Abstract:
In the present study, we intend to contribute to the rebranding literature by investigating: (a) the relative change in customer based brand equity (CBBE) of a brand before and post an evolutionary rebranding announcement; (b) the relative change in CBBE with respect to the market position of the brand (leader/follower) in case of evolutionary rebranding; and (c) the relative effect of a specific type of change in brand element (logo and/or slogan) on the consumer attitudes and CBBE. We use cue utilization theory and information integration theory along with rebranding literature to establish our hypotheses. We test our hypotheses using a 2 × 2 (with repeat measures) and a 2 × 3 full factorial design in succession. We find the CBBE of an established brand to diminish following rebranding news while that of a less-established brand to be enhanced. We also find a differential effect of the rebranding types on the consumer attitudes and CBBE that is subject to the relative brand position in the market. The academic implications of the study lie in the exploration of the effects of rebranding on consumers. The practitioner implications include suggestions for the effective use of rebranding as a strategy.