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Topic: The impact of rebranding on brand equity, customer perception and retention in telecommunication industry: case study the rebranding of Nedjma Algerian operator to the group Ooredoo

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Abstract

Corporate rebranding is a strategic activity undertaken by corporations as they try to revitalise their firm and reassert their market position. As corporate rebranding is conceived as a viable strategic option for brand/corporate revitalisation, it is also worrying that CEOs and senior management assume that changing the companys identity will automatically translate to enhance company image. From this perspective, the study explores the impact of corporate rebranding to brand equity through a look into the Nedjma, a telecommunication service provider in Algeria, which has been rebranded recently as Ooredoo. Focusing on the corporate rebranding of Nedjma to Ooredoo, the primary research problems of this study are the following: What is the impact of corporate rebranding to brand equity? How does corporate rebranding impact brand equity? And how does corporate rebranding influence customer perception and retention?

In addition, to further clarify the two questions, the following sub-questions will also be addressed: What is corporate rebranding? What is the connexion between customer perception and retention and corporate rebranding?

The research methodology adopted in the course of research is case study research. For the data collection, both the quantitative and qualitative methods were utilised. Together with archival search, survey questionnaires were distributed to gather the necessary quantitative data. While interviews were conducted for the collection of the qualitative data. For the analysis of the collected data, coding and analysis of the questionnaire were made and thematic analysis was applied in the qualitative data. Some of the findings of the study are: 1.The definition of corporate rebranding must include the notion of risk and uncertainty as part of its inherent connotation. 2. The concept of brand equity continuum provides the connexion among corporate rebrand, brand equity and customer perception.

ContentsAbstract2Chapter 1: Introduction61.1 Purpose of the study61.2 Context of the study61.3 Problem statement71.3.1 Main problem71.3.2 Sub-problems81.4 Significance of the study81.5 Limitation of the study8Chapter 2: Literature Review102.1 Introduction102.2 Branding102.2.1 Definition of a brand102.2.2 Definition of branding112.2.3 Objective of branding112.2.4 Brand equity122.2.5 Component of brand equity132.3 Rebranding152.3.1 Definition and the meaning of rebranding152.3.2 The role of rebranding162.3.3 Rebranding frameworks172.3.4 Drivers of corporate rebranding172.3.5 Dimension of corporate rebranding192.3.6 Types of corporate rebranding202.4 Service rebranding222.4.1 The concept of service rebranding222.4.2 Rebranding in telecommunication222.4.3 Customers and corporate rebranding in telecommunication.232.5 Telecommunication industry in Algeria252.6 The rebranding of the corporation Nejma to Ooredoo262.7 Summary of the review27Chapter 3 Research Methodology293.1 The choice of methodology and case companies293.2 Method of research293.2.1Qualitative Method293.2.2Quantitative Method303. 3 Types of Research313.3.1 Descriptive Research313.3.2Exploratory Research323.3.3 Explanatory Research323.4. Population and sampling of research333.4.1 Population333.4.2 Sampling343.5. Data collection343.5.1 Interviews343.5.2 Survey questionnaire353.6 reliability and validity36CHAPTER 4: Analysis374.1 Findings and analysis374.1.1 Impact of rebranding on brand equity374.1.2 Impact of rebranding on customer perception404.1.3 Impact of rebranding on customer retention444.2 Theoretical implication: the case Nedjma to Ooredoo.484.2.1 The Impact of corporate rebranding on brand equity484.2.2Attachment with the Brand and Role of Corporate rebranding494.2.3 Major factors affecting customer perception and retention:494.3 Rebranding descriptive framework53Chapter 5 Conclusion545.1 Suggestions for the Future Research and managerial implications545.2 Limitation of the study55References56Web Sources60Appendices61Questionnaire61Interview Questions64Survey Responses65

List of Figures

Figure 1: The Drivers of Corporate Rebranding19

Figure 2: Rebranding as a continuum20

Figure 3: Impact of rebranding in creating disillusion in customers37

Figure 4: Impact of rebranding on customer identity of company38

Figure 5: Impact of rebranding on customer understanding and confidence in company39

Figure 6: Acceptability of rebranding if service quality is maintained41

Figure 7: Impact of rebranding in creating negative customer view41

Figure 8: Extent of customer happiness with the rebranding42

Figure 9: Impact of new brand in improving customer perception43

Figure 10: Customer satisfaction after the rebranding45

Figure 11: Impact of rebranding on improvement of service46

Figure 12: Readiness of customers to remain with the new brand47

List of Table

Table 1: Reasons behind corporate rebranding21

Chapter 1: Introduction1.1 Purpose of the study

The primary aim of the research is to clarify and understand the intricate connexion between corporate rebranding and brand equity by determining the implication of the rebranding of Nedjma to Ooredoo to its consumers. With this, the research intends to explain the concept of corporate rebranding. Since, there is still confusion in its definition and conceptualisation (Goi and Goi, 2011). It will also explore the association between corporate rebranding and consumer perception and retention. This is to give emphasis to the supposition that corporate rebranding opens room for the transformation of consumer perception and retention. Finally, the study will identify possible reframing of the connotations attached to rebranding, brand equity and consumer perception.

1.2 Context of the study

This study is anchored on the implicit connexion between corporate rebranding and brand equity. It assumes that corporate rebranding impacts brand equity. However, it argues that the manner in which corporate branding affects brand equity is not mere dichotomy between good or bad. The complexity of its relation is manifested both in the process and on the outcome in which the relation between the two is sustained. In order to gain a better understanding this study seeks to explore the impact of corporate rebranding to brand equity by looking at Nedjma, a telecommunication service provider in Algeria that has been rebranded as Ooredoo.

The telecommunication sector is considered as one of the most robust sector all over the world. Following the changes brought about by globalisation, liberalisation and privatisation and technological development, telecommunications sector is integrated globally through wire and wireless connectivity making exchanges of data, voice and video possible networks and customer devices (Olmsted and Jasmison, 2001). With this transformation in the global telecommunication sector, the sector has witnessed the convergence of various sectors in the society. Through strategic alliances, mergers, convergence between multinational companies and local service provider robust response to the changing demands of the market and increasing needs and sophistication of customers have become the dominant challenge in the global telecommunications sector (Oh, 1996). Algerias telecommunications sector attests to these strategic alliances.

On the other hand, Ooredoo sees the rebranding as a proud moment for the whole Ooredoo family, as another operation takes on the mantle of our new brand We believe the transformation into Ooredoo and our launch of 3G in Algeria will serve to enhance our performance there and enable us to further enrich lives across the country (Nedjma rebrands as Ooredoo, 2013). However, in the midst of all these messages and communications, customers perception and view of the rebranding Nedjma-Ooredoo and brand equity are minimally discussed.

1.3 Problem statement 1.3.1 Main problem

The research problem was to analyse the impact of rebranding on brand equity in Algerian telecommunication industry and the drivers influencing the customers perception and retention. The rebranding that was done by the corporation is the change of the brand name. The company switched from Nedjma to Ooredoo, one of the greatest telecommunication operators in Algeria.

1.3.2 Sub-problems

The first problem was to explore the impact of corporate rebranding and brand equity.

The second problem was to understand the impact of rebranding on customers perception and retention

1.4 Significance of the study

The subject of this research is significant because despite the importance of corporate rebranding as a strategic issue and option for corporations, there are limited literatures expounding the topic of rebranding and brand equity (Pauwels, Raluca and Descotes, 2012). Hence, this study fills in the research gap that is observed currently in the field. Furthermore, as this study will understand corporate rebranding from the perspective of consumers, it can add to existing knowledge about the issue since, few similar studies have been undertaken (Pauwels et al., 2012). Decision makers may use the knowledge as they try to look into the viability of rebranding within their own respective firms. Lastly, this study is significant because a more holistic perspective of the issue is achieved by clarifying the connexion between corporate rebranding and brand equity through examination of its conceptual framework by way of its empirical context.

1.5 Limitation of the study

Considering the wide discourse on the topic of corporate brand, this research will solely focus on the notion of corporate rebranding in the telecommunications sector of Algeria. It will particularly look into the rebranding of Nedjma to Ooredoo last 2013. This is a limitation that needs to be stated because corporate rebranding is happening in many corporations across the globe (Muzellac and Lambkin, 2006). While, this study will focus only on one particular rebranding, which occurred very recently, the Nedjma- Ooredoo rebranding. Likewise, the study will touch on brand equity towards corporate rebranding. It will not provide a thorough discussion of brand equity. This is being stated as a limitation because brand equity is a fundamental concept, which has been numerously and deeply discussed by experts in the field.

Chapter 2: Literature Review 2.1 Introduction

Change and transformation are considered as viable options for company survival. However, some company transformations are rabble-rousing that it changes the company at its heart company brand and its rebranding (Schultz, 2001). It is in line with such global competitive demands that the need to rebrand Nedjma to Ooredoo within the Algerian telecommunication market became necessary. The literature review chapter of the research is dedicated to collecting secondary data that focuses on the purpose of the study and the researchs aim as has been outlined in the first chapter of the study. This means that the research looks to create a theoretical framework based on which primary data will be collected.

2.2 Branding 2.2.1 Definition of a brand

Kotler and Keller (2008, 94) explained that a brand is a name, term, symbol, design, or a combination of them intended to identify goods or services of one seller or groups of sellers and to differentiate them from competitors. Based on this definition, there has been a school of thought which has counter argued that a brand is not only about the physical and tangible aspects of a corporation or a company (Thomson, MacInnis & Park, 2005). According to this second school of thought, corporate brand signifies not only the product but also all the elements of the organisation combined-the product, the management, the employees, the stakeholders, the corporate culture, the corporate values, corporate identity, corporate communication and its customers (Kuusela, 2013; Schultz, 2011). The latter basis of definition is largely accepted and used in the context of the study, as a brand is perceived to embody both the tangible and intangible aspects of a companys existence. Einwiller and Will (2002) drummed home the fact that corporate brand becomes an intangible asset communicating to both the internal and external stakeholders of the corporation of what the firm is about, its core values and its ethos.

2.2.2 Definition of branding

Branding on the other hand has been explained to be the process of creating a brand (Goi & Goi, 2011). As a process, branding will be noted to be a concept that happens as a connection between several individual events that takes place within an identified institution or firm (Thomson, MacInnis & Park, 2005). More specifically, Kay (2006) argues that corporate branding is a communication of identity. This means that branding embodies all the processes that the company engages in as a way of communicating what it represents to its audience who are the internal and external stakeholders of the company. Even though there are several actions that can be taken by the company as part of its branding process, Dunnion and Knox (2004) saw two broad strands of corporate branding. The first strand pertains to the internal values, culture and vision of the organisation (Urde, 2003). The second strand alludes to the external environment and market of the company (Aaker, 2004). The two stands are stated to be well meshed into the realisation of branding when the combination is perceived as the systematic communication of vision, identity, promise, position, image or covenant between the company and its stakeholders (Dunnion and Knox, 2004).

2.2.3 Objective of branding

Throughout literature, there are several factors presented as constituting the objectives of branding. The first line of literature identifies the need to build customer awareness as the most important objective of branding (Stuart & Muzellec, 2004). By this, it is explained that branding brings the company closer to its customers and makes the customers aware of what is happening within the company and outside of it (Goi & Goi, 2011). In the second line of argument, the objective of promoting the brand that the company presents has been noted to be the reason behind branding (Thomson, MacInnis & Park, 2005). Here, the concept of brand is better differentiated from branding whereby branding is seen as the means by which the brand of company is publicised. In a third argument put forth by Dunnion and Knox (2004), branding was noted to be necessary for the objective of adding value to the company. From this perspective, branding is considered as a major strategy that companies use to gain competitive advantage by branding the company in such a way that gives the company an edge over what other competitors present (Hatch and Schultz, 2003).

2.2.4 Brand equity

According to Aaker (1992), Brand equity is a set of brand assets and liabilities linked to a brand, its name and symbol, which add to or subtract from value provided by a product or service to a firm and/or to that firms customers. Brand equity has been noted to be a very important marketing concept that describes the ability of a company to generate customers patronage merely based on the popularity of its brand (Goi & Goi, 2011). From this context, it would be noted that for a company to claim having brand equity, there should a basis for which customers will choose the companys brand over others based on the familiarity of the brand with the customers. The popularity of a brand among customers is an important determinant of brand equity, Hatch and Schultz (2003) stressed that branding is very important for the creation of brand equity. This is because; it is through branding that customers within the market start to be more familiar with the brand and loyal to the company. Having said this, it can be appreciated that a company might have spent a very long time competing within a market but the absence of branding will result in low brand equity (Dunnion & Knox, 2004).

2.2.5 Component of brand equity

Brand awareness

Writing on brand awareness, Dacin and Brown (2006) explained that brand awareness comprises a combined utilisation of brand recognition and brand recall. This explains that in the presence of numerous similar products in the market, brand awareness stands for a successful marketing strategy adopted by the company. There are a number of ways in which brand awareness adds to the competitive value of the product (Macdonald and Sharp, 2003). First, brand awareness puts the brand in the mind of the customer (Macdonald and Sharp, 2003). Secondly, brand awareness can prevent the entry of new competition in the market (Stokes 1985). Furthermore, it can serve as a reassurance to the customer of the products quality (Aaker, 1991). Again, Aaker (1991) debated that brand awareness can provide leverage to product distribution. Because of the relationship between brand awareness and the creation of competitive value, Homburg et al (2010) claimed that brand awareness acts as a strong signal to the firm pertinent to its market performance. They have found in their study that brand awareness is translated into return sales.

Perceived quality

Perceived quality has been found to be another component of brand equity, which helps in ensuring that based on the leverage of a brands quality, the brand becomes easily identifiable with customers (Dacin and Brown, 2006). Stuart and Muzellec (2004) explained perceived quality to be a customer based assertion that can be influenced by the qualitative and quantitative measure that customers can make about the extent of value they gain by doing business with a given company. Based on this, Lin and Min (2013) also explained that perceived quality of the product pertains to the connexion between brand popularity, sales volume and price (Lin and Min, 2013). In their study, they have found that perceived quality directly contributes to increase sales volume even if the price of the product may seem to be high. In fact, they have noted that high price is often seen as a support for the quality of the product, hence, its popularity. Hatch and Schultz (2003) on the other hand argued that perceived quality of product posits a risk in view of the possibility that the product/service may not be able to live up or meet the expected perceived quality. Nonetheless, perceived quality of product is a result of several elements that are aligned strategically, thus, creating the perception of quality.

Brand association

Brand association is a mental process that is transpiring in the customers memory of the brand (John et al., 2006). Hence, it is essential to note that brand association is connected with several factors that will establish the connexions between the mind of the consumer and the product (Mentz et al., 2013). Product quality is primordial in developing brand association (Mentz, 2011). A product considered as the market leader has an edge over other similar commodities in the market. Aside from quality, it is essential that the product understands customers needs (Keller, 2008). This means that products/services have the capacity of resonating those sentiments deemed significant to the customers (Keller, 2008). Thus, aside from giving value to the customers money, the product should also be likable. The brand has its own personality (Mentz, 2011) with which customers can identify and on which solid organisational reputation is built (Keller, 2008; Mentz, 2011). All of these combined elements contribute to the creation of brand association in the minds of consumers.

Brand loyalty

Homburg, Klarmann & Schmitt (2010) explained brand loyalty as the extent to which a customer decides to select one brand over others, regardless of the perceived advantages that the rejected brand may offer. In literature, there are two general schools of thought. The first argues that brand loyalty can be created through such elements of as customer promotion (Stuart & Muzellec, 2004). There is another school of thought, which states that brand loyalty is earned through effective branding and value creation (Schultz, 2001). In this regard, brand loyalty is not a single element in brand equity. It is a conflation of various attitudes and behaviours that customers have towards the products/ services while the firm keeps a high level of product quality as it ensures a reputable corporate identity (Thomson, McInnis and Park, 2005). Brand loyalty pertains to the deeply held commitment of customers to purchase and re-patronize the same products/services in the future (Oliver, 1999). This establishes a guarantee that the same set of products or services will continue to be purchased regardless whether there are new competitors in the market, situational changes occur, or market transformation happens (Li, Li and Kambele, 2012).

2.3 Rebranding 2.3.1 Definition and the meaning of rebranding

There are several fragmented definitions and meanings that have been given to rebranding in literature. Merrilees and Miller (2008, p. 538) argued that corporate rebranding refers to the disjunction or change between an initially formulated corporate brand and a new formulation. It is the creation of a new name, symbol, image, and design for an established brand in order to create an established differentiation in the minds of stakeholders and competitors (Muzellac and Lambkin, 2006). It is about communicating new messages and benefits to the stakeholders of the corporate brand (Saunders and Guoqun, 1997). Corporate rebranding pertains to the process by which a product or a service linked with a particular brand and marketed with a new brand identity (Kaikati, 2003; Knox and Bickerton, 2003). Its consequence can be either good or bad. As such, company rebranding can be considered as full of incertitude. Muzellac, Doogan and Lambkin (2003) have found out in a study that 42 % of corporate rebranding happened in the UK while 31% in the USA. This is not surprising considering that most of multi-national companies are from these countries. Katkari and Andrew (2003) have noted that between 2000 and 2001, rebranding across the globe increased by 7 %. This means that 1,766 companies have undergone corporate rebranding with companies in the USA leading the action.

2.3.2 The role of rebranding

Companies have been known to engage in rebranding with the sole purpose of giving themselves a new identity that can result in brand related advantages (Schultz, 2001). There are however those who have argued that corporate rebranding endeavours are risky, as they often require considerable investment, with no guarantee of achieving successful outcomes (Miller et al., 2014 p. 265). Nonetheless, corporate rebranding is viewed as a panacea, a powerful strategic move that serves the role of aligning the firm to new values and vision, which in turn, will propel it to success (Hatch and Schultz, 2003). Disagreeing with this position, Muzellac and Lambkin (2006) argued that corporate rebranding destroys what has been established. In this sense, it may be ironic and contradictory to marketing rationale, however; it should be noted that in the midst of the irony corporate rebranding by its definition is purposive- it is set to change the viewpoint of stakeholders. Putting the two points together, it would be noted that the best role that will be served by rebranding is largely dependent on how the company involved approaches the concept.

2.3.3 Rebranding frameworks

Based on most definitions of rebranding which only look to the merits of the process, a number of frameworks have been constructed that focus on risks associated with rebranding. This framework claims that an important factor missing in the definition of corporate rebranding is the term risk or uncertainty in the operationalisation of corporate rebranding. Nonetheless, it does not mention any thing about the risk and uncertainty entailed intrinsically in corporate rebranding. The typology of corporate rebranding provides insight into the different kinds of rebranding that may be undertaken. Hence, there are variations in the degrees of risk or uncertainty encountered by corporations as they embark on rebranding. However, these variations do not alter the fact that risk and uncertainty are inherent in the nature of rebranding. As such, it must be approached with caution and much understanding of the context and conditions in which it is undertaken. With this observation, inclusion of risk and uncertainty in the definition of corporate rebranding is seen as crucial in providing a more holistic meaning to the idea of corporate rebranding. Downplaying the risk and uncertainty inherent in rebranding may, in itself, increase risk and uncertainty associated with corporate rebranding.

2.3.4 Drivers of corporate rebranding

Rebranding has been identified to be a multi-variables concept that is influenced by several drivers. Some of these drivers are reviewed below.

Globalisation: As the market becomes global, both consumers and companies have also become global. This means that the reach of a company is no longer limited within countries or regional geographic boundaries, thus, opening unlimited possibilities for it.

Developments in Information and Computer Technology (ICT):Integral in the success of organisations is its ability to adapt in the fast phase development of information and computer technology (Calder and Watkins, 2008). There is a need for firms to be knowledgeable with current trends and developments in ICT as all business processes and systems are performed within the frame of technology (Axelrod, 2004).

Customers: With more access to information (Calder and Watkins, 2008), with more recognised rights as consumers (Mehta, 2000), and with the acceptance of consumer empowerment (Hastings and McDermott, 2006), corporations cannot simply assume that customers will do as they did. Instead, it is held strongly that customers satisfaction is critical in the success or death of a corporation.

Identified Stakeholders: Broadly defined, stakeholders pertain to people, individuals or communities who have stake in the success, failure and actions of the corporation (Tencati and Zolsnai, 2009). In order to realise the goals and visions of the firm, it is essential that an authentic collaboration between the firm and its stakeholders needs to be built. Communication of the firms goals, visions, position and image is a constant necessity in keeping a good relation with the companys stakeholders. It is important to note that stakeholders are crucial in the continued success of the firm because they provide the crucial support that the company needs.

Employees and Third-Party Relations: Recognising the critical role of employees and third-party relations of the company ensures the success of the corporation. In fact, keeping a collaborative relation with them is a sure strategy securing the success of the firm (Fox et al., 2007).

Figure 1: The Drivers of Corporate Rebranding

DECISION AND ACTION aaaaaaaaaaaaaaACTION

REBRANDING

Source: Researcher

2.3.5 Dimension of corporate rebranding

In addition, these drivers are push and pull factors, which act as the dimension for rebranding. It can be inferred that: (1) the unique condition of the global, fierce and competitive market acts a primordial push factor for corporate rebranding. (2) The challenge of the internal factors to corporate rebranding highlights not only the irony of corporate rebranding but also it brings to fore what rebranding is discarding and who are the members of the organisation that will be firstly affected by the rebranding. (3) These drivers are constantly interacting with one another. Hence, the corporation is in perpetual pursuit of the appropriate strategy that will yield the best for the company. (4) The socio-political-cultural and economic condition of the country where the company is situated is an integral factor in corporate rebranding. Including this aspect in rebranding will give the company advantage when deciding if there is a need for the corporation to rebrand. (5) It highlights the fact that corporations do not operate in a vacuum. For its continued success, corporations must adjust to the various drivers that are constantly affecting and operating on it.

2.3.6 Types of corporate rebranding

There are two kinds of corporate rebranding illustrated by Figure 2: evolutionary rebranding and revolutionary rebranding (Muzellac and Lambkin 2006; Stuart and Muzellac, 2004). The first kind is evolutionary rebranding. Under this type of rebranding, minor changes are made to the firms logo and slogan. These changes may be accompanied by modifications in the firms position and marketing aesthetics. In the end, changes under evolutionary rebranding are considered as less perceptible to outside observers (Muzellac and Lambkin, 2006). On the other hand, revolutionary rebranding is a radical transformation. It results into the creation and formulation of new corporate brand name. Major changes in the corporate position and marketing aesthetic are aimed (Muzellac and Lambkin, 2007). In revolutionary rebranding, fundamental changes transpire. It wipes out existing corporate name (Muzellac and Lambkin, 2006). Moreover, under revolutionary rebranding, customers and stakeholders easily perceive the transformation as it is fundamental (Lomax and Mador, 2006; Muzellac and Lambkin, 2006). As such, Stuart and Muzellac (2004) cautions that extensive study must be undertaken before pushing for a revolutionary rebranding since aside from being costly, the risk and uncertainty entailed in the decision is far reaching.

Figure 2: Rebranding as a continuum

(Muzellac and Lambkin, 2006)

2.3.7 Reasons for corporate rebranding:

Table 1: Reasons behind corporate rebranding

Author

Reasons

Branca and Borges, 2011

An evolutionary rebranding like a change in the name of the organisation may increase firms value

Juntunen et al., 2009;

Muzellac and Lambkin, 2006

Change in the ownership of the corporation which happens through acquisition or mergers, spin-off or private to public ownership

A change in the strategy which may come through diversification and investment, internationalisation and localisation

An alteration in the corporations position in the market, reputation problem, out-dated image, and erosion of market trust

Moore and Birtwistle, 2004

A change in the market environment that may threaten market growth

Lomax and Mador, 2006

A response to the legal requirement resulting from demergers and other similar events

Goi and Goi, 2011

A strategy to increase market share, out manoeuvre competition, and keep phase with the changing market

Kaikati and Kaikati, 2003

Economic slowdown

Stuart and Muzellac, 2004

Transformation in the corporate values, goals, missions and ethos

Gotsi and Andriopoulos, 2007

Alignment

Rebranding is a critical issue that corporations may face in the light of various drivers influencing the company and the unique context the firm may be encountering. As such, understanding the underlying principle behind the reasons provided and the sufficiency of the reasons to support the decision for rebranding should be well stipulated. With the risk and uncertainty that is inherent in rebranding itself, the need to provide the justification behind the reasons for rebranding should be clear and substantial.

2.4 Service rebranding2.4.1 The concept of service rebranding

It has already been mentioned; branding does not only focus on tangible aspects of a company. It is based on the principle that both abstract and tangible components of a company can be branded that the concept of service rebranding is possible. Schultz (2001) stressed further that for service rebranding to take place, companies in the service sector are expected to adopt a new brand that modifies the actual feature of service that they render. In this regard, understanding the nature of corporate rebranding is essential in the face of its perceived utility in strategic management and service delivery. From these perspectives, it can be inferred that service rebranding is an attempt to break or separate from the former corporate brand that a service provider offered (Dacin and Brown, 2006). Homburg, Klarmann & Schmitt (2010) also considered service branding as a process of establishing something new while separating from the old way of delivering service. Service rebranding can thus be perceived as being a critical decision and change process for many companies.

2.4.2 Rebranding in telecommunication

As service providers, when rebranding takes place in the telecommunication sector, it is said that service rebranding in telecommunication has taken place. Over the years, there are records of several rebranding in telecommunication that has taken place across the globe. Muzellec, Doogan and Lambkin (2003) however explained that in most of the cases, rebranding in telecommunication takes place when there is change of hands in either the management or ownership of one company to another one. Such change of hands may take place either as the result of a merger or an acquisition. There are several factors that influence rebranding in telecommunication sector. Most of these are based on the presupposition that a corporate brand has already made its mark in the minds of the customers and stakeholders (Pauwels, Raluca & Descotes (2012). The mark created may either be a positive or a negative one. When the mark is positive, the new service provider comes in with the need of building on the old brand and taking advantage of the brand equity already built (Muzellec, Doogan & Lambkin, 2003). But when the old brand is negative, the new brand comes in with the challenge of improving the market position of the older brand (Pauwels, Raluca & Descotes (2012).

2.4.3 Customers and corporate rebranding in telecommunication.2.4.3.1 Brand image

Homburg, Klarmann & Schmitt (2010) posited that brand equity is the impression that a customer holds in mind about a brands total personality. Juntunen (2014) added that brands personality is determined by such variables as real and imaginary qualities and shortcoming. By explanation, brand image is not only informed by the qualities of the company but its shortcomings also. Chan-Olmsted and Jamison (2001) argued that within the telecommunication sector, brand image on corporate rebranding is often created based on the perceived position of the company before the rebranding took place (Moore and Birtwistle, 2004). What this implies is that in case customers perceived the company to be delivering quality service, the brand image created is a sceptical one which is not certain about what the outcome with the rebranding would be. On the other hand, if the service quality was generally regarded as abysmal, the customer brand image created is such, that it sees the rebranding as a way of resurrecting the service delivery of the company. However, it has been observed that these reasons are given for corporate rebranding as guidance and evaluation, to whether consider them as sufficient grounds to undertake rebranding.

2.4.3.2 Service quality

In most parts of the world however, there are performance assessment agencies that evaluate telecommunication service providers according to the extent to which their services meet required standards (Juntunen, 2014). As it was rightly mentioned above, service quality is an important variable for determining and creating brand image within the telecommunication sector. Relating service quality to rebranding therefore, it can be said that the search for rebranding can even be informed by customers through their purchasing behaviour (Knox & Bickerton, 2003). What this means is that when customers feel that service quality being rendered by their telecommunication service providers is not good enough, their purchasing behaviour can become negative and this can give authorities clues on the need to rebrand.

2.4.3.3. Trust

Kim, Morris and Swait (2008) assert that perceived brand quality and brand trust are the two most important factors leading to brand loyalty. Moore and Birtwistle (2004) however argued that it is not possible to gain brand trust through customer loyalty as brand trust can only be earned and merited. Relating this to the telecommunication sector, it would be assumed that brand trust derives directly as a result of service quality. This quality is however expected to be a frequent, reliable and readily available (Knox & Bickerton, 2003). Where such brand trust cannot be created, rebranding by introducing a new entity with a different approach to service delivery may be used to salvage the situation (Chan-Olmsted and Jamison, 2001).

2.4.3.4 Customer loyalty

In the telecommunication industry, there are several important elements that have to be properly aligned for brand loyalty to be achieved. The perceived quality of the product (Batra et al, 2000), individual values (Donthu and Yoo, 1988), meaning ascribed to the brand (Triandis, 1995) and the perceived value of the brand (Dacin and Brown, 2006) are all factors that can bring about the creation of customer loyalty in the telecommunication sector. The debate as to whether or not rebrand in the telecommunication industry affects customer loyalty negatively continues to be a debate in literature. Moore and Birtwistle (2004) held the opinion that if the same variables that accounted for a customers loyalty remain the same after the rebranding, it is likely that rebranding will not affect customer loyalty.

2.4.3.5 Switching

Switching is the practice of changing ones service provider in the telecommunication industry (Lomax and Mador, 2006). Switching has been directly associated with retention, which explains the situation where a customer remains with a particular service provider or continues doing business with a specific service provider for a very long time (Knox & Bickerton, 2003). The correlation is such that where there is switching, retention cannot be achieved. Meanwhile when there is retention, customers come to know and understand a companys brand better. Such understanding leads to customer loyalty and all the benefits that comes with it (Lomax and Mador, 2006). Carauna and Ewing (2010) suggest that corporate reputation and its relation to perceive brand quality plays a crucial role in switching.

2.5 Telecommunication industry in Algeria

In the past decade, Algeria telecommunication sector has seen one of the fastest growths in telecom services across the globe. Since the liberalisation of the mobile telephony sector, mobile penetration skyrocketed from 1.5% of the population in 2002 to 94.4% in 2011, or 33.74 million mobile subscriptions (Algeria: Deepening the market, June 2012). From 2002 to 2008, total turnover in the mobile sector increased sevenfold, from 530.34m to 3.71bn. The proportion of GDP coming from mobile telephony declined slightly over the same period, from 6.3% in 2002 to 4.05% in 2008, but this is largely due to higher hydrocarbons revenue on the back of rising global oil prices (Algeria: Deepening the market, June 2012). Algeria ranks seventh among Arab states for the affordability of the information and communications technology (ICT) services across the board, including fixed-line telephone and internet services; and 71st globally. Data from the ITU show that Algerias overall ICT price basket, or the total expenditure on ICT as a percentage of average per-capita income, decreased from 3.5% of annual income in 2008 to 3% in 2010. Yet there is considerable demand for internet among the population; in 2010, the overall internet penetration rate reached 12.5%, but only 2.5% of the population held broadband internet subscriptions (Algeria: Deepening the market, June 2012).

2.6 The rebranding of the corporation Nejma to Ooredoo

According to CEO Joseph Ged, Nedjma was a national brand that will never be forgotten and that Nedjma was also a national operator that invested all of its profits in Algeria instead of repatriating its dividends (Nedjma becomes Ooredoo Algeria, 2013). Nedjma although a late player in Algerias telecommunication, rose fast into popularity because of its high quality service to its customers and to the community. With this, customers and stakeholders of Nedjma regarded the company highly and associated the name of Nedjma with quality service and technologically adroitness and excellence. As such, it is not surprising that both its customers and stakeholders look at it with high esteem and expectations, then 25th of February 2013 marked the drastic change. It was announced in GSMA World Congress that Nedjma will be rebranded to Ooredoo and that transition period will begin on 2013 until 2014. Joseph Ged stated that the rebranding was a new chapter in the history of Nedjma, while THE Sheikh Abdullah Bin Mohammed Bin Saud Al Thani, its a proud moment in the Ooredoo family.

Ooredoo is a global telecommunications company. In a span of six years, it has transformed from a single market operator of Qatar to an international communications company with a global customer base of more than 91.0 million people (as of 31 March 2013) and consolidated revenues of US$ 9.2 billion for fiscal year 2012. Delivering mobile, fixed, broadband internet and corporate managed services tailored to the needs of consumers and businesses in emerging markets, Ooredoo has been the fastest-growing telecommunications company in the world by revenue since 2006 and its enterprise value has more than tripled since 2005.(Ooredoo Algeria, 2013)

Ooredoo strategic framework is anchored on three fundamental Cs. Caring, Connecting and Challenging. Caring rests on lead on customer experience. Connecting is founded on strengthening its foundations via securing and fortifying its relations with employees, shareholders while keeping abreast with technological developments and keeping a well-rounded management. Finally, challenging is built on finding more ways to accelerate growth by innovative and creative means

2.7 Summary of the review

The concept of rebranding is affected by several factors working on it. Drivers of the concept, reasons behind the concept and acknowledged advantages and disadvantages are all working together in creating a complex foundation in which to apprehend the concept. In this sense, existing rebranding definition necessitates a transformation that will accommodate these numerous elements, which affect the idea and remove the apparent vagueness that is attached to the notion of rebranding (Goi and Goi, 2011). The literature review lays down the conceptual frameworks necessary in understanding the study. Several conceptual frames are developed, which are drawn from the literature review. First of the conceptual frames is the inclusive definition of corporate rebranding. It has been shown that the definition of corporate rebranding has been limited in presenting it as a process. The fact of it being a risk or an uncertainty has been downplayed in its connotation. In this regard, through the review, it is stipulated that the meaning of corporate rebranding should also be inclusive of the truism that as it is a process, it is also a risk and an uncertainty a guarantee of its success is not automatic reality.

Chapter 3 Research Methodology3.1 The choice of methodology and case companies

The research was conducted through the use of the case study methodology. Clifford and Clark (2004) explained a case study as a type of methodology where the researcher identifies a unique issue or case within a research setting and critically studies or analyses the issue through the collection of data. The decision to use case study research was based on the presupposition that case study provides the research the opportunity to understand the contemporary phenomenon being observed within the context and condition where it happening and while it is happening (Yin, 2014). Moreover, as the aim of the research is to clarify and understand the phenomenon of corporate rebranding, case study research is suitable because the purpose of this study is to focus on in-depth understanding of a phenomenon and its context (Cavaye, 1996). The issue or case that was selected had to do with the rebranding of Nedjma. The case was studied to better understand how the rebranding impacted on brand equity, customer perception and retention as a member of the telecommunication industry.

3.2 Method of research 3.2.1Qualitative Method

Qualitative research has been explained to be a type of research, which is conducted, with the aim of gathering in-depth data that makes it possible to understand human behaviour and the reasons that inform how people behave (Clifford and Clark, 2004). Qualitative research is a paradigm, which holds that reality is subjective and as such its meanings and discourses are constructed and perpetually changing (Guba and Lincoln, 1994; Denzin and Lincoln, 1994). With this framework, in qualitative methods, both the investigator and participants are linked in the phenomenon being observed and as such, the focus in these methods is the search for meaning and processes within the lived experiences of the people who are living in the phenomenon being studied (Reid, 1996; Smith, 1993). The current study employed the use of qualitative research method in understanding the factors and reason behind the rebranding of Nedjma. This form of qualitative research was taken from the perspective of officials of the company as they were noted to be the people in the best position to giving answers to some of these critical management questions. Another component of the qualitative method of the research comprised the collection of data on customer perception about the rebranding. Customer perception was chosen to be explored qualitatively as it is an abstract concept that cannot be quantified.

3.2.2Quantitative Method

Quantitative research can be said to be the opposite of qualitative research method as in quantitative research there is a systematic empirical investigation of an observable issue or concept through the use of mathematical, statistical and numeric data collection (Blaxter, Hughes & Tight, 2001). This means that for quantitative to be successful, it is important that the researcher identifies a set of data that can be quantified. In line with the research problem and the aim of the current study, quantitative research was employed with the aim of investigating how the rebranding of Nedjma had impacted on brand equity and customers retention. It would be observed that brand equity could be quantified through its effect on customer patronage and market share of the company. Retention can also be quantified through the sales made from recurring customers. Quantitative method was therefore part of the overall research methods used in this study. Quantitative research is based on positivism, which holds that there is one objective reality and one truth (Denzin and Lincoln, 1994). In this context, quantitative method allows for the objective study of the phenomenon since researchers cannot influence the variables and phenomenon understudy (Johnson and Onwuegbuzie, 2004). Moreover, it paves for the analysis of variables in a value-free framework (Denzin and Lincoln, 1994). Hence, quantitative search and its methods, the techniques adopted remain neutral as it excludes bias and as such, time and context free (Nagel, 1986).

3. 3 Types of Research3.3.1 Descriptive Research

From a very broad perspective, Gerrish and Lacey (2013) explained that a descriptive research seeks to answer the question of what is, and is used to describe the characteristics of a population or concept that is being studied in a research. This definition gives a perfect fit into the current study as part of the objectives of the researcher is to what the characteristics of customers of Nedjma are as far as the impact of the rebranding of the company on their retention is concerned. It is expected that the retention of customers will help to understand the characteristics of customers of Nedjma when it comes to their purchasing behaviour. It was for this reason that a descriptive research was employed in the current study to investigate customer purchasing behaviour as manifested through their retention with Nedjma as a rebranded company into Ooredoo. The descriptive research was structured according to the philosophical supposition that the issue under study in this research is an independent phenomenon happening in the world but at the same time, its meaning is construed by the people who are involved and affected by the phenomenon. In this regard, the descriptive researcher served as a philosophical framework of the research, which covered both interpretevists and critical realism. The descriptive research was integrated into the quantitative method of the study where customer retention was measured.

3.3.2Exploratory Research

Diriwchter and Valsiner (2006) explained that an exploratory research is conducted for a concept that cannot be clearly defined. In effect, exploratory research is necessary as a preliminary data collection approach which is used to later gain a detailed understanding about a concept Moballeghi & Moghaddam, 2008). It is therefore very difficult to draw conclusions based on exploratory research alone. The current study has aspects of exploratory research that was directly linked to the qualitative component of the study where managers and authorities from Nedjma were engaged in qualitative data collection through the use of an interview to explore reasons behind the decision of the company to rebrand. The rationale for selecting exploratory research for this aspect of the study was that the researcher preconceived that it was only after connecting the responses and outcomes of the interview with the quantitative data collection from customers that real conclusion on the real impact of the rebranding could be drawn. This is because as a public profit-making company, it is important to note that management decisions of Nedjma have to be considered as one that is well received by customers and thus positively responded to through improved customer retention and increased brand equity. This was upheld due to a number of reasons. Mainly, the phenomenon of corporate rebranding is happening in the external world. It is neither a mere figment of imagination nor it is a result of the subjective reality of corporations. Hence, it falls under the purview of critical realisms, which must be endorsed by customers (Gerring, 2000).

3.3.3 Explanatory Research

An explanatory research has been explained as one in which the researcher attempts to connect ideas to understand cause and effect (Diriwchter & Valsiner, 2006). By implication, explanatory research takes place when the researcher is concerned with explaining what is going on (Moballeghi & Moghaddam, 2008). Explanatory research can thus be noted to be a type of research where there is a form of correlation drawn between the cause of a decision and the effect that resulted from it. When put in this context, it is easier to appreciate that aspects of the current study dealt with explanatory research. This is because there had been the implementation of a cause, which was the rebranding of Nedjma into Ooredoo. It was therefore important to understand the effect of this cause through brand equity, customer perception and retention trends that were recorded after the rebranding. Independently real as it is, nonetheless, the meanings and discourses of corporate rebranding are embedded in the construed meaning and interpretations of the people and entities affected by the phenomenon (Gerring, 2000). Thus, the interpretevists framework was essential for the explanatory component of the study.

3.4. Population and sampling of research 3.4.1 Population

Population is defined as an entire group of individuals, events or objects, which share common characteristics (Mugenda and Mugenda, 2003). Based on the use of two research methods, which were the quantitative and qualitative research methods, there were two groups of population for the study. The first target population of the study was customers of Nedjma before, during and after its corporate rebranding to Ooredoo. Customers of Nedjma-Ooredoo who fall within this characteristic were targeted because their perspective regarding the entire event of Nedjmas rebranding to Ooredoo is a qualitative focus of the study. The second component of the population was made up of managers from the company. The managers were included for the purpose of collecting qualitative data that bordered on reason for which the rebranding was necessitated and how the managers perceive the outcome of the rebranding. Initial visit to the company showed that the company operated a functional organisational structure, which was made up of 12 different functional portfolios.

3.4.2 Sampling

Because there were two groups of respondents in the population, the sampling also comprised two sets of participants. The first sampling was performed to select a group of participants from among the customers of the company. The study used random sampling of Nedjma-Ooredoo customers. Five stores of Ooredoo Algeria were randomly selected and visited. At the time of the visit to each store, the first 10 customers who were exiting from the store who expressed interest to be part of the study were automatically included in the same size. The rationale for selecting random sampling for the customers is because of the advantage of fairness and absence of biases that it offers (Kasim, Alexander & Hudson, 2010). At the end of the sample, there were 23 females and 27 males making 50 customers who had been selected at random from the customers to be part. On the part of the managers, the researcher used a purposive sampling technique. Purposive sampling was used because not all people within the population can be said to be in a position to offer expected depth of knowledge that addresses the issues raised in the study (Hunter & Leahey, 2008). To this end, six (6) managers whose positions were public relations manager, corporate brands manager, chief finance officer, human resource manager, corporate affairs manager, and marketing manager were selected and included in the sample.

3.5. Data collection 3.5.1 Interviews

A set of interview questions was a constructed for the managers. The interview questions served as a guide in the conduct of the interview. The interview questions were designed in a way that it will encourage the participants in sharing their views and perspectives regarding the issues of why the rebranding was necessary and how the rebranding has impacted on the company. As it has been indicated earlier, the interview was performed to be part of exploratory study to gaining preliminary understanding to the main issues of the study (Hart, 2008). Using the interview guide ensured that all respondents responded to the same set of questions. The only exceptions were where answers that required follow up questions came up. The average time spent on each interview was 45 minutes and was done through Skype conference. For each person, one day was dedicated for the interview, which means that the whole interview process lasted for 6 working days.

3.5.2 Survey questionnaire

Data collection via the use of survey questionnaire was directed at the customers of the company. This was done due to the sample size of the customers, which was considered too large for the researcher to use an interview. As noted by Given (2008), survey questionnaire is less time consuming because it does not involve the direct input of the researcher during the answering process. After the questionnaire had been prepared, the researcher sent them to the five shops where the data collection was to take place. Because the questions were all close-ended questions, it was very easy for the respondents to answer them on the spot and present them to the researcher. The questions were basically an extension of the research questions of the study. In all there were both qualitative questions on customer perception and quantitative questions on brand equity and retention. A total of 10 questions were presented. The average person completed the questionnaire in 15 minutes. Before the respondents were given the questionnaire, the rationale of the study was thoroughly explained to them through the use of a consent form. Their anonymity and confidentiality were also guaranteed, as they were not expected to introduce themselves on the questionnaire.

3.6 reliability and validity

The reliability of the study examines the extent to which findings from the study can be generalised within any research setting where similar variables as the ones that prevail at the premises where the study was conducted can be found (Green, Johnson and Adams, 2006). Validity on the other hand refers to the extent to which the research instrument collects items for which it was prepared to collect (Hart, 2008). The data collection was conducted in two phases. The first phase was the distribution of the survey questionnaire. A Likert Scale questionnaire was constructed. The bounded questionnaire provided more structured responses in order to assist in the formulation of tangible recommendations. Before its actual distribution, a pilot testing was made. This was necessary in order to validate the questions and at the same time improved the questionnaire. The questionnaire was administered in five shops of Ooredoo and among customers who had been selected at random. This was done to ensure that there were no biases or manipulations with resulting outcomes of the study so that the studys findings could be replicated in other settings were similar variables were used.

CHAPTER 4: Analysis4.1 Findings and analysis 4.1.1 Impact of rebranding on brand equity

At an early stage, customers were asked if the rebranding caused as disillusion, which affected their knowledge, familiarity and identification of Nedjma. The outcome of their responses has been given below.

Figure 3: Impact of rebranding in creating disillusion in customers

Figure 3 shows the percentage of people who were disillusioned as against those who were not disillusioned from the rebranding of Nedjma. The question was straightforward. It sought to know the exact reaction of the participants regarding the rebranding of Nedjma. It has been observed that 30% of the sample, which represents 15 people, indicated that they agree on the fact that rebranding disillusioned them. 18% of the sample disagreed to being disillusioned while 44% representing 22 people of the total of 50 people strongly disagreed to being disillusioned. There was 8% of the sample with a neutral feeling about disillusion. The high number of customers not being disillusioned is mainly attributed to a strong publicity and a significant communication campaign that was launched ahead of the rebranding by the company.

In question 7, the respondents were asked if the rebranding had affected the identity they gave to the company. This question was asked due to the relationship between brand equity and customer identity given to a company (Aaker, 2004). The responses gathered have been shown below.

Figure 4: Impact of rebranding on customer identity of company

This pie chart represents the ambivalence of respondents when it comes to the idea of the rebranding. Just like in the preceding graph, they have indicated that a year after the rebranding, the respondents are still divided as to how they view the rebranding. This is because 30% of respondents representing 15 people agreed to the fact that the rebranding had changed the identity they gave to the company. A close percentage of 24% disagreed to this whiles 14% strongly disagreed. Another 30% of respondents held a neutral position. This line of response offers the opportunity for Ooredoo to build on the strong brand equity of Nedjma. Since not as many customers as before has the same extent of identity they associated with the company.

There was also a question on the questionnaire that sought to know if the rebranding had brought a new feeling of understanding and confidence in the brand of the company. The responses gained in this regard have been presented as follow.

Figure 5: Impact of rebranding on customer understanding and confidence in company

Comparing those who agreed that the rebranding has boosted their confidence and understanding of the company to those who disagreed, it can be said that the rebranding has been useful for brand equity. This is because 34% agreed whiles only 10% disagreed. On the other hand, there were 14% who strongly disagreed whiles 16% strongly agreed. 26% of respondents representing 13 people held a neutral opinion. This evidence manifests that the rebranding is starting with positive vision. Despite the tentativeness of the participants regarding being happier or having an outright positive perception of the rebranding, they have shown that they have confidence on what Ooredoo can offer. Hence, this is a positive sign by which Ooredoo can start rebuilding its brand equity.

Another significant question related to brand equity was asked on the interview guide. As managers of the company, they were asked if comparing Ooredoo to other telecom service providers, they felt the popularity of their company, which was the basis of brand equity, had been negatively affected. Greater number of the interviewees held the opinion that Ooredoos international brand equity had rather impacted on Nedjma positively. One respondent stated for example explaining that most Algerians were already familiar with Ooredoo as an international competitor and so after the rebranding, the company still held its brand equity. On the part of those who thought the rebranding had affected brand equity of the company, one stated most existing customers are still in an evolution stage, trying to acquaint with the new brand of Ooredoo. This means that there are both positive and negative impacts of rebranding on the company. This gives managers a huge task of ensuring that they continue to build the brand of the company to make the positive impacts outweigh the negative impacts.

4.1.2 Impact of rebranding on customer perception

Impact of rebranding on customer perception was identified as a qualitative aspect of the study. This notwithstanding, questions were structured in the questionnaire that focused the views of customers on their perception of the rebranding. Customer perception as used in this context generally refers to the level of acceptability that customers attach to the rebranding that took place. From the questionnaire that has been attached, questions 2, 3, 6, and 9 focused on customer perception. The various responses from the questionnaire have been presented and analysed below.

In question 2 of the questionnaire, customers were asked if they found the rebranding to be acceptable if service quality was going to be maintained. Their responses are illustrated by figure 6.

Figure 6: Acceptability of rebranding if service quality is maintained

From the figure above, it is seen that there were only 4% of the respondents represented by 2 people who did not agree or strongly agree that the rebranding was acceptable if service quality was to be maintained. Remaining 46% and 50% of respondents agreed and strongly agreed respectively.

Still on customer perception, respondents were asked if they held any negative view about the rebranding. Their responses in this regard have been given below.

Figure 7: Impact of rebranding in creating negative customer view

This statement directly touches on the possibility that the participants have a negative perception to the rebranding that emerged with Nedjma. Although there are a number of participants who have voiced their negative view of the rebranding, it has been noted that almost 60% of the respondents did not view the rebranding of Nedjma as something negative. Although this does not preclude that they do think positively about it, but what is certain from the survey is that participants do not see the rebranding as a negative act.

In question 6 of the questionnaire, the research considered the fact of customers perception about being happier as subscribers of the telecommunication network after the rebranding. The chart below gives a pictorial understanding of customer perception on how happy they are after the rebranding.

Figure 8: Extent of customer happiness with the rebranding

Customer happy with rebranding

This shows the response of the participants to the rebranding that had occurred. As the percentages are almost equivalently distributed, there is no clear result whether the respondents are happier with the rebranding. This presents a challenge to Ooredoo. The graph shows that, as actually, Ooredoo is dealing with group of customers that can be persuaded to be happier with the services of the company after the rebranding. It signals the possibility that the participants are waiting and are ready to be happier or not to be happy with Ooredoo. More importantly, the company has to do a lot of public education and generate new brand awareness among Algerian telecommunication industry, which ensures that the 9% and 7% who disagree and strongly disagree to being happy respectively will be made to understand and appreciate the need for the rebranding.

Still on the perception of customers on the rebranding, they were asked through the questionnaire if the companys new brand including its new logo had changed the views and acceptability of the company. The chart below depicts their responses.

Figure 9: Impact of new brand in improving customer perception

From the chart above, it is not possible to clearly state whether the new brand of Ooredoo that was brought on board has improved customer perception on the company. This is because although 34% said agreed, a close figure of 40% disagreed. Considering that minimal change has been done with the logo of Nedjma-Ooredoo, it is not surprising that the logo change is not considered as a substantial factor in the rebranding. The impact of the logo change is not considered as a major concern among the respondents of the survey.

The interview was also used to solicit views of the managers on how they thought the rebranding had affected customer perception. As seen in the appendix, the interview asked the managers how the rebranding made the customers reacts and how it affected theirs perception.

Managers were expected to have information to this question as they directly interact and relate with customers. From the opinions collected from the interview, it was noted from greater number of the respondents that customer perception about the rebranding has been a mixed feeling. This is because according to one interviewee, most customers are still giving the company time to know how the rebranding affects the service they receive. Another respondent added that I am sure their actual perception will be developed after some few more years of knowing what the rebranding was all about for them. There were some few interviewees who believed that the rebranding had affected the company negatively. In the view of one interviewee, customers think that the rebranding occurred because the company is now short of ideas and innovation.

4.1.3 Impact of rebranding on customer retention

Another important objective of the study was to know the extent to which customers were ready to remain loyal to the company even after the rebranding or as a result of the rebranding. To collect such data, three questions, which were questions 4, 5 and 10, were posed to the respondents. For the part of retention, customers ought to be satisfied with service delivery (Aaker, 2004). The customers were asked if they felt satisfied with the service of Nedjma even after the rebranding. The responses given are presented and analysed below.

Figure 10: Customer satisfaction after the rebranding

Figure 10 shows the level of satisfaction that the participants have towards the company. A high 74% shows that remains satisfied with the company . The high rate of satisfaction that the customers of Nedjma-Ooredoo gave marks a positive regard for the company.

After measuring customer level of satisfaction, the research seeks to explore the actual factors that have accounted for their satisfaction levels. This made the research pose a question on whether customers felt the rebranding had brought an improvement in the services of Nedjma to Ooredoo. Customers opinion about improvement in services after the rebranding has been given below.

Figure 11: Impact of rebranding on improvement of service

In the context of the rebranding, there is a seeming split between those who agree there is an improvement in the service of Nedjma-Ooredoo and with those who are currently neutral with the issue of improvement. This shows the tentativeness or the waiting period that the costumers are giving to Ooredoo. After a year of rebranding, they remained neutral with their views regarding improvement within the company. This is a situation could affect retention if it is not changed immediately. This is because customers may be tempted to switch brand with the aim of getting more satisfying service (Balmer & Gray, 2003).

The last question about retention was very specific in knowing if customers were ready to remain with the company after its rebranding. The answers from this question have been given below.

Figure 12: Readiness of customers to remain with the new brand

Figure 12 shows that the willingness of the participants to stick to Nedjma even if its corporate rebranding of Ooredoo has already transpired. This is because there was no customer strongly agreeing not to stay with the company while only 16% representing 8 people disagreed with staying with the company as a result of the rebranding. They give Ooredoo the continuation and the chance to further develop its own brand equity from the brand equity of Nedjma.

The mangers were asked through the interview if their market research had showed that customers were ready to stay with the company and continue to use their network as a result of the rebranding. In this, the trend of answers showed that most interviewees did not believe that the rebranding alone could cause customers to be retained. As explained by one interviewee, I do not think that in todays competitive market, the name of a telecommunication company alone yields customer retention. Rather, customers are enlightened enough to judge from the quality of service they receive. There were a few interviewees who were very confident that the rebranding would lead to customer retention. This is because one interviewee explained that customers know that rebranding always comes with a new inspiration, innovation and promotion which I believe they will wait for.

4.2 Theoretical implication: the case Nedjma to Ooredoo.

Relating the findings that have been made above to literature, it is possible to construct a theoretical implication about the case of Nedjmas rebranding to Ooredoo and how this rebranding has affected brand equity, corporate branding and customer perception and retention. This section of the chapter therefore critically discusses and gives implication to the findings with the use of literature so as to create theoretical implications for the entire study.

4.2.1 The Impact of corporate rebranding on brand equity

Drawing from the survey outcomes and the theme of expectations from the interviews, the positive brand identity and equity that people had of Nedjma is being passed to Ooderoo. The passing is tentative and cautious. There is a sense that the consumers are also waiting for Ooredoo to prove their claim that they share the same vision, goals and ethos with Nedjma. This is the first finding of the study, the two-fork response of the customers to rebranding. The first fork is tentativeness - the wait and see attitude of the customers. The second fork is the expectations of similar or even better services from Ooredoo. Writing on the relationship between rebranding and service quality, Balmer and Gray (2003) debated that the extent to which rebranding companies are able to guarantee service quality and improvement is a major stake in deciding the extent of brand equity that will be achieved. This is because customers will be expecting to see a smooth transition in quality that is as easily identifiable with the new brand that is created as the old one that was rebranded (Branca & Borges, 2011). In effect, corporate rebranding will not impact on brand equity until the company has taken steps to maintain the same level of service identity, or a better one from the unbranded company (Berry, 2000).

4.2.2Attachment with the Brand and Role of Corporate rebranding

The Nedjma-Ooredoo rebranding brings the idea that the corporate rebranding happened not because the company had to break from an ill reputation or from a wrongful act, but an evolutionary rebranding. This evolutionary rebranding is seen as a way in which the company sought to build positive brand equity and brand identity from the old brand by offering a more positive leverage for the re-branding effort. This claim can confidently be made regardless of the fact that it pressures the rebranded firm to live up and surpass the brand identity and brand equity of the prior corporate brand (Branca & Borges, 2011). Nonetheless, it offers a good platform or even better possibility of success for the rebranding. As such, the findings showed a positive outcome of rebranding that is built on a positive view of prior corporate brand. It also offers a friendly environment for the rebranding process. With all these points made, Balmer and Gray (2003) emphasised on the importance of the company attaching itself to the new brand that results from the rebranding. This is because, when this is done that a claim of corporate rebranding can be said to have taken place (Berry, 2000). In effect, customers must not only see the rebranding as something that happened to the companys logos and other symbols but to Nedjma as a corporate entity.

4.2.3 Major factors affecting customer perception and retention: 4.2.3.1 Service Quality

Caruana and Ewing (2010) argued that customers of today have become more enlightened and informed about the choices they make with services and products. In effect, it is not easy to assume that by merely associating with a known brand, a rebranded company can be guaranteed of positive customer perception and retention. Indeed this opinion was also shared by one of the interviewees as was stated above. Part of the actions that any rebranded company needs to do to achieve retention and positive customer perception is improvement in service quality (Chan-Olmsted & Jamison, 2001). In the case of Ooredoo, expectations are high because the rebranding of Nedjma is perceived as the coming together of two giants in the telecom business. It is sharing the vision and goal of achieving the position of being the best telecom service provider not only in Algeria but also in Africa and Asia. Hence, the quality, extent and kind of service clients and stakeholders are expecting not just to be good, but even better. As such, there is no disillusion but only expectations of quality service. This mind-set can be justified by the presupposition that Nedjma offered its clients quality service. Thus, the same expectations are expected from Ooredoo. It is worthy to note that the quality service that Ooredoo provides is not only limited to the users of their services. In the financial report of Ooredoo Algeria, it has been shown that since the rebranding, the financial gains of the company continue to increase (Muzellac, 2006).

4.2.3.2Brand image

Closely related to the issue of service quality is what Caruana and Ewing (2010) refers to as brand image. Brand image has been explained as an important factor, which determines how successful a rebranded company would be. Chan-Olmsted and Jamison (2001) clarified that the public perception given about a company and its commitment to customer satisfaction constitutes brand image. In the context of Nedjma, it is expected that the extent to which the new brand, which is Ooredoo will be able to put in effort in creating a positive brand image will go a long way to influence the outcome of customer perception and retention. This is event is referred to as the brand equity continuum in the literature review. Moreover, in the brand equity continuum, it has been asserted that the past brand equity of the corporate brand is one of the significant factors that may influence rebranding. Furthermore, it challenges the notion of rebranding as separation or removal of the new corporate brand from the old one. Since, it is observed in the study that the rebranding to Ooredoo heavily capitalised on the high brand equity of Nedjma. Similarly, it also questions the knowledge of destruction of brand equity. Therefore, it can be concluded that destruction of brand equity is not solely achieved by rebranding.

4.2.3.3Trust

Trust is another factor that can influence customer perception and retention (Muzellac, 2006). Specifically, it is expected that the service delivery from Ooredoo will give customers some level of confidence that the rebranding was not necessitated because the company was lacking out of innovation as was expressed by one of the interviewees. Leaping into rebranding without closely looking into the conditions that brought about the need for it is unwise and very risky for the firm. To retain the trust of customers, alignment must be ensured among rebranding, corporate values, visions, culture, brand equity and the inclusion and integration of stakeholders (Muzellac, 2006). However, as shown by the case of Nedjma-Ooredoo rebranding, the old, excellent and positive brand equity of the old corporate brand is a strong and powerful strategic point that can be utilised as the starting point in the corporate rebranding. The case of Nedjma Ooredoo shows that shared vision, goals and ethos between old corporate brand and corporate rebranding create a smooth and level transition. As the company is in the telecommunications sector, which is a service sector, a guarantee of better service from corporate rebranding establishes a better leverage for creation of trust (De Chernatony, 2002).

4.2.3.4 Customer loyalty

Chan-Olmsted and Jamison (2001) argued that the behaviour and attitude of loyal customers of a firm undergoing rebranding is tentative with suspension of judgment. However, the suspension of judgement does not imply negative reaction but cautiousness with the happening corporate rebranding. This cautious and tentative attitude of the loyal customers can be capitalised by the new corporate as a take-off slate in the building of brand equity (de Chernatony, 2002). This also needs further study, as it has not been given much attention in the discourse on rebranding in the case of Nedjma-Ooredoo. Relating the data collected to the literature on customer loyalty, the newly branded company have a lot to worry about at the moment such as; the notion of rebranding, as inconsequential to the customers decision-making should be given ample consideration. This is because such notion implies that there are other salient factors that customers may be considering more than the rebranding itself. Once such factors are not met, chance that their loyalty can be secured will be much challenging.

4.2.3.5. Why Switching or not switching

There has been sufficient evidence in the data collected, which confirms that the rebranding will not lead to switching by the customers. This shows that customer perception and retention was positive and that customers will not be in a rush to switch just because the company experienced a rebranding. The case of Nedjma Ooredoo shows the following; First, corporate rebranding that works on a positive brand equity and identity of the old corporate brand has an increased advantage for success. This shows that the association involved in brand equity and corporate brand is not something that can be easily removed in the minds and perceptions of the clients. A corporate rebranding that assumes that it can be totally separated and removed from the old corporate brand is working from a wrongful presupposition. For this reason, corporate rebranding has an arrow that goes back to the old corporate brand. The case of Nedjma-Ooredoo shows that people are aware of what is being let go in the rebranding or what is being removed and at the same time, they are aware of the change that is transpiring. As such, they are willing to give time to Ooredoo to turn its promises into reality. Thus, there is an observable suspension of judgment towards Ooredoos performance.

4.3 Rebranding descriptive framework

Ooredoo is also known for its continuing community service empowering women and youth in the country. This communicates the fact that Ooredoo continues with the legacy of Nedjma- taking care of all its identified stakeholders, leaving no one behind in the midst of the challenge of growth and progress and continuously connecting with the Ooredoos identified stakeholders. With this, the notion of disillusionment in the rebranding that happened is inconsequential while the expectations for quality service remains a threshold for evaluation of the rebranding process.

In terms of confidence and retention (survey questions 2 and 10), in the case of Nedjma-Ooredoo, it is important to note that first both Nedjma and Ooredoo have good brand identity and brand reputation. Secondly, both offer a more dynamic and holistic growth for all its stakeholders. Hence, the rebranding of Nedjma to Ooredoo is seen by many as a move forward. Thirdly, the rebranding of Nedjma to Ooredoo is also a signal of a more open Algeria telecom sector since the telecommunication sector of Algeria is controlled by the government. The entry of Ooredoo is a sign that government is now willing to slacken its hold on the sector. Hence, the possibility of a better service to customers could be achieved.

Chapter 5 Conclusion5.1 Suggestions for the Future Research and managerial implications

Based on the experiences gained by the current study and some of the challenges that were faced in the course of undertaking the study, there are a number of recommendations that will be made for future researchers who may be pursuing a similar research or may be seeking to build on what was just completed. The first recommendation has to do with the need to maintain the mixed research approach that was used. This is because combining data collection from both customers and staff ensured that a very balanced discussion on the issue of the impact of rebranding on brand equity, customer perception and retention could be achieved. However, as mixed research is maintained, it will be important to expand the sample size that was used in both cases. On the part of customers, expanding the sample size from 50 to 100 will be recommended. On the part of the managers, it is suggested that a minimum of 10 managers be engaged in the study. While doing this, it will be important that the sample will be selected from as many locations of the country as possible. As this study used only five shops, there is the challenge with expanding the results to cover all customers of the company.

There are also some implications that findings of the study could be useful for managers. With the established understanding of the connection between corporate rebranding and brand equity, customer perception and retention, it is expected that management of the newly branded company will make the following implications. First, managers must continue to research on the impact of the rebranding that took place on the rebranded companys customer perception, brand equity and retention. In this way, they will be able to see how they will capitalise on excellent old brand equity or properly address negative old brand equity. Second it is important for management to appreciate the fact that customer, shareholder, workers sentiments, perspectives, and other stakeholders perception are critical in rebranding. Integrating their viewpoints can assist in developing appropriate actions that may ensure the success of rebranding. The customers wait and see attitude, suspension of judgment regarding the rebranding, workers apprehension and issue of job security are critical elements.

Third, since, one of the most important goals of rebranding is customers retention, management must be aware of the old brand equity of the corporate brand and on how it is accepted by all of the firms stakeholders. The gained knowledge that results from this can then be incorporated in their decision to rebrand. Finally, management must appreciate the fact that corporate rebranding is not the panacea for bad brand equity but it can be a very strong strategic approach if there is effective alignment of the old and new brand equity. It is important to align customer and other stakeholders perception, as well as organisational value, ethos, goals, culture, and time in order to ensure the overall perception of rebranding in the public domain.

5.2 Limitation of the study

Although the study has provided insights into the intricate connexion among corporate rebranding, brand equity and customer perception and retention, the study would have been enriched if a comparative study, with empirical data, from a corporate rebranding that failed had enriched the study and findings. Since, a comparison of the events would have been made possible. However, due to time limitation and budget, this was not feasible. From this perspective, future study regarding this topic should do well based on comparative study of failed and successful corporate rebranding in order to be able to identify various nuances and factors contributing to divergent results of the same phenomenon corporate rebranding.

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