2002) argues that, in order to obtain the social value, cultural content must go through

the brand. Post-modern consumer culture also insists that the meaning must be communicated

through the brand to make it worthwhile. In brief, these brands will be more valuable if it is

offered not as a cultural blueprint, but as a cultural resource.

Measurement is very important to show the difference of a university with other universities.

This is because if the university does not focus in highlighting the difference of its brand, the

university will be considered as clones and the best way for the university is to follow the

leader (Fisher, 2005). Measurements in university are based on the curriculum and the quality

of faculty from student and financial aid and students’ selection which are assessed as a whole

(www.brandchannel.com). According to Hill (1995), there are two types of service quality, the

technical quality (tangible element) and quality function (interpersonal behavior). Meanwhile

Chapleo (2005) opines to see whether HLI has successfully developed the brand or not, the

measure of success will be based on sustainable branding brand (despite competition), images

that encourage customers to buy, and the ever-increasing number of buyers. Meanwhile

13

Belanger et al. (2002) describes the successful rebranding is the one that can maintain the

number of students in the institution, and maintain student exchange through students memory

of the university and strive to create and maintain a strong brand to be distinguished from other

universities (www.brandchannel.com). Despite the ongoing process of branding, the process

in the university as a social institution should be maintained even if we are heading into the

industrial age (Bjorn, 2005).

Universities should fully adopt the theory described by previous researchers as a guide in

rebranding to overcome the problem of university dilemma that difficult to meet the needs of

the industry. Therefore, to get a mature position in the country and abroad, the university

should be prepared to adopt the measures set out by previous researchers and make change,

because change is a constant feature of the life of an organization (Balmer, 2001).

Universities should also have a clearer picture of the brand so that its citizens can help and

support them. Image is an overall feeling that is shared by a group of people and the reputation

of the existing collective image (Bromley, 2001). Universities need to focus on the image,

technology, and consumer behavior to attract the interest groups. This is because the supply of

similar programs in universities and various unique brand causes the university to label the

brand with a clearer picture.

To produce a strong and stable university, university people should reduce competition among

themselves. Healthy competition to promote cooperation can promote healthy learning

ecosystem, especially in research practice group and avoid the waste of limited resources.

University can practice the corporate-style that focusing on employee training specific skills

to achieve success in their respective fields, promoting the value of the company, creating inter

corporate network opportunities and increasing the company loyalty, particularly solving the

customers’ problem in the market (Harris & De Chernatony, 2001).

14

2.3 Effects of Corporate Rebranding on Product Quality

2.3.1 Corporate Rebranding to Market Value

This financial market perspective derives from the ‘efficient markets’ literature, that forecasts

that in a well functioning capital market, stock prices are the best available unbiased estimates

of the value of the assets of a firm (Tom & Peter, 2007). It is preferable to use the financial

market valuation than historic accounting measures that fail to incorporate the expected future

returns of rebranding actions. Additionally, by using objective market based measures,

comparisons over time and industries are possible. Zhang and Schmitt, (2011) presents a

framework linking corporate reputation to the creation of shareholder value, based on the four-

part valuation model. He claims that a good corporate reputation will be a part of the firm’s

intrinsic value which will be factored into the firm’s share price. Keller (2011) found evidence

that a strong corporate brand and a favourable reputation contribute to higher stock prices.

Successful corporate branding strategies will provide an opportunity for generating a

significant future income stream (Tom & Peter, 2007), which, under the hypothesis of efficient

markets, will be reflected on the stock price.

A common approach to analyse this financial market perspective, i.e., the impact of corporate

rebranding in market value, is provided by event study methodology. In marketing, event

studies have been published across research streams linked to product, promotion and services.

Under the promotion research area, corporate name changes have been analysed by several

researchers including (Tom & Peter, 2007). Most of these studies find a non significant market

reaction as a consequence of a corporate name change. One possible reason presented by

Schultz and Schultz, (2014) is that those changes are anticipated by the market. However,

Keller (2011) conclude that a name change has a positive impact on the firm’s value. Tom and

Peter, (2007) claim that name changes signal to the market that measures to improve the

performance will be adopted by the firm, which can contribute to a positive impact on

shareholders’ value.

Business practices, academically conducted research, and rebranding management as a whole,

contain a significant component known as brand equity (Bryson & Rusten, 2010). A structural

framework developed by Aaker (2011) suggests that brand equity creates value for the business

15

and the customer both; as the value for the customer increases, the value for the firm increases

simultaneously; and that brand equity comprises of various dimensions. Brand equity enables

a business to differentiate its products in order to gain a competitive edge, hence increasing

cash inflows. As Aaker puts it, positive brand equity affects the firm positively in the long-

term. According to Keller (2011), strong brand equity improves the perceptions related to the

performance of a certain product, increases customer loyalty towards the brand as a whole,

makes a brand less vulnerable to competitions’ marketing strategies and a crisis in the industry

of business, enables chances of greater margins, creates an inelastic market response towards

an increase in prices, gives way to improved trading and global support, increases the

effectiveness of marketing efforts, and brings in licensing and extension opportunities for the

business.

2.3.2 Effect of corporate Rebranding on the Innovativeness of an Institution

According to Muzellec and Lambkin (2011), consistency and continuity are key elements of a

corporate re-branding campaign. Moreover, research as with most marketing and

communication campaigns is a necessity. Corporations must research the long-term effects of

changing the logo, slogan or brand name. Muzellec and Lambkin (2011) contend that one of

the most common mistakes corporations can make is being too short sighted. They suggest that

the following questions be addressed before launching a corporate re-branding campaign.

Innovation is the application of new knowledge to the production of goods and services; it

means improved product quality and enhanced process effectiveness (Parasuraman, Berry, &

Zeithaml, 2011). Innovation generates wide improvements in productivity, which are the

primary source of enhanced well-being, higher real incomes and resources for government.

Corporate rebranding has a range of growth strategies, but all give a central role to innovation

as a driver of growth. Economists are widely held to disagree on more or less any topic. But

they are in accord that all long-term growth processes rest ultimately on innovation and

technological change. This is especially important in advanced economies where rebranding

plays a key role in improving the quality of inputs and in how these are incorporated in the

production process.

16

The strength of the relation between innovation and growth is supported by a long-standing

range of empirical studies that show positive correlations between various innovation

investment and outcome proxies (such as R&D and patent performance), and growth outcomes

Keller (2011). More recent studies have drawn on direct measures of innovation investment

and innovation output, to show that firms that innovate do better than those that do not and that

innovation drives productivity growth (Groucutt, Leadley, & Forsyth, 2011).

According to Groucutt, Leadley, and Forsyth (2011), firms’ innovation investments are multi-

faceted, innovating firms increasingly invest in a wide range of intangible assets which go far

beyond R&D, this intangiblle assets include brands. Investments for innovation also include

tangible capital, on a large scale. Intangible assets do not have a physical embodiment and can

also be referred to as knowledge or intellectual capital. Muzellec and Lambkin (2011) asserts

that they can be categorised as: R&D; design assets; rebranding; formal intellectual property;

software development (software and databases); and economic competencies (investments in

training, organisational development, managerial capability, product development, marketing

and branding). Evidence suggests that broad (intangible) and traditional (R&D and patents)

innovation activities are complements rather than substitutes, and that UK firms that do both

perform better.

2.3.3 Corporate Rebranding and Product Differentiation

Brands identify and differentiate a company’s offerings to customers and other parties. A brand

is more than a name (or "mark"). Other brand elements such as logos and symbols (Nike’s

swoosh and McDonalds’ golden arches), packaging (Coke’s contour bottle and Kodak’s

yellow and black film box), and slogans (BMW’s “Ultimate Driving Machine” and Visa’s “It’s

Everywhere You Want to Be”) play an important branding role as well (Petburikul, 2009).

A number of broad criteria are useful for choosing and designing brand elements to build brand

equity (Keller 2011). These criteria include: memorability; meaningfulness; aesthetic appeal;

transferability (both within and across product categories and across geographical and cultural

boundaries and market segments); adaptability and flexibility over time; and legal and

competitive protectability and defensibility. Brand elements vary in their verbal vs. visual

17

content and product specificity. Although a robust industry exists to help firms design and

implement these various brand elements (Petburikul, 2009), comparatively little academic

research attention, even in recent years, has been devoted to the topic of designing and selecting

brand elements other than brand names.

Brand name properties have been studied extensively through the years. For example,

researchers studying phonetic symbolism have demonstrated how the sounds of individual

letters can contain meaning that may be useful in developing a new brand name. Other research

has examined global and cross-cultural implications of brand names (Zhang & Schmitt 2011)

Although companies frequently spend considerable sums on the design of logos, little

academic research has explored the impact on consumer behavior of logo design or other visual

aspects of branding (Schmitt and Simonson 2010). As one exception, Wood (2010) conducted

a comprehensive empirical analysis of 195 logos to determine the ability of different design

characteristics to achieve different communication objectives. A related area, packaging has

begun to receive greater attention in recent years. For example, Wood (2010) has conducted

several studies related to packaging size and shape and consumption.

Taylor (2014) have investigated the influence of cross-cultural values on the positioning of

international education brands. The result has identified learning environment, reputation,

graduate career prospects, destination image and cultural integration as dimensions of brand

positioning. The most significant result of this study suggested that a standardized or adapted

branding strategy could be adapted in Asian markets. This study provides a better

understanding of brand strategy in education branding in order to avoid the danger of adopting

product based branding strategy. Branding is powerful in providing competitive advantages.

(Petburikul, 2009) indicated some benefits of branding to higher educational institutions:

attract students from high income families, provide information and image, improves

institutional cooperation, instigates internal change, re-discovers what they are and their basic

purposes.

The behavioral component is linked to purchase loyalty or the frequency of purchase, and

favorable attitude towards a brand with respect to its competition is the attitudinal component

18

(Sheth and Mittal, 2004. Strategic marketing efforts are all planned on the basis of customer

loyalty towards the brand (Kotler. 1994). Brand loyalty of the target market makes a business

entity stronger and enables it to attain greater market share. The previous practice of attempting

to steal customers from competitive brands has now changed. Efforts are now focused on

retaining existing customers of a brand and devising plans to not let them switch to some other

fancy offer (Kapferer, 1992). Brand loyalty is a person’s decision to purchase and repurchase

a brand’s product on a regular basis, consciously or unconsciously (Wolfe and Ferland). Brand

loyalty is the measure of how strongly one brand is preferred in comparison to other brands

offering

2.4 Effects of Rebranding on the Image of the Organization

2.4.1 Effects of Rebranding on Customer Satisfaction

Despite several attempts to measure and explain the meaning of customer satisfaction, there is

still no consensus regarding its definition. However, customer satisfaction can be defined as a

post consumption evaluative judgment concerning a product or service (Taylor, 2014).

According to Wernerfelt (2008) customer satisfaction is the result of an evaluative process that

contrasts pre-purchase expectations with perception of performance during and after the

consumption experience. The most widely accepted concept of customer satisfaction is the

expectancy disconfirmation theory. The theory was first developed by Taylor (2014) who

proposed that satisfaction level is a result of the difference between expected and perceived

performance. Satisfaction occurs when product or service is better than expected.

The importance of rebranding and customer satisfaction has been well-studied in both

academia and practice (Wernerfelt, 2008). Studies carried out in service industry, identified

that achieving customer satisfaction and customer loyalty as a critical factor for success given

the fact that the cost of soliciting new customers can be five to seven times higher than that of

retaining existing ones. Other studies have provided support for the link between branding and

customer satisfaction. Aaker (2011) found that where a customer has a strong attachment to a

brand, they are likely to demonstrate resistance to change to other brands. Creswell (2004)

found that a desirable image (a construct of brand equity) can lead to customer satisfaction and

customer preference (a dimension of customer loyalty). Taylor (2014) studied the relationships

19

between quality of service, satisfaction, and the effect on customer’s intentions to recommend

to others. They concluded that customers’ intention to recommend is a function of their

perception of service quality. According to Schultz and Schultz (2014), brand image can affect

loyalty because it can support or undermine the value that customers feel they are getting.

Muzellec and Lambkin (2011) note that it is vitally important that companies recognize the

important and decision-making role stockholders have in companies. Muzellec and Lambkin

(2011) contend that many stockholders do not believe that corporate re-branding leads to a

positive outcome. Instead, stockholders become suspicious of the change and become very

upset by the costs accrued by a re-branding campaign. The scholars also state that many

corporations neglect to realize that the employees of the company may feel loyal towards the

old name, logo, and missions of the corporation, and not necessarily the new ones.

Although the university already has an image of an educational institution of teaching and

learning, the university still needs to promote its brand by leveraging on specific areas such as

research and development (R & D), and other publications. This may support the enhancing of

the core business image of the university. A clear picture image of the goal, philosophy and

principles are necessary to create beliefs, experiences, feelings, knowledge, attitudes and

perceptions of organizational style for ease of understanding of the university community.

Moreover, this branding issue should be clearly notified to all staff on the concept of branding

to ensure that they can accept the branding activities (Chapleo, 2004). It aims to develop the

overall brand integrity that reflects its own university presentation. Organized images can

highlight the stand and action of university and will form a positive image.

2.4.2 Effects of Re-Branding on Brand Identity

Abroad, there are many studies that have been conducted in the area of marketing at the

university (Brookes, 2003) focusing on aspects of the importance of marketing planning

(Maringe and Foskett, 2002), marketing communications, positioning and corporate identity

(Gray 2003) the university requirements needed for selection and student satisfaction.

Meanwhile, the branding aspect has been explored: the role of website in university rebranding,

20

the role of heritage (Bulotaite, 2003), the emergence of brand identity (Lowrie, 2007), and

harmony in the university brand architecture (Hemsley-Brown and Goonawardana, 2007).

There are also studies that question the appropriateness of corporate rebranding concept for

universities (Temple, 2006; Waeraas & Solbakk, 2008). This doubt is caused by the basic

examination of the appropriateness of the market principles against the university and indeed

the attempt to use the corporate rebranding style can actually challenge the integrity of the

university (Waeraas and Solbakk, 2008).

When considering the appropriateness of the university rebranding, the tension is clear whether

the reputation and brand are of the same thing? Literature suggests that the organization can

determine and communicate about the brand, but finds it more difficult to manage reputation

due to the influence of organizational behavior (Schultz & Schultz, 2014),). However, it seems

there is little doubt about the degree of overlapping between the terms when used in the context

of the university, and reputation is more comfortably used by the university in the discussion.

An organization can effectively manage its corporate identity by building understanding and

commitment among its diverse stakeholders. This can be manifested by attracting and retaining

customers and employees, achieve a strategic alliance, gain the support of financial market and

generate a sense of direction and purpose. According to Schultz and Schultz (2014), corporate

identity is concerned with all organization’s stakeholders and differs from the traditional brand

marketing in ways of communication. Aaker (2011) asserts that corporate identity has three

distinct features. First, corporate identity is concerned with reality; what the organization is,

its strategy, philosophy, history, business, range and type of products, and its communication.

Second, corporate identity is multi-faceted and draws on several disciplines. Third, corporate

identity is based on corporate personality or on the values present within the organization.

Schultz and Schultz (2014) describes corporate identity as ways in which managers and staff

make brands unique. He observed that identity is about ethos, aims and values that differentiate

the brand, while image is an impression of the relative position of a brand among its perceived

competitors. Randall (2010) argues that corporate branding is concerned with identity than

image, stating identity is how the company perceive itself and would like to view by others,

21

while image is how a company is perceived by outsiders and reflects on how the identity has

been created and received. According to Gerzema and Lebar (2008), identity comprises of four

elements; properties, product, presentation and publication, with specific identity elements

varying from one industry to another and from parent corporation to their brands. From these

arguments, it can be suggested that re-branding has a direct effect on the corporate visual

identity of a firm, since it is closely linked to the brand name.

Universities need to find the right media channels to spread the benefits available by the

university. Selection of appropriate media could provide a big impact and can enhance the

understanding of the goals, philosophy, and the principles of the interest groups. Melewar and

Akel (2005) states that the university should develop and implement some new strategies

according to the situation and time so that it can compete with other universities. If the program

offered has no response, then the university should start using the business approach to

introduce the institution with a focus on advertising and publicity arena (Hill, 1995). Kotler

(2001) also argues that organizations need to reposition, if the competitor overpowers the

organization brand. Emphasis should be given to events in television and public relations such

as trade fairs and open days. While other promotional tools such as bookmarks, stickers, flyers,

and postcards are the least resources to provide information to students in Asia (Gray, 2003).

2.4.3 Effects of Rebranding on shareholders’ Value

Existing literature analyze the brand value performance from two perspectives. Accounting –

based performance and market – based performance. Accounting – based performance links

brand attributes with operating results such as revenues, profits, return on investment and cash

flows. A study by Gerzema and Lebar (2008), uncovered a positive relationship between brand

equity characteristics and the firms’ revenue. The existing research on market based

performance reveals a positive association between brand value and security prices. Simon and

Koku (2011) use a firm’s market value to estimate a firm’s brand equity and determined that

industries and firms with common known brand names possess high estimates of brand equity.

Dahlen, Lange and Smith, (2009) examine the relationship between measures of brand quality

and security returns and the authors established a positive and economically significant

association between brand quality and company returns. In the consequent study, Aaker and

22

Jacobson (2009) show that brand attitude can predict firm’s market return and future

accounting financial performance measures by return on equity (ROE).

While these studies provide empirical evidence suggesting a relationship between corporate

branding and firm’s market performance, they cannot conclusively demonstrate whether strong

brand create shareholder value. However, recent studies have focused on branding and

shareholders’ value creation. Bloemer and Kasper (2011) developed a theory that analyzing

the link between corporate brand planning, shareholders’ wealth and firm market risk.

Gerzema and Lebar (2008) by using the Fama French model investigated the association

between corporate branding and shareholders’ value and their findings suggest that strong

brand have lower market risk and deliver higher returns shareholders. Capon (2011) attained

the same results.

University must reshape its organizational structure by creating the brand department to

enhance the reputation. De Chernatony (1996), states that the importance of organizational

restructuring is also to keep the brand position and thus form a group activity that is managed

by the top authority by frequently creating rapport between the employee and the brand group.

Hence the employees can learn more about brand (Harris & De Chernatony, 2001). With this,

it allows for ongoing branding activities despite employee turnover, and fostering social

innovation. Universities should appoint skilled workers in science and technology and

communications within the brand department, so that specific information and the

development of university can be clarified. This brand department should focus on highlighting

the university brand, publicizing the university to the public, emphasizing the value in

universities, and implementing the university mission with strong evidence.

It has been debated that university rebranding is related to defining the essence of institutions

described by university distinguishment, a clear and consistent message to the various internal

and external stakeholders. Using this principle to the university has always been challenging.

University is said to be extremely complex to be explained in a simple brand statement

(Waeraas and Solbakk, 2008). University has a culture that is not easily support the branding

approach and lack of resources to implement a rebranding strategy as being done by other

23

commercial organizations. This situation leads to the assertion that the conventional brand

management techniques may not be appropriate for this sector (Jevons, 2006).

Today, the university is growingly seen as an organization that has a commercial value. Real

understanding of branding in the full context is important because it needs to identify what is

different, to voice it out and has it delivered efficiently and consistently. This is challenging

for organizations to work it out primarily for the university. Although practitioners are able to

explain what they see as the purpose and the means to measure the effectiveness of their

branding, it is argued that this may portray a too simple image of the higher education sector.

A clear branding plays a role in the specific tasks for the university, but there is no simple

formula on what branding a university can and should achieve (Jevons, 2006).

2.5 Chapter Summary

This chapter covered the literature review to establish the effect of corporate rebranding on the

performance of the higher learning institutions. Economic implication of rebranding, customer

satisfaction, and corporate image was covered. Chapter three will cover the research

methodology employed in this study.

24

CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction

This chapter outlined the methods that was used for the study. The chapter adopted the

followings structures: research design, population and sample, population description, data

collection methods, research procedures and data analysis and presentation methods

3.2 Research Design

A research design is defined as an overall plan for research undertaking (Saunders, Lewis &

Thornhill, 2009). This study has adopted a descriptive survey design which according to

Churchill (1991) is appropriate where the study seeks to describe the characteristics of certain

groups, estimate the proportion of people who have certain characteristics and make

predictions. This section gave an overview of how this study proceeded. This study adopted

an exploratory approach. The suitable research design for this study was descriptive survey.

Descriptive research focused on elucidating the features of a precise spectacles to unravel a

particular problem (Gall, 2003). The descriptive type of research designated the circumstances

as they occur at a particular time. Descriptive research gave a logical explanation that was

precise and detailed as possible hence this tailored well with the research problem (Cooper and

Schindler 2011). Since the research was statistical, the method captured the characteristics of

the population by making inferences from the sample features and general information about

the findings was presented basing on the sample studied.

3.3 Population and Sampling Design

3.3.1 Population

Study population is the specific items about which information is desired. According to

Ngechu (2004), a population is a well-defined or set of people, services, elements, events,

25

group of things or households that are being investigated. In this study, the target population

was the employees of the United States International University – Africa (USIU-A). The

research considered some population demographic context and tried to relate them to the effect

of corporate rebranding in the performance of higher learning institutions. These demographic

information included features such as age, education level and gender of the participants in the

study. According to the information obtained from USIU-A, the population of the USIU-

employees comprise of 435 employees, thus the study’s target population was 435 respondents.

3.3.2 Sampling Design

3.3.2.1 Sampling frame

Cooper and Schindler (2011, P.41) defined a sampling frame as “the list of all features from

which the sample is drawn from. It is an inclusive and detailed list of population members

only” According to Saunders, Lewis and Thornhill (2003) the sampling frame for every

random sample is the whole list of entire cases in the population from which sample is derived.

In this study, the sample frame was clearly defined as the employees of the United States

International University-Africa. The researcher approached the employees at random and

collected the data. The researcher ensured a high level of correspondence between the sampling

frames. The research focused on the USIU-A as the case study because it was believed that it

was easy to access and collection of data.

3.3.2.2 Sampling Technique

Naoum (2007) defined a sample size as finite part of a statistical population whose properties

are studied to gain information about the whole. Orodho (2003) defined sampling as selecting

a given number of subjects from a defined population as representative of that population. Any

statements made about the sample should also be true of the population. It is however agreed

that the larger the sample the smaller the sampling error (Mugenda and Mugenda, 2003). Hart

(2004) underscores the importance of selecting a representative sample through making a

sampling frame. From the population frame the required number of subjects, respondents,

elements or firms were selected in order to make a sample

26

This study used a simple random sampling technique for collecting data. According Cooper

and Schindler (2011), a simple random sample is a technique in which each population element

has a known and equal chance of selection. This was because the study intended to achieve a

fairly representative view. Each respondent was chosen by chance and each member of the

population had an equal chance of being included in the sample and every possible sample of

a given size had the same chance selection. To obtain this, a sampling frame was obtained from

the employees of the USIU-A.

3.3.2.3 Sample Size

According to Chandan, Singh and Khanna, (2010), the sample size is the number of sampling

units selected from the population for analysis. This study used a sample size of 87 employees,

this translated to 20% of the USIU - A employees. According to Kothari (2004) a representative

sample is one which is at least 10% of the population thus the choice of 87 employees was

considered as a representative.

Table 3.1: Sample Size

USIU employees Population Sample Size Percentage

TOTAL 435 87 20

3.4 Data Collection Methods

Primary data was collected in this study. Primary data was collected using questionnaires. The

data collection process took approximately two weeks. A structured questionnaire was used to

collect primary data. The questionnaires were preferred in this study because respondents of

the study was assumed to be literate therefore able to answer questions asked adequately.

Kothari (2004) terms the questionnaire as the most appropriate instrument due to its ability to

collect a large amount of information in a reasonably quick span of time. It also guarantees

confidentiality of the source of information through anonymity while ensuring standardization

27

(Cooper and Schindler 2011). It is for the above reasons that questionnaire method was chosen

as an appropriate instrument for this study.

3.5 Research Procedure

For this study, structured questionnaires was assumed. The questionnaires was developed as

per the study’s research questions. The study assumed the use of both open-ended and

structured questionnaires. Structured questionnaires was adopted because it was easy to

administer whereas open-ended aided in gathering a wider range of responses. The researcher

distributed 87 questionnaires to the USIU - A employees randomly. The respondents was

required to tick where appropriate in the questionnaires. The questionnaires was distributed

and waited for the respondent to complete in order to ensure high response rate. The study used

ranking to determine the effect of corporate rebranding on the performance of higher learning

institutions.

3.6 Data Analysis and Method

The process of data analysis involved several stages namely; data clean up and explanation.

The process of data cleanup that was adopted include editing, coding, and tabulation in order

to detect any anomalies in the responses and assign specific numerical values to the responses

for further analysis. Completed questionnaires was edited for completeness and consistency.

The data was then coded and checked for any errors and omissions (Quang & Hong, 2009).

Frequency tables, percentages and means was used to present the findings. Responses in the

questionnaires was then tabulated, coded and processed by use of a computer Statistical

package for Social Science (SPSS) to analyze the data. The responses from the open-ended

questions was listed to obtain proportions appropriately; the responses was reported by

descriptive narrative. Descriptive statistics such as frequencies was used. Tables was used to

present responses and facilitate comparison.

28

3.7 Chapter Summary

Chapter three covered the research methodology by emphasizing on the research design,

sampling design and the population. Also covered was the data collection methods, procedure

of sampling and data analysis and presentation. The study adopted a simple random sampling

technique. Chapter four presents the results and findings.

29

CHAPTER FOUR

4.0 RESULTS AND FINDINGS

4.1 Introduction

This chapter presented the results and findings of the study. The results and findings is

presented in form of tables and figures. The presentation is done as per the research questions.

First the response rate is presented, the background information and finally the results and

findings as per the research questions.

4.1.2 Response Rate

The response rate for this study was 67.8% representing 59 respondents out of the 87 targeted

as illustrated in figure 4.1

Figure 4.1: Response Rate

4.2 General Information

4.2.1 Gender Representation

Figure 4.2 shows the distribution of gender in this study. From the figure, 52.4% of the

respondents in this study were male whereas were 45.8% of were female.

67.8%

32.2%

Response rate

Response No Responses

30

Figure 4.2: Gender Representation

4.2.2 Education Level Attained

In this study, it was established that the majority of the respondents accounting for 49.2% had

a bachelor’s degree compared to 37.3% that held a master’s degree. 11.9% and 1.7% held a

diploma and a doctorate degree as shown in Figure 4.3.

Figure 4.3 Education level

4.2.4 Age Bracket

Figure 4.4 shows the age brackets of respondents. From the figure, the majority of the

respondents accounting for 49.2% were in the age bracket between 26 and 35 years, followed

by the age bracket between 18 and 25 years and 16.9% and 6.8% for the age between 36 and

45 years and above 45 years respectively.

54.2%

45.8%

Respondent's gender

Male Female

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

DoctorateDegree

Master Degree Bachelor’s Degree

Diploma

1.7%

37.3%49.2%

11.9%

Level of Education

31

Figure 4.4: Age Bracket

4.2.5 Working Experience

Figure 4.5 shows the level of experience from the respondents. From the figure, 11.9% of the

respondents had worked for USIU-A for over ten years whereas 16.9% for a period between 6

and 10 years. Majority of respondents had worked for USIU-A for a period below 5 years

accounting for 69.5%.

Figure 4.4: Age Bracket

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Above 45years 36 – 45 years 26 – 35 years 18 - 25 years

6.80%16.90%

49.20%

27.10%

Age Bracke

0.00%

1000.00%

2000.00%

3000.00%

4000.00%

5000.00%

6000.00%

7000.00%

Above 10 years 6 – 10 years Below 5 years

11.90%

16.9

69.5

How long have you worked for USIU-A

32

4.3 Economic Effect of Rebranding on Institutions of High Learning

In this section, the information sought were on the economic effect of corporate rebranding on

institution of high learning. Coefficient of Variation (C.V) was used in the study to determine

the significance of the factors on this objective. The study used three categories to group the

factors i.e. the highly significant factors, moderately significant factors and the lowly

significant factors. To establish the level of significance, the lower the coefficient of variation

value, the higher the level of significance and verse versa. Table 4.1 entails the highly

significant factors.

4.3.1 Highly Significant Factors

Table 4.1 shows the highly significant factors on the economic effect of rebranding on high

learning institutions. The study established that: rebranding objectives for the university should

take into account of what is to be achieved by the brand in the broader context; successful

rebranding is the one that can maintain the number of students in the institution, and maintain

student exchange through students memory of the university; and the objectives of rebranding

are to increase intakes of students and maintain a large population of students at all times were

the highly significant factors.

Table 4.1: Highly Significant Factors

Mean Std. Deviation CV

Rebranding objectives for the university

should take into account of what is to be

achieved by the brand in the broader context

1.86 .899 .000

successful rebranding is the one that can

maintain the number of students in the

institution, and maintain student exchange

through students memory of the university

2.22 1.001 .002

The objectives of rebranding are to increase

intakes of students and maintain a large

population of students at all times

2.22 1.018 .037

33

4.3.2 Moderately Significant Factors

The moderately significant factors on economic effect of corporate rebranding on high learning

institutions were presented in this section. The study established that: rebranding activities in

higher education institutions can be said to be relevant in the commercial world; universities

today are not just known as purely educational organizations; universities have spent a large

amount of resources in rebranding their institutions; and rebranding is very important that it is

able to distinguish a university with other universities were the moderately significant factors

as shown in Table 4.2.

Table 4.2: Moderately Significant Factors

Mean Std. Deviation CV

rebranding activities in higher education

institutions can be said to be relevant in the

commercial world

2.14 .730 .533

Universities today are not just known as purely

educational organizations

1.95 .839 .704

universities have spent a large amount of resources

in rebranding their institutions

1.95 .839 .704

rebranding is very important that it is able to

distinguish a university with other universities

1.93 .848 .719

4.3.3 Low Significant Factors

The low significant factors on economic effect of rebranding on high learning institution were

presented in this section. The study established that; it is essential to rebrand your company,

products or services after sometime to remain relevant; increased competition is the motivating

fact behind corporate rebranding in higher learning institutions; universities should also have

a clearer picture of the brand so that its citizens can help and support them to be the low

significant factors as shown in Table 4.3.

Table 4.3: Low Significant Factors

Mean Std. Deviation CV

It is essential to rebrand your company, products or

services after sometime to remain relevant

1.90 .941 .886

Increased competition is the motivating fact behind

corporate rebranding in higher learning institutions

1.98 .974 .948

Universities should also have a clearer picture of the

brand so that its citizens can help and support them

1.93 .998 .995

34

4.3.4 Cross Tabulation of Level of Education and Rebranding and Market Value

Cross tabulation of level of educational attained and whether corporate rebranding increases

the market value of an institution was carried out. Table 4.4 shows the responses to this

statement. In the table, 100% of those respondents who were holders of doctorate degree

agreed, 45.5% of those with master’s degree strongly agree, 45.5% agreed 4.5% each remained

neutral and disagreed. On those with bachelor’s degree, 27.6% strongly agreed, 58.6% agreed,

10.3% remained neutral and 3.4% disagreed. Finally the respondents with diploma had 14.3%

strongly agreeing, 54.2% agreeing, 10.2% remaining neutral and 3.4% disagreeing.

Table 4.4: Cross Tabulation of Level of Education and Rebranding and Market Value

Corporate rebranding increases the market value of an

institution. Total

Strongly Agree Agree Neutral Disagree

Doctorate

Degree

0 1 0 0 1

0.00% 100.00% 0.00% 0.00% 100.00%

Master

Degree

10 10 1 1 22

45.50% 45.50% 4.50% 4.50% 100.00%

Bachelor’s

Degree

8 17 3 1 29

27.60% 58.60% 10.30% 3.40% 100.00%

Diploma 1 4 2 0 7

14.30% 57.10% 28.60% 0.00% 100.00%

Total 19 32 6 2 59

32.20% 54.20% 10.20% 3.40% 100.00%

4.3.5 Cross Tabulation of Age Bracket and Today’s Universities

Table 4.5 shows the cross tabulation between age bracket of the respondents and whether

universities today are not just known as purely educational organizations. Age group was

divided into 18-25 years, 26-35 years, 36-45 years and finally above 45 years. The table shows

that 50% of the respondents with the age above 45years strongly agree, 25% agreed and another

25% remained neutral. 50% of the age bracket between 36 and 45 years strongly agreed, 40%

agreed and 10% disagreed. The age bracket between 26 and 35 years had 27.6% strongly

agreeing, 41.4% agreed, 24.1% remained neutral and 6.9% disagreed. 25% of the age bracket

between 18 and 25 years strongly agreed, 62.5% agreed and 12.5% remained neutral.

35

Table 4.5: Cross Tabulation of Age Bracket and Today’s Universities

Universities today are not just known as purely educational

organizations Total

Strongly Agree Agree Neutral Disagree

Above

45years

2 1 1 0 4

50.00% 25.00% 25.00% 0.00% 100.00%

36 – 45

years

5 4 0 1 10

50.00% 40.00% 0.00% 10.00% 100.00%

26 – 35

years

8 12 7 2 29

27.60% 41.40% 24.10% 6.90% 100.00%

18 - 25

years

4 10 2 0 16

25.00% 62.50% 12.50% 0.00% 100.00%

Total 19 27 10 3 59

32.20% 45.80% 16.90% 5.10% 100.00%

4.3.5 Cross Tabulation of Experience and Rebranding and commercial world

Table 4.6 shows the cross tabulation of respondent’s year of experience and whether

rebranding activities in higher education institutions can be said to be relevant in the

commercial world. From the table, those respondents with the experience of above ten years

had 28.6% strongly agreeing, 42.9% agreeing, and another 28.6% remaining neutral. 30% of

working experience between 6 and 10 years strongly agree, 60% agreed and 10% remained

neutral. Finally those below 5 years of working experience had 17.1% strongly agreeing, 43.

9% agree and 39% remaining neutral.

Table 4.6: Cross Tabulation of Experience and Rebranding and commercial world

rebranding activities in higher education institutions can be said

to be relevant in the commercial world Total

Strongly Agree Agree Neutral

Above 10

years

2 3 2 7

28.60% 42.90% 28.60% 100.00%

6 – 10

years

3 6 1 10

30.00% 60.00% 10.00% 100.00%

Below 5

years

7 18 16 41

17.10% 43.90% 39.00% 100.00%

Total 12 27 19 58

20.70% 46.60% 32.80% 100.00%

36

4.3.6 Correlation of Economic Effect of Rebranding on Institutions of High Learning

Table 4.7 shows the relationship between economic effect of rebranding and the performance

of high learning institutions. The table shows that a strong corporate brand and a favorable

reputation contribute to higher stock prices was correlated to it is essential to rebrand your

company, products or services after sometime to remain relevant at (r=0.476**, p<0.01,

N=59), rebranding activities in higher education institutions can be said to be relevant in the

commercial world at (r=0.276*, p<0.05, N=59), rebranding objectives for the university should

take into account of what is to be achieved by the brand in the broader context at (r=0.285*,

P<0.05, N=59), successful rebranding is the one that can maintain the number of students in

the institution, and maintain student exchange through students memory of the university at

(r=0.311*, P<0.05, N=59 ) and universities should also have a clearer picture of the brand so

that its citizens can help and support them at (r=0.336**, P<0.01, N=59).

Table 4.7: Economic Effect of Rebranding on Institutions of High Learning Employee

A strong corporate brand and a favorable

reputation contribute to higher stock

prices

Pearson Correlation Sig. (2-

tailed) N

It is essential to rebrand your company, products

or services after sometime to remain relevant .476** 0.000 59

rebranding activities in higher education

institutions can be said to be relevant in the

commercial world

.276* .003 59

Rebranding objectives for the university should

take into account of what is to be achieved by the

brand in the broader context

.285* .002 59

successful rebranding is the one that can maintain

the number of students in the institution, and

maintain student exchange through students

memory of the university

.311* .001 59

Universities should also have a clearer picture of

the brand so that its citizens can help and support

them.

.336** .009 59

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

37

4.3.7 Regression of Economic effect of Rebranding on High Learning Institutions

Regression analysis helped the researcher to determine whether movement in the independent

variable (economic effect of rebranding) led to movement in the dependent variable

(performance of high learning institutions). The information sought in this section was whether

the performance of high learning institutions has a linear dependence on economic effect

rebranding. Multiple regression analysis was used to test if the performance of high learning

has a linear dependence on the economic effect of rebranding. The results of the regression

show an R-square value of 0.187 and adjusted to -0.03. The coefficient of determination

established that economic effect of rebranding brought about 18.7% variations in the

performance of high learning institutions. The coefficient of determination (R2) showed a weak

positive relationship as the value of R2 was greater than 0.1 (R2 < 0.1). Thus, the model

summary explains the strength of the relationship (r=.432) and prediction of 18.7%

performance of high learning institutions was based on economic effect of rebranding while

the remaining 81.3% of performance are caused by other variables as shown in Table 4.8

Table 4.8: Regression of Economic effect of Rebranding on High Learning Institutions

(Model Summary)

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .432a .187 -.030 .712

a. Predictors: (Constant), Universities should also have a clearer picture of the brand so that

its citizens can help and support them amount of resources in rebranding their institutions

4.4 Effects of Corporate Rebranding on Product Quality

In this section, the information sought were on the effect of corporate rebranding on product

quality. Coefficient of Variation (C.V) was used in the study to determine the significance of

the factors on this objective. The study used three categories to group the factors i.e. the highly

significant factors, moderately significant factors and the lowly significant factors. To establish

the level of significance, the lower the coefficient of variation value, the higher the level of

significance and verse versa. Table 4.9 entails the highly significant factors.

38

4.4.1 Highly Significant Factors

Table 4.9 shows the highly significant factors on the effect of corporate rebranding on product

quality. The study established that: there is a better understanding of brand strategy in

education branding; rebranding management as a whole, contain a significant component

known as brand equity; and corporate rebranding has a range of growth strategies that give a

central role to innovation as a driver of growth were the highly significant factors.

Table 4.9: Highly Significant Factors

Mean Std. Deviation CV

There is a better understanding of brand

strategy in education branding

2.25 .883 .000

Rebranding management as a whole, contain a

significant component known as brand equity

2.12 .672 .001

Corporate rebranding has a range of growth

strategies that give a central role to innovation

as a driver of growth

1.80 .761 .002

4.4.2 Moderately Significant Factors

The moderately significant factors on effect of corporate rebranding on product quality were

presentment in this section. The study established that: corporate rebranding has a significant

impact on market value; successful corporate branding strategies will provide an opportunity

for generating a significant future income stream; and brands identify and differentiate a

company’s offerings to customers and other parties were the moderately significant factors as

shown in Table 4.10.

Table 4.10: Moderately Significant Factors

Mean Std. Deviation CV

Corporate rebranding has a significnt impact on

market value

1.76 .773 .598

Successful corporate branding strategies will

provide an opportunity for generating a

significant future income stream

1.69 .815 .664

Brands identify and differentiate a company’s

offerings to customers and other parties

1.97 .850 .723

39

4.4.3 Low Significant Factors

The low significant factors on effect of corporate rebranding on product quality were presented

in this section. The study established that; name change has a positive impact on the firm’s

value; name changes signal to the market that measures to improve the performance will be

adopted by the firm; consistency and continuity are key elements of a corporate re-branding

campaign; and efforts are now focused on retaining existing customers of a brand to be the low

significant factors as shown in Table 4.11.

Table 4.11: Low Significant Factors

Mean

Std.

Deviation CV

Name change has a positive impact on the

firm’s value

2.32 .990 .981

Name changes signal to the market that

measures to improve the performance will be

adopted by the firm

2.34 .902 .814

Consistency and continuity are key elements of

a corporate re-branding campaign

1.86 .926 .858

Efforts are now focused on retaining existing

customers of a brand

2.03 .909 .826

4.4.4 Cross Tabulation of Gender and Corporate Branding

The study sought information on the cross tabulation of gender and whether successful

corporate branding strategies will provide an opportunity for generating a significant future

income stream. The study established that 56.3% of the male strongly agreed, 28.1% agreed,

9.4% remained neutral and 6.3% disagreed. 37% of the female respondents strongly agreed,

55.6% agreed, 3.7% remained neutral and another 3.7% disagreed as shown in table 4.12.

Table 4.12: Cross Tabulation of Gender and Corporate Branding

Successful corporate branding strategies will provide an

opportunity for generating a significant future income stream

Total Strongly Agree Agree Neutral Disagree

Male 18 9 3 2 32

56.3% 28.1% 9.4% 6.3% 100.0%

Female 10 15 1 1 27

37.0% 55.6% 3.7% 3.7% 100.0%

Total 28 24 4 3 59

47.5% 40.7% 6.8% 5.1% 100.0%

40

4.4.5 Cross Tabulation of Level of Education and Name Change and Firm’s Value

Cross tabulation of level of educational attained and whether name change has a positive

impact on the firm’s value. Table 4.13 shows the responses to this statement. In the table, 100%

of those respondents who were holders of doctorate agreed, 13.6% of those with master’s

degree strongly agree, 45.5% agreed 27.3% remained neutral and 13.6% disagreed. On those

with bachelor’s degree, 24.1% strongly agreed, 41.4% agreed, 13.8% remained neutral, 17.2%

disagreed and 3.4 strongly disagree. Finally those respondents with diploma had 14.3%

strongly agreeing, 71.4% agreeing and 14.3% remaining neutral.

Table 4.13: Tabulation of Level of Education and Name Change and Firm’s Value

Name change has a positive impact on the firm’s value

Total

Strongly

Agree Agree Neutral Disagree

Strongly

Disagree

Doctorate

Degree

0 1 0 0 0 1

0.0% 100.0% 0.0% 0.0% 0.0% 100.0%

Master

Degree

3 10 6 3 0 22

13.6% 45.5% 27.3% 13.6% 0.0% 100.0%

Bachelor’s

Degree

7 12 4 5 1 29

24.1% 41.4% 13.8% 17.2% 3.4% 100.0%

Diploma 1 5 1 0 0 7

14.3% 71.4% 14.3% 0.0% 0.0% 100.0%

Total 11 28 11 8 1 59

18.6% 47.5% 18.6% 13.6% 1.7% 100.0%

4.4.6 Cross Tabulation of Age Bracket and Brand Equity

Table 4.14 shows the cross tabulation between age bracket of the respondents and whether

rebranding management as a whole, contain a significant component known as brand equity.

Age group was divided into 18-25 years, 26-35 years, 36-45 years and finally above 45 years.

The table shows that 25% of the respondents with the age above 45years strongly agree, 50%

agreed and another 25% remained neutral. 40% of the age bracket between 36 and 45 years

strongly agreed and 60% agreed. The age bracket between 26 and 35 years had 6.9% strongly

agreeing, 62.1% agreed and 31% remained neutral. 18.8% of the age bracket between 18 and

25 years strongly agreed, 37.5% agreed and 43.8% remained neutral.

41

Table 4.14: Cross Tabulation of Age Bracket and Brand Equity

Rebranding management as a whole, contain a

significant component known as brand equity

Total Strongly Agree Agree Neutral

Above 45years 1 2 1 4

25.0% 50.0% 25.0% 100.0%

36 – 45 years 4 6 0 10

40.0% 60.0% 0.0% 100.0%

26 – 35 years 2 18 9 29

6.9% 62.1% 31.0% 100.0%

18 - 25 years 3 6 7 16

18.8% 37.5% 43.8% 100.0%

Total 10 32 17 59

16.9% 54.2% 28.8% 100.0%

4.4.7 Cross Tabulation of Experience and Rebranding and Customer retention

Table 4.15 shows the cross tabulation of respondent’s year of experience and whether efforts

are now focused on retaining existing customers of a brand. From the table, those respondents

with the experience of above ten years had 42.9% strongly agreeing, another 42.9% agreeing

and another 14.3% strongly disagreeing. 20% of working experience between 6 and 10 years

strongly agree, 40% agreed and 40% remained neutral. Finally those below 5 years of working

experience had 34.1% strongly agreeing, another 34.1% agree, 29.3% remaining neutral and

2.4% disagreed.

Table 4.15: Cross Tabulation of Experience and Rebranding and Customer retention

Efforts are now focused on retaining existing customers of a

brand

Total

Strongly

Agree Agree Neutral Disagree

Strongly

Disagree

Above 10

years

3 3 0 0 1 7

42.9% 42.9% 0.0% 0.0% 14.3% 100.0%

6 – 10

years

2 4 4 0 0 10

20.0% 40.0% 40.0% 0.0% 0.0% 100.0%

Below 5

years

14 14 12 1 0 41

34.1% 34.1% 29.3% 2.4% 0.0% 100.0%

Total 19 21 16 1 1 58

32.8% 36.2% 27.6% 1.7% 1.7% 100.0%

42

4.4.8 Correlation of Corporate Rebranding on Product Quality

Table 4.16 shows the relationship between effects of corporate rebranding product quality. The

table shows that successful corporate branding strategies will provide an opportunity for

generating a significant future income stream was correlated to corporate rebranding has a

significant impact on market value at (r=0.458**, p<0.01, N=59), consistency and continuity

are key elements of a corporate re-branding campaign at (r=0.363**, p<0.01, N=59), corporate

rebranding has a range of growth strategies that give a central role to innovation as a driver of

growth at (r=0.538**, P<0.01, N=59), brands identify and differentiate a company’s offerings

to customers and other parties at (r=0.408**, P<0.01, N=59), there is a better understanding of

brand strategy in education branding at (r=0.445**, P<0.01, N=59) and efforts are now focused

on retaining existing customers of a brand at (r=0.387**, P<0.01, N=59).

Table 4.16: Correlation of Effects of Corporate Rebranding on Product Quality

Successful corporate branding strategies

will provide an opportunity for generating

a significant future income stream

Pearson Correlation Sig. (2-

tailed) N

Corporate rebranding has a significant

impact on market value .458** 0.000 59

Consistency and continuity are key

elements of a corporate re-branding

campaign

.363** .005 59

Corporate rebranding has a range of

growth strategies that give a central role

to innovation as a driver of growth

.538** .000 59

Brands identify and differentiate a

company’s offerings to customers and

other parties

.408** .001 59

There is a better understanding of brand

strategy in education branding .445** .000 59

Efforts are now focused on retaining

existing customers of a brand .387** .002 59

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

43

4.4.8 Regression of Effects of Corporate Rebranding on Product Quality

Regression analysis helped the researcher to determine whether movement in the independent

variable (rebranding) led to movement in the dependent variable (product quality). The

information sought in this section was whether the product quality has a linear dependence on

corporate rebranding. Multiple regression analysis was used to test if the product quality of

high learning institutions has a linear dependence on the corporate rebranding. The results of

the regression show an R-square value of 0.269 and adjusted to 0.111. The coefficient of

determination established that corporate rebranding brought about 26.9% variations in the

product quality of high learning institutions. The coefficient of determination (R2) showed a

weak positive relationship as the value of R2 was greater than 0.1 (R2 < 0.1). Thus, the model

summary explains the strength of the relationship (r=.519) and prediction of 26.9%

performance of high learning institutions was based on economic effect of rebranding while

the remaining 73.1% of performance are caused by other variables as shown in Table 4.17

Table 4.17: Regression of Effects of Corporate Rebranding on Product Quality (Model

Summary)

R R Square Adjusted R

Square

Std. Error of the

Estimate

R

.519a .269 .111 .666 .519a

a. Predictors: (Constant), Efforts are now focused on retaining existing customers of a brand,

Consistency and continuity are key elements of a corporate re-branding campaign

4.5 Effects of Rebranding on the Image of the Organization

In this section, the information sought were on the effects of rebranding on the image of the

organization. Coefficient of Variation (C.V) was used in the study to determine the significance

of the factors on this objective. The study used three categories to group the factors i.e. the

highly significant factors, moderately significant factors and the lowly significant factors. To

establish the level of significance, the lower the coefficient of variation value, the higher the

level of significance and verse versa. Table 4.9 entails the highly significant factors.

44

4.5.1 Highly Significant Factors

Table 4.18 shows the highly significant factors on the effects of rebranding on the image of

the organization. The study established that: environmental scanning is the monitoring,

assessing, and distributing of information from the external and internal environment; the

university still needs to promote its brand by leveraging on specific areas such as research and

development; and there has been resistance from employees to the new brand logo were the

highly significant factors.

Table 4.18: Highly Significant Factors

Mean Std. Deviation CV

Environmental scanning is the monitoring,

assessing, and distributing of information

from the external and internal environment

1.78 .767 .009

The university still needs to promote its brand

by leveraging on specific areas such as

research and development

1.72 .744 .014

There has been resistance from employees to

the new brand logo.

2.15 1.014 .028

4.5.2 Moderately Significant Factors

The moderately significant factors on effects of rebranding on the image of the organization

were presentment in this section. The study established that: identity is how the company

perceive itself and would like to view by others; an organization can effectively manage its

corporate identity by building understanding and commitment among its diverse stakeholders;

university website plays a crucial role in the marketing of rebranded logos and products;

achieving customer satisfaction and customer loyalty as a critical factor for success; brand

image can affect loyalty because it can support or undermine the value that customers; and re-

branding has a direct effect on the corporate visual identity of a firm were the moderately

significant factors as shown in Table 4.19.

45

Table 4.19: Moderately Significant Factors

Mean

Std.

Deviation CV

Identity is how the company perceive itself

and would like to view by others

1.75 .733 .538

An organization can effectively manage its

corporate identity by building understanding

and commitment among its diverse

stakeholders

1.78 .767 .589

University website plays a crucial role in the

marketing of rebranded logos and products.

1.64 .826 .681

Achieving customer satisfaction and

customer loyalty as a critical factor for

success

1.63 .828 .686

Brand image can affect loyalty because it can

support or undermine the value that

customers

1.90 .845 .714

Re-branding has a direct effect on the

corporate visual identity of a firm

1.88 .873 .762

4.5.3 Low Significant Factors

The low significant factors on effect of corporate rebranding on product quality were presented

in this section. The study established that; today, the university is growingly seen as an

organization that has a commercial value; corporate rebranding style can actually challenge

the integrity of the university; the tension is clear whether the reputation and brand are of the

same thing to be the low significant factors as shown in Table 4.20.

Table 4.20: Low Significant Factors

Mean

Std.

Deviation CV

Today, the university is growingly seen as an

organization that has a commercial value

1.69 .915 .836

Corporate rebranding style can actually

challenge the integrity of the university

2.15 .943 .890

The tension is clear whether the reputation and

brand are of the same thing

2.37 .963 .928

46

4.5.4 Cross Tabulation of Gender and Customer Loyalty

The study sought information on the cross tabulation of gender and whether achieving

customer satisfaction and customer loyalty as a critical factor for success. The study

established that 46.9% of the male strongly agreed, 43.8% agreed, 3.1% remained neutral and

6.3% disagreed. 55.6% of the female respondents strongly agreed, 40.7% agreed and 3.7%

disagreed as shown in table 4.21.

Table 4.21: Cross Tabulation of Gender and Customer Loyalty

Achieving customer satisfaction and customer loyalty as a

critical factor for success

Total

Strongly

Agree Agree Neutral Disagree

Strongly

Disagree

Male 15 14 1 2 0 32

46.9% 43.8% 3.1% 6.3% 0.0% 100.0%

Female 15 11 0 0 1 27

55.6% 40.7% 0.0% 0.0% 3.7% 100.0%

Total 30 25 1 2 1 59

50.8% 42.4% 1.7% 3.4% 1.7% 100.0%

4.5.5 Cross Tabulation of Level of Education and Employees and New Logo

Cross tabulation of level of educational attained and whether there has been resistance from

employees to the new brand logo. Table 4.22 shows the responses to this statement. In the

table, 100% of those respondents who were holders of doctorate strongly agreed. 45.5% of

those with master’s degree strongly agree, 50% agreed and 4.5% remained neutral. On those

with bachelor’s degree, 20.7% strongly agreed, 31% agreed, 27.6% remained neutral and

20.7% disagreed. Finally those respondents with diploma had 57.1% agreeing, 28.6%

remaining neutral and 14.3% strongly disagreeing.

47

Table 4.22: Cross Tabulation of Level of Education and Employees and New Logo

There has been resistance from employees to the new brand

logo.

Total

Strongly

Agree Agree Neutral Disagree

Strongly

Disagree

Doctorate

Degree

1 0 0 0 0 1

100.0% 0.0% 0.0% 0.0% 0.0% 100.0%

Master

Degree

10 11 1 0 0 22

45.5% 50.0% 4.5% 0.0% 0.0% 100.0%

Bachelor’s

Degree

6 9 8 6 0 29

20.7% 31.0% 27.6% 20.7% 0.0% 100.0%

Diploma 0 4 2 0 1 7

0.0% 57.1% 28.6% 0.0% 14.3% 100.0%

Total 17 24 11 6 1 59

28.8% 40.7% 18.6% 10.2% 1.7% 100.0%

4.5.6 Cross Tabulation of Age Bracket and Rebranding and Integrity of the University

Table 4.23 shows the cross tabulation between age bracket of the respondents and whether

corporate rebranding style can actually challenge the integrity of the university. Age group was

divided into 18-25 years, 26-35 years, 36-45 years and finally above 45 years. The table shows

that 75% of the respondents with the age above 45years agree and another 25% disagreed. 10%

of the age bracket between 36 and 45 years strongly agreed, 80% agreed and 10% remained

neutral. The age bracket between 26 and 35 years had 24.1% strongly agreeing, 41.4% agreed,

24.1% remained neutral, 6.9% disagreed and 3.4% strongly disagreed. 43.8% of the age

bracket between 18 and 25 years strongly agreed, 18.8% agreed, 31.3% remained neutral and

6.3% disagreed.

48

Table 4.23: Cross Tab of Age Bracket and Rebranding and Integrity of the University

Corporate rebranding style can actually challenge the integrity

of the university

Total

Strongly

Agree Agree Neutral Disagree

Strongly

Disagree

Above

45years

0 3 0 1 0 4

0.0% 75.0% 0.0% 25.0% 0.0% 100.0%

36 – 45

years

1 8 1 0 0 10

10.0% 80.0% 10.0% 0.0% 0.0% 100.0%

26 – 35

years

7 12 7 2 1 29

24.1% 41.4% 24.1% 6.9% 3.4% 100.0%

18 - 25

years

7 3 5 1 0 16

43.8% 18.8% 31.3% 6.3% 0.0% 100.0%

Total 15 26 13 4 1 59

25.4% 44.1% 22.0% 6.8% 1.7% 100.0%

4.5.7 Cross Tabulation of Experience and University as a Commercial Entity

Table 4.24 shows the cross tabulation of respondent’s year of experience and whether today,

the university is growingly seen as an organization that has a commercial value. From the table,

those respondents with the experience of above ten years had 14.3% strongly agreeing, 42.9%

agreeing, 28.6% remaining neutral and another 14.3% disagreeing. 30% of working experience

between 6 and 10 years strongly agree, 40% agreed and 30% remained neutral. Finally those

below 5 years of working experience had 63.4% strongly agreeing, another 29.3% agree, 2.4%

each remained neutral, disagreed and strongly agreed as shown in Table 4.24.

Table 4. 24: Cross Tabulation of Experience and University as a Commercial Entity

Today, the university is growingly seen as an organization that has

a commercial value

Total

Strongly

Agree Agree Neutral Disagree

Strongly

Disagree

Above 10

years

1 3 2 1 0 7

14.3% 42.9% 28.6% 14.3% 0.0% 100.0%

6 – 10

years

3 4 3 0 0 10

30.0% 40.0% 30.0% 0.0% 0.0% 100.0%

Below 5

years

26 12 1 1 1 41

63.4% 29.3% 2.4% 2.4% 2.4% 100.0%

Total 30 19 6 2 1 58

51.7% 32.8% 10.3% 3.4% 1.7% 100.0%

49

4.4.8 Effects of Rebranding on the Image of the Organization

Table 4.25 shows the relationship between effects of rebranding on the image of the

organization. The table shows that environmental scanning is the monitoring, assessing, and

distributing of information from the external and internal environment was correlated to

achieving customer satisfaction and customer loyalty as a critical factor for success at

(r=0.547**, p<0.01, N=59), there has been resistance from employees to the new brand logo

at (r=0.310**, p<0.05, N=59), the university still needs to promote its brand by leveraging on

specific areas such as research and development at (r=0.532***, P<0.01, N=59) and university

website plays a crucial role in the marketing of rebranded logos and products at (r=0.532**,

P<0.01, N=59).

Table 4.25: Correlation of Effects of Rebranding on the Image of the Organization

Environmental scanning is the

monitoring, assessing, and distributing of

information from the external and internal

environment

Pearson Correlation Sig. (2-

tailed) N

Achieving customer satisfaction and customer

loyalty as a critical factor for success .547** 0.000 59

There has been resistance from employees to

the new brand logo .310* .017 59

The university still needs to promote its brand

by leveraging on specific areas such as research

and development

.348** .007 59

University website plays a crucial role in the

marketing of rebranded logos and products. .532** .000 59

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

4.4.8 Regression of Effects of Rebranding on the Image of the Organization

Regression analysis helped the researcher to determine whether movement in the independent

variable (rebranding) led to movement in the dependent variable (image of the organization).

The information sought in this section was whether the image of the organization has a linear

dependence on corporate rebranding. Multiple regression analysis was used to test if the image

50

of the high learning institutions has a linear dependence on the corporate rebranding. The

results of the regression show an R-square value of 0.134 and adjusted to 0.111. The coefficient

of determination established that corporate rebranding brought about 13.4% variations in the

image of high learning institutions. The coefficient of determination (R2) showed a weak

positive relationship as the value of R2 was greater than 0.1 (R2 < 0.1). Thus, the model

summary explains the strength of the relationship (r=.366) and prediction of 13.4% image of

high learning institutions was based on corporate rebranding while the remaining 86.6% of

image of the institution are caused by other variables as shown in Table 4.26

Table 4.26: Regression of Effects of Rebranding on the Image of the Organization

(Model Summary)

Model R R Square Adjusted R

Square

Std. Error of the

Estimate

1 .366a .134 .069 .677

a. Predictors: (Constant), Identity is how the company perceive itself and would like to

view by others

4.6 Chapter Summary

This chapter presented results and findings on the effect of corporate rebranding on high

learning institutions in Kenya. The chapter presented the findings as per the research questions.

The findings were presented in form of tables and figures. The next chapter provides the

summary, of discussions, conclusions and recommendations.

51

CHAPTER FIVE

5.0 DISCUSSION, CONCLUSIONS AND RECOMMENDATIONS

5.1 Introduction

This chapter lays the frame work for the discussion, conclusions and recommendations for the

study. This will be presented in sections as follows: section 5.2 covers the summary of the

research, section 5.3 discussion, section 5.4 conclusions and finally section 5.5

recommendations.

5.2 Summary of the Findings

The purpose of this study was to investigate the effect of corporate rebranding on the

performance of higher learning institutions in Kenya with a specific focus on the United States

International University Africa (USIU-A). The study was guided by the following research

questions: What are the economic implication of rebranding in higher learning institutions in

Kenya? What are the effects of corporate rebranding on product quality? And finally, what are

the effects of rebranding on the image of the higher learning institutions in Kenya?

This study adopted a descriptive research design, that is, this research design involved the

observation and description of the behavior of a subject without influencing the outcome of

the respondent in any way. The study’s target population was the 435 employees of USIU-A.

The study used a simple random sampling technique and a sample size of 87 respondents was

randomly selected. This technique was the most appropriate because it allowed the researcher

to ensure that each case in the population had an equal chance of being incorporated in the

sample. Both closed and open ended questions was used in the questionnaires to collect data.

Effective and efficient data analysis process was ensured through the coding and sorting of the

questionnaires and analysis was done using descriptive and inferential analysis in the statistical

package for social sciences (SPSS). For easy interpretations and understanding figures and

tables was used for the presentation of the results and findings.

Findings on the economic effect of rebranding on high learning institutions established that:

rebranding objectives for the university should take into account of what is to be achieved by

52

the brand in the broader context at p(0.000) < 0.05; successful rebranding is the one that can

maintain the number of students in the institution, and maintain student exchange through

students memory of the university p(0.002) < 0.05; and the objectives of rebranding are to

increase intakes of students and maintain a large population of students at all times at p(0.037)

< 0.05. The study also established a positive significant factors between economic effect of

rebranding and the performance of high learning institutions. The coefficient of determination

established that economic effect of rebranding brought about 18.7% variations in the

performance of high learning institutions.

The findings on the effect of corporate rebranding on product quality established that: there is

a better understanding of brand strategy in education branding at p(0.000) < 0.05; rebranding

management as a whole, contain a significant component known as brand equity at p(0.001) <

0.05; and corporate rebranding has a range of growth strategies that give a central role to

innovation as a driver of growth at p(0.002) < 0.05 were the highly significant factors. The

coefficient of determination established that corporate rebranding brought about 26.9%

variations in the product quality of high learning institutions.

Finally the findings on the effects of rebranding on the image of the organization established

that: environmental scanning is the monitoring, assessing, and distributing of information from

the external and internal environment at p(0.009) < 0.05; the university still needs to promote

its brand by leveraging on specific areas such as research and development at p(0.014) < 0.05;

and there has been resistance from employees to the new brand logo at p(0.028) < 0.05. The

coefficient of determination established that corporate rebranding brought about 13.4%

variations in the image of high learning institutions.

5.3 Discussion

5.3.1 Economic Effect of Rebranding on High Learning Institutions

From this study’s findings on economic effect of rebranding on high learning institutions, it

was established that rebranding objectives for the university should take into account of what

is to be achieved by the brand in the broader context to be a highly significant factor. This

findings agrees with De Chernatony and McDonald (2005) who noted that rebranding

53

objectives for the university should take into account of what is to be achieved by the brand in

the broader context. Initially, the rebranding was inspired as a way to highlight the name of the

product and to convey legitimacy, prestige and stability of the manufacturer. Most of the

branding concept is clear and unambiguous when it is associated with goods branding but

generally it is more related to the commercial field. De Chernatony and McDonald (2005)

assert that successful brands provide a sustainable competitive advantage and greater

profitability and improved market performance. These concepts, although practically

challenging to measure in any sector, become the priority especially when used for higher

education.

The study also established that successful rebranding is the one that can maintain the number

of students in the institution and maintain student exchange through student’s memory of the

university. This findings concurs with Belanger et al. (2002) and Bjorn (2005) who described

the successful rebranding is the one that can maintain the number of students in the institution,

and maintain student exchange through student’s memory of the university and strive to create

and maintain a strong brand to be distinguished from other universities. Despite the ongoing

process of branding, the process in the university as a social institution should be maintained

even if we are heading into the industrial age.

The objectives of rebranding are to increase intakes of students and maintain a large population

of students at all times was also found to be highly significant factors in this study. The study’s

findings is in agreement with Rowley (1997), Onksvisit and Shaw (1997) who established that

the objectives of rebranding are to increase sales, maintain and enhance the development of

the market, create a selling climax, inform and educate the market, create a different

competition, and improve promotion efficiency create the identity and brand awareness,

assurance of quality, quantity and users satisfaction, and promote products.

The study established a positive significant factors between economic effect of rebranding and

the performance of high learning institutions. The study also concurs with Keller (2012) agrees

that it is important to measure the performance of the brand, but suggest that a monitoring

system should be in accordance with the organization. Keller (2012) states that the brand value

chain as a way to understand the financial impact of brand marketing expenses. Some other

54

models are the Millward Brown Model, Criteria to Assess the Strength of a Brand (1996) and

Young and Rubicam Model, Brand Asset Valuator (1994), which are widely known. However,

all these models are more focused on the commercial brand products, even if it is found to have

high levels of compatibility with higher education field but it is not very comprehensive to a

university's specific situation. Variables such as the stock market ',' premium price 'and' loyalty

are the matrix examples of these models, which may need modification in the concept for

higher education institutions market.

5.3.2 Effects of Corporate Rebranding on Product Quality

On the effect of corporate rebranding on product quality, the study established that there being

a better understanding of brand strategy in education branding was highly significant factor.

This findings agrees with Taylor (2014) who had investigated the influence of cross-cultural

values on the positioning of international education brands. The result has identified learning

environment, reputation, graduate career prospects, destination image and cultural integration

as dimensions of brand positioning. The most significant result of this study suggested that a

standardized or adapted branding strategy could be adapted in Asian markets. This study

provides a better understanding of brand strategy in education branding in order to avoid the

danger of adopting product based branding strategy. Branding is powerful in providing

competitive advantages. Petburikul (2009) indicated some benefits of branding to higher

educational institutions: attract students from high income families, provide information and

image, improves institutional cooperation, instigates internal change, re-discovers what they

are and their basic purposes.

The study findings also revealed that rebranding management as a whole, contain a significant

component known as brand equity to be highly significant to this study. This also concurs with

Bryson and Rusten (2010) who carried out a business practices, academically conducted

research, and rebranding management as a whole and established that it contain a significant

component known as brand equity. A structural framework developed by Aaker (2011)

suggests that brand equity creates value for the business and the customer both; as the value

for the customer increases, the value for the firm increases simultaneously; and that brand

equity comprises of various dimensions. Brand equity enables a business to differentiate its

products in order to gain a competitive edge, hence increasing cash inflows. As Aaker puts it,

55

positive brand equity affects the firm positively in the long-term. According to Keller (2011),

strong brand equity improves the perceptions related to the performance of a certain product,

increases customer loyalty towards the brand as a whole, makes a brand less vulnerable to

competitions’ marketing strategies and a crisis in the industry of business, enables chances of

greater margins, creates an inelastic market response towards an increase in prices, gives way

to improved trading and global support, increases the effectiveness of marketing efforts, and

brings in licensing and extension opportunities for the business.

The study also established that corporate rebranding has a range of growth strategies that give

a central role to innovation as a driver of growth was a highly significant factor. This findings

is as per Parasuraman, Berry and Zeithaml (2011) study that established that innovation is the

application of new knowledge to the production of goods and services; it means improved

product quality and enhanced process effectiveness. Innovation generates wide improvements

in productivity, which are the primary source of enhanced well-being, higher real incomes and

resources for government. Corporate rebranding has a range of growth strategies, but all give

a central role to innovation as a driver of growth. Economists are widely held to disagree on

more or less any topic. But they are in accord that all long-term growth processes rest

ultimately on innovation and technological change. This is especially important in advanced

economies where rebranding plays a key role in improving the quality of inputs and in how

these are incorporated in the production process.

5.3.3 Effects of Rebranding on the Image of the Organization

The study findings on the effect of rebranding on the image of the organization established that

environmental scanning is the monitoring, assessing and distributing of information from the

external and internal environment. This findings is in agreement with Keller (2012) found out

that it is important to measure the performance of the brand, but suggest that a monitoring

system should be in accordance with the organization. Keller (2012) states that the brand value

chain as a way to understand the financial impact of brand marketing expenses. Some other

models are the Millward Brown Model, Criteria to Assess the Strength of a Brand (1996) and

Young and Rubicam Model, Brand Asset Valuator (1994), which are widely known. However,

all these models are more focused on the commercial brand products, even if it is found to have

56

high levels of compatibility with higher education field but it is not very comprehensive to a

university's specific situation. Variables such as the stock market ',' premium price 'and' loyalty

are the matrix examples of these models, which may need modification in the concept for

higher education institutions market.

The study also established that the university still needs to promote its brand by leveraging on

specific areas such as research and development to highly significant. Chapleo, (2004) noted

that although the university already has an image of an educational institution of teaching and

learning, the university still needs to promote its brand by leveraging on specific areas such as

research and development (R & D), and other publications. This may support the enhancing of

the core business image of the university. A clear picture image of the goal, philosophy and

principles are necessary to create beliefs, experiences, feelings, knowledge, attitudes and

perceptions of organizational style for ease of understanding of the university community.

Moreover, this branding issue should be clearly notified to all staff on the concept of branding

to ensure that they can accept the branding activities. It aims to develop the overall brand

integrity that reflects its own university presentation. Organized images can highlight the stand

and action of university and will form a positive image.

The study also found out that there has been resistance from employees to the new brand logo

was a highly significant factor. This is also in agreement with Wernerfelt (2008) who

acknowledged that the importance of rebranding and customer satisfaction has been well-

studied in both academia and practice. Studies carried out in service industry, identified that

achieving customer satisfaction and customer loyalty as a critical factor for success given the

fact that the cost of soliciting new customers can be five to seven times higher than that of

retaining existing ones. Other studies have provided support for the link between branding and

customer satisfaction. Aaker (2011) found that where a customer has a strong attachment to a

brand, they are likely to demonstrate resistance to change to other brands. Creswell (2004)

found that a desirable image (a construct of brand equity) can lead to customer satisfaction and

customer preference (a dimension of customer loyalty). Taylor (2014) studied the relationships

between quality of service, satisfaction, and the effect on customer’s intentions to recommend

to others. They concluded that customers’ intention to recommend is a function of their

57

perception of service quality. According to Schultz and Schultz (2014), brand image can affect

loyalty because it can support or undermine the value that customers feel they are getting.

5.4 Conclusions

5.4.1 Economic Effect of Rebranding on High Learning Institutions

From the research it is clear that there exist a significant positive influence between economic

effect and the performance of high learning institutions in Kenya. The study also established

that rebranding objectives for the university should take into account of what is to be achieved

by the brand in the broader context; successful rebranding is the one that can maintain the

number of students in the institution, and maintain student exchange through students memory

of the university; and the objectives of rebranding are to increase intakes of students and

maintain a large population of students at all times were the highly significant factors. This

study concludes that economic effect of rebranding is crucial to the performance of high

learning institutions.

5.4.2 Effects of Corporate Rebranding on Product Quality

On the effect of corporate rebranding on product quality, the study established a significant

positive effect between the two. The study found out that corporate rebranding has a significant

effect on market value, consistency and continuity are key elements of a corporate re-branding

campaign, corporate rebranding has a range of growth strategies that give a central role to

innovation as a driver of growth and brands identify and differentiate a company’s offerings

to customers and other parties were positively significant. As well as there being a better

understanding of brand strategy in education branding and efforts are now focused on retaining

existing customers of a brand. The study also established that there is a better understanding

of brand strategy in education branding; rebranding management as a whole, contain a

significant component known as brand equity; and corporate rebranding has a range of growth

strategies that give a central role to innovation as a driver of growth were the highly significant

factors. This study concludes that corporate rebranding have a positive significant effect on the

quality of products. This showed that corporate rebranding in high learning institutions has a

positive significant impact on the quality of education programs provided by the institution.

58

5.4.3 Effects of Rebranding on the Image of the Organization

On the effects of rebranding on the image of the organization, the study established that

environmental scanning is the monitoring, assessing, and distributing of information from the

external and internal environment; the university still needs to promote its brand by leveraging

on specific areas such as research and development; and there has been resistance from

employees to the new brand logo were the highly significant factors. The study also established

a significant positive effects on achieving customer satisfaction and customer loyalty as a

critical factor for success, there has been resistance from employees to the new brand logo, the

university still needs to promote its brand by leveraging on specific areas such as research and

development and university website plays a crucial role in the marketing of rebranded logos

and products.

5.5 Recommendations

5.5.1 Recommendations for the research

5.5.1.1 Economic Effect of Rebranding on High Learning Institutions

On the economic effect of rebranding on high learning institutions, the study established that

there exists a significant positive effect between the economic effect and the performance of

high learning institution in Kenya. As per the findings, the study recommends that rebranding

for the university should take into account what is to be achieved by the brand in the broader

context as well as help maintain the number of students in the institution, and maintain student

exchange through students memory of the university and finally increase intakes of students

and maintain a large population of students at all times

5.5.1.2 Effects of Corporate Rebranding on Product Quality

This study found out that there is a better understanding of brand strategy in education

branding; rebranding management as a whole contain a significant component known as brand

equity; and corporate rebranding has a range of growth strategies that give a central role to

innovation as a driver of growth were the highly significant. It is therefore this study’s

59

recommendations that the management of these institutions to create a better understanding of

the role and importance of branding in these institutions. The study also recommend that high

earning institution to invest more in innovation as it is the driver for growth of the institutions.

5.5.1.3 Effects of Rebranding on the Image of the Organization

On the effects of rebranding on the image of the organization, the study established that

environmental scanning is the monitoring, assessing, and distributing of information from the

external and internal environment; the university still needs to promote its brand by leveraging

on specific areas such as research and development; and there has been resistance from

employees to the new brand logo were the highly significant factors. This study recommends

that the management of the high learning institution must continuously carry out an

environmental scanning for both internal and external for the institution to be able to achieve

and maintain a competitive advantage in the market. The study also recommends that the

institution needs to promote its brand by leveraging on specific areas such as research and

development

5.5.2 Recommendations for further studies

Corporate rebranding is not limited to higher learning institutions only. However, the study

was restrictive in scope covering only corporate rebranding in higher learning institutions in

Kenya. The study took a case of the United States International University Africa. The study

was carried out between March and April 2016. This study therefore recommends that further

studies be carried out on the same topic but with different case studies. The study also

recommends that further studies be carried out on the implications of corporate rebranding on

the growth of high learning institutions in Kenya.

60

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APPENDICIES

Appendix I: Cover Letter

Masheti Hassan Saleh,

UNITED STATES INTERNATIONAL UNIVERSITY-AFRICA (USIU-A)

P.O. BOX 14634, 00800.

NAIROBI

Dear Respondent,

I am a USIU student carrying out research on the; EFFECTS OF CORPORATE

REBRANDING ON THE PERFORMANCE OF HIGHER LEARNING INSTITUTIONS: A

CASE OF UNITED STATES INTERNATIONAL UNIVERSITY-AFRICA in partial

fulfilment of the requirement for the degree of Masters in Business Administration (MBA)

program at the United States International University.

This study adopted questionnaires as the tool for data collection which you are requested to

complete and return. The findings of this study will provide valuable information to the United

States International University – Africa (USIU-A) on the effects of corporate rebranding on

the performance of the institution. Other higher learning institutions will also benefit from the

results and findings of this study.

This study uses the USIU-A as the case study from which you have been selected as one of the

respondent. The data obtained in this study will be analyzed and results and findings of the

study will be made available on request.

This is an academic research and confidentiality is highly emphasized. To achieve this, your

name will not appear anywhere in the questionnaire and data collected will be collectively

analyzed. Kindly spare some time to complete the questionnaire. The questionnaire will take

you approximately ten minutes to complete.

Thank you in advance,

Yours sincerely,

Masheti, H. Saleh

66

Appendix II: Questionnaire

This study is a requirement for the partial fulfilment of a degree of Masters in Business

Administration (MBA) at the United States International University. The purpose of this study

is to evaluate the effects of corporate rebranding on the performance of higher learning

institution in Kenya. The findings of the study will provide the management and other

stakeholders of higher learning institutions with information that is useful to the benefits of

corporate rebranding. This is an academic exercise and all data collected from the respondents

will be treated with utmost confidentiality.

PART i: GENERAL INFORMATION

Kindly answer all the questions by either ticking in the boxes or filling in the space

provided.

1. Gender: Male

Female

2. Level of Education: Doctorate Degree

Master Degree

Bachelor’s Degree

Diploma

Others (specify) __________________

3. Age Bracket: 18 - 25 years

26 – 35 years

36 – 45 years

Above 45years

4. How long have you worked for USIU-A?

Below 5 years

6 – 10 years

Above 10 years

67

PART II: ECONOMIC EFFECT OF REBRANDING ON INSTITUTIONS OF HIGH

LEARNING

Please tick in the box below corresponding to your level of agreement or disagreement for each

statement on economic effect of rebranding on higher learning institution.

Str

ongly

Agre

e

Agre

e

Neu

tral

Dis

agre

e

Str

ongly

Dis

agre

e

A strong corporate brand and a favorable reputation contribute to

higher stock prices

Corporate rebranding increases the market value of an institution.

It is essential to rebrand your company, products or services after

sometime to remain relevant.

Universities today are not just known as purely educational

organizations

rebranding is very important that it is able to distinguish a

university with other universities

rebranding activities in higher education institutions can be said

to be relevant in the commercial world

Increased competition is the motivating fact behind corporate

rebranding in higher learning institutions

universities have spent a large amount of resources in rebranding

their institutions

The objectives of rebranding are to increase intakes of students

and maintain a large population of students at all times

Rebranding objectives for the university should take into account

of what is to be achieved by the brand in the broader context

successful rebranding is the one that can maintain the number of

students in the institution, and maintain student exchange through

students memory of the university

Universities should also have a clearer picture of the brand so that

its citizens can help and support them

Any other economic effect of rebranding on higher learning institution?

___________________________________________________________________________

___________________________________________________________________________

__________________________________________________________________

68

PART III: EFFECTS OF CORPORATE REBRANDING ON PRODUCT QUALITY

Please tick in the box below corresponding to your level of agreement or disagreement for

each statement on effects of corporate rebranding on product quality.

Str

ongly

Agre

e

Agre

e

Neu

tral

Dis

agre

e

Str

ongly

Dis

agre

e

Successful corporate branding strategies will provide an

opportunity for generating a significant future income stream

Corporate rebranding has a significnt impact on market value

name change has a positive impact on the firm’s value

Name changes signal to the market that measures to improve the

performance will be adopted by the firm

Rebranding management as a whole, contain a significant

component known as brand equity

Consistency and continuity are key elements of a corporate re-

branding campaign

Corporate rebranding has a range of growth strategies that give a

central role to innovation as a driver of growth

Brands identify and differentiate a company’s offerings to

customers and other parties

There is a better understanding of brand strategy in education

branding

Efforts are now focused on retaining existing customers of a brand

Any other effects of corporate rebranding on product quality.

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

_______________________________________________________________

69

PART IV: EFFECTS OF REBRANDING ON THE IMAGE OF THE

ORGANIZATION

Please tick in the box below corresponding to your personal opinion for each statement on

the effects of rebranding on the image of the organization.

Str

ongly

Agre

e

Agre

e

Neu

tral

Dis

agre

e

Str

ongly

Dis

agre

e

Environmental scanning is the monitoring, assessing, and

distributing of information from the external and internal

environment

Achieving customer satisfaction and customer loyalty as a

critical factor for success

Brand image can affect loyalty because it can support or

undermine the value that customers

There has been resistance from employees to the new brand

logo.

the university still needs to promote its brand by leveraging

on specific areas such as research and development

University website plays a crucial role in the marketing of

rebranded logos and products.

Corporate rebranding style can actually challenge the

integrity of the university

The tension is clear whether the reputation and brand are of

the same thing

An organization can effectively manage its corporate identity

by building understanding and commitment among its

diverse stakeholders

Identity is how the company perceive itself and would like to

view by others

Re-branding has a direct effect on the corporate visual

identity of a firm

Today, the university is growingly seen as an organization

that has a commercial value

Any other effects of rebranding on the image of the organization.

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

_______________________________________________________________