CORPORATE VISUAL IDENTITY SYSTEMS AND BRAND PERFORMANCE OF KENYAN UNIVERSITIES By Dr. Tabitha W. Waithaka Prof. Francis N. Kibera Prof. Justus M. Munyoki Paper presented during the 1 ST DBA African Management Review International Conference held on 20 th March 2015 at the School of Business, University of Nairobi, Kenya
Introduction Ø The pressure of globalization coupled with rapid technological development has generated a situation where customers buy the organization that makes the product mainly its character, its size, its identity and the confidence it inspires hence the need for organizations to project a favorable image. Ø At the centre of an organization’s projected image is its corporate visual identity systems (CVIS). Ø Corporate visual identity expresses the values and ambitions of an organization, its business and its characteristics. CVISs are promoted as an aid to selling organizations to their customers and other stakeholders globally and plays a significant role in the way an organization presents itself to both internal and external stakeholders hence impacts on performance. Ø Brand performance refers to how successful a brand is in the market and provides an evaluation of its strategic success (Coleman, 2004).
Ø Marketing scholars and practitioners agree that a successful brand is a valuable asset and source of competitive advantage and a valuable tool for investors, employees and consumers. Ø Brand performance is influenced by corporate visual identify systems (Fombrun and Van Riel, 2004; Van den Bosch et al. , 2005; Souiden et al. , 2006). Ø Organisations are increasingly realising that corporate identity is indispensable if they wish to create a competitive advantage in the global environment in which they are operating in. Ø Globalization of the higher education sector implies that Kenyan universities need to market themselves in a climate of competition that is not only local but global. They have to attract high quality students and academic staff at an international level hence competition is no longer limited within national borders. Ø Faced with competition, universities are developing strategies for survival such as management of corporate visual identity systems in order to positively impact on their performance and gain a competitive advantage.
Ø The emphasis on competitive advantage could appreciated by looking at the amount of money spent by companies on re-branding and updating their image in search of distinctiveness. For instance British Airways changed its designs from a distinctive and well-known logo to a diverse set of designs trying to appeal to the global market (Schmidt, 1995). Ø Similarly, BP is is understood to have invested over $US 7 m on the promotion of its corporate identity in the year 2000(Melewar and Wooldridge, 2001). Ø British Telecom committed over £ 5 m on its corporate visuals and appearance in an effort to mark its entry into new businesses and to signify the internationalization of its personality (Melewar, 2008).
Ø Despite being championed by designers and adopted by many leading organizations, the concept of corporate visual identity systems and performance studies seem to be focused more on western contexts. Ø The study objective therefore is to establish the influence of Corporate Visual Identity Systems on the Brand Performance of Kenyan Universities.
Literature Review Ø Corporate visual identity Systems (CVIS) is a tangible asset which can be used to represent the organization. Ø Key elements of corporate visual identity systems are the corporate name, logo, corporate slogan, typography, color, stationery, printed materials such as brochures and leaflets, advertisements, websites, vehicles, buildings, interiors, and corporate clothing as well as architectural buildings. Ø In general terms, a CVIS expresses the values and ambitions of an organization, its business, and its characteristics.
The extant literature point to the influence of CVIS on an organization’s performance. Ø Boyle (1996) points out that the brand’s visual identity helps overcome intangibility in terms of consumers being able to differentiate between brands. Ø Balmer and Gray (2000) similarly observes the significant role played by corporate visual identity in enabling organizations to effectively present themselves to both internal and external stakeholders. Ø This view is supported by Van den Bosch et al (2005) who conducted a study exploring the possible relationship between corporate visual identity and reputation and concluded that visual identity plays a supportive role in corporate reputations and brand’s name and logo as visual cues are important drivers of brand awareness. Ø de. Chernatony (2006) add that for service brands, physical cues such as the logo, clothes employees wear and premises help to distinguish organizations.
Ø This is further supported by Souiden et al. (2006) empirical study on corporate branding dimensions on consumers’ product evaluation that was based on a sample of 218 Japanese and American consumers. Ø The corporate name was found to have a direct, positive and significant effect (p < 0. 001) on consumers’ product evaluations. Ø Previous theoretical and empirical studies have led support to the positive relationship between corporate identity and performance in the developed world. However, the contextual differences make generalization of findings difficult.
Conceptual Framework and Hypotheses The relationships between the independent variable corporate visual identity systems comprising corporate name, logo, symbol, typography and color and the dependent variable consisting of various brand performance measures are depicted in Figure 1: Conceptual Model Independent Variable Dependent Variable Corporate Visual Identify Systems • Corporate name • Logo • Symbol • Typography • Color H Brand Performance • Custom measure • Employee measure • Effectiveness • Efficiency • Relevance • Research and publications and CSR activities • Financial viability
From the conceptual model depicted in Figure 1, brand performance is directly influenced by corporate identity visual systems. The hypothesis is derived from the literature and can be stated as follows: H: There is a statistically significant relationship between corporate identity visual systems and brand performance of Kenyan universities.
Methodology Ø The study adopted a descriptive cross sectional census survey design on all Kenyan universities. Ø Key informants in each university were surveyed mainly the corporate affairs managers or their equivalent. Ø The questionnaire was pretested for validity by subjecting it to a pilot test to check for any weaknesses in design and development of the questionnaire by administering to conveniently selected respondents of at least five universities Ø Reliability was tested using the Cronbach alpha which was found to be above 0. 7 the cutoff for the study.
Ø Descriptive analyses were conducted to arrive at the profiles of the respondent firms on the study variables. The questions were anchored on a five point rating scale. Ø The study adopted a mean score of> 4. 50 to be agree to a very large extent, between 3. 50 and 4. 49 means that the respondents agree to a large extent, between 2. 50 and 3. 49 means moderately agree, between 1. 50 and 2. 49 means agree to a small extent while a score of between 0 and 1. 45 means that respondents did not agree at all. Ø Regression analyses was carried out to assess the relationship Corporate Visual Identity Systems and Brand Performance.
Summary of descriptive statistics of Corporate Visual Identity Systems CV Corporate Visual Identity Systems Percentage Mean Standard (%) N Score Deviation 39 3. 74 . 715 19. 1. University promotes visual identity as a way of 39 3. 72 . 647 17. 4 39 3. 67 . 621 16. 9 3. 708 0. 664 17. 9 University standardizes visual identity to positively impact on sales consumer goodwill and awareness The university's name and logo is a driver of brand awareness and choice engineering a sense of company pride Logos favorably influence brand selection and institutional evaluation University ensures design, decor, architectural buildings and employee presentation favorably enhances its image and performance Grand Mean Score
Ø The results reveal a grand mean score of 3. 7 and coefficient of variation (CV) =17. 9 % indicating that the answers given by the respondents were generally in agreement. Ø Universities being keen to manage their corporate visual identity in terms of CVI standardization, name, logo design and décor and university standardization of corporate visual identity systems as well as name and logo being driver of brand awareness and choice were rated highest with a mean score of 3. 74 respectively. Ø This could be attributed to their distinguishing role and power of enabling universities to accomplish visibility goals across international borders
Ø Van den Bosch et al. (2005) points out that a brand’s name and logo as visual cues are important drivers of brand awareness. Fombrun and Van Riel (2004) also assert that logos provide organizations visibility and recognizability power Ø University ensuring design, decor, architectural buildings and employee presentation favorably enhances its image and performance had a means score rating of 3. 67 and CV (16. 9%). Ø This illustrate CVIS is a lot more than just a logo additional visual elements such as design, decor, architectural buildings and employee presentation also help to build up university’s image among stakeholders influencing the faculty and students choice of a university.
Ø The current study conceptualized brand from an organization’s perspectives focusing on characteristics of the organization in order to provide credibility of its products or services. Ø To enable organizations to compete in today’s competitive and complex environment, regular and reliable feedback on their performance is vital. Ø The relevant literature acknowledges an absence of a single metric that can perfectly measure brand performance and argue that a universal measure does not exist (de Chernatony et al. , 2004; Lehmann et al. , 2008, & Farris et al. , 2008).
Ø Brand performance was measured using both subjective and financial measures. Customer centric measures that included brand awareness and brand loyalty were included to reflect the central role of customers (Aaker, 1996; Guenzi and Pelloni, 2004). Ø Employee measures were included given the essential role that employees play in the provision of services (Balmer and Greyser, 2006; Berry and Seltman, 2007; de Chernatony and Cottam, 2008). Ø Organization effectiveness was used to reflect degree to which universities moved toward attainment of mission and goal realization Ø Efficiency to ensure provision of services to customers within an appropriate cost structure, relevance as a measure of how well universities mission continued to serve the purpose it was intended for Ø Research and publications and CSR activities as an indication of universities research output and engagement in CSR activities.
Summary of Subjective Brand Performance Measures Subjective Brand Performance Indicators Mean Standard CV (%) score N Deviation Percentage Brand loyalty 39 3. 73 . 635 17. 0 Brand awareness 39 3. 68 . 657 17. 9 Employee satisfaction 39 3. 495 . 564 16. 2 Effectiveness of the organization 39 3. 452 . 645 18. 9 Efficiency of the organization 39 3. 754 . 552 14. 2 Relevance of the organization 39 3. 679 . 557 15. 2 Research and publications and 39 3. 355 . 706 21. 1 3. 59 . 617 17. 2 CSR activities Average of Grand Mean Scores
Ø The summary results of subjective brand performance measure show a grand mean score of 3. 59 indicating that the respondents were generally in agreement. Ø Efficiency of the organization had the highest mean score of 3. 75 followed by brand loyalty 3. 73 and relevance of the university with mean score rating of 3. 68. Ø Research and publications and CSR activities had relatively low mean score rating of 3. 36 and also had the highest average variability in responses (CV =21. 1%). Ø This suggests a moderate engagement in research and CSR activities by the universities.
Ø Financial measures of brand performance were also incorporated. Ø Ambler and Oktemgil (2003) point out the need to incorporate financial measures owing to the growing role they play in justifying marketing expenditures and for analyzing previous activities of an organization Ø The financial position of the university reflects its cash flow and the extent to which the university is able to finance recurrent expenditures. It also reflects extent of debts, liabilities and the asset that the university has Ø The respondents had therefore been asked to indicate extent to which they agreed with a number of statements regarding university’s financial viability. The relevant responses are summarized
Financial position of the university Response (Yes/No) Number of Percentage universities Debt is greater than No 5 13 equity Yes 34 87 Total 39 100 Cash flow is enough No 32 82 o finance recurrent Yes 7 18 Total 39 100 Current assets are No 14 36 greater than current Yes 25 64 iabilities Total 39 100 The university is able No 27 69 o meet its current Yes 12 31 Total 39 100 expenditure paying part like time ecturers obligations
Ø The results reveal that 87% of the universities had debt greater than equity Ø About 82 % of the universities revealed that Cash flow is not enough to finance recurrent expenditure. Ø 36% indicated that current assets were greater than current liabilities while 69 % indicated that they were not able to meet their current obligation.
Regression Analyses and Hypothesis Testing Ø The objective of the study was to assess the direct relationship between Corporate Visual identity Systems and Brand Performance of Kenyan universities. Ø To assess the corporate visual identity systems and brand performance of Kenyan universities, the following hypothesis was tested. Ø H 1: There is a statistically significant relationship between corporate visual identity systems and brand performance of Kenya Universities Ø The hypothesis that there is a statistically significant relationship between corporate visual identity systems and brand performance of Kenyan universities was supported by the following results.
Discussion The study established a positive and significant relationship between CVIS and Brand Performance. The results are consistent with previous studies. Schultz, Hatch and Larsen (2000) observe that CVIS symbolizes an organization for external stakeholders and hence contributes to its image and reputation. Fombrun and Van Riel (2004) assert that organizations are recognized globally through their logos while Van den Bosch et al. ’s (2005) assert that visual identity plays a supportive role in corporate reputations. Similarly, Souiden et al. (2006) established that corporate name had a direct, positive and significant effect on consumers’ product evaluations
Conclusion Ø The study investigated the relationship between CVIS and Brand performance of Kenyan universities and established that CVIS influences Brand Performance. Ø Corporate visual identity systems plays a significant role in ensuring effective presentation of to both internal and external stakeholders. Ø It provides an organization with visibility and makes it easy to be recognized hence contributes to its image and reputation which is essential in a competitive global environment. Ø The results suggest the need to manage corporate visual identity systems in order to positively impact on organizations corporate image and performance.
Implications of the Research Findings Ø The findings contribute to the general body of knowledge especially in the higher education sector. Kenyan universities are expected to play a vital role in the Country’s attainment of Vision 2030. Ø The higher education sector has been identified as one of the priority sectors under the economic pillar of Vision 2030 because of its expected contribution in providing globally competitive quality education, training and research for the development of the country. Ø The results of the study are expected to inform policy formulation and implementation of CVIS given its role in enhancing performance. The research provides a strong indication that CVIS contributes to Brand Performance.
Limitations of the Study Ø First is the reliance on a single key informant per university who may have a skewed or inflated perspective of the study variables Ø The study adopted cross-sectional research design in establishing and making causal statements about the hypothesized relationships between the variables. Using quantitative research along with qualitative research such as focus group sessions and structured interviews could provide richer data and greatly support the research design and the findings. Ø The study focused on Kenyan universities only making generalization of study results difficult Ø Future studies could focus on other sectors other than the higher education sector. Studies could also be focused on students being the universities customers. The study was limited to Kenyan universities. A replication can be undertaken with all universities being included
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