The Effect of Multiple Rebranding on Customer Loyalty in Nigerian Mobile Telephony

Abstract

<p>Econet Wireless, a Nigerian mobile telephone network rebranded five times within the space of eight years to become what it is today, Airtel Nigeria. This research sought to know the impact of multiple rebranding on the loyalty of the network’s subscribers and the general attitude of the Nigerian towards branding in the telephony business. A survey was carried out on subscriber attitude towards Airtel as a result of the multiple rebranding through which it emerged. Questionnaires were distributed based on cluster sampling. Pearson Chi-Square was used to test the validity of the final results (cross tabulations) on a value of 0.05 and above. This research confirms communication as the vehicle for transferring brand equity; shows that multiple rebranding does not significantly affect attitude towards telecommunications brands; and that Nigerians do not really care about branding in telecommunications and/or the telecommunications companies are not doing a good job of branding. This study focuses on only a segment of the global satellite mobile (gsm) market – students of a higher institution. The perspective of the students may not be representative of the whole global satellite mobile (gsm) market in Lagos. It is also limited to the telephony market in Nigeria, an emerging market. This is an original work in the sense that there is no literature anywhere on the phenomenon of multiple rebranding, let alone its effect on customer loyalty.</p

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“…The results of this study are also different with the study by Teh (2009) that suggests the corporate rebranding has a significant impact on the brand equity. The results of this study support the research by Tevi (2013) which states that to determine the impact of rebranding on customer loyalty with rebranding findings did not significantly affect the attitude of the customer in choosing the brand, thus that customers are not loyal to a particular brand.…”

Corporate rebranding and performance of financial institutions in Ghana

“…This supports the findings of Tevi (2013) that customer loyalty is not affected by rebranding when value which is considered critical in terms of rebranding is not prioritised during corporate rebranding. This is because customers will never stop considering the value they expect to get.…”

“…As a result, some banking organizations adopt relationship marketing and put in much effort in achieving customer loyalty. Multiple rebranding might not affect customer loyalty (Tevi, 2013) unless it enhances existing value. This indicates that where there is customer loyalty, there is commitment to a brand which leads to repeat purchase.…”

Understanding Corporate Rebranding: An Evolution Theory Perspective

“…The processes of corporate rebranding described in reviewed works (Boyle, 2002;Lomax et al 2002;Gambles & Schuster, 2003;Kaikati & Kaikati, 2003;Rosenthal, 2003;Muzellec et al 2003;Causon, 2004;Stuart & Muzellec, 2004;Muzellec & Lambkin, 2006, Juntunen et al 2009 can easily find expression in the new model developed. In addition, the model also explains multiple rebranding, a phenomenon Tevi (2013) reported. It also eradicates the notion of multiple corporate rebranding as being a different concept from corporate rebranding, because rebranding is a continuing process.…”

“…Figure 1 gives a graphic illustration of the evolutionary rebranding framework This framework consists of two parts; the first is a successful transfer of the equity of the previous company, and the second part is the building of an entirely new image and equity. Tevi (2013) reported that subscribers continued calling a telecommunications network by its previous names, long after its multiple rebranding. Muzellec and Lambkin (2006) also emphasized that rebranding takes time, and that it's a continuous exercise.…”